Comprehensive analysis of

The Quality Assurance for the export of grapes for

The Year 2009 of Adani Agrifresh Limited

SUBMITTED TO

Mr. Uday Kadam.

Submitted By

SOLAT DATTATRAYA GANGARAM

PGDABM

BATCH 2008-2010.

UNIVERSITY OF MUMBAI’S

GARWARE INSTITUTE OF CAREER EDUCATION & DEVELOPMENT

VIDYANAGARI, KALINA,

SANTACRUZ (EAST), MUMBAI – 400098.

1
 DECLARATION

This to declare that I Mr. SOLAT DATTATRAYA GANGARAM a

student of Garware Institute of Career Education and Development,
University of Mumbai, pursuing Post Graduate Diploma in Agriculture
Business Management (batch 2008-10). I have given original data and
information to the best of my knowledge in the project report titled “
Comprehensive analysis of the Quality assurance for the export of grapes for
the year 2009 of Adani Agrifresh Limited.”

And that no part of his information has been used for any other assignment
but for fulfillment of the requirement towards the completion of said course.

I also agree in principle not to share the vital information with any other
person outside the organization and that I have not submitted it before for any
award or any other title degree or diploma.

Dattatraya Solat date:

G.I.C.E.D., Mumbai. Place.

2
 ACKNOWLEDGEMENTC
KN
T I owe a great deal to GARWARE INSTITUTE OF CAREER EDUCATION
AND DEVELOPMENT for laying the building blocks of logic and pragmatism
in our life. This report, in a way is a reflection of these values. The
organizational traineeship segment (OTS) provided us with a unique
opportunity of working with an organization.

I would like to express my earnest gratitude and thanks to Mr. Arun

Kshirsagar, director for his support and kind blessings.
I am also thankful to our faculty guide Mr. Shirish Patil & Mr. Ashok Govande
for his encouragement and guidance throughout the project.
I am highly indebted to Mr.uday kadam for providing me with exceptional
opportunity of working for a dynamic organization like Adani agri fresh (ltd). I
am very grateful to Mr. Ganesh Sadaphal who guided me in the project period.
My heart felt thanks to my project guide Mr. Ashok Govande for constant
follow-up and valuable suggestions provided throughout the project. He has
always been an ever lasting source of inspiration and guidance.
I also thank all the respondents who have given their valuable time, views
and authentic information for this project including Mr. Ashok Govande .
I also grateful to all of them who are directly or indirectly involved in driving this
project to a success. I would like to thank my friends and colleagues for their
continuous support.

3
 Executive Summary
On the basic of internal data study of the company it can be said that quality

control parameters are very stringent for export to Europe Nations.

Research Methodology: internal data study of the company

Important Findings: most important finding from the secondary data can be
represented by two graphs. As shown below major varieties of grapes that are
export in the year 2008-09 by field Fresh are Thompson Seedless.

Shard seedless is exported mostly to Dubai and Middle East while

Thompson Seedless is exported mostly to European nations. (is X-axis parameter
– is it no.of week)

Quality and price related parameters are shown below.

For Thompson Seedless.

4
Average price paid to farmers for this variety of grapes around Rs 35.00 Average
weight of bunch recorded is 225 gm and the brix content is around is18.00%Size
of the berry was 16.35 and the diseased produce received at the pack house is less
than 1%.

For Sharad Seedless Variety.

5
 INDEX
Sr.no Chapters Page no.
1 Chapter -I
1.1 Introduction 9
1.2 Adani Group Profile 11
1.3 Grapes 13
1.4 Market Scenario 14
1.5 Period of price fluctuation 14

6
 1.6 Objectives of research 16
2 Chapter - II
2.1 Export Of Grapes 18
2.2 Export Specification 19
2.3 Export Specification Of Different 22
Country
3 Chapter III
3.1 Weight Of The Bunch 25
3.2 Average Size Of The Grapes 26
3.3 Average Brix Of The Grapes 27
3.4 Price Paid To The Farmer During The Season 28
4 Chapter IV
Chain of events in Grapes export
4.1. Residue Analysis 31
4.2. Harvesting 31
4.3 Knitting and Sorting/ Grading 31
4.4 Weighing and Packing 32

4.5 Pre cooling and Cold Storage 33

4.6 Palletization 33

4.7 Before palletization 33

4.8 Loading of container 35

4.9 Procedure of Shipment 36

4.10 Post Landing Cost: 37

5 Chapter V
Conclusion 41

7
8
 CHAPTER – I

INTRODUCTION,
MARKET SCENARIO,
PRICE FLUCTUATION,
EXPORT SPECIFICATION
OF GRAPES.

