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PROJECT REPORT

SUPPLY CHAIN MANAGEMENT


OF
POMEGRANATE

BY
HUSSAIN THWALIB
GOPIDI NIKHIL REDDY
NANAWARE VISHAL
SRILATHA REDDY
Submitted to
COLLEGE OF AGRICULTURE, BARAMATI
And
VHL, WAGNINGEN, THE NETHERLANDS

Table of Contents
I.

Introduction.......................................................................................................... 3
Pomegranate.................................................................................................. 3
About the Company........................................................................................ 4
Research Objectives....................................................................................... 4
Research Questions........................................................................................ 4

II.

Supply chain of pomegranate...............................................................................5

III. Production of Pomegranate..................................................................................6


Climatic requirement...................................................................................... 6
Plant Protection Measures..............................................................................6
IV. Packaging and Export........................................................................................... 8
V.

SWOT and PEST Analysis on Supply Chain of Pomegranate...............................11

VI. Discussion.......................................................................................................... 13
VII. Conclusion.......................................................................................................... 14
References................................................................................................................ 15
VIII.Appendix............................................................................................................ 16

I.

Introduction

An assignment on Supply Chain Analysis on any crop to European countries was


being allocated by College of Agriculture, Baramati and VHL, The Netherlands as a
part of International Agri-Business and Trade (IAT) curriculum. We, a group of four
members, took the liberty of selecting Pomegranate as the fruit crop and its export
to a European country. This report will give you detailed information regarding the
export of Pomegranate and the laws involved in its export.
Many fruit crops are being exported from India to different countries, but we
selected Pomegranate as our fruit for export because of the following reasons.
1. Maharashtra is the leading producer of pomegranate in India.
(http://agriexchange.apeda.gov.in/Market
%20Profile/MOA/Product/Pomegranate.pdf) (Accessed on 15-10-2015)
2. A wide variety of products such as juices, frozen arils, jams, puddings etc are
made from pomegranate in many of the European countries. (http://pomegtech.com/processed)

3. Pomegranate is rich in Vitamin C, Vitamin K, anti-oxidants and boosts up our


immune system. (http://www.nutrition-and-you.com/pomegranate.html) (Accessed on 1510-2015)

4. Many foreign countries such as UAE, UK, Netherlands and Russia have shown
a great demand for pomegranate in the past years.
(http://agriexchange.apeda.gov.in/Market%20Profile/one/POMEGRANATE.aspx ) (Accessed on
15-10-2015)
5. Pomegranate has a shelf life of 1-2months when stored under 5-7C.

1.1 Pomegranate
Pomegranate (Punicagranatum) is known for its colour and unique taste. The
products made from pomegranate have great demand all over the world. The
production of pomegranate in India is around 820.3 Metric tons in which
Maharashtra
stands
first
550
Metric
tons.
(http://nhb.gov.in/report_files/pomegranate/POMEGRANATE.html)(Accessed of 15-102015). It provides very good opportunity for livelihood security as it can be grown
even on waste lands and low rain fall areas. Moreover it can make a sizeable
contribution to GDP with a small area. (Date 1 st November, 2012 R.K Pal, Director of
ICAR-NRCP, Solapur). The major regions where pomegranate is mostly cultivated in
Maharashtra are Solapur, Nasik, Sangli, Pune and Satara. The price of pomegranate
in international market ranges from Rs400-Rs600 per 1kg box. (Reference: Mr
Sachin Yadhav, Manager Kay-Bee Exports). The company selected for the Supply
Chain of Pomegranate for our report is Kay-Bee Exports situated in Phaltan,
Maharashtra.

1.2 About the Company

KayBee

Exports was founded in 1989 by Mr. Prakash Khakhar and had


tremendous growth over the last few years and is considered as the market leader
in all the products it handles. Kay Bee group owns farms in Maharashtra, Gujarat
and Madhya Pradesh. Extensive R&D is done on these farms and is a first-of-its-kind
initiative in India. Ideal Farm scenarios are created and trials are conducted using
advanced technology. Both open and protected farming is carried out on these
farms. Regular soil testing is carried out to study optimum nutrient requirement per
soil per crop. Newer crop varieties are tried and tested. Kay Bee also encourages
the use of Bio Pesticides and has a facility for making bio pesticides for their farms
and contract farms.
The type of farming practiced is Contract Type. In this method of farming the
farmer will be provided with the land, seeds, fertilizer and all necessary equipment
by the company. The produce is procured by the company and offers a fair priced
fixed rate to the farmers. Kay Bee Exports has secured a CRISIL 1A (highest possible
for Small and Medium Enterprises) credit rating for 4 years in a row. It has won five
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consecutive export awards and is a government recognized export house. Kay Bees
farm operations and contract production are certified to Global GAP (Good
Agricultural Practices) & pack house is certified to British Retail Consortium Grade A
(highest possible).

