Detailed Project Report on Development of Modern ... - Agmarknet

NIAM 

<strong>Detailed</strong> <strong>Project</strong> <strong>Report</strong> on 

Development of 

Modern Terminal Market 

for 

Fruits & Vegetable at 

Rai 

Prepared By 

NATIONAL INSTITUTE OF AGRICULTURAL MARKETING 

(Govt. of India Organization) 

Kota Road, Bambala, Near Sanganer 

Jaipur - 303906

C O N T E N T S 

Ch. 

No. 

<strong>Project</strong> Summary 

P A R T I C U L A R S 

Page 

No. 

I-VI 

1. <strong>Project</strong> Introduction 1-5 

2. Present Horticultural Scenario in Haryana 6-19 

3. Existing Wholesale Fruit and Vegetable Markets and 

Produce Flow 

20-43 

4. Problems in Existing System 44-50 

5. Perception of Stakeholders and Survey Results 51-67 

6. Proposed Concept for Infrastructure 68-83 

7. Electronic Auction System 84-108 

8. Main Features of the Market 

109-219 

• Ripening Chamber and Cold Storage 

• Electronic Grading Lines 

• Quality Evaluation Station 

• Underground Conveyor Based Movement and 

Handling System with Pre-cooling 

• Automation and net Working 

• Online Spot Commodity on NCDEX Platform 

• Testing, Grading, Certification and Laboratory 

Facility 

9. Description of Various Sections in the Market 220-223 

10. Proposed Market Structure 224-228 

11. Backward Linkages 229-268 

12. Forward Linkages 269-278 

13. Business Process and IT Enabled Operations 279-290 

14. Management Ownership 291-301 

15. Proposed Holding and Operational Structure 302-329 

16. Implementation of the <strong>Project</strong> 330-335 

17. Calculation of Financial and Economic Viability 336-345 

Proposals 

Quotations

PROJECT SUMMARY - RAI 

Overview of the <strong>Project</strong> 

S.No. Particulars Description 

1. Proposed <strong>Project</strong> Modern Terminal Market for Fruits and Vegetables at Rai 

2. Promoters of the Market Haryana State Marketing Board (HSAMB) 

2. Operators of the Market Public-Private Model named Terminal Market Company (TMC). 

O&M by private firm only. 

3. Location Optional Sites: (Order of Preference) 

(i) 

National High Way - 1 Rai 

• <strong>Project</strong> Developed on Rai High Way Site Basis 

4. Area Proposed 87.73 acre out of which 37 acres in I phase of the said 

project. Rest for future expansion and phase II development. 

5. Major sourcing areas 30 Collection Centers. 18 Collection Centers in district Panipat, 7 in 

Sonipat, 2 in Rotak and 3 Jhajjar. 

6. Handling capacity • Terminal Market 937 MT / day and 3.00 lac MT / year. 

• Per Collection Centre–30 MT/day and 9000 MT/ year 

7. Expected peak 

throughput for Terminal 

Market 

8. Modern Infrastructure in 

the Market 

1000 MT/ day 

• Central Electronic Auction - Two Halls of 100 Seat each. 

• Underground Conveyor Based Material Movements and 

Mechanized Handling with three Pre-cooling units. 

• Wholesale block cum Godowns (100 big shops) 

• One Automatic Electronic Grading Waxhing Plant for Apple & 

Citrus with State-of-Art Facility for Exports (common pay & 

use infrastructure) . One Vegetable Trimming, Washing,

Grading and Shrink Wrap Packing facilities.. 

• Pack-house Facilities 

• Color Vision System Quality Station 

• Material Lifting and Ancillary Equipments 

• Optional provision for Cash and Carry stores 

• 5000 MT Cold Storage with 1000 CA Storage. 6 Ripening 

chambers for Banana / Mango of 15 MT each 

• State of Art Testing/Certification Laboratory and R&D center 

to meet International SPS standards. 

• Commodity Exchange Platform for Spot Electronic Trading. 

• Automated Total Business Process. 

• Environmental Infrastructure-ETP/STP, Gen Set. 

• Networking with Food Park of 140 Units and Cargo Depot of 

CONCORE. 

• Provision for Food Processing Unit, Hotel and Social 

Infrastructure in phase-II 

• Built up area for banks, Service providers, transport companies 

etc., 

• Post Office, police post, fire services, parking for trucks and 

cars, information center, rest rooms for farmers and drivers 

and exporters. 

• Tie up with major Food Store Chains (e.g. Food world and 

Radhakrishana Food Land in Mumbai for up to 30-50% of 

throughput need. 

9. Off-market site 

Infrastructure 

(Collection Centers) 

• 35 Collection centers providing facilities 

(i) Weather Insurance’ Personal Life Insurance, Animal 

Insurance, Accidental Insurance (ii) ATM (iii) Agri-clinics and 

Extension services (iv) Future Price Display (v) Multipurpose

Information-Kiosks (vi) Commodity Exchange Node-Phase-II 

(vii) Electronic Display Board and Live Auction (viii) Total 

Transactional Banking Solutions by banks like Yes Bank, 

ICICI etc. (ix) Investment Advice (x) Grading Facilities. (xi) 

One Stop Shopping for Input by Co. like Godrej Agrovet, ITC, 

Mahindra, DSCL etc. (xii) Concessional Educational Loan to 

Farmer’s Ward and health Services (xiii) Volume Incentives to 

Growers. 

10 Infrastructure at Each 

Collection Centre 

• Mechanical Grading Lines; Vegetable Trimming & Washing 

Line, Grading Hall with Furniture, 4000 Plastic Crates, 

Computers, Display Boards, etc. 

11 Forward Linkages • Sale outlets in major cities of India, on Franchise Basis. 

12 Cash & Carry • Cash & Carry stores (in market areas on Franchise basis) 

12. Cost of <strong>Project</strong> and Means of Finance 

Sn 

Particulars 

Amount 

(Rs. In Lacs) 

Cost of <strong>Project</strong> 

1. Land 517.00 

2 Building and Civil Work 2781.46 

3 Machines and Equipments 1379.15 

4 Misc Fixed Assets 1132.50 

5 Furniture and Fixture 47.50 

6 Preliminary and Pre-Operative Expenses 360.03 

7 Contingencies and Escalations 149.22 

8 Security Deposits 0.60 

9 Working Capital Margins (on the basis of IInd year of Operation at 

196.88 

50% capacity Utilization) 

Total 6564.33 

Means of Finance 

1 Share Capital 1806.62 

2 Subsidy 1591.71 

3 Term Loan 3166.00 

Total 6564.33

COMPARISON WITH NDDB (SAFAL) MARKET, BANGALORE 

S.No. Item Bangalore Rai 

1. Daily No. of Vehicle Arriving 600 250 

2. Expected Daily Arrival 2400 MT 

850 MT (2003) 

930 MT 

230 MT (First year) 

3. Average Vehicle Load 4 MT 4 MT 

4. Built up Area 6.00 lac Sq. ft (22% of 

Total Area) 

3.00 lakh sq. ft. 

5. Auction System 

(i) Hall 

(ii) Technology 

(iii) System 

2 (Capacity of 150 in 

each) 

Mechanically Exposed 

Clock 

Only Dutch 

2 (Capacity of 100 in each) 

Plasma Display Clock 

3 Systems 

6. Cold Storage 10 (100 x 50) = 10,000 5 (100 x 50) = 500 MT 

MT 

7. Ripening Chamber 10 of 25 MT each 6 of 15 MT each 

8. Queuing of Vehicles (Average 4 

meters length) 

2400 meters (600 

vehicles ) 

1000 meters 

(250 vehicles) 

9. Civil Cost 45 crores 24 crores 

10. Shops and Godowns 300 5100 

11. Cost of <strong>Project</strong> Rs.200 crore 

Above Rs. 100 crore 

already spent 

Rs.55 crore 

12. (Forward Linkages) 

Registration of Buyers; 

Inadequate Buyers 

Rigid- (Advance 

Deposit ) 

Flexible - No Advance. 

Bank will Extend Credit Limit to 

Buyers.

PRE AND POST SCENARIO OF TERMINAL MARKET ESTABLISHMENT AT 

RAI 

Problems 

1 Only notified commodities can be traded 

by licensed traders in notified area with 

payment of fees under regulatory 

framework of APMC 

2 No commodities can be traded and no 

transaction can take place without 

payment of the market fee to APMC by 

any means 

Solutions 

Only graded material will be accepted in 

the terminal market and no other criterion 

for trading of the produce by registered 

traders with no limitation of notified area 

and no involvement of commission agent. 

No market fee to be paid for trading and 

transaction in the modern terminal market. 

3 Market doesn’t play a proactive role in 

attracting produce or in facilitating the 

farmers to organise the logistics 

Backward and forward linkages and 

modern value added facilities in the 

terminal market 

4 Lack of perfect marketing conditions, an 

environment of regulation and monopoly 

of existing traders. 

No monopoly of any single authority and 

provision of alternate authority to operate 

in the market 

5 The land use pattern in side the market is 

faulty 

Land use pattern in the system is totally 

changed and is allocated in such a way to 

suit into different stakeholders

6 Parking in circulation area either openly 

ignored or encroached upon. 

Parking and vehicular movement is 

changed and to suit different stakeholders 

7 Chaos is a common phenomenon at 

trading places in fruits and vegetables 

since there is no single centralized 

auction system. 

Centralized Auction System (CAS) is 

introduced in the modern terminal market. 

8 The scenario of congestion, Chaos and 

unhygienic condition 

Hygienic and modern with mechanized 

material movement facility 

9 Lack of post harvest handling, 

assembling, sorting, grading, packing, 

transportation, quality certification, 

pallatization, labeling, pre-cooling, coldstore, 

ripening chambers and exports. 

All the facilities are provided at both end of 

the terminal market and at the collection 

centers. 

10 The present system does not cope up with 

cultural change, technological 

advancements and professional 

expectation of different stakeholders 

11 High levels of price fluctuations in key 

produce 

The proposed system has scope for 

accommodating modern technological, 

future expansion and accountable to the 

need of stakeholder. 

Less price fluctuation and the fate is more 

predictable 

12 The traders are also facing the problem of 

arranging transport to major destinations. 

This will be taken care by the terminal 

market.

Modern Terminal Market Rai 

CHAPTER - I 

PROJECT INTRODUCTION 

The development of horticulture has become a major social aspiration in many 

developing countries, more than ever before. This has manifested in the various 

kinds of advances on agricultural front. Marketing of horticulture produce is as 

important as production itself as it plays a very important role not only in 

stimulating production and consumption but also in increasing the pace of 

economic growth. It is however, unfortunate that the marketing sector in the field 

of horticulture has not progressed to the extent desired, in developing countries 

like India. 

Under these circumstances, the efforts put in by the various Govt. agencies to 

promote the regulated horticultural markets deserve to be commended. There 

has been demand in the past to regulate the working of regulated markets 

throughout the country. But now the things have changed and regulation now is 

being replaced by development. 

The existing structure of marketing of fruits and vegetables does not address the 

problems of farmers; it has low marketing efficiency, high post harvest losses and 

does not foster competitiveness. A modern innovative system which reduce 

vested interest of a large intermediary chain creates, competition, assures quality 

and modernizes operations with IT applications in handling of fruits and 

vegetables is necessary to raise incomes of actual farmers. To achieve this 

objective, National Dairy Development Board was asked to develop and establish 

1


and operation Modern Integrated Terminal Market for Fruits, Vegetables and 

Flowers in Bangalore by the Govt. of India. The market is popularly known as 

SAFAL Fruit and Vegetable Auction Market (SFVAM). 

SFVAM is a special endeavor to bring farmers and wholesalers to a common 

platform to facilitate information sharing and to promote the spirit of cooperative 

movement. The State Government has amended Karnataka State Agricultural 

Produce Marketing (Regulation), Act, 1966 to pave way for National Dairy 

Development Board to own, operate and manage fruit and vegetables auction 

market in the State. The venture facilitates the organization of more than 200 

horticultural farmers’ associations with around 50,000 grower members for 

planned and assured production and supply of agricultural produce for the 

purpose of wholesale marketing. 

The Safal Market is designed on the lines of European Auction Markets. It offers 

a clean and hygienic market environment. Components of the marketing system 

include establishment of Wholesale Auction Market, Backward Linkages with 

Farmers, and Forward Linkages with the Retailers and Consumers. The market 

is designed to handle 1000 MT of fresh fruit and vegetables per day, operating 

312 days in a year. 

The market is supported by 225 horticultural Farmers Associations (FAs) 150 in 

the State of Karnataka and the balance in nearby states of Andhra Pradesh and 

Tamil Nadu. 

Membership of the association is restricted to only those farmers 

who own land and are not traders. 

The FAs will to be linked to 45 Collection 

2


Centers (CCs). The Forward Linkages envisioned under the system provide 

incentives to the wholesalers in the form of Assured availability of fruits and 

vegetables, graded material, Short-term storage, Fruit ripening facility etc. The 

market was designed to handle 858 MT in 2003 and 1830 MT in 2012 per day. 

The market has not achieved the prospective level where as in terms of 

investments, it has already crossed more than 1,000 million rupees. The flower 

auction mainly caters to the flowers grown around the city. 

The market as not 

achieved the level of expectation in the year 2005 in terms of arrival and volume 

of business. 

The reasons for not achieving the operational level is advocated as 

inadequate wholesalers to buy material because of deposit requirement equal to 

the amount of purchase everyday by the traders. 

This practice of NDDB is 

neither practically possible nor is prevailing in the existing trade practice. 

A 

backward linkage with farmers is also inadequate and incomplete and information 

communication is not in place. 

While cooperating with the NDDB and inculcate a new culture of modern markets 

the Govt. of Karnataka amended the APMC Act and allowed NDDB to open and 

run the said market. 

The Govt. of India prepared a Model Act to bring 

amendment in APMC Act and allowing private markets to come up. As a follow 

up of this, various states have amended their acts to pave way for private sector 

to come forward on the same lines. 

The Govt. of India has also introduced 

Market Infrastructure Development Scheme (MIDS) which is linked with reforms. 

In this background the Ministry of Agriculture took up the matter with different 

States and the NDDB for replicating the similar model in different forms in 

3


different States. Taking initiatives, the Ministry offered to assist the willing States 

in formulation of <strong>Detailed</strong> <strong>Project</strong> <strong>Report</strong>s (DPR) for the setting up of Integrated 

Horticultural Markets and subsequently in tying up of financing and 

implementation of the project by different agencies in different States subject to 

the condition of amendments in APMC act. 

Different States requested the 

Ministry to get prepared <strong>Detailed</strong> <strong>Project</strong> <strong>Report</strong>s for them. In view of this, the 

National Institute of Agricultural Marketing was asked to prepare the said reports 

for different markets in different States. 

The Ministry decided to take up Rai Market of Haryana in the first phase and 

NIAM was asked to complete the report by end of June, 2005. 

Haryana has emerged as one of the forefront States in the Northern Region. It 

has combined growth with equity and is ranked third against the States with a 

minimum gap between rural and urban prosperity. In terms of per capita income it 

is sixth in the country after Chandigarh, Delhi, Pondichery, Maharashtra and 

Punjab. Amongst the top most industrialized states it ranks third largest in per 

capita value addition in industries and is sixth in the roster of Industrial 

Entrepreneurship Memoranda (IEMs). It ranks fourth as per the infrastructure 

index developed by CMIE besides being one of the top agrarian states and 

contributing substantially to the national pool of wheat, rice, coarse cereals and 

pulses. 