1.1 INTRODUCTION
Today India is the second largest producer of the fruits (45.5 Million tons)
and Vegetables (90.8 Million tons ) in the world ,contributing 10.23%and
14.45%of the total world production of fruits and vegetables respectively .India
has made a fairly good progress on horticulture Map of world with total annual
production of The horticulture crops touching over 149 million tons India has
been bestowed with wide range of climate and physio-geographical conditions and

9
as such is most suitable for growing various kinds of horticultural crops such as
fruits, vegetables, flowers , nuts , spices and plantation crops.

With the focused attention given to horticulture, there has been spectacular
change in terms of adoption of new technologies, production and availability of
horticulture products. Fruits and vegetables constitute around 10 per cent of the
total agriculture production of the country. This sector offers enormous potential
for export.

According to FAO, the export of fruits from India in 2003-04 US $166

million and that of vegetables US $ 205 million .India’s export of fruits and
vegetables is more concentrated towards Asian region. Asian region accounted for
75% of total fruits and vegetable export 2003-04.The export to European and
American market is very less due to imposition of stringent quality measures. But
in the last 3-4 year the export of fruits and vegetable Europe has been increasing
with the adoption of Good Agriculture practices ( GAP ) by Indian farmer. Also
the APEADA is taking active role in establishing many quality testing laboratories
and adequate documentation protocol across the country to boost the export of
perishables.

Maharashtra is the one of the largest state In the production of fruits

and vegetable contributing nineteen percent of the total fruit production in
the country. The state produces around nine million tones of fruits having
productivity of 16 MT per hectare of , which is fairly good when compared
to country’s average Of 12 MT. it grows commodities like grapes,
pomegranate, mango, sapota , oranges ,lime, strawberry, jackfruits etc in
large quantity .The state holds prestigious position in vegetable production
contributing 5% of the production and stands 7 in the country. Total
production of vegetables in Maharashtra is approximately 5 million tones.
Because of close proximity to Mumbai port and metropolitan market .the
state enjoys the comparative advantage in export as well as long distance

In certain commodities the state has occupied unique and prestigious

position , e.g. mango ,pomegranate, grapes , onion.

Highly perishable nature of his fruits and vegetable make their marketing
system more costly and complex. Timely and procurement of fruits and

10
 vegetable in bulk is of immense importance for exporters. Transportation
plays an important role in fruits and vegetable marketing.

The exporter has to meet the specific qualitative and quantitative

requirements of the importer. The packaging, residue testing, documentation
and phyto sanitary certification has to be met in order To export.
So establishing an efficient backward linkage is must for exporting fruits
and vegetables.

1.2 ADANI GROUP PROFILE

• Adani Group, founded in 1988, is one of the fastest growing business
houses in India.

• The Adani Group has its roots in its flagship company, Adani Enterprises
Ltd. (formerly known as Adani Exports Ltd.), which has been established by
Mr. Gautam S Adani in 1988 as a partnership firm with an initial capital of
Rs. 5 lacs.

11
• Through his entrepreneurial vision, global aspirations, hard work, quality
standards and customer centric approach, Mr. Gautam Adani has
transformed the Group in one of its kinds which has crossed the total
revenue of INR 180 billion on March 31, 2007.

• Other company of adani group-

1- Adani Agrifresh Ltd
2- adani wilmar ltd
3- adani logistics ltd
4- adani enterprise ltd

ADANI AGRI FRESH LTD.

 Prolonging the shelve life of fruits and vegetables and there by creating a
business plan.

Project conceived by June 2005 and completed in 14 months, 3 CA stores


within a year including procurement of land.

FOCUS -
• Strong backward integration for product availability.

• Developing procedures and systems in both infrastructure and manpower to

meet the world standards.

• To tap potential of Indian market.

VISION -
• To provide safe, hygienic, and fresh quality fruits.

• Investment in technology and infrastructure to build and integrated supply

chain of fruits and vegetables.

12
 • Build strong network with farmers, right from their growing by assisting
them in technology.