1.3 Research Objectives

To analyze the supply chain of Pomegranate.


To study the problems faced by the exporters and farmers in business.
To study the demand of pomegranate in the European market.

1.4 Research Questions

1. What is Supply Chain?


1.1 What is the objective of Supply Chain?
2. What steps are involved in the supply chain of Pomegranate?
2.1 What is the cost?
2.2 What percentage of profit received by each middlemen in supply chain?
3. What is the demand of Pomegranate products in the European market?
3.1 How much is the export of Pomegranate in the past few years?
3.2 What are the rules and regulations involved in the export of
Pomegranate?

II.

Supply Chain of Pomegranate

Land

Retailers / Super Markets

3. Production of Pomegranate
Pomegranate is an important orchard crop cultivated in Maharashtra. It is a
perennial crop and requires dry climate for its fruit development. The root cuttings
are transplanted on to the main field from the nursery during Monsoon season. From
the 4th year onwards the tress starts bearing fruits and will continue giving it up to
15-20 years.

Climatic requirement
Optimum temperature for the growth of pomegranate is 38C. In humid
climate the fruits are severely damaged by pomegranate butterfly due to which
develop less sweetness.

Soil
Pomegranate grows under a wide variety of soils and can tolerate even
alkalinity and salinity to certain extent. However, best results are obtained in deep
heavy loam and well drained soils. It is sensitive to soil moisture fluctuations
causing fruit cracking, which is a serious problem of this crop.

Land preparation
The land should be deeply ploughed followed by 3-4 cultivations and
harrowing. Planting is done in well prepared pits. The pits are filled with about 20kg
FYM mixed with soil. This should be done by the beginning of January.

Fertilizer Application
At the time of planting, well-rotted FYM @ 20 kg per tree is usually applied to
pomegranate plants and this is continuously given to each plant every year at break
of monsoon. For 4-6 years old bearing trees, 500g N, 250g P 2O5 and 250g K2O per
plant have been found to give good yield. However, 50kg FYM and 3-5 kg oilcake or
1kg sulphate of ammonia prior to flowering are recommended for healthy growth as
well as fruiting. FYM and half the dose of ammonia sulphate are applied at the time
of bahar treatment. The remaining dose of ammonium Sulphate should be given
one month after the application of the first dose.

Spacing
High density planting with spacing gives 2-2.5 times more yield than that
obtained when the normal planting distance of 5 X 5 m. is adopted. Closer spacing
increases disease and pest incidence.

Irrigation
The average annual water requirement through drip irrigation is 20 cm. Drip
irrigation helps to save 44% on irrigation and 64% when sugarcane trash mulch is used.
It also helps to increase the yield by 30-35%.

Plant Protection Measures


Insect Pests
Insect pests mostly observed on pomegranate are fruit borer, mealy bugs,
aphids, white fly and fruit sucking moths. Spraying with Dimethoate, Deltamethrin
or Malathion etc, depending upon the type of pest infestation has been found to be
effective in most cases.
Diseases
The main diseases reported are leaf spot and fruit rot. Application of
Mancozeb (2g/l.) during rainy season in case of the former and application of
Kavach (2g./l) and Carbendazim/Thiophanate methyl/Baycor/Benomyl (1g./l.) during
September/October in case of the latter has been found to be effective in most
cases.
Disorders
Fruit cracking is a serious disorder. This physiological disorder observed in
young fruits is due to Boron deficiency and that in fully grown fruits is mainly due to
moisture imbalance. Spraying with calcium hydroxide soon after fruit setting is
beneficial.

