gouri shankar latest modified report 15.11.09

116
CONTENT CHAPTERS PAGE. NO. CHAPTER-1…………………………………………………………………………..(03-27) An over view of Agriculture Industry. Introduction to the industry. World scenario. Indian scenario. Recent trend. Problem/scope. Industry scenario in East, West, North, South. Industrial scenario in Kanpur. About the organization. Government policies relation to the farming industry. Environmental study. CHAPTER – 2…………………………………………………………...(28-40) About the company History & Evolution Company profile. Development/CSR. About competitors. Major competitors. SWOT analysis. CHAPTER – 3…………………………………………………………(41-52) Product and Technology Product philosophy. Product profile & product variance. Product features. Target customers. 1 Rourkela Institute of Management Studies, Rourkela

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Page 1: Gouri Shankar Latest Modified Report 15.11.09

CONTENT

CHAPTERS PAGE NO

CHAPTER-1helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(03-27)

An over view of Agriculture Industry Introduction to the industry World scenario Indian scenario Recent trend Problemscope Industry scenario in East West North South Industrial scenario in Kanpur About the organization Government policies relation to the farming industry Environmental study

CHAPTER ndash 2helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(28-40)

About the company History amp Evolution Company profile DevelopmentCSR About competitors Major competitors SWOT analysis

CHAPTER ndash 3helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(41-52)

Product and Technology Product philosophy Product profile amp product variance Product features Target customers Technology using by company

1 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(53-58)

Research design amp methodology Objective of the study Present strategy use by company Methodology Sources of Data (primary and secondary) Limitation of study

CHAPTER ndash 5helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(59-65)

Data analysis amp interpretation

CHAPTER- 6helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(66-67)

Findings

CHAPTER ndash 7helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(68-69)

Suggestion amp recommendation

CHAPTER-8helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(70-71)

Conclusion

CHAPTER ndash 9helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(72-76)

Bibliography

CHAPTER ndash 10helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(77-80)

Appendix

2 Rourkela Institute of Management Studies Rourkela

CHAPTER-1

An over view of Agriculture Industry(POTATO)

3 Rourkela Institute of Management Studies Rourkela

INTRODUTION TO THE POTATO MARKET

Potato (Solanum tuberosum L) popularly known as lsquoThe king of vegetablesrsquo has emerged

as fourth most important food crop in India after rice wheat and maize Indian vegetable

basket is incomplete without Potato Because the dry matter edible energy and edible protein

content of potato makes it nutritionally superior vegetable as well as staple food not only in

our country but also throughout the world Now it becomes as an essential part of breakfast

lunch and dinner worldwide Being a short duration crop it produces more quantity of dry

matter edible energy and edible protein in lesser duration of time than cereals like rice and

wheat Hence potato may prove to be a useful tool to achieve the nutritional security of the

nation It has been observed that during present trend of diversification from cereals to

horticultural crops shifting from wheat barley cultivation to potato cultivation returns more

to the farmers Potato is a major food crop grown more than 100 countries in world The

native South Americans brought Potato under cultivation possibly 2000 years before the

Spanish conquest In 1537 the Spaniards first came into contact with potato in one of the

villages of Andes In Europe it was introduced of between 1580 AD to 1585 AD in Spain

Portugal Italy France Belgium and Germany At present China Russia India Poland and

USA contribute a major share of total world production It was introduced in India by the

Portuguese sailors during early 17th century and itrsquos cultivation was spread to North India by

the British Potato is one of main commercial crop grown in the country It is cultivated in 23

states in India Uttar Pradesh West Bengal Bihar Punjab and Gujarat account a lionrsquos share

in total production Country has achieved a tremendous growth in potato production during

last four to five decades The annual compound growth rate of potato is higher than other

major food crops in respect of area production and productivity In the year 2002-2003 the

production was 25 million tones while it was 5 million tones during 1970 Hence owing its

significant growth in production bumper yields have been observed almost in every year

Due to the bumper crop and lack of post harvest management glut situations raised in the

market for the surplus yield every year which ultimately results in decline the prices

drastically

Varieties like Kufri Chipsona-1 Kufri Chipsona-2 Kufri Jyoti Kufri Luvkar Kufri

4 Rourkela Institute of Management Studies Rourkela

Chandramukhi have been released recently by different research organizations for processing

purposes In India there is a great scope for cultivation of potato suitable for processing

Further there is a rising demand for quality processed potato products from the country

particularly in Middle East The countries like Japan Singapore Korea

Malaysia China also has a great demand for processed potato products as well as fresh potato

for processing purpose Thus the potato processing has opened a new dimension for

development of agro based industries in the country

Indian potato preferred world wise for its taste and meets the international quality standards

in terms of disease freeness shape size skin color flesh and dry matter content The

Government of India has set up four Agri Export Zones (AEZs) in Punjab West Bengal

Uttar Pradesh and Madhya Pradesh for significant development in this direction These AEZs

are making effort in strengthening and creating infrastructure for export of fresh and

processed potato products with the mandate for tackling the export of potato and itrsquos

products The main objectives of the Agri Export Zones set up is to provide emphasis on

partnership convergence of different organizations stakeholders with a focus on providing a

package of facilities for export of potato

ORIGIN

It is believed that potato was a native of Andes in South America and gradually spread

throughout the world

ImportanceBillion people the world over It is a high quality vegetable cum food crop and used in

preparing more than 100 types of recipes in India The popular Indian recipes like Samosas

and Alu Paranthas are prepared from potato The protein of potato has high biological value

than proteins of cereals and even better than that of milk The biological value of mixture of

egg and potato is higher than the egg alone Hence potato can be supplement of meat and

milk products for improving their taste lowering energy intake and reducing food cost

Nutritional point of view potato is a wholesome food and deserves to be promoted as a

potential high quality vegetable cum food crop in the country

5 Rourkela Institute of Management Studies Rourkela

Nutritive Value

The constituents of potato per 100 gms

SlNo Constituents Weight (grams)

1 Water 7470

2 Carbohydrates (Starch and Sugar) 2260

3 Proteins 160

4 Fibre 040

5 Fat 010

6 Minerals 060

Source Potato in India Central Potato Research Institute (CPRI) Shimla

The Minerals and Vitamins as available in Potato is given below

SlNo Minerals Vitamins Content (mg100 gm of fresh weight)

1 Calcium 77

2 Copper 015

3 Iron 075

4 Magnesium 242

5 Phosphorus 403

6 Potassium 5680

7 Sodium 65

8 Vitamin C 140 ndash 250

9 Thiamin 018

10 Riboflavin 001-007

11 Niacin 04 ndash31

12 Total Folate 50-350

13 Pyridoxine 013-025

Source Potato in India Central Potato Research Institute (CPRI) Shimla

6 Rourkela Institute of Management Studies Rourkela

It is utilized in variety of ways such as preparation of chips wafers flakes granules flour

starch potato-custard powder soup or gravy thickener pan cakes as a process food As being

one of the principal cash crop it gives handsome returns to the growersfarmers due to itrsquos

wide market demand nationally and internationally for different kinds of utilization Further it

has been reported by the International Food Policy Research Institute (IFPRI) and

International Potato Centre (CIP) India is likely to have highest growth rate of potato

production and productivity during 1993 to 2020 During the same period demand for potato

is expected to rise by 40 per cent world wide This indicates that a picture about a clear

opportunity to capture the huge domestic and international market of potato by producing

quality potato and its products

7 Rourkela Institute of Management Studies Rourkela

WORLD SCENARIO

Major producing countries in the world

Potato is grown in more than 100 countries in the world with a production of around 321

thousand tones during the year 2004 China ranks first while Russia and India ranks second

and third respectively China India USA Ukraine Germany and Poland shared more than

62 per cent of total global production as can be seen from

The country wise production during 2002-04 is furnished as under-

PRODUCTION OF MAJOR POTATO PRODUCING

COUNTRIES

(DURING 2002-04)

Production 000rsquo tonnes

1 COUNTRY YEAR PRODUCTION

2 2002 2003 2004

3 China 75268 72067 75048

4 Russia 32871 36746 37000

5 India 24450 25000 25000

6 USA 20857 20767 20149

7 Ukraine 16620 18453 19450

8 Germany 11492 10232 12992

9 Poland 15524 13731 15000

10 Others 131784 121291 117046

11 All World 328866 318287 321685

Source FAOSTAT

8 Rourkela Institute of Management Studies Rourkela

EXPORT AND IMPORT

Export

Indian potatoes have immense export potential It has a price advantage over European

counterpart because of lower production cost and due to short crop duration and cheap labor

The king of vegetables Indian potato has the quality for its savory taste with exuberant

varieties The country is also blessed with natural abode of some of the best varieties of

potatoes in the world Besides it has the potential to emerge as one of the largest supplier of

seed potato

The Indian table potatoes dominate the export by about 50 per cent of total potato export

followed by frozen potatoes about 28 per cent seed potatoes about 10 per cent chip fried

about 8 per cent and other frozen preparation nearly 3 per cent

Import

India also imports potato from neighboring countries eg Bhutan Myanmar etc to some

extent The details are furnished below

Commodity Year Quantity in Kgs Value in Rs lakh

Potatoes fresh or chilled 2004-2005 4813220 27608774

9 Rourkela Institute of Management Studies Rourkela

INDIAN SENARIO

Major producing states in India

In India potato is cultivated in almost all states and under very diverse agro climate

conditions About 85 per cent of potatoes are cultivated in Indo-gangetic plains of North

India The states of Uttar Pradesh West Bengal Punjab Bihar and Gujarat accounted for

more than 80 per cent share in total production The state wise production is furnished as

under

Source National Horticulture Board (NHB)

10 Rourkela Institute of Management Studies Rourkela

PRODUCTION OF MAJOR POTATO PRODUCING

STATES

(DURING 2003-04 amp 2004-05)

Production 000rsquo tonne

SlNo STATE YEAR PRODUCTION

2003-04 2004-05

1 Uttar Pradesh 682560 982170

2 West Bengal 759170 710660

3 Bihar 565670 565670

4 Punjab 143970 147020

5 Gujarat 78000 97820

6 Others 563210 415520

7 All India 2792580 2918860

RESCENT TREND

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum subrogation curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

11 Rourkela Institute of Management Studies Rourkela

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 2: Gouri Shankar Latest Modified Report 15.11.09

CHAPTER ndash 4helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(53-58)

Research design amp methodology Objective of the study Present strategy use by company Methodology Sources of Data (primary and secondary) Limitation of study

CHAPTER ndash 5helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(59-65)

Data analysis amp interpretation

CHAPTER- 6helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(66-67)

Findings

CHAPTER ndash 7helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(68-69)

Suggestion amp recommendation

CHAPTER-8helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(70-71)

Conclusion

CHAPTER ndash 9helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(72-76)

Bibliography

CHAPTER ndash 10helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip(77-80)

Appendix

2 Rourkela Institute of Management Studies Rourkela

CHAPTER-1

An over view of Agriculture Industry(POTATO)

3 Rourkela Institute of Management Studies Rourkela

INTRODUTION TO THE POTATO MARKET

Potato (Solanum tuberosum L) popularly known as lsquoThe king of vegetablesrsquo has emerged

as fourth most important food crop in India after rice wheat and maize Indian vegetable

basket is incomplete without Potato Because the dry matter edible energy and edible protein

content of potato makes it nutritionally superior vegetable as well as staple food not only in

our country but also throughout the world Now it becomes as an essential part of breakfast

lunch and dinner worldwide Being a short duration crop it produces more quantity of dry

matter edible energy and edible protein in lesser duration of time than cereals like rice and

wheat Hence potato may prove to be a useful tool to achieve the nutritional security of the

nation It has been observed that during present trend of diversification from cereals to

horticultural crops shifting from wheat barley cultivation to potato cultivation returns more

to the farmers Potato is a major food crop grown more than 100 countries in world The

native South Americans brought Potato under cultivation possibly 2000 years before the

Spanish conquest In 1537 the Spaniards first came into contact with potato in one of the

villages of Andes In Europe it was introduced of between 1580 AD to 1585 AD in Spain

Portugal Italy France Belgium and Germany At present China Russia India Poland and

USA contribute a major share of total world production It was introduced in India by the

Portuguese sailors during early 17th century and itrsquos cultivation was spread to North India by

the British Potato is one of main commercial crop grown in the country It is cultivated in 23

states in India Uttar Pradesh West Bengal Bihar Punjab and Gujarat account a lionrsquos share

in total production Country has achieved a tremendous growth in potato production during

last four to five decades The annual compound growth rate of potato is higher than other

major food crops in respect of area production and productivity In the year 2002-2003 the

production was 25 million tones while it was 5 million tones during 1970 Hence owing its

significant growth in production bumper yields have been observed almost in every year

Due to the bumper crop and lack of post harvest management glut situations raised in the

market for the surplus yield every year which ultimately results in decline the prices

drastically

Varieties like Kufri Chipsona-1 Kufri Chipsona-2 Kufri Jyoti Kufri Luvkar Kufri

4 Rourkela Institute of Management Studies Rourkela

Chandramukhi have been released recently by different research organizations for processing

purposes In India there is a great scope for cultivation of potato suitable for processing

Further there is a rising demand for quality processed potato products from the country

particularly in Middle East The countries like Japan Singapore Korea

Malaysia China also has a great demand for processed potato products as well as fresh potato

for processing purpose Thus the potato processing has opened a new dimension for

development of agro based industries in the country

Indian potato preferred world wise for its taste and meets the international quality standards

in terms of disease freeness shape size skin color flesh and dry matter content The

Government of India has set up four Agri Export Zones (AEZs) in Punjab West Bengal

Uttar Pradesh and Madhya Pradesh for significant development in this direction These AEZs

are making effort in strengthening and creating infrastructure for export of fresh and

processed potato products with the mandate for tackling the export of potato and itrsquos

products The main objectives of the Agri Export Zones set up is to provide emphasis on

partnership convergence of different organizations stakeholders with a focus on providing a

package of facilities for export of potato

ORIGIN

It is believed that potato was a native of Andes in South America and gradually spread

throughout the world

ImportanceBillion people the world over It is a high quality vegetable cum food crop and used in

preparing more than 100 types of recipes in India The popular Indian recipes like Samosas

and Alu Paranthas are prepared from potato The protein of potato has high biological value

than proteins of cereals and even better than that of milk The biological value of mixture of

egg and potato is higher than the egg alone Hence potato can be supplement of meat and

milk products for improving their taste lowering energy intake and reducing food cost

Nutritional point of view potato is a wholesome food and deserves to be promoted as a

potential high quality vegetable cum food crop in the country

5 Rourkela Institute of Management Studies Rourkela

Nutritive Value

The constituents of potato per 100 gms

SlNo Constituents Weight (grams)

1 Water 7470

2 Carbohydrates (Starch and Sugar) 2260

3 Proteins 160

4 Fibre 040

5 Fat 010

6 Minerals 060

Source Potato in India Central Potato Research Institute (CPRI) Shimla

The Minerals and Vitamins as available in Potato is given below

SlNo Minerals Vitamins Content (mg100 gm of fresh weight)

