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Dissertation Project

On

Analysis of Export Procedures for Grapes

PREPARED BY

Mr. Merro Don Thomas

B.F.T (Foreign Trade)

PGPM

June 11, 2010

A report Submitted in partial fulfillment of

The requirements of

2-Year Full Time Post Graduate Programme in Management

(PGPM )at

INSTITUTE OF MANAGEMENT AND DEVELOPMENT

NEW DELHI

1
Declaration.

I hereby certify that the following work embodied in this


Dissertation Project is the result of original research and has not
been submitted for a Post Graduate Programme to any other
University or Institution.

Name:-Merro Don Thomas.

Batch 18

PGPM (International)

(Signed) ___________________________

2
Acknowledgements
I would like to thank one and all who have taken time
off their busy schedule to help in pursuing my Project and
without whose help it would not have been possible for me to
prepare this project report. I would like to thank them for their
advice and aids in numerous ways and their unending support
right from the stage the idea for this project was conceived.

It gives me a great pleasure to accord my sense of appreciation


to my corporate guide Mr.

for providing me the relevant information, documents


and guidelines for my project. . I am deeply indebted him for
the exposure given to me especially with regard to meeting
the users requirement, understand the problems and the
working scenarios.

I like to thank Mr. Abhishek Chaudhary, the Hon’ble


Vice-Chairman of my esteemed Institute who provided me all
the required facilities and support for undertaking this Project.

I would like to make a special mention of my


parents, who are my source of inspiration and support in
every step of my life so far.
I am also thankful to each and every person
concerned directly or indirectly with this project.

Merro Don Thomas.


MBA (4rd semester).

3
INDEX
Sr.no Chapters Page no.
1 Chapter -I
1.1 Introduction 8
1.2 Grapes 10
1.3 Market Scenario 11
1.4 Period of price fluctuation 11

2 Chapter - II
2.1 Export Of Grapes 15
2.2 Export Specification 16
2.3 Export Specification Of Different 19
Country
3 Chapter III
3.1 Weight Of The Bunch 22
3.2 Average Size Of The Grapes 23
3.3 Average Brix Of The Grapes 24
3.4 Price Paid To The Farmer During The Season 25
4 Chapter IV
Chain of events in Grapes export
4.1. Residue Analysis 28
4.2. Harvesting 28
4.3 Knitting and Sorting/ Grading 28
4.4 Weighing and Packing 29

4.5 Pre cooling and Cold Storage 30

4.6 Palletization 30

4.7 Before palletization 30

4
4.8 Loading of container 32

4.9 Procedure of Shipment 33

4.10 Post Landing Cost: 34

5 Chapter V
Conclusion 37

5
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 is 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.

6
For Thompson Seedless.

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.

7
CHAPTER – I

8
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.

PROPOSED PLAN FOR MAHARASHTRA


• During very first season (2008-09) 350 Containers of Grapes were to
European Nations from Nashik District alone.

• .Other exports from Nashik District are Pomegranate, Onion, and Banana etc.

1.2 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 day’s

11
grapes are produced in Latur district of Marathwada. However, Nasik and Sangli
districts are ahead in the production of grapes in a scientific manner.
Figure

12
Area under grapes in Maharashtra is 35236 hectare (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 exports 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.

1.3 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.

1.4PERIOD 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:

13
Variety Price Rs/kg
Sonaka 25-30
Tas-e-Ganesh 10-15
Sharad seedless 25-35
Thompson seedless 15-20
Flame seedless 25-28

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 (2008-09) 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.

14
Variety Price Rs/kg
Sonaka 25-30
Tas-e-Ganesh 10-15
Sharad seedless 25-35

15
CHAPTER-II
EXPORT OF GRAPES

16
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


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

17
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, color and
B
lot degree in ripeness.
Sr.
Characteristic Description
no.
Precooling, storage and transport about 0 - 1
1 Temperature
degree Celsius
Berry Color, two Opaque milky pale green color or amber. Not dark
2
separations green or glassy.
.
Berries must be fully developed, ripe, turgid
(firm); not bladdery, wilted, over mature; no
Berries - General
shriveled, deformed or poorly pollinated berries.
3 Appearance with 0 %
Color should be even through the bunch and across
tolerance.
the box. No wrinkling of skin or sunken area around
pedicle, water core.
No abnormal exterior moisture.
Free from decay-decomposition of fungus
development.
Free from decay-internal insect infestation or
internal damage.
Free from slip skin, botrytis, injuries, shriveling /
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

18
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 colored 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
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 flavor balanced by a hint of
11 Flavor
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.

19
10 punnets of min 520 gms (by packing) per 5 kg
carton. Max three bunches per punnet with a
19 Punnet weight
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 authorized Laboratory are ISO
17.025 certified pesticide
Residue field tests report codes are traceable via
the packing list.

20
EXPORT SPECIFICATION OF DIFFERENT COUNTRY

Variety Middle East Holland / U.K


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

Berry Size : 16 Berry Size : 18


FLAME mm Color Pink mm Color 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.

21
CHAPTER-III

MAJOR QUALITY PARAMETERS


FOR EXPORT OF THE BERRIES AT
POST HARVESTING

22
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.

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 %

23
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.

24
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

25
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

26
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

27
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.

28
Thus it can be seen that the quality norms are very stringent 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.

29
Chapter IV
CHAIN OF EVENTS IN GRAPES EXPORT

30
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 exported to ME as the quality assurance parameters
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% subsidy 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 quantity 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.

31
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 Italy 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 paisa each.

c) 9 kg Pouch packing: 17-18 plastic zip pouches of approximately 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
Bubble sheet @16 0.8 2320
paise/kg

32
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 palletisation,

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.

b) Fumigation certificate: As wooden pallets are used to keep boxes in


container .fumigation certificate is necessary for grape export .This will

33
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. Exporter’s declaration.

11.Pack house recognition certificate issued by APEADA.

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

34
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 cannot be opened by anybody till it reaches 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
include ‘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.

35
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. Jobs like space for
exports, order for the container, and 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.

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.

36
- 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
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

37
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.


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

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

38
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

CONCLUSION

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 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 Grapes 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.

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