Haryana, bordering the National Capital from three sides, offers excellent location 

to start any industry. It’s close proximity to major consuming market of the 

country(Delhi) justifies the development of modern, systematic, professionally 

4


managed and efficient market. The state has a rich industrial base and a sound 

infrastructure. One-third of Haryana falls under the National Capital Region. 

Panipat, Rohtak, Gurgaon, Faridabad and Sonepat have special potential for 

accelerated socio-economic development. 

Haryana is in close contact with the cosmopolitan world, being close to Delhi. 

International and domestic airports, diplomatic and commercial complexes are 

just a stone's throw away. Indira Gandhi International Airport is just ten minutes 

drive from Gurgaon, an emerging metropolis. 

Haryana is blessed with varied agro-climatic conditions ranging from scanty 

rainfall areas with sandy soils to high rainfall areas with loam to heavy soils. As 

such, all horticultural crops can be grown suiting the agro-climatic conditions of 

the region. The area under fruit and vegetable cultivation has grown to 66.825 

hectares. 

The Industries can derive maximum benefits by processing horticultural produce, 

being in close proximity to the city of Delhi, which is a big market for perishable 

commodities and also the main terminal for supply of goods to domestic as well 

as export markets. 

The soil and climate of Haryana is suitable for growing a number of flower crops 

namely marigold, roses, tube-roses gladioli, carnation, chrysanthemum. The 

flowers of these crops are needed for domestic consumption and export. 

5


CHAPTER – II 

PRESENT HORTICULTURAL SCENARIO IN HARYANA 

The cultivation of horticultural crops is highly specialized, technical and 

remunerative venture as compared to traditional crops being grown by the 

farmers. Apart from this, majority of horticultural crops being perishable in nature, 

requires, systematic planning for their development. Horticultural development 

has assumed greater importance in recent years since this sector has been 

identified as remunerative for diversification of land use which provides increased 

employment opportunities, better return per unit area besides filling the nutritional 

gaps. Farmers have started taking up horticulture crops as a separate viable 

economic activity. 

PRESENT STATUS 

Haryana is predominantly an agrarian state, has diverse agro climatic conditions 

and produces a wide range of tropical and sub tropical horticultural crops. The 

state is ideally suited for exploiting the potential horticulture production, being in 

close proximity to the region of National Capital Delhi, which is one of the biggest 

markets of the world. With a view to give a boost to the growth of the horticulture 

in the state, Haryana Govt. has bifurcated and independent Department of 

Horticulture from Department of Agriculture in 1990-91. Since then the 

department has made significant contribution in the development of horticulture 

6


in the state. A majority of the horticultural crops especially fruit crops being 

perennial in nature having long gestation period require well planned and 

systematic planning for their development. Still there is a great potential for 

enhancement of this sector in the present scenario of crop diversification for the 

better return per unit area, increasing more employment opportunities and 

upliftment of the farming community in the state. Govt. is deeply concerned with 

the fluctuating prices as well as glut in markets of these perishable like fruits, 

vegetables and flowers as well as to reduce the post harvest losses of these 

perishables. 

STATE INETERVENTION 

For the development of Horticulture there are seven non-plans, six plans, two 

centrally sponsored schemes and one sharing scheme from Ministry of 

Agriculture, Govt. of India are in operation. The developmental programmes in 

the states are being implemented through macro crops, plasticulture, commercial 

floriculture, development of spices, vegetables, mushrooms, organic farming and 

information technology etc. 

PRESENT STATISTICS OF AREA AND PRODUCTION OF HORTICULTRE 

CROPS IN THE STATE 

1. FRUITS: The area under fruits during 1966-67 was 7865 hectares with a 

total production of 27527 tones. The area and production under fruits has 

increased considerably from 12640 ha and 99800 tones during 1990-91 

7


(creation year of the Department) to 31611 hectares and 257200 tones by 

the end of 2003-04, respectively. The projections of additional area and 

production for the year 2004-05 are 2000 hectares and 182000 tones. 

Major fruits cultivated in Haryana are Mango, Citrus, Guava, Ber, Grape, 

Aonla and Chiku. Mango contributes approx twenty one percent to the 

total fruit production of the state. Guava and citrus contributes approx 

nineteen percent each to fruit basket of the state. 

FRUIT PRODUCTION IN HARYANA 

60000 

50000 

Production in tonnes 

40000 

30000 

20000 

10000 

0 

Mango Guava Citrus Ber Grape Aonla Chiku Litchi P/P/P Others 

Production 

2. VEGETABLES: During 1966-67 in Haryana State the total area under 

vegetable was 11305 hectares with a production of 135360 tones. The 

area and production of vegetables have increased from 55360 ha and 

802240 tones during 1990-91 to 203740 hectares and 2701300 tones by 

8


the end of 2003-04. Target proposed for the year 2004-05 is 208000 

hectares and 305000 tones. 

Some of the major vegetables grown in the state are Potato, Onion, 

Cauliflower and Cucurbits. Production of Potato is highest in the state. 

VEGETABLE PRODUCTION IN HARYANA 

450000 

400000 

350000 

300000 

250000 

200000 

150000 

100000 

50000 

0 

Potato 

Onion 

Tomato 

Radish 

Carrot 

Cabbage 

Cauliflower 

chillies 

Bhindi 

Brinjal 

Production (tonnes) 

Cucurbits 

Leafy Vegetable 

Pea 

Arbi 

Others 

The major production centers of some major vegetables are given in the table 

below. 

Commodity 

Potato 


Tomato 

Radish 

Carrot 

Cabbage 

Cauliflower 

Chilies 

Bhindi 

Brinjal 

Major Production Centers 

Kurukshetra, Yamuna Nagar,Ambala, 

Karnal 

Gurgaon, Sonipat, Rohtak 

Karnal, Kurukshetra,Sonipat 

Rohtak, Sonipat, Yamuna Nagar 

Sonipat, Bhiwani, Yamuna Nagar 

Sonipat, Gurgaon, Panipat 

Sonipat, Panipat, Gurgaon 

Yamuna Nagar, Panipat, Kurukshetra 

sonipat, Kurukshetra, Yamuna Nagar 

Sonipat, Panipat, Gurgaon 

9


Cucurbits 

Leafy 

Vegetables 

Pea 

Arbi 

Karnal, Panipat, Sonipat 

Gurgaon, Karnal, Panipat 

Yamuna Nagar, Kurukshetra, Karnal 

Yamuna Nagar,Sonipat, Kurukshetra 

MUSHROOM- Haryana is leading mushroom producing state of India. The 

production of mushroom during 1990-91 was 850 tones. It has now increased 

to 5954 tones. 

Panipat, Sonipat and Gurgaon are the major mushroom producing districts of 

the state contributing nearly 70 percent to total mushroom production of the 

state. 

% Share of Districts in Mushroom Production 

others 

30% 

Panipat 

15% 

Gurgaon 

18% 

Sonipat 

37% 

Panipat Sonipat Gurgaon others 

10


3. FLOWERS: Commercial flower cultivation was non existent at the time of 

organization of the state. Keeping in view the increased demand of flowers 

and cut flowers for domestic and export market, the department has 

planned to introduce commercial floriculture. During the year 1990-91 

there was hardly an area of 50 hectares under commercial flowers, but it 

has now covered an area of 4286 hectares during 2003-04. It is likely to 

increase 4600 hectares by the end of 2004-05. 

4. INTRODUCTION OF NEW TECHNOLOGIES: Water is a major constraint 

in the state and it is extremely necessary to conserve. Preserve and utilize 

the underground water to achieve the higher productivity with optimum 

utilization of available water by adopting new technologies such as drip 

and micro irrigation system. Although water is a renewable resource, but 

Haryana does not have any perennial river, therefore this type of irrigation 

facility is most suited to southern area of the state. Fertilizer use efficiency 

can also be enhanced to 30-40 percent, where it is applied through drip 

irrigation system by the end of 2003-04. The targets for the year 2004-05 

are 200 hectares. 

Similarly green house, Poly house have been found to be very successful 

for raising nursery, off season production of vegetables and flowers, 

hardening of tissue culture plants and saving the saplings from vagaries of 

11


weather. So far 205 poly house/greenhouse have been established in the 

state. The target for the year 2004-05 is 5 in number. 

MEDICINAL AND AROMATIC PLANT CULTIVATION 

In the changed scenario, cultivation of medicinal and aromatic plants is also 

becoming a rewarding sector for getting higher returns for nit area. The state has 

very conducive soil and climatic conditions for the cultivation of wide range of 

medicinal and aromatic plants. For the promotion and development cultivation of 

medicinal and aromatic plants in the state, Department of Horticulture has 

initiated the following steps: 

• Motivation of farmers for growing herbal/ medicinal/ aromatic plants at 

their fields to get more returns per unit area with technical assistance from 

the Department through its extension personal in the field. 

• Training and visits of the farmers as well as field functionaries about the 

latest technical know how for the cultivation of various medicinal/ herbal 

plants. 

• Laying out of demonstration on various species of herbal/ 

medicinal/aromatic plants at farmers’ field. 

12


MONTHLY WHOLESALE PRICES 

Wholesale prices of all the commodities vary. However the extent of variation 

depends on the perishability of the commodity. During harvesting season, prices 

drop down in the market whereas in off-season we can observe sky rocketing 

prices YEAR????? 

Vegetable January February May June July August September December 

Potato 266 218 210 647 722 744 875 291 

Onion 547 320 433 316 381 674 579 278 

Tomato 567 518 575 709 1104 1286 724 363 

Okra 1551 1767 1232 657 730 1516 1037 1122 

Brinjal 435 392 444 731 564 2255 693 306 

Bitter 1717 1690 1192 614 934 1027 689 950 

Gourd 

Ginger 1448 1094 1370 5020 4309 1186 2217 1332 

Green 841 790 1095 753 591 2926 1219 569 

Chillies 

Garlic 2451 1987 1250 1541 1325 1298 2711 2823 

Fruit January February May June July August September December 

Aonla 1237 NA NA NA NA NA NA 772 

Ber 1053 1415 NA NA NA NA NA NA 

Grapes 2724 2656 2721 3060 NA NA NA 1281 

Lime 922 1206 1940 1032 998 818 2116 3414 

Kinnow 695 969 NA NA NA 2200 NA 847 

Pomegranate 2908 1680 1528 1718 1657 2298 902 

Papaya 757 552 703 944 904 944 629 1840 

Sapota 1060 1124 1000 1215 1281 1036 950 584 

Mango NA NA 1934 1986 2105 NA NA 1704 

13


Prices are dependent on the arrivals in the Mandi. 

Harvesting seasons of the various horticultural commodities is given in the 

following table:- 

HARVESTING SEASON OF CROPS 

Crops Jan. Feb. March April MayJune JulyAug. Sep. Oct. Nov. Dec. 

Aonla PL NO NO 

Ber NO PL NO NO 

Citrus NO NO PL 

Guava NO PL NO NO PL NO NO NO 

Grapes NO PL NO 

Litchi NO PL NO 

Mango 

NO PL NO 

Pear 

NO PL 

Peach PL NO 

Plum 

PL NO 

Peas PL PL NO NO NO NO 

Potato NO PL PL NO NO NO 

Radish PL NO NO PL PL 

Tomato NO NO NO PL NO NO PL NO NO 

Chillies NO PL NO PL NO 

Garlic 

PL 

Ginger PL NO NO PL 

Fennel 

PL 

Fenugreek NO NO PL 

Turmeric NO PL NO NO 

Brinjal PL NO NO NO NO PL 

Cabbage PL NO NO NO NO 

Cauliflower PL NO NO NO NO NO 

Carrot NO PL NO NO NO NO 

Okra NO PL NO NO 

Onion NO PL NO 

* NO- stands for normal level 

PL- stands for peak level 

14


GROWTH OF HORTICULTURE IN HARYANA 

The area under fruits and vegetables is growing at fast pace in Haryana. Total 

area under horticulture in the state in the year 2003-04 is 239637 ha. 

Total cultivable area in the state is 3801000 hectares. Area under horticulture is 

239637hectares. The area under fruits is 31611 hectares, under fruits is 203740 

hectares and under flowers is 4286 hectares. 

S. 

No. 

Name of 

the 

District 

Area 

unde 

r 

Fruit 

s 

(ha) 

Area 

under 

Vegetabl 

es 

(ha) 

Area 

under 

Flowe 

rs 

(ha) 

Total area 

under 

horticulture( 

ha) 

(2003-04) 

Cultivable 

area in 

Haryana 

(ha) 

%age 

horticultura 

l area over 

cultivable 

area 

1 Panchkul 3222 6700 78 10000 32000 31.25 

a 

2 Ambala 2396 14572 73 17041 134000 12.72 

3 Y Nagar 5942 15887 151 21980 127000 17.31 

4 Kuruksht 1227 14741 100 16068 150000 10.71 

ra 

5 Kaithal 727 6126 17 6870 197000 0.03 

6 Karnal 1557 16162 200 17919 217000 8.25 

7 Panipat 925 15000 26 15951 106000 15.05 

8 Sonipat 1538 26993 751 29282 185000 15.82 

9 Rohtak 1029 6750 25 7804 161000 4.85 

10 Jhajjar 592 6063 131 6786 170000 3.99 

11 Faridaba 1118 7906 405 9429 159000 5.93 

d 

12 Narnaul 101 5680 34 5815 157000 3.7 

13 Rewari 500 2706 14 3220 130000 2.48 

14 Gurgaon 1861 22046 2000 25907 215000 12.05 

15 Bhiwani 1084 8252 15 9351 415000 2.25 

16 Hissar 1942 7510 38 9490 363000 2.61 

17 Fatehaba 1217 6311 19 7547 226000 3.34 

d 

18 Sirsa 3407 6550 23 9980 405000 2.46 

19 Jind 1226 7785 186 9197 252000 3.63 

State 3161 

1 

203740 4286 239637 3801000 6.3 

15


The ratio of area under horticulture to that of total cultivable area stands at a low 

6.3%. But some districts show good ratio. Panchkula district has thirty one 

percent of total cultivable area under horticulture. Ambala, Yamuna Nagar, 

Panipat and Sonipat also have considerable percent of their cultivable land under 

horticultural crops. The graph depicting percent cultivable area of districts under 

horticulture is below: 

DISTRICTWISE % HORTICULTURAL AREA OVER CULTIVABLE AREA 

35 

30 

25 

20 

15 

10 

5 

0 

Panchkula 

Ambala 

Y Nagar 

Kurukshtra 

Kaithal 

Karnal 

Panipat 


Rohtak 

Jhajjar 

Faridabad 

Narnaul 

Rewari 

Gurgaon 

Bhiwani 

Hissar 

Fatehabad 

Sirsa 

Jind 

%age horticultural area over cultivable area 

16


STRATEGIES AND INTERVENTIONS: 

In order to achieve the goal of overall development of horticulture for the 

upliftment or rural masses and framing community, the Department of 

Horticulture will adopt the following strategies and interventions: 

• The farmers of the state will be assisted for bringing more and more area 

under horticultural crops through centrally sponsored schemes of macro 

management mode schemes. 

• The farmers will be motivated and acquainted with the latest technologies 

for growing the horticultural crops by arranging Gyan Gosthies, field days, 

seminars, exhibitions, shows and trainings. 

• Arrangement of planting material certifies and hybrid vegetable seeds, 

good quality spawn and pasterurised compost 

• Arrangement of planting material certified and hybrid vegetable seeds, 

good quality spawn and pasteurized compost. 

• Demonstration of various horticulture crops with latest high yielding 

varieties. 

• Optimum use of available irrigation water by use of drop irrigation in 

horticultural crops. 

• By adopting cluster approach for growing various horticultural crops. 

• By imparting training on different aspects of horticulture i.e. cultivation, 

grading and packing, processing and storage of horticultural crops. 