1 Calcium 77

2 Copper 015

3 Iron 075

4 Magnesium 242

5 Phosphorus 403

6 Potassium 5680

7 Sodium 65

8 Vitamin C 140 ndash 250

9 Thiamin 018

10 Riboflavin 001-007

11 Niacin 04 ndash31

12 Total Folate 50-350

13 Pyridoxine 013-025

Source Potato in India Central Potato Research Institute (CPRI) Shimla

6 Rourkela Institute of Management Studies Rourkela

It is utilized in variety of ways such as preparation of chips wafers flakes granules flour

starch potato-custard powder soup or gravy thickener pan cakes as a process food As being

one of the principal cash crop it gives handsome returns to the growersfarmers due to itrsquos

wide market demand nationally and internationally for different kinds of utilization Further it

has been reported by the International Food Policy Research Institute (IFPRI) and

International Potato Centre (CIP) India is likely to have highest growth rate of potato

production and productivity during 1993 to 2020 During the same period demand for potato

is expected to rise by 40 per cent world wide This indicates that a picture about a clear

opportunity to capture the huge domestic and international market of potato by producing

quality potato and its products

7 Rourkela Institute of Management Studies Rourkela

WORLD SCENARIO

Major producing countries in the world

Potato is grown in more than 100 countries in the world with a production of around 321

thousand tones during the year 2004 China ranks first while Russia and India ranks second

and third respectively China India USA Ukraine Germany and Poland shared more than

62 per cent of total global production as can be seen from

The country wise production during 2002-04 is furnished as under-

PRODUCTION OF MAJOR POTATO PRODUCING

COUNTRIES

(DURING 2002-04)

Production 000rsquo tonnes

1 COUNTRY YEAR PRODUCTION

2 2002 2003 2004

3 China 75268 72067 75048

4 Russia 32871 36746 37000

5 India 24450 25000 25000

6 USA 20857 20767 20149

7 Ukraine 16620 18453 19450

8 Germany 11492 10232 12992

9 Poland 15524 13731 15000

10 Others 131784 121291 117046

11 All World 328866 318287 321685

Source FAOSTAT

8 Rourkela Institute of Management Studies Rourkela

EXPORT AND IMPORT

Export

Indian potatoes have immense export potential It has a price advantage over European

counterpart because of lower production cost and due to short crop duration and cheap labor

The king of vegetables Indian potato has the quality for its savory taste with exuberant

varieties The country is also blessed with natural abode of some of the best varieties of

potatoes in the world Besides it has the potential to emerge as one of the largest supplier of

seed potato

The Indian table potatoes dominate the export by about 50 per cent of total potato export

followed by frozen potatoes about 28 per cent seed potatoes about 10 per cent chip fried

about 8 per cent and other frozen preparation nearly 3 per cent

Import

India also imports potato from neighboring countries eg Bhutan Myanmar etc to some

extent The details are furnished below

Commodity Year Quantity in Kgs Value in Rs lakh

Potatoes fresh or chilled 2004-2005 4813220 27608774

9 Rourkela Institute of Management Studies Rourkela

INDIAN SENARIO

Major producing states in India

In India potato is cultivated in almost all states and under very diverse agro climate

conditions About 85 per cent of potatoes are cultivated in Indo-gangetic plains of North

India The states of Uttar Pradesh West Bengal Punjab Bihar and Gujarat accounted for

more than 80 per cent share in total production The state wise production is furnished as

under

Source National Horticulture Board (NHB)

10 Rourkela Institute of Management Studies Rourkela

PRODUCTION OF MAJOR POTATO PRODUCING

STATES

(DURING 2003-04 amp 2004-05)

Production 000rsquo tonne

SlNo STATE YEAR PRODUCTION

2003-04 2004-05

1 Uttar Pradesh 682560 982170

2 West Bengal 759170 710660

3 Bihar 565670 565670

4 Punjab 143970 147020

5 Gujarat 78000 97820

6 Others 563210 415520

7 All India 2792580 2918860

RESCENT TREND

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum subrogation curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

11 Rourkela Institute of Management Studies Rourkela

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 3: Gouri Shankar Latest Modified Report 15.11.09

CHAPTER-1

An over view of Agriculture Industry(POTATO)

3 Rourkela Institute of Management Studies Rourkela

INTRODUTION TO THE POTATO MARKET

Potato (Solanum tuberosum L) popularly known as lsquoThe king of vegetablesrsquo has emerged

as fourth most important food crop in India after rice wheat and maize Indian vegetable

basket is incomplete without Potato Because the dry matter edible energy and edible protein

content of potato makes it nutritionally superior vegetable as well as staple food not only in

our country but also throughout the world Now it becomes as an essential part of breakfast

lunch and dinner worldwide Being a short duration crop it produces more quantity of dry

matter edible energy and edible protein in lesser duration of time than cereals like rice and

wheat Hence potato may prove to be a useful tool to achieve the nutritional security of the

nation It has been observed that during present trend of diversification from cereals to

horticultural crops shifting from wheat barley cultivation to potato cultivation returns more

to the farmers Potato is a major food crop grown more than 100 countries in world The

native South Americans brought Potato under cultivation possibly 2000 years before the

Spanish conquest In 1537 the Spaniards first came into contact with potato in one of the

villages of Andes In Europe it was introduced of between 1580 AD to 1585 AD in Spain

Portugal Italy France Belgium and Germany At present China Russia India Poland and

USA contribute a major share of total world production It was introduced in India by the

Portuguese sailors during early 17th century and itrsquos cultivation was spread to North India by

the British Potato is one of main commercial crop grown in the country It is cultivated in 23

states in India Uttar Pradesh West Bengal Bihar Punjab and Gujarat account a lionrsquos share

in total production Country has achieved a tremendous growth in potato production during

last four to five decades The annual compound growth rate of potato is higher than other

major food crops in respect of area production and productivity In the year 2002-2003 the

production was 25 million tones while it was 5 million tones during 1970 Hence owing its

significant growth in production bumper yields have been observed almost in every year

Due to the bumper crop and lack of post harvest management glut situations raised in the

market for the surplus yield every year which ultimately results in decline the prices

drastically

Varieties like Kufri Chipsona-1 Kufri Chipsona-2 Kufri Jyoti Kufri Luvkar Kufri

4 Rourkela Institute of Management Studies Rourkela

Chandramukhi have been released recently by different research organizations for processing

purposes In India there is a great scope for cultivation of potato suitable for processing

Further there is a rising demand for quality processed potato products from the country

particularly in Middle East The countries like Japan Singapore Korea

Malaysia China also has a great demand for processed potato products as well as fresh potato

for processing purpose Thus the potato processing has opened a new dimension for

development of agro based industries in the country

Indian potato preferred world wise for its taste and meets the international quality standards

in terms of disease freeness shape size skin color flesh and dry matter content The

Government of India has set up four Agri Export Zones (AEZs) in Punjab West Bengal

Uttar Pradesh and Madhya Pradesh for significant development in this direction These AEZs

are making effort in strengthening and creating infrastructure for export of fresh and

processed potato products with the mandate for tackling the export of potato and itrsquos

products The main objectives of the Agri Export Zones set up is to provide emphasis on

partnership convergence of different organizations stakeholders with a focus on providing a

package of facilities for export of potato

ORIGIN

It is believed that potato was a native of Andes in South America and gradually spread

throughout the world

ImportanceBillion people the world over It is a high quality vegetable cum food crop and used in

preparing more than 100 types of recipes in India The popular Indian recipes like Samosas

and Alu Paranthas are prepared from potato The protein of potato has high biological value

than proteins of cereals and even better than that of milk The biological value of mixture of

egg and potato is higher than the egg alone Hence potato can be supplement of meat and

milk products for improving their taste lowering energy intake and reducing food cost

Nutritional point of view potato is a wholesome food and deserves to be promoted as a

potential high quality vegetable cum food crop in the country

5 Rourkela Institute of Management Studies Rourkela

Nutritive Value

The constituents of potato per 100 gms

SlNo Constituents Weight (grams)

1 Water 7470

2 Carbohydrates (Starch and Sugar) 2260

3 Proteins 160

4 Fibre 040

5 Fat 010

6 Minerals 060

Source Potato in India Central Potato Research Institute (CPRI) Shimla

The Minerals and Vitamins as available in Potato is given below

SlNo Minerals Vitamins Content (mg100 gm of fresh weight)

1 Calcium 77

2 Copper 015

3 Iron 075

4 Magnesium 242

5 Phosphorus 403

6 Potassium 5680

7 Sodium 65

8 Vitamin C 140 ndash 250

9 Thiamin 018

10 Riboflavin 001-007

11 Niacin 04 ndash31

12 Total Folate 50-350

13 Pyridoxine 013-025

Source Potato in India Central Potato Research Institute (CPRI) Shimla

6 Rourkela Institute of Management Studies Rourkela

It is utilized in variety of ways such as preparation of chips wafers flakes granules flour

starch potato-custard powder soup or gravy thickener pan cakes as a process food As being

one of the principal cash crop it gives handsome returns to the growersfarmers due to itrsquos

wide market demand nationally and internationally for different kinds of utilization Further it

has been reported by the International Food Policy Research Institute (IFPRI) and

International Potato Centre (CIP) India is likely to have highest growth rate of potato

production and productivity during 1993 to 2020 During the same period demand for potato

is expected to rise by 40 per cent world wide This indicates that a picture about a clear

opportunity to capture the huge domestic and international market of potato by producing

quality potato and its products

7 Rourkela Institute of Management Studies Rourkela

WORLD SCENARIO

Major producing countries in the world

Potato is grown in more than 100 countries in the world with a production of around 321

thousand tones during the year 2004 China ranks first while Russia and India ranks second

and third respectively China India USA Ukraine Germany and Poland shared more than

62 per cent of total global production as can be seen from

The country wise production during 2002-04 is furnished as under-

PRODUCTION OF MAJOR POTATO PRODUCING

COUNTRIES

(DURING 2002-04)

Production 000rsquo tonnes

1 COUNTRY YEAR PRODUCTION

2 2002 2003 2004

3 China 75268 72067 75048

4 Russia 32871 36746 37000

5 India 24450 25000 25000

6 USA 20857 20767 20149

7 Ukraine 16620 18453 19450

8 Germany 11492 10232 12992

9 Poland 15524 13731 15000

10 Others 131784 121291 117046

11 All World 328866 318287 321685

Source FAOSTAT

8 Rourkela Institute of Management Studies Rourkela

EXPORT AND IMPORT

Export

Indian potatoes have immense export potential It has a price advantage over European

counterpart because of lower production cost and due to short crop duration and cheap labor

The king of vegetables Indian potato has the quality for its savory taste with exuberant

varieties The country is also blessed with natural abode of some of the best varieties of

potatoes in the world Besides it has the potential to emerge as one of the largest supplier of

seed potato

The Indian table potatoes dominate the export by about 50 per cent of total potato export

followed by frozen potatoes about 28 per cent seed potatoes about 10 per cent chip fried

about 8 per cent and other frozen preparation nearly 3 per cent

Import

India also imports potato from neighboring countries eg Bhutan Myanmar etc to some

extent The details are furnished below

Commodity Year Quantity in Kgs Value in Rs lakh

Potatoes fresh or chilled 2004-2005 4813220 27608774

9 Rourkela Institute of Management Studies Rourkela

INDIAN SENARIO

Major producing states in India

In India potato is cultivated in almost all states and under very diverse agro climate

conditions About 85 per cent of potatoes are cultivated in Indo-gangetic plains of North

India The states of Uttar Pradesh West Bengal Punjab Bihar and Gujarat accounted for

more than 80 per cent share in total production The state wise production is furnished as

under

Source National Horticulture Board (NHB)

10 Rourkela Institute of Management Studies Rourkela

PRODUCTION OF MAJOR POTATO PRODUCING

STATES

(DURING 2003-04 amp 2004-05)

Production 000rsquo tonne

SlNo STATE YEAR PRODUCTION

2003-04 2004-05

1 Uttar Pradesh 682560 982170

2 West Bengal 759170 710660

3 Bihar 565670 565670

4 Punjab 143970 147020

5 Gujarat 78000 97820

6 Others 563210 415520

7 All India 2792580 2918860

RESCENT TREND

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum subrogation curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

11 Rourkela Institute of Management Studies Rourkela

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 4: Gouri Shankar Latest Modified Report 15.11.09

INTRODUTION TO THE POTATO MARKET

Potato (Solanum tuberosum L) popularly known as lsquoThe king of vegetablesrsquo has emerged

as fourth most important food crop in India after rice wheat and maize Indian vegetable

basket is incomplete without Potato Because the dry matter edible energy and edible protein

content of potato makes it nutritionally superior vegetable as well as staple food not only in

our country but also throughout the world Now it becomes as an essential part of breakfast

lunch and dinner worldwide Being a short duration crop it produces more quantity of dry

matter edible energy and edible protein in lesser duration of time than cereals like rice and

wheat Hence potato may prove to be a useful tool to achieve the nutritional security of the

nation It has been observed that during present trend of diversification from cereals to

horticultural crops shifting from wheat barley cultivation to potato cultivation returns more

to the farmers Potato is a major food crop grown more than 100 countries in world The

native South Americans brought Potato under cultivation possibly 2000 years before the

Spanish conquest In 1537 the Spaniards first came into contact with potato in one of the

villages of Andes In Europe it was introduced of between 1580 AD to 1585 AD in Spain

Portugal Italy France Belgium and Germany At present China Russia India Poland and

USA contribute a major share of total world production It was introduced in India by the

Portuguese sailors during early 17th century and itrsquos cultivation was spread to North India by

the British Potato is one of main commercial crop grown in the country It is cultivated in 23

states in India Uttar Pradesh West Bengal Bihar Punjab and Gujarat account a lionrsquos share

in total production Country has achieved a tremendous growth in potato production during

last four to five decades The annual compound growth rate of potato is higher than other

major food crops in respect of area production and productivity In the year 2002-2003 the

production was 25 million tones while it was 5 million tones during 1970 Hence owing its

significant growth in production bumper yields have been observed almost in every year

Due to the bumper crop and lack of post harvest management glut situations raised in the

market for the surplus yield every year which ultimately results in decline the prices

drastically

Varieties like Kufri Chipsona-1 Kufri Chipsona-2 Kufri Jyoti Kufri Luvkar Kufri

4 Rourkela Institute of Management Studies Rourkela

Chandramukhi have been released recently by different research organizations for processing

purposes In India there is a great scope for cultivation of potato suitable for processing

Further there is a rising demand for quality processed potato products from the country

particularly in Middle East The countries like Japan Singapore Korea

Malaysia China also has a great demand for processed potato products as well as fresh potato

for processing purpose Thus the potato processing has opened a new dimension for

development of agro based industries in the country

Indian potato preferred world wise for its taste and meets the international quality standards

in terms of disease freeness shape size skin color flesh and dry matter content The

Government of India has set up four Agri Export Zones (AEZs) in Punjab West Bengal