• To bring transparent product handling system that will benefit farmers.

ACHIEVEMENT-
• Started in 2006 by investing Rs. 200 crores to set up controlled atmospheric
pack houses in Shimla district at three different placed Viz. Rampur, Sainj
and Rohru.

• First time in India introduced Controlled Atmospheric storage facility.

• First time in India introduced Optical Sorting-Grading facility for fruits.

• Procured 18000 MT apples from Shimla and Kinnor district of Himachal

Pradesh.

• Set up strong marketing network in 30 Major towns of India.

• Introduced first brand “Farm Pik” in apple.

PROPOSED PLAN FOR MAHARASHTRA

• During very first season (2007-08) Adani Agrifresh Ltd. exported 50
Container of Grapes to European Nations from Nashik District.

• .Other products that company is planning to export are Pomegranate, Onion,

Banana from Maharashtra. .

1.3 Grapes
Maharashtra is a leading state in production of Grapes in whole country. In regards
to agriculture land under grapes cultivation & grapes production, Nasik & Sangli
districts are at forefront in the state. Apart from these ,grapes are also grown in the
districts of Ahmednagar, Pune , Satara , Solapur and Osmanabad. Now a days
grapes re produced in Latur district of Marathwada. However ,Nasik and Sangli
districts are ahead in the production of grapes in a scientific manner.

13
Figure

Area under grapes in Maharashtra is 35236 ha, out of which Nasik and Sangli
districts contribute 24174 ha and 8255 ha respectively. Maharashtra produces
around 988722 MT of grapes annually, in which Nasik and Sangli districts
contribution is 500406 MT and 231635 MT. Total export of Grapes from from
India is 26793.83 MT valuing 105.89 crores out of which nearly 80 % is exported
from Maharashtra. The Varieties grown in Maharashtra are Thompson seedless
,Tas-e-Ganesh , sharad seedless, Flame seedless and Sonaka.

14
 1.4 MARKET SCENARIO
Nasik district is the largest producer and export of Grapes in Maharashtra. The
main growing are Dindori , Nasik ,Niphad, Pimpalgaon –Basvant and Chandwad.

Export of grapes from nasik stands at 7613.63 MT during 2003-04. Usually very
little quantity of export quality grapes comes to APMCs. Export grapes are Usually

Procured at the fare gate . Traders and exports go directly to farms 20-25 days
before harvest and they fix a procurement price based on the grade.

1.5 PERIOD OF PRICE FLUCTUATION:

Generally the price of grape depends on the production, harvesting period and
demands in market of other part of India .

Low price : Nov to Dec with the average price around Rs.7 to 9/kg

Peak price : April-May with average price around Rs.12 to 15/kg

In this market some variety always fetch good price . A general price for varieties
can be given below : (Make separate colomb indicating Export and local price)

Variety Price Rs/kg

Sonaka 25-30
Tas-e-Ganesh 10-15
Sharad seedless 25-35
Thompson seedless 15-20
Flame seedless 25-28

15
Sangli:
It is second largest grapes growing and exporting district in Maharastra.Export
quality grapes won’t come to here. So exporters and traders go directly to farmer’s
orchard. The important growing regions are Malegaon, Miraj, Nimni, Savlaj and
Tasgaon. Nearly 250-300 containers of grapes will be exported this year from
Sangli district alone. During last year (2007-08) the farm gate procurement price of
export quality grapes fluctuated with the time like this.

February end’s 35-40 /kg

March15-30: Rs 50 / kg

March 30 onwards Rs 60-65/kg

Solapur Market :
Solapur is also very big market for grapes .Grapes arrival is from Solapur, Sangli,
and Baramati and from regions of Kolhapur surrounding Sangli. Distribution is
mainly to Bihar,Bengal,Orisa, and Southern Indian states. There are many Bihar
and Bengal traders operating in this market. In this market grape price depends on
variety of grape. The prices of some important varieties are given below. Nearly
80% of the production is Thompson seedless and 10-15% is Sharad and flame
seedless. Rest is from other varieties.

Variety Price Rs/kg

Sonaka 25-30
Tas-e-Ganesh 10-15
Sharad seedless 25-35

1.6 OBJECTIVES OF RESEARCH

16
Objectives 1

To study the quality assurance of grapes at the time of procurement at the pack
house

Sub objectives

1. To find the average size of Berries during the season

2. To find the average brix of the berries exported this season

3. To find the average bunch weight of the different varieties of grapes.

Objectives 2

To find the average price paid to the farmer.