• By imparting training on different aspects of horticulture i.e. cultivation, 

grading and packing, processing and storage of horticultural produce. 

17


• By use of various fertilizer and nutrients for the proper development of 

horticultural crops. 

• By introducing new crops like strawberry, banana, Aonla, exotic vegetable 

and aromatic and medicinal plants. 

• By introducing cultivation of ginger, turmeric, garlic and chilies for the 

expansion of area under spices in the hilly and semi hilly region of the 

state by giving boost to off-season vegetable cultivation for fetching better 

market prices. 

FUTURE THRUST 

1. For boosting the horticulture production there is a need to develop 

cool chain facility and cold storage facility in different location. 

2. Market intervention schemes needs to be provide to safeguard the 

interest of farmers. 

3. Processing units and cooperative units needs to be introduced. 

4. Efficient market system to derive position benefits for farmers, 

traders and policy makers. 

5. Marketing strategy is necessary to be adopted b the farmers for 

optimum return of their produce. 

6. Development of modern terminal market (“State Distribution 

Market”)on the pattern of F&V market Bangalore for important 

fruits, vegetables and flowers to avoid the glut situation in the 

markets. 

18


7. Marketing intelligence would help trading the produce on demand 

and supply basis which would help in developing national grid of 

marketing of fruits and vegetables. 

Hence there is a need for a strong marketing structure that can sustain incentives 

for quality and enhanced productivity, improving farm incomes. These market 

structures should be supported with improved technologies and methods. These 

modern markets should be located at important centers in the states, so that they 

can provide backward linkage through farmers associations and forward linkage 

to market with wholesalers and distributors centers as these types of modern 

markets have been established for marketing of fruits, vegetables and flowers. 

19

CHAPTER - 3 

EXISTING WHOLESALE FRUIT AND VEGETABLE MARKETS AND 

PRODUCT FLOW 

MARKET PROFILES 

ROHTAK 

Rohtak fruit and vegetable market was established in the year 2000, though the 

notification for Rohtak, Market Committee was issued in the year 1988. 

The vegetable market is situated on Rohtak, Sunaria Road opposite Sugar mill 

Rohtak. Distance of this vegetable market from the bus stand is 0.5 Kilometers 

and the distance from railway station is 1 Kilometers. 

98 villages of Sonipat Market Area fall in the jurisdiction of Rohtak Market 

Committee. In this Market Committee, 70 Commission agents and 24 Wholesale 

dealers are operating. Here retailers also participate. 

Though, Cold storage and processing units are eligible to obtain license and 

operate in this Market, but presently there are no such units. 

In this market both perishable and semi-perishable commodities arrive. They 

have been grouped into two categories Category ‘C’ and category ‘D’. 

In category ‘C’ semi-perishable vegetables have been kept, e.g.-Potato, 

Shakarkandi, Onion, Garlic and Ginger. In category ‘D’ perishable vegetables 

and fruits have been kept. 

20

Commodity wise arrivals 2000-2005 (in Quintals) 

140000 

120000 

100000 

80000 

60000 

40000 

Potato 


Fruits 

Vegetable 

20000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Source: HSAMB 

Total Arrivals in Rohtak Mandi from 2000-01 to 2004-05 

Total Arrivals in Rohtak market from 2000-01 to 2004-05 

Quantity(quintal) 

400000 

350000 

300000 

250000 

200000 

150000 

100000 

50000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Years 

Source: HSAMB 

Category ‘C’ 

Incidental charges (payable by seller) 

21

Unloading charges 

Particulars 

Rates in rupees per unit 

Bag 0.50 

Loose 0 .75 

Cart 3.00 

Trolley 5.00 

Truck 15.00 

Source: HSAMB 

Market charges (payable by buyer) 

Particulars 

Filling, weighing, unloading from the 

scale/balance 

Manually Stitching 

Stitching by machine 

Commission 

Rates in rupees 

1.00/unit 

0.15/unit 

0.75/unit 

5.00/hundred rupees 

Source: HSAMB 

Category ‘D’ 



Particulars 


Bag 0.30 

Cart 5.00 

Trolley 10.00 

Truck 20.00 

22



Filling and weighing 


0.80/unit 

5.00/ hundred rupees 

Source: HSAMB 

SONIPAT 

Sonipat Fruit and Vegetable market was established in the year 1977, the 

notification for the Sonipat Market was issued in 7 th October 1977. 

This market is situated on Sonipat Kami Road. Distance of this market from the 

bus stand is 0.5 kilometers and its distance from the railway station is 2.00 

kilometers. 

222 villages are present in this notified market area of Sonipat. 

In this Market, there are 40 Commission Agents, 15 Wholesale Dealers and 6 

Retailers. 

40 Cold Storages and 2 Processing Units are also operating in this market. In 

this market both perishable and semi-perishable commodities arrive. They have 

been grouped into two categories Category ‘C’ and category ‘D’. 




23

Commodity wise arrivals 2000-2005 in Sonipat Mandi (in Quintals) 

140000 

120000 

100000 

80000 

60000 

40000 

Potato 


Fruits 

Vegetable 

20000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Source: HSAMB 

Total arrivals in Sonepat mandi from 2001-02 to 2004-05 

Amount(Quintal) 

280000 

270000 

260000 

250000 

240000 

230000 

220000 

210000 

2000-01 2001-02 2002-03 2003-04 2004-05 

Years 

Source: HSAMB 




24

Particulars 


Bag 0.50 

Loose 0 .75 

Cart 3.00 

Trolley 5.00 

Truck 15.00 

Source: HSAMB 


Particulars 


scale/balance 

Manually stitching 




1.00/unit 

0.15/unit 

0.75/unit 


Source: HSAMB 




Particulars 


Bag 0.30 

Cart 5.00 

Trolley 10.00 

Truck 20.00 

Source: HSAMB 

25


Particulars 




0.80/unit 


Source: HSAMB 

GANAUR 

Developed Fruit and Vegetable market is absent in Ganaur. However, 

Commission Agents work on the Municipal Committee Land measuring 

approximately 600 square yards. This was established in the year 1977. 

This is situated near the Market Committee Office. Distance of this area from the 

bus stand is 1.00 kilometer and its distance from railway station is 250 yards. 

54 villages of Sonipat Market Area fall in the jurisdiction of Ganaur Market. In 

this Market, 15 Commission Agents and 6 Retailers of fruits and vegetables 

operate. There is also a processing unit operating in this market. 






Main crops of vegetables of the notified market area of this committee are, 

Potato, Tomato, Carrot, Brinjal, Onion, Lady’s finger and many Cucurbitaceous 

vegetables. 

26


60000 

50000 

40000 

30000 

20000 

Vegetable 

Potato 


Fruits 

10000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Source: HSAMB 

Total arrivals of Commodity in Ganaur from 2001-02 to 2004-05 

100000 


80000 

60000 

40000 

20000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Year 

27




Particulars 


Bag 0.50 

Loose 0 .75 

Cart 3.00 

Trolley 5.00 

Truck 15.00 

Source: HSAMB 


Particulars 

Filling, weighing, unloading from the scale/balance 

Manually stiching 

Stiching by machine 



1.00/unit 

0.15/unit 

0.75/unit 


Source: HSAMB 




Particulars 


Bag 0.30 

Cart 5.00 

Trolley 10.00 

Truck 20.00 

Source: HSAMB 

28


Particulars 




0.80/unit 


Source: HSAMB 

GOHANA 

Gohona fruit and vegetable market was established in the year 1961. This 

market is situated on Sonipat Gohana Road. Distance of this market from the bus 

stand is 2.00 kilometers and from the railway station is 3.00 kilometers. 

87 villages of the Sonipat Market Area fall in the jurisdiction of the Gohana 

Market. In this Market 24 commission agents and 1 wholesale dealer operate. 

There are also 2 cold storages, operating in this market. 

Both perishable and semi-perishable commodities arrive in this market. They 

have been grouped in two categories Category ‘C’ and category ‘D’. 




29

Commodity wise arrivals 2000-2005 in Quintals 

160000 

140000 

120000 

100000 

80000 

60000 

40000 

20000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Vegetable\fruit 

Potato 


Source: HSAMB 

Total arrivals of commodities in five years 


200000 

150000 

100000 

50000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Year 

Total 

Source: HSAMB 




Particulars 


Bag 0.50 

Loose 0 .75 

Cart 3.00 

Trolley 5.00 

Truck 15.00 

Source: HSAMB 

30


Particulars 



1.00/unit 




0.15/unit 

0.75/unit 


Source: HSAMB 




Particulars Rates in rupees per unit 

Bag 0.30 

Cart 5.00 

Trolley 10.00 

Truck 20.00 

Source: HSAMB 


Particulars 

weighing 



0.80/unit 


Source: HSAMB 

31

SAMALKHA 

Samalkha fruit and vegetable market is situated on G.T.Road in NGM Samalkha. 

Distance of this market from the bus stand is 0.5 kilometers and its distance from 

the railway station is 1.00 kilometer. 

37 villages of the Sonipat Market Area fall in the jurisdiction of Samalkha 

Market. 

In this Market, 17 commission agents and 9 retailers of fruits and vegetables 

operate. 






Commodity wise arrivals 2000-2005 in Quintals 

40000 

35000 

30000 

25000 

20000 

15000 

10000 

5000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 


Potato 


Source: HSAMB 

32

Total arrivals of commodities in Samalkha market for five years 

Quntity(quintal) 

50000 

40000 

30000 

20000 

10000 

Total 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Year 

Source: HSAMB 





Bag 0.50 

Loose 0 .75 

3.00 

Trolley 5.00 

Truck 15.00 

Source: HSAMB 


Particulars 






1.00/unit 

0.15/unit 

0.75/unit 


Source: HSAMB 

33





Bag 0.30 

Cart 5.00 

Trolley 10.00 

Truck 20.00 

Source: HSAMB 


Particulars 




0.80/unit 


Source: HSAMB 

34

BAHADURGARH 

Bahadurgarh fruit and vegetable market was established in the year 1999, though 

the notification for Bahadurgarh Market was issued in the year 1992. 

The market is situated on Jhajar Road. Distance of this market from the bus stand 

is 0.5 kilometers and its distance from the railway station is 1 kilometer. 

41villages of the Sonipat Market area fall in the jurisdiction of Bahadurgarh 

Market. In this market, 50 Commission agents and 57 retailers are operating. 

Cold Storage and Processing Units though are eligible to obtain license and 

operate in this Market, but currently they are not operating. 







50000 

45000 

40000 

35000 

30000 

25000 

20000 

15000 

10000 

5000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Vegetable 

Potato 


Fruits 

Source: HSAMB 

35

Total arrivals of commodities in Bahadurgarh maeket for five 

years 


150000 

100000 

50000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

total 

Year 

Source: HSAMB 




Particulars 


Bag 0.50 

Loose 0 .75 

Cart 3.00 

Trolley 5.00 

Truck 15.00 

Source: HSAMB 

36


Particulars 






1.00/unit 

0.15/unit 

0.75/unit 


Source: HSAMB 




Particulars 


Bag 0.30 

Cart 5.00 

Trolley 10.00 

Truck 20.00 

Source: HSAMB 


Particulars 




0.80/unit 


Source: HSAMB 

37

PANIPAT 

Panipat fruit and vegetable market was established in the year 1979. 

This market is situated on Chhanoli Road. Distance of this market from the bus 

stand is 1.00 kilometer and its distance from railway station is also 1.00 

kilometer. 

55 villages of the Sonipat Market Area fall in the jurisdiction of Panipat Market. 

In this Market, 90 Commission Agents are operating. There are also 13 

processing units in this market. 







400000 

350000 

300000 

250000 

200000 

150000 


Potato 


100000 

50000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Source: HSAMB 

38

Total arrival of commodities in Panipat market for five years 


580000 

560000 

540000 

520000 

500000 

480000 

460000 

440000 

420000 

2000-01 2001-02 2002-03 2003-04 2004-05 

Total 

Year 

Source: HSAMB 




Particulars 


Bag 0.50 

Loose 0 .75 

Cart 3.00 

Trolley 5.00 

Truck 15.00 

Source: HSAMB 


Particulars 





Source: HSAMB 


1.00/unit 

0.15/unit 

0.75/unit 

5.00/hundred 

rupees 

39




Particulars 


Bag 0.30 

Cart 5.00 

Trolley 10.00 

Truck 20.00 

Source: HSAMB 


Particulars 




0.80/unit 


Source: HSAMB 

40

JHAJJAR 

Jhajjar fruit and vegetable market was established in 1991. 

The Jhajjar market is situated on Jhajjar Road. Distance of this market from the 

bus stand is 1.00 kilometer. 

92 villages of the Sonipat Market Area fall in the jurisdiction of the Jhajjar 

Market. In this Market, 36 Commission Agents operate. 







35000 

30000 

25000 

20000 

15000 

10000 

Vegetable 

Potato 


Fruits 

5000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Source: HSAMB 

41

Total arrivals of commodities in Jhajjar market for five years 

100000 


80000 

60000 

40000 

20000 

0 

2000-01 2001-02 2002-03 2003-04 2004-05 

Year 

total 

Source: HSAMB 




Particulars 


Bag 0.50 

Loose 0 .75 

Cart 3.00 

Trolley 5.00 

Truck 15.00 

Source: HSAMB 


Particulars 


scale/balance 





1.00/unit 

0.15/unit 

0.75/unit 


Source: HSAMB 




42

Particulars 


Bag 0.30 

Cart 5.00 

Trolley 10.00 

Truck 20.00 

Source: HSAMB 


Particulars 




0.80/unit 


Source: HSAMB 

43


CHAPTER – IV 

PROBLEMS IN EXISTING SYSTEM 

The institution of regulated markets, set up to strengthen and develop 

agricultural marketing in the country has achieved a limited success. 

The 

restrictive legal provisions did not augur well with competitive market 

structure. Promoting competition in the trade and facilitating farmers with 

supporting services like grading, standardization, storage with pledge finance 

and facilities in the markets have become secondary activities. Funds from 

the Agricultural Marketing Boards have been siphoned off in many states to 

Public Ledger Account by the State Authorities. 

Consequently, the 

modernization/infrastructure development conducive to operational efficiency 

of the markets has suffered heavily. 

As per existing APMC Act only notified commodities can be traded by 

licensed traders in notified area with the payment of fees under regulatory 

framework of agriculture produce market committee (APMC). No commodity 

can be traded and no transactions can take place without payment of market 

fees to APMC by any means. 

As such, the markets don’t play a pro-active 

role in attracting produce or in facilitating in the farmers to organize logistics. 

Since most of the farmers or small and marginal, they are in the hands of 

intermediaries as they get little information for price and are subjected to 

exploitation. 

By restricting marketing to the notified market yard only it has 

created an environment of regulation and monopoly of existing traders and 

other traders are prohibited by artificial entry. 

Therefore, it is necessary to 

44


create a market place that works in its natural form where large number of 

buyers and large number of sellers participate in transactions and decides 

price without monopoly of any single community with total transparency. 

Designing and Planning of existing Market has not been efficienctly linked and 

quality driven. In side the market the land use pattern is de-faulty. 

Space 

allocated to marketing activities is quite enormous while parking in circulation 

area either openly ignored or uncrossed open. 

Designed of the shops and 

godowns are openly not functional, utility oriented and cultural friendly. This 

result into overall inadequacy of space in the market for handling per metric 

tone. 

Facilities to handled the produce and adding the value to the 

commodity as well as extending self-life are either inadequate or in nonexisting. 

Management of facilities and infrastructure within the market yard 

happens to be extremely pour. 