Uttar Pradesh and Madhya Pradesh for significant development in this direction These AEZs

are making effort in strengthening and creating infrastructure for export of fresh and

processed potato products with the mandate for tackling the export of potato and itrsquos

products The main objectives of the Agri Export Zones set up is to provide emphasis on

partnership convergence of different organizations stakeholders with a focus on providing a

package of facilities for export of potato

ORIGIN

It is believed that potato was a native of Andes in South America and gradually spread

throughout the world

ImportanceBillion people the world over It is a high quality vegetable cum food crop and used in

preparing more than 100 types of recipes in India The popular Indian recipes like Samosas

and Alu Paranthas are prepared from potato The protein of potato has high biological value

than proteins of cereals and even better than that of milk The biological value of mixture of

egg and potato is higher than the egg alone Hence potato can be supplement of meat and

milk products for improving their taste lowering energy intake and reducing food cost

Nutritional point of view potato is a wholesome food and deserves to be promoted as a

potential high quality vegetable cum food crop in the country

5 Rourkela Institute of Management Studies Rourkela

Nutritive Value

The constituents of potato per 100 gms

SlNo Constituents Weight (grams)

1 Water 7470

2 Carbohydrates (Starch and Sugar) 2260

3 Proteins 160

4 Fibre 040

5 Fat 010

6 Minerals 060

Source Potato in India Central Potato Research Institute (CPRI) Shimla

The Minerals and Vitamins as available in Potato is given below

SlNo Minerals Vitamins Content (mg100 gm of fresh weight)

1 Calcium 77

2 Copper 015

3 Iron 075

4 Magnesium 242

5 Phosphorus 403

6 Potassium 5680

7 Sodium 65

8 Vitamin C 140 ndash 250

9 Thiamin 018

10 Riboflavin 001-007

11 Niacin 04 ndash31

12 Total Folate 50-350

13 Pyridoxine 013-025

Source Potato in India Central Potato Research Institute (CPRI) Shimla

6 Rourkela Institute of Management Studies Rourkela

It is utilized in variety of ways such as preparation of chips wafers flakes granules flour

starch potato-custard powder soup or gravy thickener pan cakes as a process food As being

one of the principal cash crop it gives handsome returns to the growersfarmers due to itrsquos

wide market demand nationally and internationally for different kinds of utilization Further it

has been reported by the International Food Policy Research Institute (IFPRI) and

International Potato Centre (CIP) India is likely to have highest growth rate of potato

production and productivity during 1993 to 2020 During the same period demand for potato

is expected to rise by 40 per cent world wide This indicates that a picture about a clear

opportunity to capture the huge domestic and international market of potato by producing

quality potato and its products

7 Rourkela Institute of Management Studies Rourkela

WORLD SCENARIO

Major producing countries in the world

Potato is grown in more than 100 countries in the world with a production of around 321

thousand tones during the year 2004 China ranks first while Russia and India ranks second

and third respectively China India USA Ukraine Germany and Poland shared more than

62 per cent of total global production as can be seen from

The country wise production during 2002-04 is furnished as under-

PRODUCTION OF MAJOR POTATO PRODUCING

COUNTRIES

(DURING 2002-04)

Production 000rsquo tonnes

1 COUNTRY YEAR PRODUCTION

2 2002 2003 2004

3 China 75268 72067 75048

4 Russia 32871 36746 37000

5 India 24450 25000 25000

6 USA 20857 20767 20149

7 Ukraine 16620 18453 19450

8 Germany 11492 10232 12992

9 Poland 15524 13731 15000

10 Others 131784 121291 117046

11 All World 328866 318287 321685

Source FAOSTAT

8 Rourkela Institute of Management Studies Rourkela

EXPORT AND IMPORT

Export

Indian potatoes have immense export potential It has a price advantage over European

counterpart because of lower production cost and due to short crop duration and cheap labor

The king of vegetables Indian potato has the quality for its savory taste with exuberant

varieties The country is also blessed with natural abode of some of the best varieties of

potatoes in the world Besides it has the potential to emerge as one of the largest supplier of

seed potato

The Indian table potatoes dominate the export by about 50 per cent of total potato export

followed by frozen potatoes about 28 per cent seed potatoes about 10 per cent chip fried

about 8 per cent and other frozen preparation nearly 3 per cent

Import

India also imports potato from neighboring countries eg Bhutan Myanmar etc to some

extent The details are furnished below

Commodity Year Quantity in Kgs Value in Rs lakh

Potatoes fresh or chilled 2004-2005 4813220 27608774

9 Rourkela Institute of Management Studies Rourkela

INDIAN SENARIO

Major producing states in India

In India potato is cultivated in almost all states and under very diverse agro climate

conditions About 85 per cent of potatoes are cultivated in Indo-gangetic plains of North

India The states of Uttar Pradesh West Bengal Punjab Bihar and Gujarat accounted for

more than 80 per cent share in total production The state wise production is furnished as

under

Source National Horticulture Board (NHB)

10 Rourkela Institute of Management Studies Rourkela

PRODUCTION OF MAJOR POTATO PRODUCING

STATES

(DURING 2003-04 amp 2004-05)

Production 000rsquo tonne

SlNo STATE YEAR PRODUCTION

2003-04 2004-05

1 Uttar Pradesh 682560 982170

2 West Bengal 759170 710660

3 Bihar 565670 565670

4 Punjab 143970 147020

5 Gujarat 78000 97820

6 Others 563210 415520

7 All India 2792580 2918860

RESCENT TREND

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum subrogation curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

11 Rourkela Institute of Management Studies Rourkela

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 5: Gouri Shankar Latest Modified Report 15.11.09

Chandramukhi have been released recently by different research organizations for processing

purposes In India there is a great scope for cultivation of potato suitable for processing

Further there is a rising demand for quality processed potato products from the country

particularly in Middle East The countries like Japan Singapore Korea

Malaysia China also has a great demand for processed potato products as well as fresh potato

for processing purpose Thus the potato processing has opened a new dimension for

development of agro based industries in the country

Indian potato preferred world wise for its taste and meets the international quality standards

in terms of disease freeness shape size skin color flesh and dry matter content The

Government of India has set up four Agri Export Zones (AEZs) in Punjab West Bengal

Uttar Pradesh and Madhya Pradesh for significant development in this direction These AEZs

are making effort in strengthening and creating infrastructure for export of fresh and

processed potato products with the mandate for tackling the export of potato and itrsquos

products The main objectives of the Agri Export Zones set up is to provide emphasis on

partnership convergence of different organizations stakeholders with a focus on providing a

package of facilities for export of potato

ORIGIN

It is believed that potato was a native of Andes in South America and gradually spread

throughout the world

ImportanceBillion people the world over It is a high quality vegetable cum food crop and used in

preparing more than 100 types of recipes in India The popular Indian recipes like Samosas

and Alu Paranthas are prepared from potato The protein of potato has high biological value

than proteins of cereals and even better than that of milk The biological value of mixture of

egg and potato is higher than the egg alone Hence potato can be supplement of meat and

milk products for improving their taste lowering energy intake and reducing food cost

Nutritional point of view potato is a wholesome food and deserves to be promoted as a

potential high quality vegetable cum food crop in the country

5 Rourkela Institute of Management Studies Rourkela

Nutritive Value

The constituents of potato per 100 gms

SlNo Constituents Weight (grams)

1 Water 7470

2 Carbohydrates (Starch and Sugar) 2260

3 Proteins 160

4 Fibre 040

5 Fat 010

6 Minerals 060

Source Potato in India Central Potato Research Institute (CPRI) Shimla

The Minerals and Vitamins as available in Potato is given below

SlNo Minerals Vitamins Content (mg100 gm of fresh weight)

1 Calcium 77

2 Copper 015

3 Iron 075

4 Magnesium 242

5 Phosphorus 403

6 Potassium 5680

7 Sodium 65

8 Vitamin C 140 ndash 250

9 Thiamin 018

10 Riboflavin 001-007

11 Niacin 04 ndash31

12 Total Folate 50-350

13 Pyridoxine 013-025

Source Potato in India Central Potato Research Institute (CPRI) Shimla

6 Rourkela Institute of Management Studies Rourkela

It is utilized in variety of ways such as preparation of chips wafers flakes granules flour

starch potato-custard powder soup or gravy thickener pan cakes as a process food As being

one of the principal cash crop it gives handsome returns to the growersfarmers due to itrsquos

wide market demand nationally and internationally for different kinds of utilization Further it

has been reported by the International Food Policy Research Institute (IFPRI) and

International Potato Centre (CIP) India is likely to have highest growth rate of potato

production and productivity during 1993 to 2020 During the same period demand for potato

is expected to rise by 40 per cent world wide This indicates that a picture about a clear

opportunity to capture the huge domestic and international market of potato by producing

quality potato and its products

7 Rourkela Institute of Management Studies Rourkela

WORLD SCENARIO

Major producing countries in the world

Potato is grown in more than 100 countries in the world with a production of around 321

thousand tones during the year 2004 China ranks first while Russia and India ranks second

and third respectively China India USA Ukraine Germany and Poland shared more than

62 per cent of total global production as can be seen from

The country wise production during 2002-04 is furnished as under-

PRODUCTION OF MAJOR POTATO PRODUCING

COUNTRIES

(DURING 2002-04)

Production 000rsquo tonnes

1 COUNTRY YEAR PRODUCTION

2 2002 2003 2004

3 China 75268 72067 75048

4 Russia 32871 36746 37000

5 India 24450 25000 25000

6 USA 20857 20767 20149

7 Ukraine 16620 18453 19450

8 Germany 11492 10232 12992

9 Poland 15524 13731 15000

10 Others 131784 121291 117046

11 All World 328866 318287 321685

Source FAOSTAT

8 Rourkela Institute of Management Studies Rourkela

EXPORT AND IMPORT

Export

Indian potatoes have immense export potential It has a price advantage over European

counterpart because of lower production cost and due to short crop duration and cheap labor

The king of vegetables Indian potato has the quality for its savory taste with exuberant

varieties The country is also blessed with natural abode of some of the best varieties of

potatoes in the world Besides it has the potential to emerge as one of the largest supplier of

seed potato

The Indian table potatoes dominate the export by about 50 per cent of total potato export

followed by frozen potatoes about 28 per cent seed potatoes about 10 per cent chip fried

about 8 per cent and other frozen preparation nearly 3 per cent

Import

India also imports potato from neighboring countries eg Bhutan Myanmar etc to some

extent The details are furnished below

Commodity Year Quantity in Kgs Value in Rs lakh

Potatoes fresh or chilled 2004-2005 4813220 27608774

9 Rourkela Institute of Management Studies Rourkela

INDIAN SENARIO

Major producing states in India

In India potato is cultivated in almost all states and under very diverse agro climate

conditions About 85 per cent of potatoes are cultivated in Indo-gangetic plains of North

India The states of Uttar Pradesh West Bengal Punjab Bihar and Gujarat accounted for

more than 80 per cent share in total production The state wise production is furnished as

under

Source National Horticulture Board (NHB)

10 Rourkela Institute of Management Studies Rourkela

PRODUCTION OF MAJOR POTATO PRODUCING

STATES

(DURING 2003-04 amp 2004-05)

Production 000rsquo tonne

SlNo STATE YEAR PRODUCTION

2003-04 2004-05

1 Uttar Pradesh 682560 982170

2 West Bengal 759170 710660

3 Bihar 565670 565670

4 Punjab 143970 147020

5 Gujarat 78000 97820

6 Others 563210 415520

7 All India 2792580 2918860

RESCENT TREND

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum subrogation curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

11 Rourkela Institute of Management Studies Rourkela

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 6: Gouri Shankar Latest Modified Report 15.11.09

Nutritive Value

The constituents of potato per 100 gms

SlNo Constituents Weight (grams)

1 Water 7470

2 Carbohydrates (Starch and Sugar) 2260

3 Proteins 160

4 Fibre 040

5 Fat 010

6 Minerals 060

Source Potato in India Central Potato Research Institute (CPRI) Shimla

The Minerals and Vitamins as available in Potato is given below

SlNo Minerals Vitamins Content (mg100 gm of fresh weight)

1 Calcium 77

2 Copper 015

3 Iron 075

4 Magnesium 242

5 Phosphorus 403

6 Potassium 5680

7 Sodium 65

8 Vitamin C 140 ndash 250

9 Thiamin 018

10 Riboflavin 001-007

11 Niacin 04 ndash31

12 Total Folate 50-350

13 Pyridoxine 013-025

Source Potato in India Central Potato Research Institute (CPRI) Shimla

6 Rourkela Institute of Management Studies Rourkela

It is utilized in variety of ways such as preparation of chips wafers flakes granules flour

starch potato-custard powder soup or gravy thickener pan cakes as a process food As being

one of the principal cash crop it gives handsome returns to the growersfarmers due to itrsquos

wide market demand nationally and internationally for different kinds of utilization Further it

has been reported by the International Food Policy Research Institute (IFPRI) and

International Potato Centre (CIP) India is likely to have highest growth rate of potato

production and productivity during 1993 to 2020 During the same period demand for potato

is expected to rise by 40 per cent world wide This indicates that a picture about a clear

opportunity to capture the huge domestic and international market of potato by producing

quality potato and its products

7 Rourkela Institute of Management Studies Rourkela

WORLD SCENARIO

Major producing countries in the world

Potato is grown in more than 100 countries in the world with a production of around 321

thousand tones during the year 2004 China ranks first while Russia and India ranks second

and third respectively China India USA Ukraine Germany and Poland shared more than

62 per cent of total global production as can be seen from

The country wise production during 2002-04 is furnished as under-

PRODUCTION OF MAJOR POTATO PRODUCING

COUNTRIES

(DURING 2002-04)

Production 000rsquo tonnes

1 COUNTRY YEAR PRODUCTION

2 2002 2003 2004

3 China 75268 72067 75048

4 Russia 32871 36746 37000

5 India 24450 25000 25000

6 USA 20857 20767 20149

7 Ukraine 16620 18453 19450

8 Germany 11492 10232 12992

9 Poland 15524 13731 15000

10 Others 131784 121291 117046

11 All World 328866 318287 321685

Source FAOSTAT

8 Rourkela Institute of Management Studies Rourkela

EXPORT AND IMPORT

Export

Indian potatoes have immense export potential It has a price advantage over European

counterpart because of lower production cost and due to short crop duration and cheap labor

The king of vegetables Indian potato has the quality for its savory taste with exuberant

varieties The country is also blessed with natural abode of some of the best varieties of

potatoes in the world Besides it has the potential to emerge as one of the largest supplier of

seed potato

The Indian table potatoes dominate the export by about 50 per cent of total potato export

followed by frozen potatoes about 28 per cent seed potatoes about 10 per cent chip fried

about 8 per cent and other frozen preparation nearly 3 per cent

Import

India also imports potato from neighboring countries eg Bhutan Myanmar etc to some

extent The details are furnished below

Commodity Year Quantity in Kgs Value in Rs lakh

Potatoes fresh or chilled 2004-2005 4813220 27608774

9 Rourkela Institute of Management Studies Rourkela

INDIAN SENARIO

Major producing states in India

In India potato is cultivated in almost all states and under very diverse agro climate

conditions About 85 per cent of potatoes are cultivated in Indo-gangetic plains of North