Harvesting
Pomegranate being a non-climacteric fruit should be picked when fully
ripe. Harvesting of immature or over mature fruits affects the quality of the fruits.
The fruits become ready for picking 120-130 days after fruit set. At maturity, the
fruits turn yellowish-red and get suppressed on sides.

Yield
16-20 kg per tree. 6 tonnes/ acre.
Reference:
[3]http://nhb.gov.in/report_files/pomegranate/POMEGRANATE.html (Accessed on
15/10/2015)
[4]https://www.nabard.org/english/plant_pomegranate.aspx (Accessed on
15/10/2015)
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IV.

Packaging and Export

The variety used for exporting purpose is 'Bhagwa' as it is thick red in


appearance. The two steps involved in packaging and export are:
Grading
The criteria for grading are based on the exporting purpose. Some of them
are
By weight: should be more than 300g,
By colour: thick red,
By shape: round &slightly plane on surface.
Also the fruit should be free from spots, sunburn and other undesirable
things.
Packing
The company packs around 4kg of Pomegranate in a single polythene bag
with some ice cubes kept at its bottom for preserving its freshness. Four such
polythene bags are kept inside a box with is tightly sealed and sent for export.

Pomegranate carton ready for


export
Transport
The fruits are then shipped to Mumbai in trucks. Since the transportation is
done by the company owned vehicles are used and there is no involvement of other
agencies. Transportation cost which includes fuel, insurance, salary and benefits for
the driver will cost approximately Rs7000 for 4 tonnes of pomegranate.
[5]Reference: Sachin Yadav, Manager of Kay-Bee, Phaltan (Ph: 9673003060)

Documents Required
The following documents are commonly used in exporting; which of them are
actually used in each case depends on the requirements of both our government
and the government of the importing country.
1.
2.
3.
4.
5.
6.
7.
8.

Commercial invoice
Bill of loading
Consular invoice
Certificate of origin
Inspection certification
Dock receipt and warehouse receipt
Insurance certificate
Export license

Quantity Exported
Kay Bee Exports ships around 2000 tons of pomegranates in a year which is
packed 9-16 units per tray. The price of each unit is 1.00. They have been
exporting it since 2010 to mainly European countries such as the United Kingdom.
[6]Reference: Sachin Yadav, Manager of Kay-Bee, Phaltan (Ph: 9673003060)

Kay-Bee Exports current Status

2500

2000
Tonnes

1500

1000

500

0
2010-11

2011-12

2012-13

2013-14

2014-15

[6]Reference: Sachin Yadav, Manager of Kay-Bee, Phaltan (Ph: 9673003060

Production of Pomegranate in Tonnes


40000
35000
30000
Production of Pomegranate
in Tonnes

25000
20000
15000
10000
5000
0
2010-11 2011-12 2012-13 2013-14 2014-15

Chart
1: Pomegranate production in the last 5 years.
[7]Reference: http://www.cazri.res.in/publications/JCTewari.pdf (Accessed on
15/10/2015

Major Importers of Indian Pomegranate

UAE
Netherlands
Russia
Saudi
UK

Chart
2: Major Countries importing Pomegranate from India.
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[8]Reference: http://agriexchange.apeda.gov.in/Market
%20Profile/one/POMEGRANATE.aspx
(Accessed on 15/10/2015)

V.

SWOT and PEST Analysis of Kay-Bee Exporters

SWOT Analysis
Strength
Company owned farm therefore cultivation is supervised for quality purpose.
Highly integrated contract farm operations.
Own freight forwarding reducing transportation charges.
Global GAP certified pomegranate from its newly built state-of-the-art
pomegranate handling facility in Maharashtra.
Weakness
Quality requirements sometimes are not met.
Loss in a small percentage of total produce.
Farmers unsupportive behavior during sorting process.
Opportunities
Exporting products to countries other than UK.
Improvement in the size, weight and quality of the fruit.
Invention of Least expensive cultural practices and processing units.
Threats
Fluctuation in the international price of pomegranate.
More pomegranate exporters in Maharashtra creating tight competition.
Pest and disease attack on pomegranate is high.
Product sometimes rejected due to high insecticide concentration.

PEST Analysis
Political Factors

Change in Government policies regarding the export of food products to other


countries.
Taxation policies keep on changing and have significant effect on Industry.