Sub objective:

1. To find out the price to the farmer with respect to the quality of grapes and the
time of procurement.

2. To study whether the price is determinant of demand of the grapes or the

quality of the grapes.

17
 CHAPTER-II
EXPORT OF GRAPES

2.1 EXPORT OF GRAPES

Major export is to Middle East, UK, Holland, and Germany.

Varieties in Demand:

Name of the Varity Description Berry size Harvesting period

THOMPSON Round berries 16 mm to 18 mm January to April

18
SEEDLESS green color, Seed
less variety.
SONAKA Elongated 16 mm to 18 mm January to April
berries,green less
variety.
SHARAD Round 16 mm to 18 mm January to April
SEEDLESS berries,Blackish
red colour,seedless
variety.
FLAME Round 16 mm to 18 mm January to April
SEEDLESS berries,Blackish
red colour,seedless
variety.

Clone and Tash-e-Ganesh are also having demand to some extend in Dubai and
Middle East.*Thompson seedless constitutes nearly 95% of grapes export to
Eupore and UK.but for dubai and Middle East market ,along with Thompson
seedless ,Sharad seedless ,Sonaka,2-A clone and Tas-e –Ganesh are preferred.

2.2 EXPORT SPECIFICATION (HOLLAND)

Indian white Thomson seedless GRAPES - SPECIFICATIONS

Healthy intact Fresh White Seedless Grapes

A Variety Thompson
General for the whole Uniform in terms of class, origin,size,colour and
B
lot degree in ripeness.

19
Sr.
Characteristic Description
no.
Precooling, storage and transport about 0 - 1
1 Temperature
degree Celsius
Berry Colour, two Opaque milky pale green colour or amber. Not
2
separations dark green or glassy.
.
Berries must be fully developed, ripe, turgid ( firm
); not bladdery, wilted, over mature; no shrivelled,
Berries - General
deformed or poorly pollinated berries. Colour should
3 Appearance with 0 %
be even through the bunch and across the box. No
tolerance.
wrinkling of skin or sunken area around pedicle,
watercore.
No abnormal exterior moisture.
Free from decay-decomposition of fungus
development.
Free from decay-internal insect infestation or
internal damage.
Free from slip skin, boytritis, injuries, shrivelling /
Berries-General
witting, cold damage, unspecified internal quality
4 Appearance with 3 %
defects, skin damage, wind rub marks, unspecified
tolerance
appearance defects.
Berries-General
Free from split berries, mould on stems, sulphur
5 Appearance with 5 %
burn, visible residues, loose berries.
tolerance
Berries-General
6 Appearance with 8 % Free from sunburn.
tolerance
Berries-General
7 Appearance with 10 % Free from dry stems and dirt.
tolerance
Tolerances in % refers to the amount of examined fruit ( not cluster ) out of a
representative quantity taken on an random basis out of the entire delivery
All Quality defects in the above mentioned, may not exceed 5 % provided that the
individual deviations are within their stipulated limits
Evenly coloured skin should be free from pest
damage or physical damage. No bruising, hail
8 Skin Blemish
marks, splits, cracks, open cuts or rots, sunburn,
sulphur bleaching

20
 Stems and pedicles fresh and green, not dry and
9 Vine Condition
brown.
Bunch - shape typical of variety; not straggly or
10 Shape/Dimensions over tight;- round or slightly oval, not excessively
elongated.
Organoleptic
Sweet and refreshing flavour balanced by a hint of
11 Flavour
acidity.
12 Texture/Consistency Juicy, with tender skin and crisp, crunchy flesh.
13 Aroma None, free from any foreign odour
Physical
14 Sugar Content minimum - 16 degree Brix. Max 20 Brix
15 Sugar/Acid Ratio 18:1 minimum, Target 20 : 1
Minimum 15 mm, as Regular, Large 16- 18 mm,
Berry Size, printed on
16 Extra Large 18-20 mm. XXL.20 mm and up. Target
the Label
average16 - 18 mm.
Minimal dropped berries (shatter) in packaging:
17 Dropped Berries
tolerance up to 4 % by weight, Target zero.
9 Pouches of min 510 gms. ( by packing ) per 4.5
kg carton. Preference of 1 bunch
18 Pouch weight per bag, with a tolerance for 2 bunches of
even weight in 1 bag, No single bunch to weigh less
than 200gms.
10 punnets of min 520 gms ( by packing) per 5 kg
carton. Max three bunches per
19 Punnet weight punnet with a minimum weight allowed to about
50gms for third bunch for adjustment of weight
purposes.
No insects, spiders or mites to be present in the
20 Insects, Spiders
product or packaging.
Additional All produce supplied to this specification must
21
Information have been grown in
compliance with the Apeda NRC document
and relevant GlobalGap
protocol.
22 Pesticide residues As per European MRL's limits of 1-9-2008.
The APEDA authorised Laboratory are ISO
17.025 certified pesticide