India The states of Uttar Pradesh West Bengal Punjab Bihar and Gujarat accounted for

more than 80 per cent share in total production The state wise production is furnished as

under

Source National Horticulture Board (NHB)

10 Rourkela Institute of Management Studies Rourkela

PRODUCTION OF MAJOR POTATO PRODUCING

STATES

(DURING 2003-04 amp 2004-05)

Production 000rsquo tonne

SlNo STATE YEAR PRODUCTION

2003-04 2004-05

1 Uttar Pradesh 682560 982170

2 West Bengal 759170 710660

3 Bihar 565670 565670

4 Punjab 143970 147020

5 Gujarat 78000 97820

6 Others 563210 415520

7 All India 2792580 2918860

RESCENT TREND

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum subrogation curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

11 Rourkela Institute of Management Studies Rourkela

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 7: Gouri Shankar Latest Modified Report 15.11.09

It is utilized in variety of ways such as preparation of chips wafers flakes granules flour

starch potato-custard powder soup or gravy thickener pan cakes as a process food As being

one of the principal cash crop it gives handsome returns to the growersfarmers due to itrsquos

wide market demand nationally and internationally for different kinds of utilization Further it

has been reported by the International Food Policy Research Institute (IFPRI) and

International Potato Centre (CIP) India is likely to have highest growth rate of potato

production and productivity during 1993 to 2020 During the same period demand for potato

is expected to rise by 40 per cent world wide This indicates that a picture about a clear

opportunity to capture the huge domestic and international market of potato by producing

quality potato and its products

7 Rourkela Institute of Management Studies Rourkela

WORLD SCENARIO

Major producing countries in the world

Potato is grown in more than 100 countries in the world with a production of around 321

thousand tones during the year 2004 China ranks first while Russia and India ranks second

and third respectively China India USA Ukraine Germany and Poland shared more than

62 per cent of total global production as can be seen from

The country wise production during 2002-04 is furnished as under-

PRODUCTION OF MAJOR POTATO PRODUCING

COUNTRIES

(DURING 2002-04)

Production 000rsquo tonnes

1 COUNTRY YEAR PRODUCTION

2 2002 2003 2004

3 China 75268 72067 75048

4 Russia 32871 36746 37000

5 India 24450 25000 25000

6 USA 20857 20767 20149

7 Ukraine 16620 18453 19450

8 Germany 11492 10232 12992

9 Poland 15524 13731 15000

10 Others 131784 121291 117046

11 All World 328866 318287 321685

Source FAOSTAT

8 Rourkela Institute of Management Studies Rourkela

EXPORT AND IMPORT

Export

Indian potatoes have immense export potential It has a price advantage over European

counterpart because of lower production cost and due to short crop duration and cheap labor

The king of vegetables Indian potato has the quality for its savory taste with exuberant

varieties The country is also blessed with natural abode of some of the best varieties of

potatoes in the world Besides it has the potential to emerge as one of the largest supplier of

seed potato

The Indian table potatoes dominate the export by about 50 per cent of total potato export

followed by frozen potatoes about 28 per cent seed potatoes about 10 per cent chip fried

about 8 per cent and other frozen preparation nearly 3 per cent

Import

India also imports potato from neighboring countries eg Bhutan Myanmar etc to some

extent The details are furnished below

Commodity Year Quantity in Kgs Value in Rs lakh

Potatoes fresh or chilled 2004-2005 4813220 27608774

9 Rourkela Institute of Management Studies Rourkela

INDIAN SENARIO

Major producing states in India

In India potato is cultivated in almost all states and under very diverse agro climate

conditions About 85 per cent of potatoes are cultivated in Indo-gangetic plains of North

India The states of Uttar Pradesh West Bengal Punjab Bihar and Gujarat accounted for

more than 80 per cent share in total production The state wise production is furnished as

under

Source National Horticulture Board (NHB)

10 Rourkela Institute of Management Studies Rourkela

PRODUCTION OF MAJOR POTATO PRODUCING

STATES

(DURING 2003-04 amp 2004-05)

Production 000rsquo tonne

SlNo STATE YEAR PRODUCTION

2003-04 2004-05

1 Uttar Pradesh 682560 982170

2 West Bengal 759170 710660

3 Bihar 565670 565670

4 Punjab 143970 147020

5 Gujarat 78000 97820

6 Others 563210 415520

7 All India 2792580 2918860

RESCENT TREND

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum subrogation curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

11 Rourkela Institute of Management Studies Rourkela

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 8: Gouri Shankar Latest Modified Report 15.11.09

WORLD SCENARIO

Major producing countries in the world

Potato is grown in more than 100 countries in the world with a production of around 321

thousand tones during the year 2004 China ranks first while Russia and India ranks second

and third respectively China India USA Ukraine Germany and Poland shared more than

62 per cent of total global production as can be seen from

The country wise production during 2002-04 is furnished as under-

PRODUCTION OF MAJOR POTATO PRODUCING

COUNTRIES

(DURING 2002-04)

Production 000rsquo tonnes

1 COUNTRY YEAR PRODUCTION

2 2002 2003 2004

3 China 75268 72067 75048

4 Russia 32871 36746 37000

5 India 24450 25000 25000

6 USA 20857 20767 20149

7 Ukraine 16620 18453 19450

8 Germany 11492 10232 12992

9 Poland 15524 13731 15000

10 Others 131784 121291 117046

11 All World 328866 318287 321685

Source FAOSTAT

8 Rourkela Institute of Management Studies Rourkela

EXPORT AND IMPORT

Export

Indian potatoes have immense export potential It has a price advantage over European

counterpart because of lower production cost and due to short crop duration and cheap labor

The king of vegetables Indian potato has the quality for its savory taste with exuberant

varieties The country is also blessed with natural abode of some of the best varieties of

potatoes in the world Besides it has the potential to emerge as one of the largest supplier of

seed potato

The Indian table potatoes dominate the export by about 50 per cent of total potato export

followed by frozen potatoes about 28 per cent seed potatoes about 10 per cent chip fried

about 8 per cent and other frozen preparation nearly 3 per cent

Import

India also imports potato from neighboring countries eg Bhutan Myanmar etc to some

extent The details are furnished below

Commodity Year Quantity in Kgs Value in Rs lakh

Potatoes fresh or chilled 2004-2005 4813220 27608774

9 Rourkela Institute of Management Studies Rourkela

INDIAN SENARIO

Major producing states in India

In India potato is cultivated in almost all states and under very diverse agro climate

conditions About 85 per cent of potatoes are cultivated in Indo-gangetic plains of North

India The states of Uttar Pradesh West Bengal Punjab Bihar and Gujarat accounted for

more than 80 per cent share in total production The state wise production is furnished as

under

Source National Horticulture Board (NHB)

10 Rourkela Institute of Management Studies Rourkela

PRODUCTION OF MAJOR POTATO PRODUCING

STATES

(DURING 2003-04 amp 2004-05)

Production 000rsquo tonne

SlNo STATE YEAR PRODUCTION

2003-04 2004-05

1 Uttar Pradesh 682560 982170

2 West Bengal 759170 710660

3 Bihar 565670 565670

4 Punjab 143970 147020

5 Gujarat 78000 97820

6 Others 563210 415520

7 All India 2792580 2918860

RESCENT TREND

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum subrogation curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

11 Rourkela Institute of Management Studies Rourkela

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 9: Gouri Shankar Latest Modified Report 15.11.09

EXPORT AND IMPORT

Export

Indian potatoes have immense export potential It has a price advantage over European

counterpart because of lower production cost and due to short crop duration and cheap labor

The king of vegetables Indian potato has the quality for its savory taste with exuberant

varieties The country is also blessed with natural abode of some of the best varieties of

potatoes in the world Besides it has the potential to emerge as one of the largest supplier of

seed potato

The Indian table potatoes dominate the export by about 50 per cent of total potato export

followed by frozen potatoes about 28 per cent seed potatoes about 10 per cent chip fried

about 8 per cent and other frozen preparation nearly 3 per cent

Import

India also imports potato from neighboring countries eg Bhutan Myanmar etc to some

extent The details are furnished below

Commodity Year Quantity in Kgs Value in Rs lakh

Potatoes fresh or chilled 2004-2005 4813220 27608774

9 Rourkela Institute of Management Studies Rourkela

INDIAN SENARIO

Major producing states in India

In India potato is cultivated in almost all states and under very diverse agro climate

conditions About 85 per cent of potatoes are cultivated in Indo-gangetic plains of North

India The states of Uttar Pradesh West Bengal Punjab Bihar and Gujarat accounted for

more than 80 per cent share in total production The state wise production is furnished as

under

Source National Horticulture Board (NHB)

10 Rourkela Institute of Management Studies Rourkela

PRODUCTION OF MAJOR POTATO PRODUCING

STATES

(DURING 2003-04 amp 2004-05)

Production 000rsquo tonne

SlNo STATE YEAR PRODUCTION

2003-04 2004-05

1 Uttar Pradesh 682560 982170

2 West Bengal 759170 710660

3 Bihar 565670 565670

4 Punjab 143970 147020

5 Gujarat 78000 97820

6 Others 563210 415520

7 All India 2792580 2918860

RESCENT TREND

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum subrogation curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

11 Rourkela Institute of Management Studies Rourkela

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 10: Gouri Shankar Latest Modified Report 15.11.09

INDIAN SENARIO

Major producing states in India

In India potato is cultivated in almost all states and under very diverse agro climate

conditions About 85 per cent of potatoes are cultivated in Indo-gangetic plains of North

India The states of Uttar Pradesh West Bengal Punjab Bihar and Gujarat accounted for

more than 80 per cent share in total production The state wise production is furnished as

under

Source National Horticulture Board (NHB)

10 Rourkela Institute of Management Studies Rourkela

PRODUCTION OF MAJOR POTATO PRODUCING

STATES

(DURING 2003-04 amp 2004-05)

Production 000rsquo tonne

SlNo STATE YEAR PRODUCTION

2003-04 2004-05

1 Uttar Pradesh 682560 982170

2 West Bengal 759170 710660

3 Bihar 565670 565670

4 Punjab 143970 147020

5 Gujarat 78000 97820

6 Others 563210 415520

7 All India 2792580 2918860

RESCENT TREND

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum subrogation curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

11 Rourkela Institute of Management Studies Rourkela

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 11: Gouri Shankar Latest Modified Report 15.11.09

RESCENT TREND

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum subrogation curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

11 Rourkela Institute of Management Studies Rourkela

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 12: Gouri Shankar Latest Modified Report 15.11.09

SOME PROBLEMS ABOUT POTATO INDUSTRY

Types of Qualitative

Losses

Reasons Remedies

Physiological

losses

[Caused by the effect

of environmental

conditions]

i) Due to exposure to

extreme temperatures (high

and low temperatures) both

before and during storage

ii) Overheating of tubers

due to direct expose to

sunlight or during high

temperature and non

refrigerated storage

iii) Rough handling of tubers

during harvesting

1 Do not expose tubers to

direct sunlight or high

temperatures or freezing

temperatures

2 Do not harvest the crop

before maturity

3 Store potatoes at 2-40C in

cold storage

4 In case of processing and

ware potatoes store at

10-120C by using sprout

inhibitors

Pathological losses

[Caused by the

attack of pathogens

eg fungi bacteria

insects etc]

i) Rotate and decay

accounts for major losses

caused due to attack of

Pests and diseases It

depend primarily on the

condition of tubers stored

and is linked with pre

harvest factors and aggravated

by storage conditions Such

type of

losses are low in hills and

negligible or small in cold

Storage

1 Careful attention to pre

harvest management like

harvesting grading etc is

essential

2 Sorting and removal of rotted

and damaged tubers before and

after storage

Source Post Harvest Manual For Exports Of Potatoes Agricultural and Processed Food

Export Development Authority

(APEDA) New Delhi

12 Rourkela Institute of Management Studies Rourkela

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 13: Gouri Shankar Latest Modified Report 15.11.09

Quality Control

Innovative Quality Control Measures Masser Potato Farms integrates innovative quality

control technology into virtually every aspect of our production process Center Pivot

Irrigation systems conserve water and effectively irrigate potatoes and corn Potatoes are

washed cooled and dried before packaging (versus washing packaging and then cooling) to

improve shelf life Potatoes are farmed on a three-year rotation of potatoes cover-crop rye

no-till corn no-till wheat and cover crop sorghum sudan grass to reduce soil erosion and

disease Potatoes are grown several miles from land that is out of rotation to help control

disease A computer-controlled potato planter is used to accurately control seed potato

placement Three computer-controlled ground sprayers are used for the placement of soil

insecticide to control costs and pressure to the environment Air separation is used by our

potato harvesters to provide more bruise-free potatoes A preventative equipment

maintenance program prevents downtime during peak usage DTN produce satellite

marketing provides instant market and weather information

Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery

Potatoes are graded three times prior to packaging

INDUSTRIAL SCENARIO IN DIFFERENT ZONES

Area Name of

Variety

Yield (metric

tonne hectare)

Dry

matter

Consumer and

Processing

Quality

I) Zone ndash North Western Hills

Hills of

Himachal

Pradesh and

southern Jammu

amp

Kashmir

Kufri Jyoti 20 Medium Easy to cook texture is

waxy

mild flavour occasional

discolouration after

cooking

Suitable for instant

13 Rourkela Institute of Management Studies Rourkela

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 14: Gouri Shankar Latest Modified Report 15.11.09

flakes and

chips

II) Zone ndash Hills of Uttaranchal

Nainital Almora

Dehradoon

Uttarkashi

Garhwal

and Chamoti

districts

Kufri jyoti 20 medium Easy to cook

texture is waxy

mild flavour

occasional

discolouration

after cooking

Suitable for

instant flakes

and

chips

III) Zone - North Eastern Hills

Hills of

Meghalaya

Manipur

Tripura

Nagaland

Arunachal

Pradesh

and Mizoram

Kufri Jyoti

Kufri Giriraj

10

20

Medium

Medium

Easy to cook

waxy texture

mild flavor free

from

discoloration

after cooking

Not suitable for

processing

IV) Zone - Southern Hills

Nilgiri and

Palani

Hills of Tamil

Nadu

Kufri Jyoti

Kufri Swarna

20-21

25

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

14 Rourkela Institute of Management Studies Rourkela

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 15: Gouri Shankar Latest Modified Report 15.11.09

Not suitable for

processing

V ) Zone ndash North Central Plains

Madhya Pradesh

(Indore Gwalior

Sarguja Ujjain

ChindwaraSidhi

Tikamgarh

ShajapurDewas

districts)

Western UP

and

Gujarat

Kufri Badsah

Kufri Jyoti

Kufri Lavkar

Kufri Bahar

Kufri

Chandramukhi

Kufri Chipsona

40-50

20-21

30

45

25

25

Medium

Medium

Medium

Medium

Medium

Easy to cook

texture is waxy

mild flavor

occasional

discoloration

after cooking

Suitable for

instant flakes

and

chips

Easy to cook

texture is waxy

mild flavor free

from

discoloration

after cooking

Suitable for

instant flakes

and

Chips

VI) Zone ndash Plateau Region

Maharashtra

Karnataka and

parts of MP

and

Orissa

Kufri Jyoti

Kufri Lavkar

Kufri

Chandramukhi

25

30

25

Medium

Medium

Medium

Easy to cook

floury texture

mild flavor free

from

discoloration

after cooking

Due to high dry

15 Rourkela Institute of Management Studies Rourkela

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 16: Gouri Shankar Latest Modified Report 15.11.09

matter

content the

variety is

suitable for

processing

VII) Zone ndash North Eastern Plains

Bihar amp

Jharkhand

(Samastipur

MadhubaniSiwan

Champaran

Hazaribagh

PurneaNalanda

Ranchi districts)