Uncontrolled and wild way of utilization of 

space and size of the market by traders or service providers create extreme 

congestion in fruits and vegetable markets. Chaos is a common phenomenon 

at trading places in fruits and vegetables since there is no single centralized 

auction system. Traders often organize auctions at various places in a 

haphazard manner in an un sequential order. This creates unnecessary 

excessive user population pressure on market, which creates unhygienic 

condition in the market. This discourages the civilized and educated people 

to go to market and participate in the business. The scenario of congestion, 

chaos and unhygienic condition is apparently reflected just on entry gate of 

the market. 

45


There is hardly any facility / infrastructure on post harvest handling, 

assembling, sorting, grading, packing, transportation, quality certification, 

pallatization, labeling, pre-cooling, cold-store, ripening chambers and exports, 

in fruits and vegetables markets. Banana is still ripened in a traditional 

manner with smoke, heat and carbide, which is hazardous to health. In such 

situation we are not in a position to export banana to other countries. Neither 

there is common facility for sorting-grading nor at farm level, hence growers 

undertakes these activities at individual level and in a traditional/primitive 

manner. 

This results into high level of damages and waste of the produce. 

On the one hand it is creating problems in the market place while on the other 

post harvest losses is direct loss to the farmer and national economy. 

Another important problems existing in the system is of many intermediaries 

handling the produce at different levels before it reaches the consumer. This 

results in reducing quality by multiple handling, extends the ultimate period of 

consumption and decreases growers share in consumer rupee. 

Therefore, 

reduction and the level of intermediaries and handling chain is essential. 

The spot markets, have not been linked with the forward and future markets to 

receive price signals. The linkage between the spot and futures markets 

seems to be poor due to domination of the speculators. Future markets by 

dovetailing its functioning with spot markets can work as a tool to handle the 

situation arising out of good harvest as well as poor harvest for stabilization of 

supplies along with prices. The estimated poor harvest in the beginning of 

crop sowing/ planting would enable the buyers to enter in to future contracts 

46


at higher rates. The spot market operators if given incentives for holding 

adequate stocks to regulate the flow in spot markets will facilitate the honoring 

of forward contracts. They may also after knowing the stock position can 

request to imports of such quantities matching the requirements of future as 

well as of spot markets. Thus the scenario of good harvest will enable the 

future to contract as lower prices so as to signal the farmers to reduce the 

area of respective crops and encourage the farmers for easy and timely 

diversion of cropping pattern. This it self will plan for reduced/ adequate 

supplies for the markets in the time of good harvest. The storage shall be 

regulated as per the futures requirement at one end and the availability of 

produce at the other. There by the sudden flow of produce at the time of 

season gets rationalized. A diagrammatic view can be seen: 

47


Price stabilization when poor harvest is expected 

ACTION OR EVENT 

Future Market 

SPOT MARKET 

Poor Harvest 

Purchase of Futures through recognized future 

markets 

Rise in Futures Prices 

Increased incentive for holding excess stock 

(will create buffer stock) 

Purchase of spot stocks 

Rise in spot price 

Fall in demand 

Actual Harvest Reduced 

Suupply 

Reduced supply meets reduced 

demand 

Extent of post harvest price rise 

gets reduced (to appropriate level) 

48


Price stabilization when good harvest is expected 

ACTION OR EVENT 

Future markets 

Spot market 

BUMPER HARVEST EXPECTED 

OF FUTURES 

(Through FMC recognized markets) 

FALL IN FUTURES PRICE 

(To give signal to farmers to plan for alternative Corp) 

REDUCED INCENTIVE FOR HOLDING EXCESS STOCK 

TILL IT ACHIVE IT’S IMPORT PARITY LEVEL 

OF SPOT STOCKS 

FALL IN SPOT PRICE 

EXPANSION IN 

DEMAND 

INCLUDING THAT 

FOR EXPORT 

ACTUAL HARVEST 

INCREASED SUPPLY 

REDUCED SUPPLY MEETS 

REDUCED DEMAND 

EXTENT OF POST-HARVEST 

PRICE RISE GETS REDUCED 

(TO APPROPRIATE LEVEL 

49


The present system does not cope up with cultural change, technological 

advancements and professional expectation of different stakeholders. IT 

applications have opened various dimensions for networking of backward and 

forward linkages, which will ensure transparency and efficiency. 

With 

opening of service sector there are numerous opportunities for collaborative 

arrangements with banking institutions, insurance, logistic providers etc. 

which presently not in practice in any APMC market. 

An efficient marketing system is vital to 

a) Provide an incentive to farmer to produce more 

b) Convey the changing production needs of the economy to producers to 

enable production planning 

c) Foster true competition among the traders and eliminate the exploitation 

of farmers particularly the small and marginal ones, who predominate 

agrarian sector in our country. The present Expert Committee has 

examining the issues related to only output marketing to make 

suggestions to strengthen and develop agricultural marketing in the 

country. 

50


CHAPTER – V 

PERCEPTION OF STAKEHOLDERS AND SURVEY RESULTS 

It is very essential to study the local conditions prevailing in Rai region before 

developing the Modern Terminal Market for fruits and vegetable. It is also 

very necessary to know the various crops cultivated in the hinterland of the 

proposed market. The present marketing practices of the farmers, their mode 

of transportation, generally the distance farmers travel to sell their produce, 

problems faced at the existing market yards, opinion of the farmers to use the 

proposed terminal market and lastly the convenient location of the newly 

proposed market are required to be examined and analysed. 

A primary survey was conducted by contacting the farmers of Sonepat, 

Rohtak, Jhajjar and Panipat district. The survey team visited the sample 

villages and elicited information from the farmers. A schedule was designed 

for this purpose and pilot testing of the same was carried out. Based on the 

pilot study the schedule was structured. In cases where no record for 

information on different commodities was available, the survey team used the 

Participatory Rapid Appraisal (PRA) technique to come on certain conclusions 

and generated information. 

On the basis of the nature of the commodities, their major catchments areas 

and the location, four markets were chosen for the survey. 

1. Panipat (Fruits & Vegetables market) 

2. Sonepat (Fruits & Vegetables market) 

3. Rohtak (Fruits & Vegetables market) 

4. Jhajjar (Vegetables & fruits market) 

51


The major stakeholders of the market are farmers, traders and exporters/ 

processors. It is very essential to know the opinion of all these above 

stakeholders of the market regarding quantum flow, pattern of arrivals coming 

to market etc.. Their views about proposed terminal market, their willingness 

to make use of the market once it is ready for operation and most important of 

all, is the most convenient site for the development for planning and designing 

of the proposed new terminal market. With the main objective of knowing the 

views of the major stakeholders a sample size of ten traders was considered 

from each market. A total of forty local traders including few from Azadpur, 

New Delhi were taken up. Similarly, the research investigators interviewed 

farmers from each district block of Sonepat, Panipat, Rohtak and Jhajjar. 

With regard to the staff 3 officials each from Sonepat, Panipat, Rohtak and 

Jhajjar markets were interviewed to know their opinion. 

The data collected by the research investigators has been analyzed and the 

results are presented in the following paragraphs. 

Size of 

Holding 

(Acre) 

Table - 1 

Pattern of Cultivation According to Size of Holding 

% Of 

Respondents 

Fruits 

Commodities Grown 

Vegetables 

0-3 23% Nil Onion, Tomato, potato, Brinjal, Cabbage, 

Lady Finger, spinach, gourds, melons & 

others 

3-5 18% Mango, Guava Tomato, Brinjal, potato, Cabbage, Lady 

Finger, Spinach, Peas & Others 

5-10 35% Mango, Guava Onion, Tomato, Brinjal, potato, Cabbage, 

Lady Finger, spinach, gourds, melons & 

others 

10 - 

Above 

20% Mango, Guava Onion, potato, cabbage, tomato, radish, 

brinjal, bottle gourds, Carrots, spinach, 

pointed gourds, melons, lady finger & others 

52


The table 1 reveals that 35% of surveyed farmers are having holding size of 5 

to 10 acres and 20% of farmers are having the holding size of more than 10 

acres. It is important to note that 55% of surveyed farmers in the study are 

having more than five acres of cultivable land and are engaged in both fruits 

and vegetables cultivation. The percentage of farmers having a holding size 

up to 3 acres and of 3 to 5 acres is 23 &18 respectively. The small farmers 

whose size of holding is up to 5 acres are only growing vegetables or Mango 

or guava where as farmers having a holding size above 5 acres are cultivating 

both Mango and Guava. 

The survey clearly reveals that all most all the 

farmers of the study are cultivating vegetables like Potato, Tomato, Brinjal, 

Cabbage, Lady Finger, spinach, gourds, melons, ladies fingers etc. Only big 

orchard owners possessing more than five acres of land are growing both 

Mango and Guava, but irrespective of the size of holding whether they are 

small or big all are cultivating vegetables. 

Table - 2 

Present trend in selling commodities by farmers 

Size of Holding 

(Acre) 

Commodity Type 

0-3 Fruits 

Vegetables 

3-5 Fruits 

Vegetables 

5-10 Fruits 

Vegetables 

10 - Above Fruits 

Vegetables 

Local Market 

40 

70 

20 

50 

15 

30 

10 

20 

% Share 

Other Market 

60 

30 

80 

50 

85 

70 

90 

80 

It could be seen from table 2 that farmers having a holding size up to 

five acres are marketing 20 % of their fruits in the local market and selling 80 

53


% through outside market, whereas big farmers having an area above 5 acres 

are marketing 15% of their fruits in local market and remaining in out side 

markets. The farmers having larger holdings are selling 30% of vegetables in 

local markets and are sending 70% production for sale out side local area 

largely to Azadpur. It is very important to note that big farmers are selling only 

10% fruits in local markets and are dispatching 90 % fruits to outside markets 

for sale. This is largely done through the preharvest contractors and confined 

to Delhi Market. The survey clearly reveals that big farmers having larger 

holdings have developed contacts with other markets and are dispatching 

fruits and small quantities of vegetables to outside market either directly or 

through contractors. The marketing of fruits in the local market by big farmers 

is only 10 to 20 %. This fact indicates that fruits and vegetables could be 

dispatched to other markets of states and outside states including Delhi 

directly. The fruits and vegetables assembled at the collection centers need 

can be brought to terminal market instead it could directly be dispatched to 

the consumer market. 

Table – 3 

Level of Marketable Surplus / Supplies by Farmers land size 

Size of holding (acre) 

% Of 

Respondent 

s 

Average Turnover (Qtls) 

Daily Monthly Annual 

0-3 10 0.5 12 100 

3-5 20 1 20 210 

5-10 40 4 40 380 

10 - Above 30 6 140 1100 

A critical analysis of table 3 indicates that small farmers having holding size 

up to 3 acres have an average marketable surplus of half quintal daily, 12 

54


quintals monthly and 100 quintals annually. The farmers having holding size 

of 3 to 5 acres constituting 20 % have an average daily marketable surplus of 

1 quintal daily, 20 quintals monthly and 210 quintals annually. The 

marketable surplus of 40 % of farmers having an area of 5 to 10 acres is 4 

quintals daily, 40 quintals monthly and 380 quintals annually. Big farmers 

having holding size of above 10 acres have a marketable surplus of 6 quintals 

daily, 140 quintals monthly and 1100 quintals annually. 

Table - 4 

Average Distance Covered to Sell Produce 

Size of Holding % Of Respondents Average Distance (Km) 

0-3 10 1-10 

3-5 20 10-15 

5-10 40 15-20 

10 - Above 30 20-40 

Table 4 indicates that small farmers having the holding size upto 3 acres can 

travel up to 10 km maximum while farmers with land upto 5 acres can travel 

distance of 15 K.m. to sell their produce. Whereas 40 % of survey farmers 

having a holding size of 5 to 10 acres travel a distance up to 20 K.m. to reach 

the market place. The distance traveled by farmers having a holding size of 

more than 10 acres is even up to 40 K.m. probably because of motorized 

transport facilities available with them. 

55

Size of 

Holding 

% Of 

Respondents 

Table - 5 

Mode of Transport by Distance 

Average 

Distance 

(Km) 


Mode 

0-3 10 1-10 Tractor Trolley, Motor Cycles, 

Tempo, Bus 

3-5 20 10-15 Tractor Trolley, Motor Cycles, 

Tempo 

5-10 40 15-20 LMV, Tractor Trolley 

10 - 

Above 

30 20-40 Truck, Tractor Trolley, LMV 

Table 5 gives details of the mode of transport used by the farmers to move 

their produce to markets for sale. It could be seen that the common mode of 

transport is tractor trolley. Farmers having a holding size of less than three 

acres also use motorcycles also. Medium farmers having an area of 3 to 4 

acres use tractor trolley, motorcycles and tempo. Medium and big farmers 

use LMV and trucks to transport fruits and vegetables to distant markets. 

Table - 6 

Alternate Market 

There is need to develop alternate market 65.0 % 

There is no need to develop alternate market 35.0 % 

The survey team approached the farmers to know their opinion about the 

development of modern new terminal market for fruits and vegetables at Rai. 

It is very important to note that 65 % of farmers are in favor of development of 

modern fruits and vegetables terminal market. The farmers have responded 

very positively for the development of a modern terminal market. 

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Table - 7 

Problems Faced by farmers in the Existing Market 

1. Transportation 

2. Traders dominancy 

3. Facility to stand somewhere when auction is happening 

4. Sanitation 

5. Payment problem 

6. Storage facility 

7. Adequate price 

8. Grade Standardization 

9. Packaging material is too costly 

10 Interference of local antisocial elements and contractors 

• The main reason why the farmers are in favor of development of new 

modern terminal market for fruits and vegetables is that they are not 

getting adequate price in the markets for their produce. Traders cheat 

them and farmers are facing the problem of payment. 

• The other major problems encountered by the farmers in the existing 

markets are transportation, sanitation, storage, grading and 

standardization. Most of the farmers opined that they are not finding 

place in the market to stand while the auction is conducted. Few 

farmers said that the packing material supplied to them is very costly. 

• Out of the many major problems farmers are facing, interference of 

local antisocial elements predominantly known as contractors in the 

market is the most painful one. This is not resulting into inadequate 

57


price realization of the product but also creating a chaotic and fearful 

atmosphere in the market, eventually leading to deterioration in 

congenial marketing atmosphere and demotivating farmers in selling 

their produce in the market. 

Table - 8 

Opinion of the Farmers for Using the Proposed Market 

S.N Opinion Percentage 

1. Like to sell produce in proposed market 80.0 % 

2. Not to sell produce in the proposed market 20.0 % 

3. Expected average distance likely to be covered 10-15 Km (Avg.) 

4. Percentage of commodities, farmers willing to sell in 

alternate market 

80.0 % 

A critical analysis of table 8 above clearly indicates that 80.0 % of farmers 

have given their willingness to sell fruits and vegetables in the new proposed 

market. They have also indicated that they are even ready to travel a 

distance up to 15 K.m. to reach the proposed market. This aspect is to be 

taken care by the planners to see that the new proposed collection centre is 

within this limit for maximum number of farmers. 