21
 residue field tests report codes are traceable via
the packing list.

EXPORT SPECIFICATION OF DIFFERENT COUNTRY

Variety Middle East Holland / U.K

Germany
THOMPSON Berry Size: 15 Berry Size: Berry Size : 18
SEEDLESS mm Colour white 16mm Colour mm Colour
/amber. TSS 17- white /amber. Milky white
18 brix TSS >18 brix /amber. TSS >18
brix. No
variation in size

22
SHARAD Berry Size : 15 Berry Size : 16 Berry Size : 18
SEEDLESS mm Colour mm Colour mm Colour
Black Black

Berry Size : 16 Berry Size : 18

FLAME mm Colour Pink mm Colour Pink
SEEDLESS

Packing 4.5 kg / 9 kg 4.5 kg / 9 kg

pouch packing pouch packing
and 5 kg punnet and 5 kg punnet
packing packing

Storage Temp . 0-1 C 0-1 C 0-1 C

Days required to 7-8 Days 21 days 21 days

reach Destination
From JNPT

If necessary sample should be forwarded to the importer and it should be

representative.

23
 CHAPTER-III

MAJOR QUALITY PARAMETERS

FOR EXPORT OF THE BERRIES AT
POST HARVESTING

Three major quality parameters for export of the berries at

post harvesting are-
1. Size of the grapes

2. Bricks in the produce

3. Contamination due to pests.

Thompson seedless contributed nearly 90%of the total exported the European
Union and UK while Shared Seedless was the major variety that was exported
to Middle East.

24
Ll. Quality of Thompson variety of seed with respect to the period of the
procurement is shown in the graphs below.

Quality of grapes at the time of reception.( Thompson

Seedless )
Week Price paid Average Average Average Diseased
to farmer weight of Size Brix grapes ( qt
one bunch in Kg )
4 38.54 290.45 16.5 17.98 Less than 1 %
5 39.28 270.45 16.58 18.1 Less than 1 %
6 39.12 286.46 15.43 18.4 Less than 1 %
7 38.79 257 15.38 17.93 Less than 1 %
8 41.40 294.74 15.67 18.14 Less than 1 %
9 39.20 298.9 15.9 18 Less than 1 %
10 39.67 311.5 15.6 18.2 Less than 1 %
11 38.47 318 15.3 18 Less than 1 %
12 41.83 325.1 15.8 17.8 Less than 1 %
13 42.34 323.4 17 18 Less than 1 %
14 41.90 288.6 17 17.6 Less than 1 %
Total 40.05 296.78 16.01 18.01 Less than 1
%

3.1 WEIGHT OF GRAPES

From the table it can be established that Thompson varieties of grapes are
generally available after the January end of from the period of the February. In the
start of the season the average bunch weight is less as the grapes do not get much
size and are harvested. Each berry of his variety weight around 4-6 gms and each
bunch has nearly 70-80 berries.

25
 3.2 AVERAGE SIZE OF THE GRAPES
From the table 2.2 it can be established that the size of the produce is less in the
start of the season as compared to the mid and the end of the season. From the
below graph it is easily seen that the size of the fruit is height at end of the season
which implies a better quality according to UK and EU Standards

26
 3.3 AVERAGE BRIX OF THE GRAPES
From the table 2.3 it can be clearly seen that there is not much variation in the brix
of the fruit during the whole season. Brix of the fruit also depend on the irrigation

27
of the field .if there is rain or the just irrigated then the average brix in the grapes
will increase and make it unsuitable for the grape export. More brix means more
sugar content in the grapes which increase its chance contamination during
transportation of grapes

28
 3.4 PRICE PAID TO THE FARMER DURING THE
SEASON.
Observation: From the table 2.4 it can be seen that the farmer are getting the lower
price at the start of the season and price go high as the season comes to end. The
price of the grapes depends mostly on the size of the grapes the demand and supply
of grapes in the market.