Kufri Jyoti

Kufri Lalima

Kufri Sindhuri

20- 21

40

40

Medium

Medium

Medium

Cooks on

prolong boiling

floury texture

mild flavour

free from

discoloration

after

boiling

16 Rourkela Institute of Management Studies Rourkela

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 17: Gouri Shankar Latest Modified Report 15.11.09

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

India basically imports starch from other countries Starch is used in noodles and other value

added food items Since 2004-05 the starch import has come down because some Indian

industries have also started manufacturing potato starch The government is also planning to

set up a potato starch unit in Faizabad (UP)

Over the years price has remain at the top during October -November This is because of lean

season with limited availability of supplies from cold storages during these months The only

source is produce from Karnataka which is not able to meet the high demand Most of the

harvest starts November onwards As more and more produce start arriving in the market

prices start coming down This is evident from December to April when price has remained

lower By April harvesting stops and Potato from cold storage is utilized and by October cold

storage is almost empty This trend is almost similar in all the major potato markets in India

17 Rourkela Institute of Management Studies Rourkela

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 18: Gouri Shankar Latest Modified Report 15.11.09

Market Influencing Factors

Change in acreage depending on yield and price realization

Weather condition during tuber formation

Demand of potato from food processing industries

Comparative price with other vegetables in the domestic market

Transportation charges have also great impact on prices

Hoarding of potatoes by growers and traders before selling in expectation of better prices

Generally production of potatoes is about 25 million tones which is the normal requirement

also for the consumption including requirement for seed bulbs processing industries export

waste and storage losses etc Present estimated production is about 2451 million tones which

is little less to meet the demand which could be compensated by the restrictions on export

and also by increasing area under kharif potato production

Presently In Agra region almost 45-50 of the stocks are already used and only 30 is there

for seed purpose Altogether taking into account Agra and near by area stocks remained for

coming months for consumption purpose is only 30-35

ABOUT THE POTATO STORAGE SYSTEM

Dynamics of Potato Storage-

Storage Structures

i) Traditional Storage

a) In situ storage

In this system farmers do not harvest the tubers and allow it to remain in soil This method is

used for short term storage of 2-3 months only in upland and lowland areas of North eastern

states

18 Rourkela Institute of Management Studies Rourkela

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 19: Gouri Shankar Latest Modified Report 15.11.09

b) Heap storage

In this method potatoes are heaped under the shade of trees where 6-30 tonnes of potatoes

can be stored The heaps are covered with a layer of available straw material

(About 30cm thick) This is a popular storage method practiced in UP Maharashtra and

Karnataka

c) Pit storage

This is a traditional method of storage In this storage system two types of pits are prepared

ie katchha and pucca pits Katchha pit is rectangular in shape measures 45 mt (length) x 36

mt (width) x 14 mt(depth) whereas pucca pit is normally circular in shape with a diameter

of about 42 mt All the pits are covered with 03 mt thick available straw material (wheat

paddy) It is a popular storage method in Madhya Pradesh

d) Wooden storage structure

In this system small wooden rooms like stores about 10 ft heights are built in the field or

near residential area The walls of the store are built by horizontally fixed overlapping

wooden planks which help in preventing seepage in store and running off the rain water The

roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration

purpose

e) Storage in rooms

In this method farmers used to store potatoes in small rooms built of brick stones cement

at the ground floor of their residence The potatoes are stored in this storage either in heaps

gunny bags or in bamboo baskets

f) Storage in basket

In North Eastern states potatoes are stored in bamboo baskets known as ldquopolordquo which

provides better aeration to the tubers The baskets are made of different sizes The smallest

19 Rourkela Institute of Management Studies Rourkela

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 20: Gouri Shankar Latest Modified Report 15.11.09

size holds 10 -12 kgs and the largest size one quintal potatoes Smaller baskets are suitable

for use as they are convenient to carry to the fields

g) Storage in layers

The method is not very common but popular where platforms of bamboo or wooden planks

are constructed by the support of the store wall on one side and bamboo on the other side It

provides better space utilization and helps to minimize rotting of potato

ii) Improved Storage

a) Storage at low temperature

The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage

The following recommendations are adopted in this type of storage

Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic

process goes down Besides low temperature sweetening is of little importance in case of

seed potatoes Store potatoes for export and processing purposes at 8-10oC will not only save

a lot of energy but also make the potatoes more suitable for consumption processing and

export

b) Storage at 10-12oC

This storage method is suitable for potatoes for processing and export

Storage Facilities

a) Farmerrsquos storage

Farmers generally use indigenous in-situ storage system of without harvesting the tubers and

to allow them remaining in the soil and also the ex-situ system where the farmers used to

store potatoes in pits baskets wooden structures or in heaps or layers in room

b) Private Co-operative Public Storage

In Private Co-operative Public Storage sectors potatoes are stored in cold storages at low

temperature situated throughout the country The state-wise distributions of Potato cold

storage in above sectors are furnished on the next page-

20 Rourkela Institute of Management Studies Rourkela

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 21: Gouri Shankar Latest Modified Report 15.11.09

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING

The mere mention of the name of Dan Glickman is sure to raise eyebrows And rightly so

After all how can one expect an average Indian citizen and more so a farmer to know about

the Agriculture Secretary of the United States But sitting far away in the sprawling office of

the US Department of Agriculture in Washington DC Dan Glickman must be relaxed and

satisfied after reading the draft of the National Agriculture Policy of India

The National Agriculture Policy tabled in the monsoon session of Parliament by the Indian

Agriculture Minister Nitish Kumar is certainly a dream come true for the American

Agriculture Secretary For over a decade now the American government either through its

deft manipulation of the World Trade Organization (WTO) or simply through its arm-

twisting diplomacy had wanted the worlds second biggest agriculture economy to forgo its

unwritten but inherently applicable policy of self-reliance in agriculture It had all along

wanted the Indian government to shift the emphasis from food self-sufficiency to food

dependency from sustainable agriculture to corporate agriculture from the famine-avoidance

strategy so assiduously built over the ages to head towards a market-oriented agriculture

thereby acerbating the process of marginalisation of the farming community

For Dan Glickman a steady and fast-track opening of the Indian market for its agricultural

commodities and products was absolutely essential With the phasing out of the quantitative

restrictions and trade barriers in agriculture which restricted the flow of cheap and subsidized

food grains set to be completed by April 2001 all eyes were fixed on bringing in certain

structural changes in Indian farming that protected the economic interest of the American

farmers What happens in the process to the very survival of the 550 million Indian farmers

80 per cent falling in the category of small and marginal is certainly of no interest to the

American government and for some strange reasons to the successive Indian governments as

well

21 Rourkela Institute of Management Studies Rourkela

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 22: Gouri Shankar Latest Modified Report 15.11.09

The National Agriculture Policy the first after Independence comes at a time when there

exist clear and disturbing signs of a declining trend in food grain productivity fast emerging

barriers to sustainability of agriculture depleting underground water resources and the ever-

growing indebtedness in farming In the recent past hundreds of farmers have committed

suicide in various parts of the country including the frontline agricultural states of Punjab

and Haryana

The alarm bells have been ringing for quite some time For nearly a decade agricultural

production had stagnated The spectacular yield growth recorded in the post-Green

Revolution years in Punjab and Haryana have receded into history Among the multiplicity of

problems confronting agriculture rapid fragmentation of land holdings is keeping pace with

increasing population In 1976-77 the average size of the holdings was estimated at two

hectares and in 1980-81 it came down to 18 hectares Today it stands at a mere 02

hectares The total number of land holdings in 1981 was around 89 million today these have

crossed 100 million

Basking in the afterglow of the Green Revolution farming and agriculture have ceased to

attract serious attention In 1995-96 food grain production slumped to minus 360 per cent in

1997-98 to minus 370 per cent the worst-ever since the heady days of Green Revolution

The downward spiral in food production continues through the southern regions of the

country Tamil nadu another Green Revolution area is under tremendous strain from

intensive cultivation In Karnataka the negative trend in yield levels of all food crops barring

cotton and sugarcane are all too apparent Farming in Karnataka can be clearly separated in

two distinct classes the creamy layer of corporate agriculture occupying the fertile and

irrigated areas and the remaining low productive tracts at the mercy of rains constituting the

tiny and small land holdings

For millions of farmers languishing in the dry lands constituting more than 70 per cent of the

cultivable lands it continues to be a futile struggle Despite emphasis on dry land farming

during the past several decades the scenario still remains grim The undulating topography

and the irregular rainfall pattern have combined to aggravate the situation That the dry lands

produce about 42 per cent of the countrys food shows that the future of farming lies in these

22 Rourkela Institute of Management Studies Rourkela

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 23: Gouri Shankar Latest Modified Report 15.11.09

areas Nearly 83 per cent of sorghum 81 per cent of pulses and 90 per cent of oilseeds grown

in the country come from these areas With every passing year the gap between the farmers

yields in irrigated areas and in the dry farming region is widening One year of drought is

enough to push a farmer into a deep well of poverty for another 2 to 3 years Fifty years after

Independence life for millions of people somehow surviving in the dry lands continues to be

worse than before

As if this is not enough the number of landless in the rural areas too is multiplying over the

past few decades at an estimated rate of 2 million a year The negative terms of trade for

agriculture and the declining public sector investments in farming are indices of the

sluggishness in this sector Still worse the compound growth rate in food grain production at

17 per cent between 1991 and 1996 is lower than the annual population growth of 19 per

cent thereby indicating that the country has once again slipped into the Malthusian trap of

hunger and famine

At a time when food production struggles to barely keep pace with the burgeoning population

growth farmers are being asked to diversify produce crops that are suitable for export and to

compete in the international market With promise of cheap food available off the shelf in the

global market the focus has shifted from agriculture to industry trade and commerce from

the small and marginal farmers to the agri-processing companies which alone can bring in

investments and add value to produce

We have been told time and again by the Confederation of the Indian Industry (CII) and the

Federation of Indian Chambers of Commerce and Industry (FICCI) the principal authors of

the new agriculture policy that the agri-business industry aims to reduce the huge losses in

fruits and vegetable crops Studies (sponsored by the FICCI and CII) have shown that nearly

40 per cent of our fruits and vegetable production is lost in post-harvest handling Obviously

you will think that the industry is planning to come to the rescue of Indian farmers But in

reality it is keen to seek all kinds of financial and infrastructure support from the government

and that too in the interest of the American farmers To give you an example it is a known

fact more than 30 per cent of Indias orange crop rots for want of a suitable market In India

three private companies have recently entered the Rs 1000-million orange juice market

23 Rourkela Institute of Management Studies Rourkela

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 24: Gouri Shankar Latest Modified Report 15.11.09

supplying fresh orange juice in tatra-packs Ironically these units do not use the Indian

oranges The juice concentrate is imported from California in America

And still cultivation of staple food is being replaced by cash crops tomatoes in place of

wheat durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and

Haryana flowers in place of rice and so on In the coastal areas private enterprise is taking

away the fish catch depriving the local communities of a livelihood and the only nutrition

source In Kerala vast tracts of forests and paddy fields have been converted into rubber

coffee and coconut plantations The structural transformation is not only peculiar to Kerala It

is happening in almost all the states Commercial crops are eating into the fertile land tracts

meant for growing essential food grains The diversion of good agricultural land which in

any case is limited to commercial farming and even industries is further restricting the

ability to grow enough food grains As if this is not enough contract farming will now be

encouraged thereby facilitating the process of industrial exploitation of agriculture

Export Procedure

The exporter may follow the following points during the export of seeds of potato

1048617 Export procedure has been simplified under Open General License (OGL) and there is no

license or restrictions are imposed Generally the buyers have to mention the quality in the

contract Accordingly the exporter has to approach the recognized laboratories with samples

to carry out the formalities of sample analysis for export

1048617 Product is then to be shifted to ports

1048617 Marine insurance cover is to be obtained from any insurance agency

1048617 Contact clearing and forwarding (CampF) agent for sorting of goods in godowns

They collect the shipping bill for allowing shipment by custom authority

1048617 Shipping bill is to be submitted by CampF agent to custom houses for verification

1048617 Verified shipping bill is given to Shed Superintendent by CampF agent and carting order is to

be obtained

1048617 The CampF agent presents shipping bill to the Preventive Officer for loading in to the ship

1048617 After loading a mate receipt is to be issued by the Captain of the ship to the

24 Rourkela Institute of Management Studies Rourkela

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 25: Gouri Shankar Latest Modified Report 15.11.09

Superintendent of the port who calculates the port charges and collects the same from CampF

agent

1048617 After that payment is made the mate receipt is obtained from the port authority to prepare

bill of loading for the respective exporter

1048617 Then the CampF agent sends the bill of loading to the respective exporter

1048617 After receiving the documents the exporter obtains a certificate of origin from chamber of

commerce i e the goods are of Indian origin

1048617 Exporter informs the importer regarding the date of shipment name of vessel bill of

loading customerrsquos invoice packing list etc

1048617 The exporter for verification of documents submits all papers to the concerned bank

1048617 Bank sends documents to the foreign importer to enable him to take delivery of goods

1048617 After receiving papers importer makes payment through bank and also sends documents

called GR Form to RBI

1048617 Then exporter applies for various benefits from duty drawback schemes

Agri Export Zones

The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce

Govt of India on the 31st March 2001 with the primary objective of boosting agri exports

from the country The Agricultural and Processed Food Export Development Authority

(APEDA) under Ministry of Commerce Govt of India was appointed as the nodal agency to

promote the setting up of such zones The zones are a block group of blocks or a district

group of districts Agri export zones are specific geographical areas that have their own

competitive advantages in production processing or marketing of a specific agricultural

produce including potato In an AEZ (Agri Export Zone) there is no physical demarcation of

boundaries and it provides a focused approach on agricultural export completely It is

25 Rourkela Institute of Management Studies Rourkela

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 26: Gouri Shankar Latest Modified Report 15.11.09

primarily based on the principles of convergence partnership and focus The following

agri-export zones (AEZ) have been identified for potato

Source wwwCommodityindiacom

Benefits

1048617 strengthening of backward linkages with a market oriented approach

1048617 Product acceptability and its competitiveness abroad as well as in the domestic markets

Value addition to basic agricultural produce

Reduction of the cost of production through economy of scale

Better price for agricultural produce

Improvement of product quality and its packaging

Promotion of trade related research and development

Increase of employment opportunities

ENVIRONMENTAL STUDY

Potatoes and the environment

The worldrsquos population is growing by one billion people each decade Nearly all of this

increase will take place in the developing world where the number of people living in

absolute poverty is also rising rapidly

As land and water resources dwindle agriculture threatens the environment with the risk of

deforestation soil erosion and water pollution Initially agricultural research was concerned

only with raising productivity Today however the priority is sustainable management of

natural resources

As populations rise and climates change the worldrsquos need for water will become a priority

concern Scientists are trying to develop crops that require less water and in many ways the

potato is ideal producing more food per unit of water than any other major crop Modern

varieties need frequent shallow irrigation However scientists are developing plants with

drought-resistant properties longer root systems that need less water and will also help to

bind soil

26 Rourkela Institute of Management Studies Rourkela

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 27: Gouri Shankar Latest Modified Report 15.11.09