Economic Factors

Fluctuation in fuel prices affects adversely and increases transportation


charges to the company.
Crop failure causes tension between farmers, company and also the importer
which is a high risk.
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Factors like money, supply, energy, availability and cost, business cycles etc
would also affect the company.

Social- Economic Factors

People have come to realize about the importance of fruits in their diet
this led to a significant increase in the production of fruits all over India.
Younger generation has started consuming and shifted from fast food to
fruits and its products.

Technological Factors

VI.

In this ever growing industry technology plays a major role in maintaining


quality and cost efficiency to generate high profits.
Better technology like cold storing can increase the shelf life of fruit.

Discussion

In Maharashtra, there are many pomegranate contract farmers. Number of


producer gives their produce to the exporter (Kay-Bee exporter). Farmers get a good
margin in this business by exporting with company. In fact they get more returns
from what they sell in the local market. The contract between the farmers and the
company is transparent as there are no middle men are involved. The company also
gets a huge profit by exporting the pomegranate to UK. The exporter maintains a
good relation with the importers from UK and it helps the company to get more
profits. The company ensures the quality of the product and exports only high
quality pomegranate which creates a good impression on the Indian Pomegranates
in other countries. Since Pomegranate is an exotic variety in UK, its demand is very
high. The importer accepts most of the pomegranates and the chances of rejecting
the goods are very less. This is an advantage for both farmers and the exporters.
There are chances of late delivery of the products due to some transportation
mishap which will create loss to the exporter. In some season there will be
fluctuation in the prices of pomegranate which will cause great loss for both the
farmers and the exporters. Sometimes the customs clearance procedures take time
for giving a green signal. This will affect the quality of the fruit due to its perishable
nature. This is also a great draw back and problem in exporting products to other
country.

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VII.

Conclusion

Over the last few years the export of pomegranate from India has increased due
to the quality in the product and various programmes conducted by the State
Horticultural Mission for the farmers. The supply chain, from production by the
farmers till it reaches to the ultimate consumer, has no middlemen except the
exporting company. Thus making pomegranate export a 'zero loss maximum profit'
business. The Kay-Bee charts and SWOT analysis in this report support this
statement.
To ensure that quality products reach customers in good condition, the harvest
must be packaged and transported using a hygienic, temperature controlled,
efficient and reliable system. The harvest quantity must be maintained without
compromising on quality of the fruit. Expanding the cultivation areas in
Maharashtra, developing better varieties that ensure better harvest, implementing
less expensive processing practices and units are all factors that will contribute to
make the supply chain process more efficient.
We can capitalize on the opportunities available in the market to make
pomegranate an all-season fruit and help the citizens of the world enjoy the benefits
of this amazing fruit!

References
[1] http://www.nutrition-and-you.com/pomegranate.html
[2] http://agriexchange.apeda.gov.in/Market%20Profile/one/POMEGRANATE.aspx
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[3] http://nhb.gov.in/report_files/pomegranate/POMEGRANATE.html
[4] https://www.nabard.org/english/plant_pomegranate.aspx
[5] Sachin Yadav, Manager of Kay-Bee, Phaltan (Ph: 9673003060)
[6] Sachin Yadav, Manager of Kay-Bee, Phaltan (Ph: 9673003060)
[7] Sachin Yadav, Manager of Kay-Bee, Phaltan (Ph: 9673003060)
[8] http://www.cazri.res.in/publications/JCTewari.pdf
[9] http://www.mapsofindia.com/indiaagriculture/fruits-map/pomegranateproducing-states.html

VIII.

Appendix

Kay Bee Exporters Export of Pomegranate from Maharashtra to UK

14

Pomegranate Producing States in India

Pomegranate Producing States In India


15

States/ Union Territories


Andhra Pradesh
Chhattisgarh
Gujarat
Himachal Pradesh
Karnataka
Maharashtra
Nagaland
Orissa
Rajasthan
Tamil Nadu
Total

Pomegranate
Area
5.6
0.1
4.4
1.3
13.2
98.9
0.1
0.2
0.8
0.4
125

Production
56.4
0.4
45.6
0.5
138.5
555.5
0.3
0.8
4.8
17.5
820.3

[8] Reference: (http://www.mapsofindia.com/indiaagriculture/fruitsmap/pomegranate-producing-states.html ) (Accessed on 21/10/2015)

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