Inference: it can be inferred from the table 2.4 that the size of produce is giving
better returns to the farmer at the end of season. It can also be inferred that in the
late season due to the constant demand and decreased supply from the domestic
market the price of grapes are going on the higher side.

29
Thus it can be seen that the quality norms are very stringht for the export to the
countries of European Union and UK. The processing cost for the exports to these
countries is very high and the risk of rejection is also very high so it is very risky
business to exports to these countries. It is very high best on the part of field fresh
that there procurement procedure is very good that the diseased material reaching
the pack house is always less than 1% which symbolizes good procurement
practices and good logistics operation at Field Fresh Foods.

Recommendations:

Company can also plan to supply the fruits to the local markets are also fetching
good prices in the metropolitan cities .Also the transportation cost and quality
requirements are less so the margins on the grapes will also increase and company
will also marks its local presence.

30
 Chapter IV
CHAIN OF EVENTS IN GRAPES EXPORT

31
 CHAIN OF EVENTS IN GRAPES EXPORT
The varity of grapes that is exported from the Nasik region mostly this time
is Sharad Seedless and Thompson Seedless .Out of the to varieties Sharad is the
black variety and Thompson Seedless is green variety of table grapes .Sharad takes
100-110 days to harvest after the flowering stage so the yield starts from the month
of late December.It is mostly exportd to ME as the quality assurance parametees
are less binding on the Middle East than to the European Union.

4.1. Residue Analysis:

Sampling of grapes for residue analysis is usually done 10-20 days before
harvest .5 kg sample is taken randomly from each farm, in which 3 kg is crushed
for testing immediately and 2 kg sample is kept in cold storage foe 45 days till the
consignment reach destination without any hindrance. There are eight authorized
institutions throughout India that can conduct residue analysis test .The list of these
authorized residue testing institutions are given in the annexure. For this test,they
charge Rs.300/ sample for one pesticide and Rs 7500/ sample for all 87 chemicals.
APEDA will give 50% subisidy foe reside analysis. This year National
Horticulture Mission ( NHM) has given 100% subsidy for residue analysis test of
all horticultural produce. Residue analysis report will be given to farmers within 6-
8 days. The residue analysis test is done for 92 chemical.

4.2. Harvesting:

Harvesting is done in morning hours based on the specifications of importer.

Weighing is done immediately. The quanity harvested is entered in farmer’s
registry.

4.3 Knitting and Sorting/ Grading: Afterwards knitting of non uniform and
water berries is done followed by sorting and weighing as per importers
requirement.Usally Export specification will be as follows.

32
4.4 Weighing and Packing

Grapes are usually packed in three types of Cardboard boxes for export
Each box will have to be packed with grape guard, tear off liner and bubble
sheets for Europe. For Middle East, each box has to be packed with paper
cuttings ,along with grape guard tape to hold two boxes.

a) 5 kg Punnet packing : In this 500 gm transparent punnets are used.

Totally 9-10 punnets are needed in each 5 kg Card board box. The
punnets are imported from South Africa. And Itly From last one year UK
and European imports are demanding grapes in punnet packing only.

b) 4.5 kg Pouch packing : 9 plastic pouches of approximately 500 gm are

kept inside 4.5 kg card board boxes. The demand for this type of
packaging has decreased considerably with arrival of punnets.The cost of
pouch will be around 50 paise each.

c) 9 kg Pouch packing : 17-18 plastic zip pouches of appoximaely 500 gm

are kept inside 9 kg card boxes. The demand for this type of packaging
has decreased considerably with arrival of punnets.