Many diseases afflict potato caused by fungus viruses bacteria and insects New strains of

diseases such as late blight the most devastating potato disease worldwide are developing all

the time The traditional response is to use chemical pesticides The use of large quantities of

such damaging chemicals is a major concern among scientists environmentalists and even

consumers In the Andes in particular health problems from the misuse of pesticides is a

serious threat to farm workers and their families The dense highland soils can also absorb

great quantities of insecticides which penetrate subsequent crops and run off to contaminate

water supplies

Efforts to meet this challenge include developing late blight resistant varieties as well as

systems of integrated disease management In addition to protecting the health of producers

consumers and the environment integrated pest and disease management practices aim to

increase farmerrsquos income and foster economic growth and food security by reducing pest and

disease losses These practices work to maintain pest populations at acceptable levels using

combinations of control techniques and practices The idea is to manipulate pest populations

before they can cause any significant economic losses

Overall developing disease-free seed potatoes pest- and virus-resistant potato varieties and

integrated pest management programs will have valuable benefits for the environment by

drastically reducing the need for chemicals

27 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 28: Gouri Shankar Latest Modified Report 15.11.09

CHAPTER ndash 2

About the Company

28 Rourkela Institute of Management Studies Rourkela

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 29: Gouri Shankar Latest Modified Report 15.11.09

COMPANY PROFILE

SMJ Agro Products-

SMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility

for the potato farmers of the region The company is also engaged in Potato farming on itrsquos

own and contract farming of potatoes The company has a cold storage at kannauj (Uttar

Pradesh) with a storage capacity of 20000 metric tones

Modus Operandi- Post Harvest the farmers bring their potato produce to the cold storage for

storing intending to sell it at higher rates in the off season

Farmers are given loans against the potato they store in the cold storage

During off season as the prices go north the farmers pay the loan with interest and also the

storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the

nearby Markets (mandis)

The company is also engaged in trading Potato whereby the farmers sell off their produce to

the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar

(through commission agents)

The earnings of the company are dependent on the prices of potato in the market and there is

a substantial risk involved which results in high variability in the earnings

DEVELOPMENT CSR

It has been noticed that over the years production of potato has increased manifold which led

to glut situation in the market The practice of storage helps to stabilize the prices in the

market Storing potatoes for longer period in normal temperature is not possible as it is a

living material and through respiration the changes occurs due to heat resulting in loss of

dry matter and ultimate deterioration of quality of tubers At optimum condition the quality

29 Rourkela Institute of Management Studies Rourkela

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 30: Gouri Shankar Latest Modified Report 15.11.09

of potatoes remains good in storage for 3-5 weeks The best temperature and humidity

condition for storage of potatoes are as follows

Sprouting in stored potato is always a serious problem To avoid sprout inhibition

suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC) TNCB MH are used

The irradiation process has also been found effective for sprout inhibition The condition and

health of the tuber while in storage is important coupled with good management during

storage also plays an important role

Benefits

i) Minimum losses occurred due to tuber rotting disease

ii) Preserve appearance by inhibiting development of surface blemishes

iii) Minimize moisture loss and softening

iv) Minimize losses during sprouting

v) Prevent damages

vi) Color Loss

Pledge Finance System

The Indian farming community mostly consists of small and marginal farmers

They do not have the economic strength to retain the surplus produce till favorable market

price and often compelled to sell their produce immediately after harvest when the prices are

low The solution to this problem lies in providing safe and scientific storage of their produce

and availing easy marketing credit against the stored produce

Hence the systems of pledge finance have emerged as a unique avenue of finance to farmer

30 Rourkela Institute of Management Studies Rourkela

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 31: Gouri Shankar Latest Modified Report 15.11.09

Facilities of Loan

Loan system Eligibility Rate of interest Types of participating

banks

As per

guidelines of

Reserve Bank

of

India

loanadvances

can be given

against

hypothecation

pledge of

agricultural

produce

including

Potato

Persons can

avail this facility

of pledge loan

by storing their

produce in cold

storage

It is determined

by respective

Bank

Commercial Banks

Cooperative Banks

Regional Rural

Banks

MARKETING INFORMATION AND EXTENSION

1048712 Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form In a marketing system market

information is an important function which facilitates the marketing decisions and regulates

the competitive market processes and mechanisms It is helpful to the farmers for planning

31 Rourkela Institute of Management Studies Rourkela

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 32: Gouri Shankar Latest Modified Report 15.11.09

production and marketing of their commodities It is also the key to achieve operational and

pricing efficiency in a marketing system In the present context of global agricultural

scenario the small and marginal potato farmers should change the habit of traditional farming

to modern market export oriented farming by improving the quality and productivity of the

produce Farmers traders processors should reorient their potato enterprises by using

facilities of market information and information technology (IT) for the following

Purposes

planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UP Govt

organizations have some activities for the benefit of the producers traders Processor

exporters and consumers which are of conventional nature Hence to improve this entire

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

1048712 Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

32 Rourkela Institute of Management Studies Rourkela

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 33: Gouri Shankar Latest Modified Report 15.11.09

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future trading

Government and Semi Govt Organizations Providing the Services on Marketing Information

and Extension

SlNo Organization amp itrsquos

website

Services provided

1 Directorate of Marketing

amp Inspection (DMI)

CGO Complex

Faridabad

website

wwwagmarknetnicin

It is at present implementing a plan scheme ie

lsquoMarket Research and Information Networkrsquo(MRIN)

through NIC for establishing a network for speedy

collection and dissemination of market information for

itrsquos effective utilization

Under the scheme important agricultural markets

state agricultural marketing boardsdepartments are

being linked through computerized internet services

Under this scheme DMI has also created a website

namely AGMARKNET

By this website the user or beneficiary may collect

the detailed information on various aspects of

agricultural commodities including potato

Publishes journal bulletin on Agricultural Marketing

Marketing extension

2 Directorate of Economics

and Statistics Ministry

of

Compilation of statistical data on agricultural

commodities for planning and development

33 Rourkela Institute of Management Studies Rourkela

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 34: Gouri Shankar Latest Modified Report 15.11.09

Agriculture Shastri

Bhawan New Delhi

Website

wwwagricoopnicin

Dissemination of datainformation on agriculture

through publication and internet

3 National Horticulture

Board

Plot No-85 Sector18

Institutional Area

Gurgaon-122015

Collection compilation and dissemination of market

intelligence market related information data on

horticultural commodities including potato

4 Central Potato Research

Institute (CPRI) Shimla

(Himachal Pradesh)

Website wwwcpri

ernetin

Acting as a centre for training methodologies and

technology for upgrading scientific manpower in

modern technologies for post harvest technologies of

potato

To provide consultancy in post harvest technologies

of potato

5 Agricultural Produce

Market Committees

(APMCs)

Providing market information on arrivals prevailing

prices at different markets through display boards

public address system etc

Providing information of other markets

Organizing training programmers tours exhibitions

for farmers and other beneficiaries

6 State Agricultural

Marketing

DepartmentsDirectorates

Provide agricultural marketing related information

Arranging publicity programmed through

demonstration farmersrsquo meetings etc

Dissemination of information through literature Radio

and TV Programs

7 State Agricultural

Marketing Boards

Providing market related information by co-

coordinating all market committees in the state

Arranging training facilities to farmers and other

beneficiaries

Organizing seminars workshops and exhibitions on

agricultural marketing

8 Akashvani Kendras of Broadcast programs to disseminate the marketing

34 Rourkela Institute of Management Studies Rourkela

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 35: Gouri Shankar Latest Modified Report 15.11.09

New Delhi State

capitals

other cities

information on agriculture

9 Doordarshan Kendras of

New Delhi State

capitals other cities

Telecast programs to disseminate marketing

information on agriculture

Kisan call centre

The Deptt of Agriculture and Co-operation (DAC) Ministry of Agriculture Govtof

India launched Kisan Call Centers on January 21st2004 throughout the country It has the

objective of affording instant solution to the problems faced by the farmers during crop

cultivation under diverse challenging situations and facilitating their full comprehension by

the use of local language The call centers are acting as composite help centers which consist

of a complex telecommunication infrastructure computer support and human resources

organized to manage effectively and efficiently the queries raised by farmers instantly in

local languages The subject matter specialists using telephone amp computer are used to

interact with farmers to understand their problems and answer their queries as soon as

possible This is a new dimension in agriculture extension management which makes the full

use of on-going information and communication revolution by connecting the farming

community in the remotest areas of the country with the experts of agricultural field By

tackling the difficulties of the farmers a close linkage is established among the key

stakeholders in extension system ndash agricultural scientist extension functionaries farmers and

marketing agencies

Potato farmers are availing this facility through a Nationwide toll free number - 1551

35 Rourkela Institute of Management Studies Rourkela

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 36: Gouri Shankar Latest Modified Report 15.11.09

ABOUT COMPETATORS

In that particular area 72 cold storages are situated and they are close competitors of each

other but broadly we can find the huge number of competitors at national level as follows-

36 Rourkela Institute of Management Studies Rourkela

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 37: Gouri Shankar Latest Modified Report 15.11.09

MAJOR MARKETS

Assembling

Assembling is the first step in marketing of farm produce It involves collection of small

surpluses from number of small farms scattered over large areas and bulking the same for

subsequent distribution in volume

The agencies engaged in the assembling of potato are as below

a) Producers

b) Village Merchants

c) Itinerant Merchants

d) Wholesale Merchants

e) Commission Agent

f) Producers Co-operative Societies

Major- Assembling Markets

The major assembling markets are located in Uttar Pradesh Punjab West Bengal in which

the assembling of potato is done along with other commodities Some major assembling

markets in major producing states in the country are listed below

37 Rourkela Institute of Management Studies Rourkela

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 38: Gouri Shankar Latest Modified Report 15.11.09

38 Rourkela Institute of Management Studies Rourkela

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 39: Gouri Shankar Latest Modified Report 15.11.09

Marketing Channels

I) Private

The different private agencies such as Producers Commission agent

Wholesaler Retailer and consumers are involved in the route of marketing channels of

potato These are

1) Producer Cold storage Commission agent Wholesaler Retailer

Consumer

2) Producer Commission agent Wholesaler Retailer Consumer

3) Producer Wholesaler Retailer Consumer

Institutional

Due to price fluctuations and glut situation in the market some institutions like

National Agricultural Co-operative marketing Federation (NAFED) different state govt

agencies co-operative societies are intervening in the domestic market and Agricultural and

Processed Food Export Development Authority (APEDA) for export purpose to stabilize the

prices

PRODUCER

COLD STORAGE

COMMISSION

AGENT

WHOLESALER

RETAILER

CONSUMER

The institutions involve in the marketing channels of potato as follows

1) Producer State Marketing Agencies Retailer Consumer

2) Producer Co-operative Societies Retailer Consumer

3) Producer NAFED Retailer Consumer

39 Rourkela Institute of Management Studies Rourkela

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 40: Gouri Shankar Latest Modified Report 15.11.09

4) Producer Marketing Federation (MARKFED) Retailer Consumer

Export

SWOT ANALYSIS OF COMPAY

STRENGHT

Thirteen year old company

Government gives high amount of subsidies

Company has strong faith and relation with farmers

Company plan to go backward integration system

Company plan keep surplus for acquiring land for potato cultivation

WEAKNESS

Situated In rural area difficult to reach market or mandi

Cut throat competition (72 cold storages are present in small area)

Direct government control

Company must word under the union of cold storages

Unsystematic systematic way of working of company

OPPORTUNITIES

Company enjoys lots of benefits and it must continue in future

Company gets lots of subsidies from government

Less transportation charges

Future price may increase

company gets human labor at less price with comparison of urban sectors

THREATS

Regularly change in government policies

Irregular supply of electricity

Income tax raid and government departments enter fearing regularly

Fluctuating nature of farmers

Unstable price of potato in market

Workers are not so efficient

40 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 41: Gouri Shankar Latest Modified Report 15.11.09

CHAPTER ndash 3

Product and Technology

41 Rourkela Institute of Management Studies Rourkela

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 42: Gouri Shankar Latest Modified Report 15.11.09

PRODUCT PHILOSOPHY

Potato is the worlds fourth important food crop after wheat rice and maize because of its

great yield potential and high nutritive value It constitutes nearly half of the worlds annual

output of all root and tuber crops With an annual global production of about 300 million

tones potato is an economically important staple crop in both developed and developing

countries

Season

In India more than 80 of the potato crop is raised in the winter season (Rabi) under assured

irrigation during short winter days from October to March About 8 area lies in the hills

during long summer days from April to October Rainy season (Kharif) potato production is

taken in Karnataka Maharashtra HP JampK and Uttranchal In major parts of China (which is

one of the leading producers) potato is harvested in the month of October to December and in

few regions it is harvested in month of May ndashJuly

Summer crop- March- April---------------------August-September

Autumn crop- August-September---------------December- January

Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE

Potato is grown almost in all states of India Major potato growing states are Himachal

Pradesh

PunjabUttarPradesh Madhya Pradesh Gujarat Maharashtra Karnataka West Bengal

Bihar and Assam UP West Bengal Bihar and Punjab together account for about 86 of

Indiarsquos production However potato consumption per capita in India (148 kgheadyear) is

one of the lowest in the world and hardly 1 of the potato is processed 90 of the potato

crop in India is cultivated on Indo-Genetic plain from October until February-March

Grade Specifications

42 Rourkela Institute of Management Studies Rourkela

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 43: Gouri Shankar Latest Modified Report 15.11.09

I) AGMARK SPECIFICATIONS

Under the Agricultural Produce (Grading and Marking) Act1937 the Table Potato Grading

and Marking rules 1950 was formulated and notified by the Govt of India The quality

factors like size of tubers conformity to the variety tolerance limits for under sized and over

sized tubers percentage of diseased and damaged tubers and dust and extraneous matters

etc are taken into consideration The Agmark grade standards of Potato are furnished below

Grade Designations and Definition of Quality of Table Potatoes

The word ldquoOval or Longrdquo shall be marked following the grade name on the AGMARK

label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 41 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

Potatoes of round varieties shall be packed separately the word ldquoOval or Longrdquo shall be

marked following the grade name on the AGMARK label by means of a rubber stamp

When the potatoes have been passed over a riddle of greater mesh than 45 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 83 mm in their smallest

diameter shall be excluded from grading

43 Rourkela Institute of Management Studies Rourkela

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 44: Gouri Shankar Latest Modified Report 15.11.09

