Innovative Initiatives for Agricultural Marketing in India

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Innovative Initiatives for Agricultural Marketing
in India

• Dr. J.S Yadav
• C.O.O.
• Premium Farm Fresh Produce Ltd.

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Flow of Presentation

• Organic Waste Management
• Electronic Auction
• Online Inspection System
• Market Information Dissemination
• Networking and Interdependency Grid Formation
  between Markets
• Carbon Construction

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Organic Waste Management

• Global Scenario
• According to WUWM study, wholesale markets are
  managing only 1.5 2 of the marketed
  quantities of fruit and vegetables.
• 43 of collected quantities of waste is
  recycled
• Un-recycled waste is basically dumped
  (land-filled) or incinerated (burnt).
• Annually 230 million tons of solid waste produced
  in the US. Recycling succeeds in preventing about
  30 percent of these wastes from being dumped in a
  landfill or incinerated

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Cont

• Food waste comprise the third largest solid waste
  category (more than 25 million tons per year)
• Less than two percent of food wastes in the US
  are managed through composting.
• Cost of composting works out more and
  marketability of the product may be a problem
• Composting best suited where vegetable and fruit
  clusters are located

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Waste Stream Diversions/Advancements

• Organic Recycling
• Regional Food Waste- to- Energy Facility
• Green Energy and nutrient rich fertilizer
• Earth Power Technology (anaerobic digestion
  technology)
• Bio-Methanation
• Refused Derived Fuel (RDF)
• Gas Compost

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Methods of Solid Waste Management
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Cost Norms for Organic Waste Plant

• 1 MT capacity Rs 5 Lakh (without mechanical
  segregation)
• Anaerobic Process 500MT / day Rs 2 crore
  (minimum 500 MT capacity)
• 100 200 MT (with segregation Plant) 1 crore
  and above)
• Average 100MT /day capacity plant requires 15
  acre of land

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Possible viable options for Markets
1. On-site Unit

• There are equipments available to manage SWM
  on-site
• On-site unit lessen the burden on city plants

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Cont..

• Eg. Terra Farma, Blore purchased land and set
  up 1000 MT capacity plant not even single truck
  arrives till date
• Municipal Authorities say that they are sending
  the trucks but it never reaches there
• On-site organic waste management is not an alien
  concept

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• Few builders in India have installed in here
  premises (eg Nirman Shelters, Blore)
• On-site unit is cost effective and viable as it
  saves pay for disposing charges
• Govt. of Karnataka has made on-site unit
  mandatory for housing units

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2. Bangalore Golf Club

• Commencement Apr 2009
• Cost 6 Lakh
• No PPP but run by club (management)
• Machinery Site 6ft x 4ft
• Capacity 30 kg input/hr
• Solid wasteDried grass Sawdust (purchased
• Product Organic Manure

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• Manure being used for Turf and Lawn
• Price Rs5/kg for general purpose
• 300 400kg/stock
• Output 30-40 kg/day
• Capacity 80 days in three months (90)
• Cycle for manuring 15 days
• Space 15x15ft room

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• Organic Waste Convertor
• Specifications
• Input Segregated Organic Waste
• Model OWC 60, OWC 130, OWC 300
• Capacity 25kg.,50kg.,125kg per batch
• Batch Time 15 to 20 min
• Power 4HP/8HP/13.5HP
• Area 3Mx4M for Composting Machine
• Excel India Ltd Website
• http//www.excelind.co.in/

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3. Bio-methanation Plant at Coimbatore

• Koyambedu Market Complex being one of the largest
  in Asia, generates significant quantity of
  organic wastes.
• About 30 tons of Vegetable wastes are generated
  per day. Such organic wastes dumps are a
  potential threat to the environment and the
  public health.
• This leads to emission of obnoxious odours and
  gases like methane, carbon dioxide which are
  potential greenhouse gases.