Table - 9 

Order of Preference for CCs 

S.N Proposed C.C District 

1. Farmana Sonepat 

2. Biswameel Sonepat 

3. Datauli Panipat 

4. Sanpera Panipat 

5. Sanauli Panipat 

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6. Babail Panipat 

7. Munak Panipat 

8. Salwan Panipat 

9. Purkhanas Panipat 

10. Naultha Panipat 

11. Ahar Panipat 

12. Urlan Kalan Panipat 

13. Samalkha Panipat 

14. Dadwana Panipat 

15. Kasandhi Panipat 

16. Bichperi Panipat 

17. Ludana Panipat 

18. Siwanmal Panipat 

19. Achra Kalan Panipat 

20. Hatt Panipat 

21. Bainswan Sonepat 

22. Rukhi Sonepat 

23. Sanghi Sonepat 

24. Kathua Sonepat 

25. Lakhan majra Sonepat 

26. Kiloi Rohtak 

27. Madina Rohtak 

28. Charra Jhajjar 

29. Duban Dhanmajra Jhajjar 

30. Kahnaur Jhajjar 

59


TRADERS SURVEY CONCLUSION 

Table – 1 

Commodity wise arrival and hinterland as trader receive 

S.N Name of commodity Area distance 

1. Mango 150 Km 

2. Guava 140 Km 

3. Kinnow 150 Km 

4. Grapes 120 Km 

5. Papaya 120Km 

6. Ber 50Km 

7. Peas 30-120km 

8. Onion 30-70km 

9. Leafy vegetables 35 Km 

10. Other Vegetable 40 Km 

Mango, guava, Kinnow, grapes papaya, Ber, Peas, onion, cabbage, 

tomato, potato, leafy vegetables, brinjal, Arbi are the important fruits and 

vegetables, which are grown in this region and area coming in the markets of 

Rai. Generally vegetables come to market from a distance of 30-40 K.m. The 

survey has revealed that many seasonal vegetables arrive to the market from 

a far off distance of 40 K.m. Onion arrives from a distance of 30-70 K.m 

radiuses, Vegetables in the radius of 35 K.m Mango from a radius of 150 K.m. 

As such, it could be seen that the hinterland of the market is spread from 10 

K.m. to 250K.m. 

60

Table - 2 

Selling Pattern of Commodities by Traders 


S.N. Commodity Name Local Market 

Other Market outside 

around Rai (in %) Sonepat district (in %) 

1. Mango 75 25 

2. Guava 60 40 

3. Kinnow 70 30 

4. Grapes 100 0 

5. Papaya 60 40 

6. Ber 100 0 

7. Tomato 100 0 

8. Peas 75 25 

9. Onion 75 25 

10. Leafy vegetables 

11. Other Vegetables --- ---- 

Traders within Sonepat sell major chunk of mango, guava, kinnow and grapes 

and very less quantity is sold in the outside market. 

Table - 3 

Dispatch Pattern of Commodity from Sonepat Region 

S.N. Commodity Name % Of Commodity dispatched to 

Within Within Outside Total 

District State State 

1 Fruits 80 10 10 100 

2 Other Vegetables 50 25 25 100 

3 Onion & potato 75 15 0 100 

A critical analysis of table 4 shows that 80% of fruits are consumed in 

the local markets for sale. Only 10 % of fruits are sold within the district and 

another 10% within the state. It is pertinent to know that 40 % of Onions are 

dispatched outside Sonepat for sale and only 60% is sold within the state. 

61


Table - 4 

Problems faced by the traders in present structure of markets 

1. Non-graded Material. 

2. Transportation Problem to the destination market 

3. Sanitation. 

4. Theft, Unauthorized persons and animals 

5. Water problem, cleanness 

6. Insufficient space. 

7. Creates traffic problem for neighboring locality. 

8. Too much of dust 

9. Political party intervention 

10. Lack of quality produce, and quality awareness 

11. Private and competitive Banks required. 

The survey team had detailed discussion with the traders, commission agents 

and exporters, processors, statisticians and other market functionaries 

regarding the problems encountered by them in the present market while 

performing the business. All the market actors whom the survey team 

approached responded well and with an open mind explained their problems. 

A perusal of the table 5 indicates that traders complain of absence of grading 

activity in the market. The traders are also facing the problem of arranging 

transport to the major consumption centers. 

The survey team has appraised the traders about the water problem, 

cleanliness, theft, unauthorized persons and animals, sanitation and too much 

political intervention in almost all APMC markets. One of the major complaints 

was about the non-availability of graded produce and quality awareness. The 

traders also insisted the facility of private banks from the security as well as 

convenience perspective. 

62


Table - 5 

Opinions about Need to Develop Alternate Market Other Than APMC 

Market 

1. % Of respondents says yes 60 

2. % Of respondents says No 20 

3. % Of respondents unable to answer 20 

4. % Of respondents who would like to sell their produce in Modern 

Terminal Market 

5. Expected distance which can he covered by farmers according to 

traders 

6. Average % commodity willing to trade in proposed market by 

traders 

80% 

25 

Km 

60% 

When enquired about their opinion on the development of a new modern fruits 

and vegetable terminal market, 60 % of the traders replied in favor of the 

proposal. Only 20% of respondents said that they were contented with the 

present market and rest 20 % were unable to answer about it. However all 

the 80 % traders expressed their willingness to make use of the new terminal 

market once it is developed. Traders were of the opinion that farmers might 

not hesitate to travel a distance up to 25 K.m. to reach the new terminal 

market but may be reluctant to travel more than 35 K.m. to reach the market. 

Table – 6 

Order of Preference Given by Trader for Opening Collection Centers 

S.N Proposed C.C District 

1. Farmana Sonepat 

2. Biswameel Sonepat 

3. Datauli Panipat 

4. Sanpera Panipat 

5. Sanauli Panipat 

63


6. Babail Panipat 

7. Munak Panipat 

8. Salwan Panipat 

9. Purkhanas Panipat 

10. Naultha Panipat 

11. Ahar Panipat 

12. Urlan Kalan Panipat 

13. Samalkha Panipat 

14. Dadwana Panipat 

15. Kasandhi Panipat 

16. Bichperi Panipat 

17. Ludana Panipat 

18. Siwanmal Panipat 

19. Achra Kalan Panipat 

20. Hatt Panipat 

21. Bainswan Sonepat 

22. Rukhi Sonepat 

23. Sanghi Sonepat 

24. Kathua Sonepat 

25. Lakhan majra Sonepat 

26. Kiloi Rohtak 

27. Madina Rohtak 

28. Charra Jhajjar 

29. Duban Dhanmajra Jhajjar 

30. Kahnaur Jhajjar 

Table - 7 

Opinion about Collection Centers by Traders 

Within Sonepat District 20 % 

Outside Sonepat district but Within 50 K.m 40 % 

Other district within 50-100 K.m 35 % 

Other district within 100-200 K.m 5 % 

64


Traders were of the opinion that collection centre should be in the vicinity of 

farmers and should be located in the major catchments areas irrespective of 

the distance from the proposed terminal market at Rai, but it should be 

located within the radius of 100 K.m. from it. 

Table -8 

Opinion about the model and concept of proposed market 

S.N 

% Of respondents 

1. Large scale distribution centers 85.0 % 

2. Wholesale cum retail 15.0 % 

The figures presented in table 8 indicate that the traders are in favor of 

establishment of a large-scale distribution center. Only 15 % have opted for a 

wholesale cum retail market. The traders desire that a mega scale terminal 

market for wholesale trade should be developed in this region. 

Some traders from ‘Azadpur Mandi’ were also interviewed and they have 

shown their willingness to buy from Rai and extend their services for the 

proposed market at Rai. 

Table - 9 

Suggestions Offered 

1. Sitting place for buyers at auction time 

2. Food canteen for labors 

3. Banking hours should be increased. 

4. Locker facility in banks should be introduced. 

5. Procedure to see samples by hand should be introduced. 

6. Packing material awareness 

7. Arrange tours of traders and farmers to various farm fields / 

Developing country. 

8. Traders should be included in advisory committee to government 

where fluctuation in market can be forecast. 

65


The contacted traders have offered suggestions, which are presented in table 

9. It could be seen from this table that the traders demand locker facility in 

banks, which increased banking hours. A suggestion also has come 

regarding awareness and packing material. The farmers have expressed 

their desire to proceed on study tour to important fruits and vegetable markets 

to know the recent development in other parts of the country. They are keen 

to visit some of the developing countries outside India to study the 

developments. 

Some of the other suggestions regarding sitting place for buyers at auction 

time, canteen facility for laborers have also been given hastily. The traders 

have emphasized on giving them a representation in the advisory committee 

to be constituted by Government to review the price fluctuations and 

forecasting of price. 

SURVEY REPORT OF OFFICIALS 

An attempt was made to survey the officials including APMC staff, horticulture 

officers, cooperatives and other associated with agricultural marketing. 

Structured schedule was given to identified officials but the response from 

them was inconsistent and hence data couldn’t be analysed. 

Observations gathered and inferences drawn were substituted by secondary 

source of information. 

Officials view regarding the location of collection centre is very similar to that 

of the other actors of the value chain. 

66


Ten years back in the 1994’s a special provision for land was made 

measuring 3-4 Acre in each cluster of certain villages of Haryana. These 

selected places were developed to function as a ‘Purchase Centre’ for food 

grains, which now is proposed for fruits and vegetable commodities also. At 

present these purchase centres are very much functional and serving the 

similar function to that of the collection centres but only confined to wheat and 

rice. So officials have a strong opinion to develop collection centre on the 

same place at which the purchase centres are functional. 

Based on the viability and effectiveness of these ‘Purchase Centres’ 

these sites are the proposed sites for collection centres, which will be 

successful in catering the targeted arrivals of commodities in terminal market. 

Regarding the site for the development of Modern terminal market, all the 

value chain players were having the unanimity in their opinion that the 

proposed site for the mega scale collection centre will be at ‘Rai’. 

67


CHAPTER –VI 

PROPOSED CONCEPT FOR INFRASTRUCTURE 

The proposed Terminal Market at Rai will provide a mega scale collection and sale 

market of agricultural produce, at a convenient location, near the major areas of their 

production. This market will be equipped with state-of-art facilities at par with 

contemporary International standards to focus on substantial growth in the 

production, export and modernization of trade. It will be developed on a concept of 

chain management where complete backward and forward linkage from farmers to 

the consumers will be established. The market will be equipped with mechanical 

automated systems, required for modernization, that will benefit the growers, traders 

and consumers and also encourage growers for increased production. 

Location and Land : 

The proposed site is an area of approximately 87.73 acres, located on the National 

Highway No.1. It is at a distance of approx. 31 kms from New Delhi , near Sonipat. 

The site is a linear piece of land which is relatively flat with very little vegetation. On 

the North side of the site is Haryana Tourism Complex. whereas towards the 

Eastern side is NH-1 which also forms the site boundary. On the South West side of 

the site is the Food Park and a Big Cargo Hub being developed by Container 

Corporation of India. At a distance of about 1 Km on Southern side there will be 

outer Ringroad of Delhi, which will connect UP, Haryana directly by passing Delhi. 

This site is suitable for a Terminal Market facility, because of the following 

advantages: 

68


Accessibility: 

The location of the site off the National Highway No.1 establishes its connectivity and 

linkages to surrounding areas, as this highway connects Rai to Delhi and Amristsar. 

The site is well connected and easily accessible from surrounding areas and distant 

places of production. The proposed market will, therefore, be accessible from 

growing areas at all the times and will have fairly good linkages. The site has been 

acquired by HSIDC and developed fully for the purpose of agricultural markets. 

Produce from surrounding areas of Sonipat, Panipat, Jhajjar, Rohtak, Karnal etc. of 

Haryana can be brought here. 

Services: 

All the public utilities like electricity, communication, water, etc are currently available 

in the vicinity and the same facilities could be expanded / increased for the proposed 

market. A provision can be made for Water Harvesting. 

Site Conditions: 

The terrain of the site is relatively flat. Therefore, the construction will be economical. 

Architectural Services 

As the concept of Terminal Market is developed first time with all modern 

infrastructure and integration with all modern Infrastructure and integration of 

backward forward linkages, it was desirable to consolidate opinion of expert 

arch8itects. Therefore NIAM contacted Karnataka State Marketing Board and 

procured list of NDDB empanelled Architects for recently proposed markets at 

69


Mumbai, Hyderabad etc, as well as the Architect who designed SAFAL Market 

Bangalore. After having detailed discussion with numerous architects, following two 

were short listed and job was assigned to both os that two optional models are 

developed:- 

1. M/s PTK Architects - Chennai 

2. M/s Khandekar Consultants - Pune 

Both the Architects submitted their proposal. 

Cost estimates of both are almost 

same. Architectural designs little differ. Therefore, out of these two options, one 

can be accepted. These designs are based on proposed site base. However, the 

same could be applicable on other sites also. 

The conceptual design broadly proposing 

• Allocation to use of space 

• Circulation and movement patterns 

• Architectural Elements and Structural System 

• Utility and service distribution 

Following objectives have been considered while designing 

1. To facilitate smooth and safe traffic flow, the following were 

considered 

• Segregation 

• Queuing and holding areas 

• Sizing of road 

70


2. To ensure efficient and unhindered movement of men and 

material, the following were considered. 

• Elimination of cross movement 

• Protected pedestrian area 

• Orientation 

3. To provide a secure working environment free of unauthorized 

activities, the following were considered. 

• Identify security zones 

• Locate check points 

4. To provide a comfortable working environment conforming to the 

best health and safety standards, the following were considered. 

• Good Ventilation 

• Good Lighting 

• Good Sanitation 

• Good Waste material disposal method 

5. To optimize construction costs and reduce construction time, the 

following were considered. 

• Design and selection of structural system 

6. To incorporate flexibility, upgrade ability and expandability into 

design, the following were considered. 

• Material specifications 

• Modular space planning 

• Utility system design 

71


7. To create Zero waste facility, the following are proposed. 

Solid Waste 

• Power Generation – Direct benefit 

• Vermiculation or composting – sell back to farmer. Complete 

feed back cycle. 

Waste Water 

• Recycling and reuse – Flushing, Gardening and cooling water 

for power plant 

And Market should be plastic free zone. 

Layout and Design of Market Complex: 

The major activity of this market will be handling of large-scale produce of goods. 

This will involve providing various facilities for receiving goods, their mechanical and 

manual movement, display, auction, packaging, storage, and dispatch, etc. Keeping 

handling of goods as the major activity, the market complex design has been 

evolved. 

• Considering the flat terrain and the linearity of the site, zoning of activities 

within the site have been proposed in a sequential manner. The handling 

of goods in a modernized facility requires a sequential pattern of 

movement. The activities in this site have been zoned in a similar manner 

with an appropriate circulation system. This circulation system is both 

manual and mechanical i.e. freight lifts, conveyor belts, etc. The 

circulation areas are an important feature and govern the market design. 

72


• The layout is simple with a peripheral road and buildings planned in the 

required sequence. Connectivity between various buildings has been 

provided to ensure a compact layout. 

• A large area near the approach has been provided for entry of goods, 

parking and smooth circulation of vehicular movement. Mechanical 

systems like weigh bridges, etc have been provided which will monitor the 

entry and exit of trucks, and record their contents and movement within 

the market complex. With this system each and every vehicle entering into 

the facility will be monitored, its content, weight of goods will be recorded. 

By means of mechanical monitoring, at any point of time it will be easy to 

assess the quantum of goods within the facility. Transparency and 

complete security will be achieved. 

• Facilities like cash and carry, etc have been provided near the entry, so 

that the local buyers need not enter the market complex. 

• A Service Core has been provided in each building to distribute the 

movement of goods. Each service core has staircases / ramps / freight/ 

lifts/toilets, etc. This will facilitate easy and controlled movement of goods 

vertically and horizontally within the large complex. Mechanical means will 

be provided for circulation and movement of goods. 

• Provision has been made in the layout for future expansion, which will be 

possible without disturbing the existing structures. 

• The layout enables phase wise execution of the market facilities. 