1 Any disease or defect the presence of which may be established by cutting open the potato

shall be taken into account and potatoes having cuts worm and slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 110 of the surface is so affected

3 A potato shall only regarded as being obviously affected with the soft rot if at the time of

inspection it is squashy

or the surface is at some part distinctly broken or wet owing to disease

Grade Specifications for Export

The word Oval Long or Round or Mixedrdquo shall be marked following the trade description

on the AGMARK label by means of rubber stamp

Column 4 relating to conformation to variety will not apply to mixed lots

In case when the potatoes have been passed over a riddle of greater mesh than 46 mm the

minimum size may at the sellerrsquos discretion be appended to the grade name eg ldquoExtra

Specialrdquo (51 mm 57 mm 64 mm etc) but potatoes which exceed 89 mm in their smallest

diameter shall be excluded from grading

1 Any disease or defect the presence of which maybe established by cutting open the potato

shall be taken into account and potatoes having cuts worm or slug holes penetrating into the

flesh shall be regarded as damaged

2 Potatoes affected by greenness superficial disease or damage shall not be regarded as

diseased or damaged unless more than 15 of the surface is so affected

3 A potato shall only be regarded as being obviously affected with the soft rot if at the time

of inspection it is squashy or the surface is at some part distinctly broken or wet owing to

disease

44 Rourkela Institute of Management Studies Rourkela

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 45: Gouri Shankar Latest Modified Report 15.11.09

Uses of Potato

Potato flour

Potato chips

French Fries

Frozen potato

Potato starch

Tapioca of potato

In India processed potatoes currently constitute less than 05 of annual production While

the consumption of processed potato products is anticipated to increase at present the

processing sector is largely comprised of various kinds of dehydrated potato products starch

Etc

45 Rourkela Institute of Management Studies Rourkela

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 46: Gouri Shankar Latest Modified Report 15.11.09

Major Storage Pests and Diseases and its Control Measures

Name of

Disease

Causal

organisms

Nature of damage Remedial measures

Tuber moth Phthorimaea

spp

The larvae enter the

tuber through eyes

and

bore tunnels The

larval

damage results in

direct

weight loss and itrsquos

infection greatly

reduced

the market value of

tubers

i) Keep the tubers

covered

with earth in the

field

ii) Fumigate the

godown

with Methyl Bromide

at 48

Kg100 cubic meter

for 3

hrs

Charcol rot

Disease

Macrophomina

phaseol

Formed darkened

patches on tubers

which

later become water

soaked and black

Require early

harvesting

seed treatment with

fungicides like

Aretan or

Agallol

Late Blight Phytopthera

infestans

Brown

colouration of

infected tubers

wet rot in storage

causes huge

loss

Seed treatment with

fungicides and proper

pre

harvest cares should

be

taken

Wart Synchytrium

endobioticum

Tubers become

undersized

Apply heat treatment

for

tubers

Soft rot Erwina spp Wash tubers with

chlorinated water

before storage

46 Rourkela Institute of Management Studies Rourkela

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 47: Gouri Shankar Latest Modified Report 15.11.09

HARVESTING CARE

Harvesting

The following harvesting care should be taken

a) Follow the practice of Dehaulming [cutting of haulms aerial parts by sickle or killing by

chemicals (eg Gramoxone) or destroying by machines] when the crop attains 80-90 days

and when the aerial part of the plant turns yellow

b) Always harvest in dry weather

c) Stop irrigation about two weeks before dehaulming

d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases

e) Harvest the crop after 10-15 days of haulm cutting

Drying and Curing

A) The following care should be taken during drying

(a) Always dry the harvested tuber quickly to remove excess moisture from the surface of

tubers for improving their keeping quality

(b) Always dry the harvested tuber in storage shed expose to sun causes the greening of

potatoes

(c) Do not store the tubers immediately if they are exposed to rain after harvest

B) The following care should be taken during curing

(a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative

humidity

(b) For optimum suberization curing is essential for healing the wounds of tubers resulted

from cutting and bruising during harvesting

C) The following care should be taken during sorting

(a) All the damaged and diseased tubers should be removed during sorting

47 Rourkela Institute of Management Studies Rourkela

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 48: Gouri Shankar Latest Modified Report 15.11.09

TARGET CUSTOMERS

Marketing costs Marketing costs are the actual expenses required for bringing potato from

farm gate to the consumers It includes the following

Handling charges at local points

Assembling charges

Transportation and storage costs

Handling charges by wholesalers and retailer to consumers

Expenses on secondary services like financing risk taking and market intelligence

Profit margins taken out by different agencies

RETAILER

CONSUMER

PRODUCER

STATE MARKETING

AGENCIES

NAFED

MARKFED

EXPORT

CO-OPERATIVE

SOCIETIES

i) Market fee It is collected from buyers and not from sellers The rates of market fees are

determined by respective Agricultural Produce Market Committees in some states like

Gujarat Maharashtra and while in most of the states these are fixed for the entire state under

the respective State Marketing Regulation Acts

ii) Commission charges In some regulated markets the commission agents exist and they

collect the charges

iii) Market charges These are the charges which are incurred towards loading unloading

weighing brokerage cleaning etc These charges are fixed by the market committee and

vary from market to market The operational charges starting from unloading cleaning

preparation lot for sale and sometimes weigh mends are borne by farmers sellers From

weighing the subsequent operational charges are borne by the buyers traders In case of

some regulated markets entry fee is charged for the vehicle

48 Rourkela Institute of Management Studies Rourkela

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 49: Gouri Shankar Latest Modified Report 15.11.09

MARKETING MARGINS

The marketing margins of potato are the difference between the actual price paid by the

consumer and the price received by farmer for an equivalent quantity and quality of potato It

may be explained in terms of price spread applied for a particular situation Studies on

marketing margins or price spread reveals that as the number of market functionaries

increases they add cost to the commodity in the marketing channel which results in the fall

of producers show in consumerrsquos rupee

MARKETING INFORMATION AND EXTENSION

Marketing information

Agricultural Marketing Information comprises of collection analysis and compilation of

agricultural marketing related information as well as dissemination of right information to the

people in need at right place at right time and in right form

In a marketing system market information is an important function which facilitates the

marketing decisions and regulates the competitive market processes and mechanisms It is

helpful to the farmers for planning production and marketing of their commodities It is also

the key to achieve operational and pricing efficiency in a marketing system In the present

context of global agricultural scenario the small and marginal potato farmers should change

the habit of traditional farming to modern market export oriented farming by improving the

quality and productivity of the produce Farmers traders processors should reorient their

potato enterprises by using facilities of market information and information technology (IT)

for the following purposes

Planning for market oriented production

Preparation of produce for marketing

Adoption of modern storage techniques

Availing suitable transport facilities

Availing market intelligence for remunerative prices

For effective dissemination of market-led information almost all the state UT Govt

organizations have some activities for the benefit of the producers traders processor

exporters and consumers which are of conventional nature Hence to improve this entire

49 Rourkela Institute of Management Studies Rourkela

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 50: Gouri Shankar Latest Modified Report 15.11.09

system Govt of India started ldquoMarket Research and Information Net workrdquo (MRIN) Scheme

through the Directorate of Marketing and Inspection (DMI) and its website ie

AGMARKNET Besides there are also other organizations involved in the dissemination of

market information of agricultural commodities

Marketing extension

Marketing extension is a tool to educate the farmers traders consumers and other

beneficiaries regarding the latest knowledge on post harvest management marketing value

addition and exploring new market opportunities It aims to bring desired changes in their

skill attitude and behavior towards post harvest management and marketing practices of

agricultural produce In the present context of globalization of agricultural trade it is

essential to grow awareness among the producers and other beneficiaries regarding proper

harvesting grading packaging transportation storage maintaining proper quality standards

and Sanitary-Phytosanitary requirements etc

Benefits

To provide up-to-date information on the prices and arrivals

To orient producerstraders about price trends demand and supply position etc

To guide the producersfarmers about when where and how to market the

produce

To educate farmers about different aspects of post harvest management

operations

To guide the farmers about benefits of direct contract marketing and future

trading

TECHNOLOGY USING BY COMPANY

POST HARVEST EQUIPMENTS

ANIMAL DRAWN POTATO DIGGER

It is animal drawn single row equipment for digging potato It consists of multipurpose tool

frame V shape blade and extension rods on the blade wings to separate soil and dirt from the

potato It eliminates 11 per cent tuber damage resulting in conventional digging

50 Rourkela Institute of Management Studies Rourkela

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 51: Gouri Shankar Latest Modified Report 15.11.09

GRADING

Grading is an important factor in the marketing process of potato

Benefits

i) Grading helps the potato producer and seller to determine the price

ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair

price

iii) It facilitates the scope to widen the avenue for potato export

iv) It has a direct influence on utilization point of view as the small to medium sized tubers

are prepared for lsquoseed tubersrsquo and large sized tubers are preferred for processing purpose

Methods of Grading

Grading of tubers is done both by hand as well as by graders The different practices of

grading of potato are as follows

i) Grading of potatoes with a set of rectangular sieves having round holes of varying

diameters where a pair of such sieves placed one above the other are shaken to and fro by

two persons and the third person continuously feds the upper sieve

ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore

iii) Grading of potatoes by the mechanical grader where the sieves are mounted on the

oscillation of frame as operated mechanically by power This grader can be operated with

1HP electric motor engine or tractor

iv) Grading of potato with power operated potato grader with conveyer attachment gives

better grading efficiency (90 per cent) The power requirement is 15 HP It can grade four

categories viz less than 10 gms10-25 gms 25-60 gms and more than 60 gms

HAND OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Manually Operated Oscillating sieves Dimension 2880mm(L) X 2940mm(w) X

1950mm(h) Weight 300 kgs

No of sieves Two oscillating and one fixed

Sieve inclination 11

Sieve perforation 45 mm and 30 mm diameter (oscillating sieves) 20 mm diameter (fixed

sieve)

51 Rourkela Institute of Management Studies Rourkela

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 52: Gouri Shankar Latest Modified Report 15.11.09

Power transmission Through belt and pulley arrangement

Performance

Output capacity 20qhr

Grade size i) Upto 50 gms ii) 50-75 gms iii) Above 75 gms

Grading efficiency 85

Tuber brushing Less than 2

Labour requirement 8-9 persons

Cost ( Approx) Rs 8000-

POWER OPERATED POTATO GRADER

Function Sorting of potatoes into different size grades

Specifications

Type Power Operated Oscillating sieves

Dimension 2880mm(l) X 2940mm (w) X 1950mm(h)

Weight 350 kgs

No of sieves Three oscillating and one fixed

Sieve inclination 11

Sieve perforation 4530 and 20 mm diameter(oscillating sieves) 12 mm diameter (fixed

sieve)

Oscillation frequency 460 ndash 490 strikesmin

Power transmission Through belt and pulley arrangement

Performance

Output capacity 25qhr

Grade size i) less than 10 gms ii) 10-25 gms iii) 25-60gms iv) Above 60gms

Grading efficiency 88

Tuber brushing Less than 2

Labor requirement 9-10 persons

Cost( Approx) Rs 10000-

52 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 53: Gouri Shankar Latest Modified Report 15.11.09

CHAPTER ndash 4

Research Design amp Methodology

53 Rourkela Institute of Management Studies Rourkela

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 54: Gouri Shankar Latest Modified Report 15.11.09

OBJECTIVE OF THE STUDY

To understand the psychology of farmers

Environment organizational system and strategy use by the farming industry

Factors- consider by the farmers before selecting the cold storage

Promotional activity and communication media selected by a cold storage to attract

potato farmers

To strengthen my knowledge about the agriculture and rural market

54 Rourkela Institute of Management Studies Rourkela

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 55: Gouri Shankar Latest Modified Report 15.11.09

PRESENT STRATEGY USE BY COMPANY

Company gives loan against their deposit of potato in cold storage

company provides free sack to the farmers(each cost is rs 12-)

Company regularly visits the village to village and interacts with to farmers

Company provides better seeds and knowledge of farming to the farmers

To reduce the cost and risk company started back ward integration production system

Company tries to convey to farmers and their Sarpanch to motivate farmers to keep

potato in the company cold storage

Company educate to the farmers about potato cultivation

Company plays role as bride between farmers and market

Company provides and updates the knowledge of farmers about the recent trend in

technology and methodology of potato farming

Company bind to follow the price band fix by the cold storages union

55 Rourkela Institute of Management Studies Rourkela

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 56: Gouri Shankar Latest Modified Report 15.11.09

METHODOLOGY

Methodology used by me is that I and our team regularly vested the villages and asked

different questions

Try to know the criteria on which a farmer chooses a cold storage to put the potatoes

We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to

put their potatoes in this company

We used the local language and try interacting with each farmer

With its own effort company established farmers support help line number

This is based on customer research design is the arrangement of connection and analysis of

data in manner that aim to combine relevance to the research purpose with economy in

procedure The research design specifies the method of data collection amp data analysis The

design of research happens to be in respect of -

1) What is the study about

2) Where will the study is carried out

3) What will be the sample size

The study is planned carefully with respect to source of information be consult anted amp

collected The entire question is related to the topic Size of sample is 100So it cluster

sampling followed by random sampling Several steps of the research procedure are

described under following headings

56 Rourkela Institute of Management Studies Rourkela

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 57: Gouri Shankar Latest Modified Report 15.11.09

SAMPLING PROCESS

FACE TO FACE INTERVIEW

SAMPLING

Sampling as an essential part of the business research process It is the part of the total

population Although it is a subset and representative of the total population we have

INTERVIEW PRCEDURE

To take interview of 100 respondents we had to take interview by two kinds of sampling ie

RANDOM SAMPLING

PURPOSIVE SAMPLING

The sample came under purposive sampling in order to save time cost and ultimately to meet

the quota For the interview a sophisticated Simple questionnaire was prepared It was asked

to respondents very carefully and cordially All the response were very important for this

study and every response was noted down

SOURCES OF DATA

PRIMARY DATA

Taken the views of farmers

Directly interact with the local government authority

Interact with the seed shops and experienced people

From Gram Panchayat Sabha

Interact with the farmers supporting organizations

SECONDARY DATA

Company old records

Government records generals and articles

Survey and research conducted by Ministry of Agriculture Department of India

Generals and articles of FAO

Research and survey reports of NGO

57 Rourkela Institute of Management Studies Rourkela

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 58: Gouri Shankar Latest Modified Report 15.11.09

LIMITATION OF STUDY

Bias nature of farmers

Lack of professionalism of company representatives

Time consuming process because it takes so much time to interact with farmers

individually

Lack of desired data

Uneducated or illiterate farmers it was difficult to peruse them

It was difficult to penetrate the extreme rural sectors

The unsystematic and unorganized manner of agriculture companies

58 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 59: Gouri Shankar Latest Modified Report 15.11.09

CHAPTER ndash 5

Data Analysis amp Interpretation

59 Rourkela Institute of Management Studies Rourkela

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 60: Gouri Shankar Latest Modified Report 15.11.09