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• As a result of this, it was proposed to set up a
  waste treatment plant through High rate
  biomethanation and produce electricity
• Biogas expected - 15002500m3/day
• Power Gross - 3000-5000 Kwh/day

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E-auction
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e-Auction versus e-Trading

• e Auction
• All buyers are aware of quality and quantity of
  produce on sale
• The buyer must compete or bid to buy
• Price discovered is market driven

• e Trading
• VSAT based
• Internet based
• Intranet based
• Platform based
• Spot exchange
• Futures

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Overview

• Electronic Auction Systems are sophisticated
  solutions to address the growing need for an
  efficient trading method
• EAS help networking of domestic and global markets

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Auction Process

• There are 3 independent Auction process that are
  offered by the EAS system globally.  
• Dutch Auction
• English Auction
• Combi-Auction

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Auction Hall
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Dutch Auction or Reverse auction

• An auction in which an item is initially offered
  at a high price that is progressively lowered
  until a bid is made and the item sold
• Auction clock aids the auction master in the
  auctioning
• The current price is displayed in figures and on
  a giant circular dial
• Price falls at a steady speed determined by the
  auction master
• Buyers in the hall observe it on the clock dial

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Bidding Process

• Interested buyer pushes the bid button on his
  bidding terminal at the desirable price
• The buyer may talk to the auction master via
  telephone hand set on his table
• Once the quantity desired is allotted the auction
  begins again
• In this new round, clock speed is increased by a
  fixed amount and prices fall again

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ENGLISH AUCTION
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Benefits of Dutch auction

• quick and efficient for price discovery and
  multiple auctions
• Dutch auctions currently deployed in Holland are
  able to operate at speeds of up to 1500 auctions
  per hour

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The English Auction

• Ideally suited for auctioning of non-perishable
  commodities
• Generally generate higher prices but take longer
  time
• Usually used to auction larger lot sizes

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Bidding Process

• Begins with the floor price being displayed on
  the clock
• The buyers are given a fixed time seconds (can be
  changed by auction master) to place their bids
• A two digit count down display shows the time
  remaining before the auction closes.
• The auction ends when no more bids are received
  and the count down reaches 00.
• The successful bidder is the one who bid last and
  whose ID appears on the clock.

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• Interested buyers place their bids by pressing
  the bid button on the bidding terminal
• Each bid pushes up the current price displayed on
  the clock by a fixed amount
• This increment value is displayed on each users
  bidding terminal and is fixed by the auction
  master during the lot preparation process.

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The Combination Auction (Combi-Auction)

• It harnesses the strengths of the Dutch and
  English auction processes
• The quick price discovery technique of the Dutch
  auction along with the higher price realization
  of English Auction is combined
• competitive nature of the English auction pushes
  the price up marginally from the discovered
  price.

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Some Overseas Examples

• Belgian fruit and vegetable circuit
• The Belgian fruit and vegetable circuit
  includes the following markets
• 1. Belgische Fruitveiling, Sint-Truiden
• 2. Limburgse Tuinbouwveiling, Herk-de-Stad
• 3. Mechelse Veilingen, Sint-Katelijne-Waver
• 4. Profruco, Sint-Niklaas
• 5. Veiling Borgloon, Borgloon
• 6. Veiling Brava, Kampenhout
• 7. Veiling Brava, Zellik
• 8. Veiling Haspengouw, Sint-Truiden
• 9. Veiling Hoogstraten, Hoogstraten
• 10. Veiling Reo, Roeselare

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• Technology electronic auction hall equipped
  with remote bidding (participation of bidders in
  the auction real time from their offices, homes
  etc through their computers connected to the
  auction network)
• Turnover ()611261381(INR 4277 crores) annually

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ZON, the Dutch fruit and vegetable market

• The market's sales of horticultural foodstuffs
  was about 229 million Euros.(2002)
• Technology electronic auction clock in auction
  hall with remote bidding which allows buyers to
  bid from their homes or offices over an Intranet