Cost of packing for UK and EU

Cost centre of 5 kg Box 40 ft container

packing (14.5 MT)
Cost box @ 27.5 80000
Rs.5.5 /kg
Punnet @Rs 5/ 50 26100
punnet
Grape guard 8.3 24070
@1.66/kg

33
 Bubble sheet @16 0.8 2320
paise/kg
Tear off Liner @ 1.95 5655
39 /kg

Total 88.75 138145

4.5 Pre cooling and Cold Storage : Pre –cooling is done at 0-9 C for 6-
8hours.Usually cold stored for 5-8 days depending on export suitability. For
storing the produce for 6-8 days , Rs 5 kg is charged.

4.6 Palletization: Wooden pellets are used to keep card boxes with in the
containers. Grapes are exported in 40 ft container. Each container can hold 20
pallets and carries 14.5 MT of grapes.

Package One pellet 20 pellats/ container

9 kg Card board box 80 boxes 1600 boxes
5 kg Card board box 120 boxes 2400 boxes
4.5 kg Card board box 3200 boxes 3200 boxes

4.7 Before palletization,

a) AGMARK certification is compulsory, which is issued by Directorate of

Marketing and Inspection officer of concerned area. AGMARK
certification costs around 0.2 % of the FOB value. Usually this charge
comes to around Rs.3000/ container.

34
 b) Fumigation certificate: As wooden pallets are used to keep bpxes in
container .fumigation certificate is necessary for grape export .This will
be issued by Private certified Pest control agency or pellet supplier
fumigation charge is Rs 20-25 / pallet. So for a 40 ft container containing
20 pallets, this charge may end up at Rs 400-500.

c) Phyto Sanitary certificate :( PSC) It can be availed from directorate of

plant protection, Quarantine and Storage, Ministry Of Agriculture.
Usually in Maharashtra District Superintending Agricultural Officer
(SAO ) will look after procedures, For issuing PSC usually 0.2% of the
FOB value is charged.

Following information is collected from Exporter for issue of PSC for

Grapes:

1. Application

2. Copy of Import Permit

3. Letter of credit/ agreement

4. Performa invoice

5. Copy of Import Export code

6. The white and green copy of residue test report

7. Container loading sheet/Packing list.

8. Copy of declaration by farmer

9. Farm inspection report

10.Exporters decalaration.

11.Pack house recognition certificate issued by APEADA.

35
 12.Self- certified copy of the certificate of agmark Grading (CAG) ISSUED BY
the concerned Office of Marketing and Inspection.

13.A Challan of prescribed fess paid for inspection.

d) Stuffing Permission: It is issued BY Central Excise and Customs

department. Stuffing permission is the permit to export a good to a
particular place / nation from central excise. It is life time permission.

Quality parameters such size, packing, temperature requirements should

be according to the importers specifications. It is better to get
requirement from the importer in writing in Purchase order. Pack the
material strictly as per the sample provided by the importer’s
requirement.

4.8 Loading of container: Refer container usually comes from JNPT to the
farm gate. While loading the grape to container, Central excise officer will
inspect the commodity as per the purchase order and seal the container. Once
the container is sealed, it can not be opened by anybody till it reach its
destination.

Usually pack house order charge Rs 7/ Kg for labor, harvesting, transport to

cold storage sorting, grading, packing loading to container. This Rs 7/ kg
includes commission agents/packers margin of Rs.2-2.5/kg .It does not
include the package material cost, cold storage costs and diesel and
electricity charges. Totally the procurement cost comes roughly to around
Rs 12/ Kg including cold storage charges.

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 Transportation Charge to carry a 40 ft refer container to
JNPT, Mumbai.
Sr . No From Transportation cost
1 Nasik Rs 20000/ container
2 Pune Rs 18000/ container
3 Sangli/ Tasgaon Rs 25000 / container

4.9 Procedure of Shipment :

Services of customs House Agents ( CHA’s) to be reserved to carry out

necessary logistic and paperwork required for export. Job like space for
exports, order for the container, custom clearance of origin etc .is carried out
by CHA. An efficient and competent CHA should be appointed. Following
is the list of documents to be provided to CHA.

- Letter of Credit (if available )

- Invoice

- Certificate of origin.

- Phyto sanitary certificate

- Packing List ( if items are more )

- Customs / Excise Formalities and charges.

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 For agro exports, excise duty is not applicable. Customs Duty @ 1% with
respect to the cost of the invoice is charged while processing the documents.

