BORIAVI FARMERS

COOPERATIVE

Ashish Chandra
Ashish Chaturvedi
C A Farzana Najeeb
C Sudhir
Neeraj Yadav
Scheme of Presentation

§ Existing Scenario

§ Characteristics of Business

§ Proposed Business Model

Potato: Characteristics

§ Seasonal
§ Perishable
§ Needs cold storage
§ Losses due to storage, transport and
disease
§ Highly fluctuating prices.
Production of potato in Gujarat
in 2008

4
Yield for Gujarat in 2008

5
Market Influencing Factors
§ Variations in potato domestic acreage based on
yield and price realization
§ Crop development based on weather progress
in key growing regions particularly cold wave
and heavy rains during tuber formation
§ Comparative price with other vegetables in the
domestic market
§ Demand of potato from the major cities and
food processing industries
§ The potato price tends to firm up during the
planting period and eases down during the
harvesting period.

6
 WHOLESALE PRICE IN MAJOR
MARKETS

Source: www.agmarknet.nic.in BACK

Price fluctuations in 2008

8
WHOLESALE PRICE FLUCTUATIONS IN
ANAND MANDI (JAN03-JAN08)

Source: www.agmarknet.nic.in
Price Trend
Why Boriavi

§ Yearly production of potato: 3.5 lakh

bags approx.
§ Easily accessible to market by roads
§ 60 cold storages within a radius of 10
kms
§ A well established and successfully
running fertilizer cooperative

11
 PRODUCTION SYSTEM

§ 750-800 farmers in Boriavi

§ Around 50 large farmers
§ Growing season: November to mid
March
§ Major varieties:
Lokar , Pokhraj , Badshah
§ Yield:
2008 - 250 lakh kg , 2009 - 175.5 lakh
kg
§ 40% of produce kept in cold storage
Cropping patterns in Boriavi

13
Cost incurred on one bigha land

Source: Fertilizer Cooperative, Boriavi

Transport rates

§ Nadiad Rs. 650

§ Anand Rs. 650
§ Ahmedabad Rs. 1500
§ Bhavnagar Rs. 2200
§ Rajkot Rs. 2200
§ Ankleshwar Rs. 3000
§ Anand Rs. 650
§ Vapi Rs. 5000
§ Surat Rs. 4000
§ Mumbai Rs. 11,000
§ Pune Rs. 14,000

16
Existing Value Chain

Farmer (Feb/March) (Rs 80- Rs 100/20 kg)

Commission Agents (10% to 12%) Cold

storage

Broker at APMC (10% to 15% commission)

Sub broker (8% to 10%) Loose/

 Production Risk
§ Extremely high cost of essential inputs like
seeds, fertilizer results in stunted production
§ Highly seasonal nature
§ Pathological losses: early and late blight disease,
wart, sot rot, tuber moth, charcoal rot disease
§ Physiological losses: Caused by the effect of
environmental conditions
§ Physical: loss due to reduction in weight during
storage, transport, grading and sorting
§ Despite having huge production, there may be
issue of quality
 Market Risk
§ Demand fluctuation
§ Fall in price due to huge production
during peak time.
§ High transport costs
§ Less price offered due to low grade
quality.
 Why Co-operative

§ Facilitating economies of scale in

handling, shipment and processing
member’s produce
§ For improving growers’ bargaining
power with buyers
§ To provide assistance to farmers in
terms of farm inputs
§ Reducing the price risk for the
individual grower by spreading that
risk over a large number of unit
 When the Co-operative starts functioning

Farmer Co-operative Cold APMC Retailer

Storage

End Consumer

21
Net Value Addition possibilities

§ Adding Place utility (Boriavi to Anand

Market)
§ Adding Time utility (Significant
change in prices in a short span of
time)
§ Adding form utility (Grading,
packaging)
 Business Structure

§ Provide Farm Inputs

§ Provide Real time Information (Price
and weather forecast through
internet)
§ Assistance by an agriculture graduate
§ Market the farmer’s produce
 Supply inputs

Harvesting
Grading Co-operatives
( By Farmers)

Storage Payment (80%) Procurement

Transportation Cold Storage Transportation

Patronage Recurring
APMC
Refund Payment

Retention by Co-
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 Grading Process
Grading is an important factor in the
marketing process of potato. It will also
be used to make payments to the
farmers based on the grade of his
produce.
Criteria for grading-
§ Size of the tuber
§ Conformity to the variety
§ Tolerance limit (for under sized &over
sized tubers)
§ Percentage of diseased and damaged
tubers
§ Presence of dust & extraneous material
Method of grading-
§ The grading will be done by
mechanical grader for accuracy and
efficiency.
§ The output capacity of the grader is 2
tons/hr.
§ The grading efficiency is 85 %.
 Market Chain (Backward Linkage)

§ Services providing to farmers

§ Fertilizer: existing fertilizer
cooperative
§ Seeds
§ Pesticides: National level Cos.
§ Agril Equipments: Irrigation, Farm
mechanization assets etc.
§ Credit facilities/insurance if possible
 Economies of Scope

§ Aggregation at Society’ level (Pooling)

§ Associated activities like grading etc.
§ Transformation may require for
expansion or value addition (cold
storages, transportation etc.)
Centrality of Co-operative Society

§ Member’s Centrality- Potato is one of the

major sources of income to the farmers
(approx. 30% of annual income comes
from potato)
§ Patronage Centrality-terms of exchange
§ Domain Centrality-contributes to state
GDP (% of total businesses, industry,
services, agriculture)
Literature and Web links

§ http://agmarknet.nic.in
§ http://www.indiastat.com
§ http://www.mapsofindia.com
§ http://www.aau.in
§ Marketing of Fruits and Vegetables in
India, Namboodari N.V.
§ Co-operative Marketing of Fruits and
Vegetables in India, Subrahmanyam K.V.
Thank You
Finances