N0 1- Number of cold storages are there in your district- Kanauj

No of cold storages No of

respondents

Less than 10 21

11 to 25 17

26 to 50 29

More than 50 33

INTERPRETATION

From the above table it is interpreted that 33 of farmers are predicting that the number of

cold storages in the district is more than 50 29 of farmers are predicting that the number of

cold storages is Between 25 to 50 21 farmers are predicting that the number of cold

storages is less than 10 17 farmers are predicting that the numbers of cold storages are

Between 10 to 25

The real number of cold storages in the district is 72 Most of farmers are not aware about the

numbers of cold storages in their district due to the weal strategy of promotion

60 Rourkela Institute of Management Studies Rourkela

Farmerrsquos opinion about number of cold storages in their district

21

17

29

33 less than 10

10 - 2525 - 50More than 50

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 61: Gouri Shankar Latest Modified Report 15.11.09

No 2- The factors do you consider most while deciding the cold storage to store your

Potatoes

Parameters for selection of cold storages No of respondents

Rent per potato bag 21

Image of the cold storage owner etc 27

Past track record 13

Upfront loan amount received 39

most important parameter for selecting the cold storages

21

2713

39

Rent per potato bag

Image of the cold storageowner etc

Past track record

Upfront loan amount received

INTERPRETATION

From the above table it is interpreted that 39 of farmers prefer the upfront loan amount

received by them from cold storages because in future if the market price of potato will fall

down then the farmers left their potatoes in cold storage and it became benefit for them

Other prefer as follow- 27 gives importance to image of the cold storage or owner 21

gives important to rent per potato bag and 13 gives importance to past track record of cold

storage

61 Rourkela Institute of Management Studies Rourkela

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 62: Gouri Shankar Latest Modified Report 15.11.09

No 3- Farmers view-cold storages are farmer friendly or not

Cold storages are farmer friendly No of respondent

Yes 87

No 9

Do not know 04

Importance of cold storages for farmers

87

9 4

Yes

No

Do not know

INTERPRETATION

From the above table it is interpreted that in this modern technological era our agriculture

sector and farmers are well aware and give importance to the use of cold storages because

87 farmers prefer the importance of cold storages 9 said NO and rest 4 can not decide

62 Rourkela Institute of Management Studies Rourkela

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 63: Gouri Shankar Latest Modified Report 15.11.09

No 4- While consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

Consider choosing a cold storage

focussing more on forging long term

customer relationship over the one with a

little less rent

No of respondent

Yes 43

No 57

Rent or longterm relationship with cold storages

43

57

yes

no

INTERPRETATION

Form the above table it is interpreted that 57 of farmers are want to keep their potatoes in

the cold storage where they think that they can create long-term relationship the owner of

cold storage and 43 of farmers have given preference to the rent rate charge by cold

storages

63 Rourkela Institute of Management Studies Rourkela

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 64: Gouri Shankar Latest Modified Report 15.11.09

No 5- Farmers perception about the role of cold storage as a middleman in getting the Potato

sold to Traders

Role of middleman in getting the potato sold to

traders

No of respondent

Farmers are duped and robbed of the real worth of

their Produce

07

Cold storages provide valuable support in selling

the Produce through the Traders

39

Cold storagersquos role as a Trader (middlemen) is

unwanted and uncalled for

34

Difficult to explain 20

Role of cold storages as a middleman

7

39

34

20

Farmers are duped androbbed of the real worth oftheir Produce

Cold storages providevaluable support in sellingthe Produce through theTraders

Cold storagersquos role as aTrader (middlemen) isunwanted and uncalled for

Difficult to explain

INTERPRETATION

From the above table it is interpreted that the cold storages which provides better valuable

support in selling the potatoes though the traders across the county farmers give precedence

to them 39 of farmers give importance to the middlemen set by cold storages but 34 of

farmers also think that cold storagersquos role as a middleman is unwanted and uncalled for 20

farmers think that they are duped and robbed of real worth of their produce if they hire cold

storages as middlemen to sell their potatoes and 7 face difficulty to explain

64 Rourkela Institute of Management Studies Rourkela

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 65: Gouri Shankar Latest Modified Report 15.11.09

No 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who

return year on year to the cold storage

Importance of loyalty program for regular

farmers

No of

respondent

Cash Discount 17

More Upfront Loan at lower interest rate 08

Lenient credit Terms 13

All of the above 62

Importance of loyalty program for regular farmers

17

8

1362

Cash Discount

More Upfront Loan at lowerinterest rate

Lenient credit Terms

All of the above

INTERPRETATION

From the above table it is clear that 62 farmers want to some incentives for

loyal customer who come every year in a same cold storage like cash discount

more upfront loan at lower interest rate and lenient credit terms but individually

some farmers given preference as follow- 17 to cash discount 13 to lenient

credit terms and only 8 given preference to more upfront loan at lower interest

rate

65 Rourkela Institute of Management Studies Rourkela

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 66: Gouri Shankar Latest Modified Report 15.11.09

CHAPTER- 6

FINDINGS

66 Rourkela Institute of Management Studies Rourkela

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 67: Gouri Shankar Latest Modified Report 15.11.09

FINDINGS

Farmers are Switchers by nature -they switch from one cold storage to other cold

storage

Due to unprofessional attitude of company and Workers Company fail to create

long term relationship with farmers

Government interference is so much that company can not easily chalk out plan and

formulate it

Unsystematic and unorganized manner of working of farming company

It is so difficult to select the media to communicate to the farmers

Environmental and climate plays vital role in the success of these companies

Over price of potato and under price of potato both are harmful for the company

Due to high involvement of government it needs to maintain paper work

To reduce the risk company started back ward integration production system

Some times farmers do not come to take their potatoes due to fewer prices in

market or fear of return of loan to the company

67 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 68: Gouri Shankar Latest Modified Report 15.11.09

CHAPTER ndash 7

Suggestion amp Recommendation

68 Rourkela Institute of Management Studies Rourkela

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 69: Gouri Shankar Latest Modified Report 15.11.09

Suggestion amp recommendation

Company should start campaign with the government to provide information

to the farmers

Company should maintain professionalism in their work

Company must create a computerized data base of farmers

Company must provide free transportation system to the farmers from their field to

cold storages or may charge minimum cost from farmers to reduce competition

Company must establish proper reliable and strong media of communication media

with the farmers

Weakly or monthly awareness campaign and classes should be organized to literate to

the farmers

Company must focus of the creation of long term relationship with the farmers

Company should establish its own solar panel to generate electricity to reduce of the

cost of electricity

Company can collaborate with government and insurance companies to provide

KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation

Company should starts KISHAN CLUB so that farmers can come and interact with

each other in the separate place in the company

Company can organize farming fare with the help of government or local authority or

NGOrsquoS or cold storage association

69 Rourkela Institute of Management Studies Rourkela

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 70: Gouri Shankar Latest Modified Report 15.11.09

CHAPTER-8

Conclusion

70 Rourkela Institute of Management Studies Rourkela

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 71: Gouri Shankar Latest Modified Report 15.11.09

Conclusion

Potatoes are an important agricultural commodity of India- in many parts of country the crop

can grows rapidly it is adaptable high yielding responsive to low inputs So the company

should make proper plane and strategy for farmers include livestock rising water

management and organic waste management proper utilization of resource systematic ways

of creation long term relationship with farmers and government try to provide better services

to the farmers company can achieve the target and chalk out the new way of success

Aside from traditional methods company also can offer an additional source of services like

sell seed tubers and processed products instead of just provide cold storages facility

71 Rourkela Institute of Management Studies Rourkela

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 72: Gouri Shankar Latest Modified Report 15.11.09

CHAPTER ndash 9

Bibliography

72 Rourkela Institute of Management Studies Rourkela

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 73: Gouri Shankar Latest Modified Report 15.11.09

Bibliography

Text Books

1 Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural amp Processed Food

Products Export Development Authority (APEDA) Page No 05-48

2 Handbook of Agricultural Sciences-by Dr Singh SS(1998) Page no 35-40

3 Marketing of Vegetables in India by Vigneshwara Varamudy Published by Daya

Publishing House Delhi Page no 15-19

4 Handbook of Agricultural Science- Published by Indian Council of Agricultural

Research(ICAR) New Delhi page no 112-120

Annual Reports

1 Annual Report 2003-04 Department of Agriculture and Co-operation Ministry of

Agriculture

Govt of India New Delhi

2 Annual Report 2002-03 National Agricultural Co-operative Marketing Federation of India

Ltd (NAFED) New Delhi

3 Annual Report 2002-03 Agricultural amp Processed Food Products Export Development

Authority (APEDA) New Delhi

Research Papers

1 Ezekiel R Brajesh Singh NRKumar and SMPaul Khurana 2003 Storing potato

scientifically Indian HorticultureIssue-April-June2003

2 PaulVijay REzekiel and GS Shekhawat 2002 Traditional methods of potato storage in

changing scenario Indian FarmingIssue-August2002

3 PanditA Rejesh K Rana NK Pandey and NRKumar 2003 Potato marketing in India

Indian Horticulture Issue- April-June2003

4 Dahiya P S 2001 Potato Scenario-2001Agriculture Today Issue-June2001

5 EzekielR and PS Khurana 2003 Market Potential for Potatoes and Processed Potato

Products wwwcommodityindiacom Issue-Aug2003

73 Rourkela Institute of Management Studies Rourkela

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 74: Gouri Shankar Latest Modified Report 15.11.09

6 SanganariaS 2003 Need of the hour-export orientation for Potatoes Agriculture Today

Issue- June2003

7 MarwahaRS and SKSandhu 2003 Enjoy finger linking potato products Indian

Horticulture Issue-April-June2003

8 Khurana Rana 2004 Need for initiatives The Hindu Survey Of Indian Agriculture2004

9 ShekhawatGS and PS Dahiya 2000 A neglected major food crop The Hindu Survey of

Indian Agriculture2000

10 Shekhawat Ezekiel 1999 Potential as a food The Hindu Survey Of Indian

Agriculture1999

11 Pandey SK SMPaul Khurana and SVSingh2002New Potato varieties for

processing Agro India Issue-November 2002

12 MarwahaRS and SK Sandhu2003 Potato flour processing Agribusiness amp

Horticulture Issue- Feb-March 2003

13 SudhozaeN2003Export potential for Indian Potato Agribusiness amp Horticulture Issue-

April-May 2003

14 Pandit Arora and Sharma 2003 Problems of Potato Marketing in India Indian Journal of

Agricultural Marketing Issue-17(2) 2003

15 Dahiya PS and Sharma 1994 Potato marketing in India Status Issues and Outlook

Working paper no1994-2 Social Science Department International Potato Centre(CIP)

Lima Peru

16 DeyA and A Bhukta1994 Marketing of Potato in West Bengal Indian Journal of

Agricultural Marketing Issue-Jan-March1994

Other related documents

1 Product Catalogue2006Tech Bulletin no-CIAE2005119 Central Institute of Agricultural

Engineering Bhopal

2 Potato in India1992 Tech Bulletin no-1 Central Potato Research Institute Shimla

3 Indian Potato Varieties for Processing Tech Bulletin no-50 Central Potato Research

Institute Shimla

4 Potato Processing In India Tech Bulletin no-34 Central Potato Research Institute Shimla

5 Potato Equipments Developed at Central Potato Research Institute Tech Bulletin no-25

Central Potato Research Institute Shimla

74 Rourkela Institute of Management Studies Rourkela

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 75: Gouri Shankar Latest Modified Report 15.11.09

6 Economics and Marketing of Potato in India Tech Bulletin no-44 Central Potato Research

Institute Shimla

7 Indian Potato Varieties Tech Bulletin no-51 Central Potato Research Institute Shimla

8 World Potato Statistics Tech Bulletin no-52 Central Potato Research Institute Shimla

9 Quality Seed Potato Product in NEH Region of India Tech Bulletin no-62 Central Potato

Research Institute Shimla 10 Major Potato Pests in North-eastern India and their

management Extension Bulletin No-40

Central Potato Research Institute Shimla

11 Traditional Potato Cultivation Practices In Meghalaya Tech Bulletin no-72 Central

Potato Research Institute Shimla

12 Packages of Practices for Potato Cultivation in Meghalaya Leaflet Central Potato

Research Institute Shimla

13 Potato in India e-book website of Central Potato Research Institute(CPRI) Shimla

14 Marketing of Potato In India Published by Directorate of Marketing and Inspection

Ministry of Agriculture Govt of India

15 Post Harvest Technology and Utilization of Potato by Mukhtar Singh and SCVerma

Published at International symposium on Post-Harvest Technology and Utilisation of

Potato1979

16 Agri- Export zones in West Bengal Food Processing Industries amp Horticulture

Department Govt of West Bengal

17 Potato Crop in Punjab Production Marketing and Export by JSinghRSSandhu AS

Dhat

SSingh JSKamboj DKGrover Punjab Agricultural University Ludhina and Punjab Agri-

Export Corporation Ltd Monograph no5 2001

75 Rourkela Institute of Management Studies Rourkela

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 76: Gouri Shankar Latest Modified Report 15.11.09

Websites

wwwagmarknetnicin

wwwapedacom

wwwcpriernetin

wwwfaoorg

wwwnafed-indiacom

www mofpinicin

www ncdexcom

wwwagricooopnicin

wwwcipotatoorg

wwwficciagroindiacomaicpost-harvest-mgmtvegetablespotatohtm

wwwmcxcom

wwwcodexalimentariusnet

76 Rourkela Institute of Management Studies Rourkela

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 77: Gouri Shankar Latest Modified Report 15.11.09

CHAPTER-10

Appendix

77 Rourkela Institute of Management Studies Rourkela

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 78: Gouri Shankar Latest Modified Report 15.11.09

Questionnaire-

1How many cold storages are there in your district- Kanauj

1 lt10

2 11-25

3 26-50

4 gt 50

2Which factors do you consider most while deciding the cold storage to store your Potato

1 Rent per potato bag

2 Image of the cold storage owner etc

3 Past track record

4 Upfront loan amount received

3Do you think the cold storages are farmer friendly

1 Yes

2 No

3 Do no know

78 Rourkela Institute of Management Studies Rourkela

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 79: Gouri Shankar Latest Modified Report 15.11.09

4 Will you consider choosing a cold storage focussing more on forging long term customer

relationship over the one with a little less rent and no long term relationship

1 Yes

2 No

5What do you perceive of the role of cold storage as a middleman in getting the Potato sold

to Traders

1 Farmers are duped and robbed of the real worth of their Produce

2 Cold storages provide valuable support in selling the Produce through the Traders

3 Cold storagersquos role as a Trader (middlemen) is unwanted and uncalled for

4 Difficult to explain

6Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on

year to the cold storage

1 Cash Discount

2 More Upfront Loan at lower interest rate

3 Lenient credit Terms

4 All of the above

NB-Sample size- 100 farmers

79 Rourkela Institute of Management Studies Rourkela

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 80: Gouri Shankar Latest Modified Report 15.11.09

ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive

officer

(1 member)

Board of directors

(3 members)

Finance

account

department

Human

resource

department

Marketingsales

department

Technical

department

80 Rourkela Institute of Management Studies Rourkela

Work force

81 Rourkela Institute of Management Studies Rourkela

Page 81: Gouri Shankar Latest Modified Report 15.11.09

81 Rourkela Institute of Management Studies Rourkela