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Quimper Chamber of Commerce-France

• The chamber runs the following interconnected
  markets Audierne, Concarneau, Douarnenez,
  Loctudy, Le Guilvinec, Saint-Guénolé and
  Lesconil, combined sales comprising 63,150 tons
  of fish
• Technology The Moby-Clock is a mobile auction
  system that is driven amongst the boxes of fish
  during the sale. Buyers bid using individual hand
  held transmitters. All required functions, input
  PC, ticket printer and display panel are
  built-into the Moby-Clock.
• This technology has also been adopted by the Looe
  Fish Market (England)

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Mobile Auction- Moby Clock
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Mobile Auction-Indian Model
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Alsmeer in Holland

• The biggest flower auction in the world
• The whole complex covers 135 Approx, 4 billion
  flowers and 400 million plants are sold annually,
  coming from 8.000 nurseries.
• The annually turnover amount to more than 2
  billion Dutch Guilders.
• This auction has 13 clocks, divided over 5
  auction rooms, each room has 300/400 buyers every
  day

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Landgard, Germany

• Covering a total area of 200,000 m² with over 300
  docking stations
• Marketing cut flowers and pot plants in Germany
• Mode of sales-electronic auctions in auction
  halls and direct sales
• Technology at auction hall- auction clock with
  bidding facility for bidders in the hall. No
  remote bidding

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Sydney fish market

• About 58 tonnes of seafood auctioned daily.
• Technology includes three auction clocks, a
  buyers' gallery and a remote buying program. The
  gallery houses 90 desks with seating for 180
  buyers

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Limitations of the electronic auction process

• Electronic communication does not capture non
  price information like the other bidders reaction
  in response to bids
• Reduces social interaction opportunity
• Image quality determines the perception of the
  bidders for the quality of the produce.
• No provision of visual inspection and inspection
  of quality is a major deterrent

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Online Inspection system

• A concept to take inspection services in to the
  electronic age.
• This system will also aid the electronic auctions
• Can prove to be a very potent aid in assuring the
  bidders of the quality of the lot.
• Fresh inspection results will be reported
  electronically
• The commodity will be inspected as per the
  requirements and real time documentation will be
  done to make the results instantly available

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Benefits

• Instant inspection results
• Uniform certificates
• Electronic distribution
• Permanent paperless record of inspection results
• Digital images of the product can be attached to
  certificate
• Certificates can be maintained electronically, so
  any involved party can have instant access to the
  certificates
• The transmission of certificates can occur within
  seconds

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Market Information Dissemination -A Case of
Thompson Reuters
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Cont

• Dissemination of information identified as a
  critical issue by PFF
• Registered farmers with PFF - 7500 detailed
  profile available
• Mobile Information Services to Farmers-
  Identified Service Provider Reuters Market Light
  (Thompson Reuters)

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RML-PFF Subscribers Receive

• Daily weather updates for the next 24 hours
• Farmers can subscribe for two commodities and
  receive market data from three markets of his
  choice (one being PFF and two other regulated
  markets). This helps farmers decide where and
  when to sell their produce
• Price updates and arrival information of select
  commodities

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• Presently, RML is covering over 60,000 farmers in
  Maharashtra state alone
• Crop advisory Tips are sourced from the Indian
  Council for Agriculture Research /or State
  Agricultural University.
• Service also provides news related to
  agriculture, state government schemes, price
  trends and commodity movements etc three times a
  day.

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• Purchase RML-PFF membership card
• Service being provided in chosen local language
  (Marathi in Nashik)
• Offer with validity for 3/6/12 months
• Cost effective service
• 3 months- Rs. 175
• 6 months- Rs. 350
• 12 months- Rs. 650

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Networking and Interdependency Grid Formation
Between Markets
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• Carbon Construction
• Enzyme based Technology for Road Construction for
  Premium Market, Nashik

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• THANK YOU!!