73


Market facilities: 

Various activities have been provided for modernized market facility in an organized 

and systematic manner to ensure that the flow of produce is smooth and facilities are 

utilized in most efficient manner. This market will alter the traditional marketing 

pattern and generate a new working model. The new model will develop an 

organized, disciplined and systematic marketing pattern. The facilities provided are : 

Auction halls: 

These halls have been provided adjacent to the parking and the loading/ unloading 

areas, as most of the goods will first go to auction halls. The auction halls will have 

receiving areas, display areas, electronic auction areas and distribution areas. The 

halls are fairly large spaces and have the flexibility for their division into smaller 

areas, which could be used for fruits, vegetables, as per requirements. The activities 

can be divided easily without disturbing other areas. 

Display areas : 

These areas have also been provided outside the Auction areas as the Wholesalers, 

retailers and exporters will mainly require access to these areas for inspection of 

goods. 

Viewing Galleries : 

These have been provided at mezzanine floor level of auction hall for getting a 

complete overview of the system. It will be equipped with all kinds of electronic 

gadgets like cameras, etc. This will control and monitor the various activities like 

loading / unloading, packaging, distribution etc being carried out. 

74


Large halls for grading and packing : 

These have been provided near the Auction and Display areas. From the auction and 

display areas, the goods will be brought to the Grading and Packing Zone where 

modern machines will be installed for the same. Here goods will be graded and 

packed for further distribution. These are connected to freight lifts where by 

mechanical means like conveyor belts, the goods will be transported to dispatch 

areas or cold storage. The consignments will be graded and packed for immediate 

dispatch to the local markets, distribution to distant wholesale markets and repacked 

for export. 

Transportation Corridors: 

Transportation corridors have been provided which connect all areas of various 

activities within the complex horizontally. The corridor is wide enough for material to 

be delivered to different areas of the complex by trollies, conveyor belts, etc or by 

any other mechanical means. Freight lifts have been provided which act as vertical 

corridors for movement of goods. 

Cold storage units : 

These units have been provided at the rear end of the entire complex. Goods will be 

received here by mechanical means and will be stored if they are unsold and have to 

remain within the auction premises for various reasons for more than 12 hours. The 

cold storages can also be hired out to the wholesalers, buyers and sellers for storage 

of goods. 

75


Loading and unloading areas : 

These have been provided adjacent to parking areas, and near the wholesale market 

where trucks carrying goods will be docked into the building for loading / unloading 

as per the requirement. About 10160 sq.m of space has been provided and this will 

allow storage of produce. From here the goods will be distributed to the other areas 

like auction halls and display areas. 

Parking space for containers, trucks, small vehicles, etc : 

All kinds of parking areas have been provided on lease out/rent basis for Long term 

parking, short term parking, docking areas for trucks, light motor vehicles, twowheelers 

have been provided. Circulation in the parking area is planned in such a 

manner that congestion and pollution will be avoided. 

Traditional Shops for local markets : 

Shops have been provided for the wholesalers and producers of the local market. 

The shops will have a size measuring about 40 x 145 sq.m. It will be possible to 

have a display area in the front, an office space at the rear and stacking in 

mezzanine area in each individual office. Corridors have been provided in front of the 

shops for buyers to visit, discuss and negotiate. Shops are of the same size and a 

trader can purchase two shops if he wants to have a larger shop or can be divide into 

two for smaller shops. 

Office areas/Quarters : 

These have been provided for traders, wholesalers, etc who are interested in having 

individual office spaces. These could also be sold / let out to local traders, etc. 

76


Besides these other supplementary facilities like bank counters, ATM centers, etc 

could be housed. 

Other service areas : 

Administrative areas have been provided which will have cash desk, conference 

rooms, training rooms, etc. Areas have been provided for logistics companies, 

service providers, public conveniences such as cafeterias, toilets, etc. 

Public Conveniences such as rest rooms, wash rooms, toilets, cafeterias, have been 

provided for large number of truck drivers coming to these areas. Petrol pump can 

also be provided if it is situated at far away place from market site. 

Since most of the produce that comes to market is not cleaned and graded 

properly, so some king of cleaning grading and packaging facility can be 

provided. 

Provision of Five star hotel and setting up of Cash & Carry format store for 

perishables like Meat and Dairy products etc. in the second phase of project. 

Additional facilities: 

• A Central Library and information center will be provided which will 

give information regarding produce , cost, etc. 

• Info way lines to connect to nodal centres in catchment areas to 

ensure connectivity with farmers, to establish forward linkages. Ten 

nodal centers are already present. 

• Rain Water Harvesting has been proposed. 

77


• Solar panels have been proposed for street lighting in the market 

complex. 

• Green zone and landscaping is proposed to control pollution. 

• Provision for fire fighting, police stations, petrol pumps, dispensaries, 

etc have been made for emergency services. 

• Bus stops, street furniture, food kiosks, guest houses, refreshment 

areas, etc have been provided. Signages have been proposed to 

guide and enable smooth circulation within the complex. 

• Part of the site has been reserved for future expansion and for 

providing processing units. 

• E.T.P’s and S.T.P’s have been proposed for sanitation, hygiene & 

environmental control 

Circulation Pattern Of the Market Facility : 

• This market facility will generate a lot of traffic movement of heavy 

vehicles like trucks, containers, etc. 

• Easy vehicular access has been provided to all the activities housed 

within the complex. Since the site is off the Highway, the entrance will 

generate traffic and a flyover should be provided over this highway for 

thro’ traffic to eliminate congestion and allow for smooth flow of traffic. 

• Roads, approaches and entry exit points of vehicles have been designed 

in such a manner that the various movements of vehicles are segregated. 

There are separate entry and exits for trucks, which bring the goods into 

78


the market. Mechanical systems of recording their contents and 

movement have been provided at their entry points. The exits for empty 

trucks are separate. The exits for outgoing dispatch trucks are separate. 

• Road layout and Parking plan inside the site for trucks and containers has 

been planned in such a manner that the traffic flow is unidirectional which 

will avoid any chaos due to truck traffic. 

• Short-term parking has been provided for smaller transport vehicles like 

tempos near the shops. 

• Docking areas for trucks are provided in each zone wherever necessary 

for loading / unloading for efficient and fast movement of handling of 

goods. 

Special Advantages: 

The design is simple and linear. Zoning of activities has been done on the basis 

of the circulation pattern. The advantages are: 

• Being modular, construction costs are reduced because of similar details 

of construction. 

• Phase wise construction is possible. 

• Vertical and horizontal expansion and construction will be possible without 

disturbing the market activity. 

• Instead of unplanned growth, the NIAM will benefit because of our 

planned growth for the complete zone. 

79


• Flyover and road network solutions provided will avoid any chaos and 

organize traffic movement within the area 

• The design proposed will enhance the physical and economic growth of 

the state. 

Land use 

Area 

m² 

Buildings 29.8 

Farmers' market area 3.5 

Roads 29.2 

Parking areas 17.5 

Footpaths & landscaped areas 17.2 

Drainage & other reserves 2.8- 

% of 

total area 

Total site area 100.0 

The entire <strong>Project</strong> is divided in phase wise manner. The approximate cost for first 

phase for Building Construction and Site development is Rs 27.81 crore only. The 

approximate cost for second phase for Building Construction and Site development 

and other facilities can be finalized only after the quotations and requirements are 

obtained. 

80


PROPOSED TERMINAL MARKET AT RAI, HARYANA 

BUDGETARY COST ESTIMATE 

Sl.No. Description Qty Unit Rate Amount 

1 Auction Halls, Commercial building, 

Administration (25m x 30m) 2250.00 m 2 9000.00 20250000.00 

2 Display area (10m x 40m) 400.00 m 2 6000.00 2400000.00 

3 (i) Fruit halls, Crate, Despatch (25mx75m, 50mx20m 

2875.00 m 2 6000.00 17250000.00 

(ii) Docks 330.00 m 2 6000.00 1980000.00 

4 (I) Vegetable Halls, Crate, Despatch 

(25mx75m, 50mx20m) 2875.00 m 2 6000.00 17250000.00 

(ii) Docks 330.00 m 2 6000.00 1980000.00 

5 Corridor - GF + FF (F&V) (8m wide) 1200.00 m 2 6000.00 7200000.00 

6 Corridor - GF + FF (Part) (4.5m wide) 775.00 m 2 6000.00 4650000.00 

7 Kinnow Hall (25m x 55m) 1375.00 m 2 6000.00 8250000.00 

8 Shop (1) including dock (40m x 145m) 5800.00 m 2 7000.00 40600000.00 

9 Shop (2) including dock (40m x 145m) 5800.00 m 2 7000.00 40600000.00 

10 i) Cold store 4500.00 m 2 6000.00 27000000.00 

ii) Pre-cooling and ripening (50mx20m) 1000.00 m 2 6000.00 6000000.00 

11 Refrigeration plant & workshop (12m x 20m) 240.00 m 2 6500.00 1560000.00 

12 Shed for cleaning snacks (12 x 12) 144.00 m 2 4000.00 576000.00 

13 Utility block (20m x 25m) 500.00 m 2 6000.00 3000000.00 

14 Security kiosk, Entrance gates LS 2000000.00 

15 Weight Bridge - 2 nos. LS 550000.00 

16 Toilet Blocks - 2 nos. LS 2500000.00 

17 Garbage collection shed - 2 nos. LS 1000000.00 

81



18 UG Sump (200 KL) LS 1000000.00 

19 OHT - 1 no. (100 KL each) LS 1600000.00 

20 Land development, Compound wall etc. LS 12500000.00 

21 Roads, Yards, Drains LS 57500000.00 

22 STP / ETP LS 2000000.00 

23 Gardening and Pathways LS 4000000.00 

24 Signages etc. LS 1000000.00 

25 External Electriciation (1500 KVA) LS 15000000.00 

26 External sewerage, recycled water distr. LS 6000000.00 

27 DG sets ( 2 nos. of 500 KVA) LS 6000000.00 

313196000.00 

*Item NO.15,25 and 27 taken in Miscellaneous fixed assets 

(MFA), hence excluded from Total cost 

21550000.00 

1) Does not include cost of equipments, furniture, A/C, Humidification, UPS, Computer Data, 

Puf panels, Data networking cabling etc. 

2) Prices based on prevailing market price. 

3) Includes civil, internal electrification, Internal sanitary etc. 

4) Does not include cost of any special treatment to soil required (can be decided only after 

after soil exploration report) 

82


83


CHAPTER – VII 

ELECTRONIC AUCTION SYSTEMS 

Overview 

Electronic Auction Systems are sophisticated solutions to address the growing 

need for an efficient trading method. EAS employs various electronic hardware 

and software sub-systems. These sub systems work in conjunction to produce a 

seamless mechanism for conducting auctions. EAS provides buyers with a 

standardized user interface that is easy to understand and use. EAS systems are 

easy to manage and can generate an exhaustive database of buyers, sellers and 

their requirements, for the organization conducting the auctions. 

In markets, transaction prices may be determined in different ways. Standardized 

inexpensive items are often sold with posted prices. Expensive customized 

products or services, especially in industrial markets, require negotiation and 

bargaining. Auctions are usually preferred in situations where enough competition 

exists, involving non-standardized products and/or products with unstable prices. 

In the most common form of auction the auctioneer is selling goods; the bidders 

are the potential buyers. Buyers compete by submitting bids, which state a 

quantity and a price. Different types of auctions exist, depending on how the 

transaction price is determined. 

84


With the convergence of IT and telecommunication, and the proliferation and 

availability of bandwidth, the impact of EAS based markets is quickly expected to 

increase significantly. The effectiveness of these markets depends on the EAS 

design. Research conducted by Techno-Magica in this area has resulted in the 

design of an efficient and effective EAS 

Auctions provide a central meeting place for buyers. These centers create 

efficient locations for gathering information on supply, price discovery, quality 

control, and product distribution. 

Auction Process 

There are 3 independent Auction process that are offered by the EAS system. 

These 3 auction systems each have their advantages and disadvantages. The 3 

auction process offered by the EAS are : 

• Dutch Auction 

• English Auction 

• Combi-Auction 

Dutch Auction 

The Dutch auction is the most popular method of auctioning commodities such as 

flowers, fruits and vegetables. The Dutch auction is also known as the ‘Reverse 

auction’. The auction begins at a high price (higher than the market price). The 

current price is displayed in figures as also represented on a giant circular dial 

with 100 segments. 

85


The Auction commences and the price indicated starts to fall at a steady speed 

(determined by the auction master). Buyers present in the hall can observe this 

falling price on the clock dial. 

When an interested buyer observes that the clock has reached a price at which 

he is interested to buy, he presses the ‘bid’ button on his bidding terminal (or 

table) to stop the clock. Immediately the telephone hand set on the table is 

activated and the buyer may then speak to the auction master informing him of 

the quantity he wishes to purchase. 

Once the allotment is complete the current price on the clock dial is increased by 

a fixed amount (usually 20-30 segments). The price of the clock dial then begins 

to drop once again until the next buyer pushes the button or the end price is 

reached. 

The Dutch auction is very quick and efficient for price discovery and multiple lot 

auctions. Dutch auctions currently deployed in Holland are able to operate at 

speeds of upto 1500 auctions per hour. 

English Auction 

The English auction is a more traditional type of auction and is ideally suited for 

auctioning of non-perishable commodities. English auctions generally generate 

86


higher prices for commodities but take longer to run. Due to their slower nature of 

operations, English auctions are usually used to auction larger lot sizes. 

The English auction begins with the floor price being displayed on the clock. The 

auction begins and the buyers are given a fixed time of 10 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. 

Interested buyers place their bids by pressing the bid button on the bidding 

terminal (or table). Each press of the bid button 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. 

Each time a bid is received the identity of the buyer is displayed on the clock and 

the count down display resets to set value (e.g. 10 seconds). 

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. The successful bidder is required to purchase the entire lot put for auction. 

Combi-Auction 

The combination auction (Combi-Auction) is a recent innovation pioneered by M/s 

Techno-Magica, Bangalore. It harnesses the strengths of the Dutch and English 

87


auction processes. The quick price discovery technique of the Dutch auction 

along with the higher price realization achieved by the English Auction results in a 

more efficient and profitable auction. 

In the Combi-auction the process begins like a standard Dutch auction with a fall 

in price. Once an interested buyer strikes the price, the auction changes to the 

English Auction Method. There upon a count down clock keeps the auction open 

allowing any interested buyer to push up the price by pressing his bid button. 

It has been found that due to the competitive nature of the English auction it is 

possible that the price is pushed up marginally from the discovered price. This 

results in higher earnings for the producer (farmer). 

Architecture 

EAS architecture consists of two significant building blocks : Software & 

Hardware. 

Software 

The EAS system incorporates complex software to perform various tasks. These 

tasks are described in the following paragraphs. 

88


Pre-Auction 

Card Issue 

Auction 

Server 

Database 

Lot Preparation 

Price Fixation 

Catalog Preparation 

Pre-Bidding 


Dutch Auction English Auction Combi-Auction 

Results 

Pre Auction Activity 

These are the various processes that take place before the actual auction is 

conducted. Pre auction software runs on computers located at the auction office 

and are operated upon by the auction master and /or authorized personnel. 

89


Buyer Card Issue 

Each registered buyer who wishes to participate in the auctions needs to have a 

smart card . The card issue module manages the process of issuing smart cards. 

The issuing process consists of 

- Capturing a photo of the buyer 

- Retrieving from database, registration details of the buyer 

- Printing of the photo id smart card 

- Programming the buyer information into the smart card. 

The card issue module also manages card related activities such as replacement 

of lost cards and blocking of banned/invalid cards. 

LOT Preparation 

Incoming produce consists of large quantities of each item. These large 

quantities need to be broken into smaller lots for auctioning. This software 

module guides the auction master in preparing lots which are subsequently 

auctioned. The lot preparation module automatically sequences the lots to ensure 

a consistent auction process ( eg. Tomato is always auctioned before capsicum). 