- Terminal Handling charges for 40 ft container is Rs.15000

Sea freight From JNPT to different foreign Ports:

- To UK and EU: Rs.137690

- To Middle East: Rs.68841

4.10 Post Landing Cost: Post landing cost includes unloading, cold storage,
transportation, import duty and importers commission for the year 2008-09.

Country Rs/kg
UK 28.22
European Union 26.20
Dubai 12.06

Importers commission
- EU -8 %

- Middle East -5%

Residue Analysis test in the importing country costs around 25000/ sample

This test is done only in UK and European country. If rejected the labour
charge and dumping costs should be paid by the exporter.

Mode of Payment:
Normally in the trade of agro exports (expect onion, rice and other cereals
mango pulp) importer never provides Letter of credit ( L/C ) Such export is

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 done on consignment basis ( payment as per actual sales ) Exports get the
payment after deducting port charge, transportation and commission etc .of
the importing country .In certain country export is undertaken on the fixed
rates. Market Credit of the importer should be checked before entering into
the trade. Importer’s credit can be checked by international credit
organizations like Dun and Bradstreet. Export Credit Guarantee Corporation
of India( E C G C) also undertakes such type of credit certification work .
Sales proceed gets deposited in the bank in foreign currency. Export
documents including Export Promotion ( E P ) copy should be retained by
exporter.

The profit involved in export of Grapes

Remove this part it doesn’t match..

The grapes are generally exported 40 ft. container which can hold 20 pallets.

The total capacity of 40 ft. container is 14500 of Grapes.

The profit involved In Export of Grapes.

The grapes are generally exported in 40 ft. container which can hold 20 pallets.
The total capacity of 40 ft container is 14500 kg of Grapes.

Profit involved in Exporting 14.5 MT Grapes.( 40 ft container)

Particulars UK EU Dubai

Cost of grapes @35/ kg to Europe & 551000 551000 406000

Rs 28/kg for Dubai

Pre cooling and cold storage 72500 72500 72500

@Rs.5/kg
Handling and Packing cost @ Rs.7/kg 101500 101500 101500

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Cost of packing material 138145 138145 138145
Transportation charge to JNPT 15000 15000 15000

Sea freight for 21days to Europe & 7 137690 137690 68841

Days to Dubai.
Terminal handling charge 15000 15000 15000

Customs charge @ @1 of Invoice. 15000 15000 10000

Residue analysis test ( 50 % subsidy 3700 3700 ---------
from APEDA)
PSC 250 250 250

Fumigation 400 400 400

AGMARK @ 0.2 % OF Invoice. 3000 3000 ----------
Post landing testing of grapes @ 25000 25000 ------------
25000/ Sample
Post landing charges 409287 380000 175000
Total cost 1487472 1458185 970861
Price realization at the destination 1754500 1667500 1087500
Market
Expected profit/ container. 267028 209315 98639

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CHAPTER V
CONCLUSION

41
 CONCLUSION

 The advent of new varieties having high consumer preference and technical
advancement in cultivation has made this crop more popular.

 Owing to the nutritional and medicinal values of the fruits, there is

preference among the consumers in the domestic and international markets.

 Thomson seedless and sharad seedless variety is best suited for cultivation in
the tropical areas. This variety is one of the best varieties suitable for export
purpose and it is gaining popularity among consumers.

 Most of the Grapess produced is consumed locally and about 1 per cent is
exported. The exports have not been substantial since the international
standards were not known.

 Of late, Indian grapes have penetrated into the European Union since
suitable varieties conforming to international standards are being produced.
Karnataka has exported about 2000 MT to other countries during the last
few years. There is potential for export to the United State of America also.
Diseases such as Powdary mildew, Downy Mildew, etc., have created
problems in obtaining economic yields.

 Proper varietal selection, crop and post harvest management, infrastructure

such as cold chain, facilities for marketing etc, will augment the cultivation
of quality grapes and will help in increasing the exports to a tune of about
20,000 – 30,000 MT tons.

 In this background, India can definitely make a dent in grapes trade in the
world market.

Remarks

Add,

 Compititors in the market and there purchase / pricing strategy,

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Entry level and packout level quality parameters./documents filled.

Flow chart of total export process.

Just concentrate on Thompson seedless as it accounts for 90 % of

Export to Europe.

Packhouse requirements for global gap Audit to get quality produce.

grape net and Global Gap System./Process.

Quality of grapes starts from field hence start process from

identification of field………………SOP.

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