PRICE fixation 

90


This module allows an authorized person (not necessarily the auction master) to 

determine the floor price ( the price below which the produce will not be sold). 

Catalog generation 

This module automatically generates a printable auction catalog in English an 

Hindi (can be customized for other regional languages). The catalog would 

typically list the sequenced lot number, item name, grade, quantity available and 

the minimum / maximum quantity for purchase (for Dutch Auction). 

Pre Bidding 

This module allows interested buyers to place their bids in advance. The software 

automatically monitors and records the highest bids received for each item. If the 

bid recorded is higher than the flow price determined by the price fixation module 

then the pre bid price replaces the set floor price. The pre-bid module will only 

accept bids upto a predetermined cut off time (usually 15 minutes before start of 

auction). 

All transactions required for and generated by the pre auction software are 

accessed from a pre configured database (e.g. Oracle 9i). 

AUCTION 

The auction section consists of three modules. Each module is responsible for 

conducting a given type of auction. 

Dutch Auction Module 

91


Items that were marked for auction by the Dutch system during the lot 

preparation are auctioned one at a time. The auction master has the ability to 

increase the start price of the clock and /or change the speed of the clock during 

an auction session depending on market conditions. The auction master is 

allowed to accept or reject a bid received. However the auction master cannot 

cancel items once allotted. 

English Auction Module 

Items that were marked for auction by the English system during the lot 


increase the floor price of the clock and /or change the duration of successive 

bids during an auction session depending on market conditions. The auction 

master is allowed to accept or reject a bid received. However the auction master 

cannot cancel items once allotted.Combi-Auction Auction module 

Items that were marked for auction by the Bounce system during the lot 


increase the start price of the clock, change the speed of the clock and /or 

change the duration of successive bids during an auction session depending on 

market conditions. The auction master is allowed to accept or reject a bid 

received. However the auction master cannot cancel items once allotted. 

Attendance Module 

92


The attendance software runs on a separate computer that is networked along 

with the auction server and the auction terminals. The attendance console 

provides a graphical representation of the auction halls and the status of each 

seat that has been occupied. Clicking on a particular seat on the display screen 

brings up information on the buyer including his last three transactions. The 

attendance console is a useful tool for the auction master to get a quick idea of 

the occupancy and strength of the buyers present. 

Plasma Display module 

The plasma display software runs on a dedicated computer attached to the main 

network. The Plasma display module displays the image of the current item being 

auctioned along with its name in upto six different regional languages on its large 

42-inch colour screen. The Plasma display software is automatically 

synchronized to the lot sequence number and the item being auctioned. 

Hardware 

The 3 main hardware components of the EAS are: 

The Bidding Terminal 

The Bidding Terminal is an embedded microcomputer based system that is 

connected to the main network via an Ethernet interface. The bidding terminal 

features a large LCD panel capable of showing 8 lines of 21 characters each 

(standard English Font). This backlit LCD screen provides a user with information 

regarding his current account balance, current auction lot sequence number, 

details of the item being auctioned and other auction related messages. Each 

93


bidding terminal is equipped with a smart card reader. Each registered buyer is 

allotted a smart card, which is used to identify him in the auction hall. 

The bidding terminal features 2 buttons with which the user may select the 

auction hall (Hall 1/2) that he wishes to participate in. In addition there is a bid 

button, which the user presses when he wishes to place a bid. The Bid button 

can optionally be located on the side of the table, facing the buyer when he is 

seated. This table mounted bid button performs the same function as the bid 

button on the bidding terminal. 

Each bidding terminal also has attached to it a telephone handset. 

When the buyer inserts his card into the card reader, the reader identifies him, 

queries the central database for information pertaining to the buyer and displays 

his current account balance on the LCD screen. 

With a valid card inserted the telephone hand set is activated and the user may 

make local telephone calls from his seat by dialing ‘0’ (this is an optional feature). 

When a buyer has successfully bid for a lot, the handset automatically gets 

connected to the relevant auction master. The buyer can then speak to the 

auction master to request the quantity he wishes to purchase. 

94


Once an allotment has been made the buyer is able to view the result on his LCD 

screen. His account balance is instantly updated and is also reflected on his LCD. 

Each bidding terminal is also equipped with a ‘page’ button, which the buyer may 

use to request a private conversation with the auction master. The page button is 

only enabled when the auction is not running or in between two auctions. 

The buyer may exit from the auction at any time by removing his card from the 

reader. 

The bidding terminal is equipped with a serial port (RS–232C) which is used to 

set up the various parameters required by the bidding terminal. These 

parameters once set up are stored in non- volatile EEPROM memory inside the 

terminal. 

All bidding terminals are equipped with a DC-DC converter that is fed power 

(+24V DC) from a central power source. This power source is battery backed to 

provide uninterrupted power. 

95


Telephone 

Instrument 

Interface 

LCD Panel 

128 x 64 pixels 

Graphics capable 

LED backlight 

ISO-7816 

Smart Card 

Reader 

Buttons 

Page 

Buzzer 

Hall 1 

Bid 

Hall 2 

16 bit 

Micro-controller 

Built-in Watchdog timer 

Brownout Protection 

TCP/IP Stack 

Non-Volatile 

Memory 

DC-DC converter 

Power Supply 

+24V input 

+3.3V output 

Audio 

Interface 

Ethernet Interface 

10-Base-T 

Serial Interface 

RS-232C 

Auction Clock 

The Auction Clock is a sophisticated Display system. Powered by a 32 bit 

microprocessor, it is equipped to perform various tasks with ease. The Auction 

Clock displays numerous fields of information to the buyers present in the Auction 

Hall. 

The main part of the Auction Clock is a huge clock dial measuring 1.6m in 

diameter. The clock dial has 100 segments and is marked from 99 to 0 in an anti- 

96


clock wise direction (reverse clock). Each segment can be programmed to 

represent 1 Paise, 5 Paise, 10 Paise or 1 Rupee. The standard clock `SCALE’ is 

Ps, indicating that 1 segment represents 1 Paise. 

Each segment of the clock dial consists of 30 high brightness Red Light Emitting 

Diodes (LEDs). These solid state Red lamps are very reliable and have an 

operating life of more than 100,000 hours. Each cluster of 30 LED lamps are 

encapsulated in a specially design Plastic molded housing. The plastic housing is 

designed to provide an even brightness even when the clock dial is viewed from 

different angles. 

In addition to the clock dial, the Auction Clock also has a number of fields of 

alphanumeric display. These fields are used to provide information to the buyers 

present in the auction hall. 

The alphanumeric character display consists of high performance 4” (100mm) 

high Red LED Dot Matrix modules powered by highly efficient constant current 

driver circuits. 

The Display can be dimmed (16 levels of brightness) via software commands 

issued by the Auction Console. This is particularly useful in situations where the 

ambient light in the auction hall varies considerably (day/night auction). 

97


The Auction Clock is attached to the Auction Server via an RS-232C connection. 

Commands issued by the Auction Server drive the Clock segments and the 

alphanumeric data fields. 

The Auction Clock incorporates the latest in electronic circuit design and ensures 

reliable operation for the entire life of the product. 

Plasma Display 

The Plasma display is a bright, high contrast flat panel measuring 42” (diagonal) 

in size. The Plasma technology uses tiny display elements, Red, Green & Blue to 

display millions of shades of colour on it screen. 

The Plasma display is attached to the VGA port of a dedicated PC. The SVGA 

signal (1024x768 pixels) output of the PC is displayed clearly on the large screen. 

The Plasma Display technology offers a highly reliable, bright – easy to read 

screen for displaying the image of the produce, it name in 6 different languages 

and other important operational messages. 

98


The Plasma display is provided with a Steel wall mount bracket. This bracket 

allows for easy mounting of the screen on any flat wall. Optionally, a ceiling 

mount bracket is available in case the Plasma Screen needs to be suspended 

from the ceiling. 

The Plasma display is driven by a long length (20m maximum) of VGA cable. To 

ensure the picture is clear, a VGA video amplifier is included. 

Appendix A : Technical Specifications of Bidding Terminal 

Microprocessor 

Non-Volatile Memory 

Firmware 

Protocols 

LCD Panel 

LCD text support 

LCD graphics support 

Smart Card Reader 

cards (5V) 

Power-on Reset 

voltage 

Watchdog 

automatic crash 

Keyboard 

: 16 bit RISC @ 40 MHz 

: 1 KB EEPROM 

: Dedicated application with built-in TCP/IP stack 

: TCP, UDP, ICMP 

: 128 x 64 pixels, graphics mode, LED backlighting 

: 8 lines x 21 characters – standard font (5x7) 

: supports bit-mapped graphics 32x32 and 64x64 size 

: ISO-7816 compatible, support for SYNC type smart 

: Automatic power on reset, brown-out detect for low 

: Built-in watchdog timer with time of 1 sec for 

recovery 

: Total 4 buttons; Hall select (x2), Bid (x1), Page (x1) 

External Bid button : Table mounted, rugged Bid Button in Stainless steel 

housing 

Indicators 

Announciators 



: Total 6 LEDs; Power, Card OK, Ready, Bid, Page 

: Piezo electric buzzer 

: 10-Base-T, RJ-45 connector 

: RS-232C, 9.6 Kbps, no parity, 8 data bits, 1 stop bit 

99

Setup Data 

Power Supply 

: Via serial interface from a host PC 

• Terminal IP address 

• Terminal Sub-Net Mask 

• Gateway IP address 

• Host IP address (Hall 1) 

• Host Port Number (Hall 1) 

• Host IP address (Hall 2) 

• Host Port Number (Hall 2) 

• Terminal ID 

• Host connect (TCP) timeout 

• Host connect (TCP) retry count 


: +24V DC regulated, 0.1A maximum 

Mechanical construction : Stainless Steel brushed finish for top panel 

Dimensions 

: 150mm (W) x 250mm (H) x 60mm (D) 

Telephone Handset : Standard, 2-wire telephone instrument, 24V DC operation 

Appendix B : Technical Specifications of Auction Clock 

Microprocessor 

Non-Volatile Memory 

Operating System 

Firmware 

Protocols 



bit 

LED Clock Dial 

Segment colour 

Segment construction 

PCB 

Alphanumeric 

Dot Matrix 

Module type 

LED 

No. of Alphanumeric 

Info. Fields 

: 32 bit CISC @ 40 MHz 

: 8MB Flash Memory 

: Embedded DOS 

: Dedicated application with built-in TCP/IP stack 

: TCP, UDP, ICMP 

: 10-Base-T, RJ-45 connector 

: RS-232C, 115.2 Kbps, no parity, 8 data bits, 1 stop 

: 1.6m diameter, 100 segments 

: Super Bright Red; 30 LEDs per segment 

: Contoured Plastic molded housing with embedded 

: 4” Character height, Red colour, high brightness; 5x7 

: Sealed, molded Alphanumeric Dot Matrix module, AlGaAs 

: 138 characters total 

: Total of 15 fields (each clock) 

• Items to be auctioned x 3 (20 chrs each) 

• Item grade (above) x 3 (2 chr each) 

100


• Current item being auctioned x 1 (20 chrs) 

• Item grade (above) x 1 (2 chr) 

• Lot number x 1 (4 chr) 

• Qty. Available for auction x 1 (6 chr) 

• Pack ID x 1 (2 chr) 

• Start Price x 1 (8 chrs) 

• End Price x 1 (8 chrs) 

• Buyer ID. x 1 (8 chrs) 

• Qty. Purchased x 1 (8 chrs) 

• Countdown Clock (English) x 1 (2 chrs) 

• Unit of Measurement x 1 (2 chrs) 

• Clock Scale x 1 (2 chrs) 

Brightness Control : 16 levels of brightness; adjustable via Auction Master’s 

console 

(software setting) 

Maximum Clock speed : 25 milli-second per step; 1 full revolution in 2.5 

seconds 

Power consumption : 750Watts maximum at 230V AC, 50 Hz 

Dimensions 

: 2,000mm (W) x 3,000mm (H) x 100mm (D) 

Commercial Details 

The EAS consist of various Software and Hardware components. Each subsystem 

has been designed carefully, bearing in mind the typical operating 

conditions prevalent in the field. Extensive study has been done to determine the 

optimum solution. Some of the sub-systems are optional and may be purchased 

to increase the functionality of the complete solution. 

The tables in the following pages represent the various components required to 

build a complete EAS that is equipped with 2 auction halls, each with a seating 

capacity of 100. The auction halls can operate independently and the EAS 

solution a buyer seated in Hall-1 to purchase items from Hall-2 and vice-versa. 

101


The prices indicated are based on the quantities indicated. If the quantity 

deviates by more than 10%, a revised quotation will be applicable. Please check 

for the applicable prices based on your final requirement. 

The prices are indicated on ex-factory, Bangalore basis. Freight, handling and 

insurance will be charged extra as applicable. 

Installation charges are not included and will be quoted separately after the 

delivery / installation site/location has been confirmed. 

102


Quotation – Hardware 

Sl Description Qty Rate Amt. 

1 

2 

3 

4 

Hardware Components 

Bidding Terminal 

Embedded Microprocessor based unit 

• 16 bit Microprocessor 

• Graphics LCD panel (128x64 pixels), LED 

backlit 

• ISO-7816 Smart Card Reader 

• 10-base-T Ethernet Port, Rs-232C interface 

• Telephone handset Interface 

• Hall Select, Bid and Page buttons with LED 

indicators 

• Additional Bid Button unit mounted on front of 

table 

Auction Clock 

Multi-Function LED based Auction Clock & Display 

• Large 1.6m diameter Auction Clock with 100 

segments 

• Multiple Alphanumeric display fields, 4” high 

characters 

• Total of 138 Character display 

• Interface to Auction Server (RS-232C) 

• Built-in 32bit Microprocessor system running 

DOS 

Plasma Display Screen 

• Large screen size – 42” diagonal 

• High brightness (>300 NIT) & high Contrast 

(>400) 

• Extra Long VGA cable (20m) with Video 

amplifier 

• Wall Mount bracket (steel) 

Base Station for Auction Master 

• Computerized Audio Switching – Intercom 

system 

• Audio Headset with microphone 

• Central Power Supply with Battery back-up (for 

bidding terminals) 

Per 

order 

200 

pcs 

2 pcs 

2 pcs 

2 pcs 

In Rs. 

In Rs. 

25,000 50,00,000 

15,500 

00 

2,50,00 

0 

2,50,00 

0 

31,00,000 

5,00,000 

5,00,000 

103


5 

6 

7 

PA Speaker System for Auction Hall (single Hall) 

• 250W Audio Amplifier 

• Column Speakers (6 pcs) 

• Wired Microphone with table stand 

• Dual Wireless (VHF) microphone with receiver 

Optional Items 

Dial-out Telephone support 

• Allows registered buyers in the Auction hall to 

make outgoing local calls by dialing ‘0’ on the 

telephone instrument at their Auction Terminal 

• Requires a 150 extension EPABX system (not 

Included) 

LCD Multimedia Screen 

• Ultra High Brightness <strong>Project</strong>ion Screen (> 3000 

L) 

• Motorized, retractable screen (12’ diagonal) 

• Used for training / multimedia programmes 

• Used as a stand-by screen for conducting 

Auctions 

• Includes a Soft-Clock software package 

• Requires a dedicated Computer system (not 

included) 

2 pc 75,000 150,000 

2 sets 

2 sets 

Sub Total 92,50,000 

1,00,00 

0 

5,00,00 

0 

2,00,000 

10,00,000 

Total in Rs. 104,50,000 

104



1 

2 

3 

4 

Per 

order 

In Rs. In Rs. 

Software Components 

Pre-Auction Module (Software) 

Includes various modules required for preauction 

activity 

• Card Issue Module (with Card Reader 

station) 

1 set 5,50,000 5,50,000 

• Lot Preparation Module 

• Price Fixation Module 

• Pre-Bid Module 

Auction Console (Software) 

Auction Master’s Console application 

• Supports 3 types of Auctions 

• Easy to use Graphical User Interface 

(GUI) 

2 pcs 5,50,000 11,00,000 

• Runs under the .NET framework 

• Requires a Microsoft Windows XP 

Professional based PC (not included) 

Attendance Console (Software) 

Displays the status of the Auction hall, the 

occupancy 

• Easy to use Graphical User Interface 

(GUI) 

2 pcs 3,00,000 6,00,000 




Product Display Screen (Software) 

Displays the current item being auctioned 

and it name 

• Supports upto 6 different languages 2 pcs 2,00,000 4,00,000 




105


5 

6 

Auction Server Application (Software) 

• Main server application with built-in 

database 

• Dedicated application – handles all 

network connectivity 

• Forms a bridge between the EAS & The 

Action Market 

• Requires a server class computer system 

running Windows Server 2003 OS 


Remote Internet based Auction System 

(Software) 

Allows registered buyers to participate in 

Auctions from remote locations via the 

Internet. 

• Requires a 128 Kbps Leased line Internet 

connectivity to the Auction Server 

• Buyers to purchase a Remote Internet 

Terminal 

• Includes all required hardware for server 

1 pc 6,50,000 6,50,000 

1 set 


15,00,00 

0 

15,00,000 

Total in Rs. 48,00,000 

106



1 

2 

3 

Per 

order 

Miscellaneous Components 

Auction Table & Chair assembly (Dual Seat) 

Rugged, space saving design. 

• Includes a 55” x 20” table top with cut-out for 

bidding terminal 

• Dual, foldable seats with Cushion seat and 

backrest 

• Mild Steel construction- with powder coated 

finish 

• Includes all wiring and sockets for Networking & 

Power 

Auction Server 

High Performance server to provide 24x7 operation 

• Intel Xeon CPU 

• 1GB DDR Memory 

• 2 x 80 GB SATA Hot swappable HDD 

• 2 x 400W Hot swappable Power Supply 

• 4U Rack Mount Chassis with 2x Ball bearing 

fans 

• 3 x Ethernet interface, 100-Base-T 

• Built-in Data-base (SQL database) 

• Runs Windows Server 2003 

Standard Computers (Auction/Attendance/Display 

Consoles) 

High performance Computers 

• Intel Pentium 2.8 GHz HT CPU 

• 512 MB DDR Memory 

• 2 x 80GB SATA Hot Swappable HDD 

• 2U Rack Mount Chassis with 2x ball bearing 

fans 

• Ethernet interface, 100-Base –T 

• 15” LCD Monitor 

• Runs Windows XP Professional 

100 

sets 

In Rs. 

In Rs. 

20,000 20,00,000 

1 pc 5,00,000 5,00,000 

6 pcs 75,000 4,50,000 

107


4 

5 

Networking Package 

Complete set of networking sub-systems required 

• 24 Port Ethernet Switch x 8 pcs 

• 170 way Patch Panel 

• 30U Rack Mount Cabinet x 2 

• All necessary hardware for installation (does not 

include LAN cabling) 


Remote Internet Terminal 

• Compact embedded PC system, runs Windows 

CE 5.0 

• Built-in 8.4” TFT LCD panel with Touch screen 

• Standard 104 Key PC Keyboard 

• Built-in rugged, industrial grade embedded dialup 

modem (requires a telephone line 

connection) 

• Solid State Flash Disk with Auction Application 

• Purchase in multiple of 25 sets (min. order : 25 

sets) 

• Each buyer requires to purchase his individual 

terminal 

1 set 7,50,000 7,50,000 

25 

sets 


30,000 7,50,000 

Total in Rs. 43,50,000 

108


CHAPTER – VIII 

MAIN FEATURES OF THE MARKET 

Proposed market has been conceptualized and designed in a manner that transparency 

and efficiency is ensured and value addition is encouraged so that farmers get maximum 

price. 

In order to reduce multiple handling and smooth movement modern systems 

have been proposed. 

A part from central electronic auction system, state of art of 

electronic grading, quality evaluation station, etc is another area which has been 

specifically addressed. 

Ripening chambers, cold storages, IT enabled operations, 

transactional banking and automation / networking with latest technological application 

has been suggested. 

Broadly following sections constitute major features of the 

proposed market at Rai. 

Section – I 

Section – II 

Section –III 

Section –IV 

Section – V 

Ripening Chambers and Cold Storages 

Electronic Grading Lines and Vegetable Packaging units 

Quality Evaluation Station 

Conveyor Based Movements and Mechanized Handling 

IT Applications and Networking 

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Section – I 

Ripening Chambers and Cold Storages 

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SECTIONS FOR RIPENING CHAMBERS 

It has been proposed to develop six ripening chambers of 25 MT each capacity in the 

terminal market so as to provide modern facility for ripening of banana that will be 

received in the terminal market. 

Banana which will be dispatched directly from 

collection centers to sale outlets/super markets and bulk buyers located in different parts 

of the country does not require ripening facility as afterwards the fruit cannot travel for 

long. Therefore, the facility propose to be developed at terminal level will address to the 

requirement of local market like Rai, Sonipat, Panipat and Delhi,. The size and capacity 

of ripening chamber has been kept approximate half of the size of SAFAL market, 

Bangalore. Following paragraphs provides a descriptive detail of various sections, 

operations, specifications, equipments etc., for the entire facility. The coverage has 

been designed into following 12 sections. 

1. Scope of Work 

2. Typical Specification Of Major Components 

• Puf sandwich panels for chambers 

• Electrically driven overhead doors 

• Equipment and devices in the ripening chambers 

• Air refreshing arrangement 

• Ethylene gas distribution system 

• Electricals 

• Process Control System 

• Side distance guiding sheet 

• Chamber protective posts 

3. Start-up 

4. Documentation of complete data 

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5. Spare parts 

6. General technical conditions 

1. Scope of Work 

Scope of work involves supply, installation and commissioning 6 nos. Banana Ripening 

Chambers, each of 25 MT capacity (48 pallets). 

The system has to be equipped with all necessary operation and safety units, units, 

accessories and /or components (switch, control and safety gears) so that safe, 

economic and lasting operation of the facility as a whole as well as all individual 

components is guaranteed. 

Banana Ripening Chambers should be designed in such a way that 50% of chamber 

load i.e. 24 pallets and above with sequence of 4 pallets can be ripened. 

The scope of work includes the following: 

- <strong>Detailed</strong> design & Planning 

- Supply of Equipment 

Erection 

- Start-up and satisfactory Commissioning of the system & training of Client’s 

manpower in operation & maintenance. 

- Handing over the installation to Owners in satisfactory operating condition. 

The details are as follows: 

- Supply & Installation of the Ripening Chambers made out of insulated PUB 

sandwiched Panels for walls / partition walls and roof etc. 

- Supply & installation of Sectional Doors, motorized, sliding-up complete with 

door switch panels. 

- Supply & installation of cooling units for each Chamber. 

- Supply & installation of temperature sensors and indicators for ach 

Chamber. 

- Supply & installation of the air-refreshing unit for each Chamber. 

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- Supply & installation of Ethylene Gas distribution station. 

- Supply & installation of electrical Motor Control Center. 

- Supply & installation of instrument and Control Panels. 

- Supply & installation of Process Control System. 

- Supply & installation of Side distance guiding sheets. 

- Supply & installation of Chamber protective posts. 

- Supply & installation of chilled water pipes, fittings & valves etc including 

insulation and aluminium cladding. 

- Supply & installation of electrical cables and connecting wires between the 

power. Distribution panel / control panel and various motors and control 

units and wiring for internal lighting. 

- Start-up and Commissioning of the system. 

- Supply of complete documentation. 

Items required but not mentioned specifically like: 

- All materials which are needed during installation of the facility and for its 

completion & commissioning. 

- All appliances and tools which are needed for installation. 

- All appliances, devices and machines which are necessary to complete the 

project. 

- All temporary installations which have to be erected in order to complete the 

project. 

The scope of work does not include the following items: 

- Demolition of any existing civil structure or work of any kind. 

- Civil construction works of any kind like concreting etc. 

- Supply & mounting of protection railing on the outside of the Ripening 

Chambers. 

- Cables for power supply to the Power Control Centre. 

- Cost of electrical power for installation , testing and commissioning. 

- Supply of gas for ripening. 

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2. Typical Specifications of Major Components 

PUF sandwich Panels for Ripening Chambers: 

Approx. Dimensions of the Ripening Chambers are as follows: 

Inner dimensions Length 16.5 m 

Width 

Height 4.05 m 

3.7 m 

Door Cutout 

Width 2.6-2.8 m 

Height approx. 4.1 m 

The wall and ceiling of the Banana Ripening Chambers are constructed using prefabricated, 

self supported, sandwich panels insulated with rigid polyurethane foam (PUF 

free of CFC) of 80 mm thickness. This foam is injected using high pressure equipment in a 

precise proportion. The foam density is to be strictly controlled to provide excellent thermal 

insulation, strength and stability. The facing material (lamination) adhesion to foam shall be 

exceller, and shall have the foam imparting good structural strength to the composite 

construction. The dimensions of the panel should be stable over a temperature ranger of 

minus 60 deg. C to 100 deg. C. 

Broad specification of the panels and PUF shall be as follows: 

Density 

: 40+2 kg/cu.m 

K-value of insulation: approx. : 0.35 W per sq.m per deg. K 

Thermal conductivity : 0.023 W/sq.m/deg.K (AGED) 

Shear strength 

: 0.1-0.3 N/sq.mm 

Compressive strength : 2.1 kg/sq.m 

(0.1-0.3 N/sq.mm) 

Tensile strength 

: 3.7 kg/sq.m 

Bending strength 

: 2.9 kg/sq.m 

(0.1-0.3 N/sq.m) 

Adhesion strength 

: 2.9 kg/sq.cm 

(PUF to steel) 

(0.1-0.5 N/sq.m) 

Closed cell contents : 90 to 95% 

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Fire resistance 

: Self extinguishing as 

per ASTM D 1692 

Water Absorption 

: 0.2% by volume at 100% RH 

Vapour permeability 

: 0.08 to 0.12 gm/hr/sq.m at 90% RH 

And 38 deg. C 

Elasticity module 

: 2.5 – 8 N/Sq.m 

Thickness of outer sheets : min. 0.6 mm 

Material of outer sheets : Profiled Galvanised Sheet Steel with tread / 

depth of profile approx. 5 mm 

Amount of zinc coating 

: Min. 275 gm/sq.m 

Test certificate shall be produced to support above properties. 

Outer finish on the sheets 

The panels on both outer sides shall be pre-painted with 25 micron thick silicon modified 

polyester coating of colour to be decided by the owner. 

Jointing of Panels 

Panels are joined by ‘tongue-and-groove’ system or other similar arrangement. The 

panels shall not have any conducting parts of whatsoever nature such as additional layer 

of sheet steel, bore holes, locks etc between the outer and inner sheet steel layers. 

As far as the panels for ceiling are concerned, these shall be manufactured in full width 

and shall be mounted throughout the width of the Chambers without any longitudinal 

jointing of the panels and/or any intermediate supports. 

The offer shall include cutting of PUF Sandwich Panels, wherever necessary, as well as 

assembly of doorframes. 

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Internal /external angle 

The corner joints shall be homogeneously foamed (also to be CFC-Free), sealed with 

Silicone Sealing Compound and shall be covered with galvanized sheet steel angles. 

Installation of Floor 

Panels shall be erected on the floor and sealed with galvanized corner steel (equal to the 

thickness of the panels), which shall then be fastened with plugs on the floor. 

All joints, angles and U-shells shall be foamed homogeneously and then sealed with 

Silicon Sealing Compound. 

All the materials to be used in this job shall meet the sanitary standards for Chambers for 

Storage of Food Products according to International regulations. 

General 

The system shall be complete with all ancillary items like corner pieces (L Panels), prepainted 

steel/aluminum profiles for inner/outer and joint corners, sealants, foam 

chemicals and all other components and accessories as required. The cost of these 

ancillary items is included in the respective rates for ceiling/wall panels and no separate 

payment shall be made for these items. 

The dimensions of the Ripening Chambers indicated in these specifications are 

approximate. The Supplier/bidders must ensure accurate dimensions before taking up 

manufacture. Payment shall be made for the actual area of work executed based on the 

unit rate as applicable. If the area of a single opening is more thane 0.5 sq.m., it shall be 

deducted from the measurements. 

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Electrically driven overhead Doors 

Number of doors 

: 5 Nos. 

Width approx. 2.6 – 2.8 m 

Height approx. 4.1 m 

Recommended blade thickness : approx. 50 mm 

‘K’ Value of Insulation : 0.45 W per sq. m per deg. 

(Supplier/bidders shall carry out detailed design and obtain Owner’s approval 

prior to manufacturing the items). 

Door shall be made of self-supporting sections of CFC-Free PUF Sandwich Panels. 

Jointing of sections shall be carried out in such a way that it shall be free of thermal 

bridge and shall be fitted with special seals. After installation, the doors shall form an 

airtight unit with the wall panels of the Ripening Chambers. 

Doors shall be equipped with all necessary safety devices such as gripping device in 

the event of rope breakage, under walk protection switch and any other item / device 

according to International / Indian security standards. 

Prior to starting the commissioning operation all rollers shall be adjusted and this 

process shall be repeated after about one month’s operation. 

Equipment and devices in the Ripening Chambers: 

The equipment and devices to be installed in the Chambers shall consist of : 

High-capacity Air Handling Unit (AHU) equipped with fans, cooling coils and controls. 

Internal lighting in the Chambers to deliver natural sun light. Temperature sensors and 

indicators. Hot-dip galvanized, bolted type steel structure for stacking the layer of pallets 

in the Chambers. 

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Air Handling Units: 

Air Handling Units shall be designed for operation with chilled water as the cooling 

medium. Chilled Water shall be supplied from the refrigeration plant at (+) 6 deg. C. The 

Design shall be such that these shall be capable of attaining and maintaining the 

required temperature. 

The AHU shall be complete with fans, cooling coils with fins and outer cladding made of 

galvanized sheet steel. It shall be provided with condensate drain tray, inlet and outlet 

valves, air distributor and controls like solenoid valve with thermostat at the inlet. The 

unit shall be designed for efficient operation. 

The AHUs shall be suspended in the Ripening Chambers from a supporting structure 

such that the ceiling of the Chamber shall not be loaded with the weight of the AHU. 

Further it shall located in the Chamber such that uniform temperature is maintained 

throughout the stored product. 

The chilled water piping and electrical wiring to and from the Chambers shall be planned 

and carried out in such a way that the number of holes in the panels are kept to a bare 

minimum. 

Chilled water supply and return shall be made available at one point near the Lanana 

Ripening Chambers installation from where the Supplier / bidder shall draw the piping of 

suitable size to each AHU in each Ripening Chamber. Also the chilled water return pipe 

from each unit shall be connected to the main return pipe installed by the Owner’s near 

the Ripening Chamber installation. 

The chilled water pipes & fittings to be supplied and installed by the Supplier/bidders 

shall be adequately and properly insulated with thermocole or equivalent material pipe 

sections of suitable thickness. The insulated pipelines shall then be cladded with 

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aluminium sheet cladding. <strong>Detailed</strong> specifications for insulation and cladding are 

provided in the relevant portion of this tender document. 

Whereas, entire installation will be carried out by a local agency, appointed by the 

Supplier/bidder’s of equipment, under Supplier’s/bidder’s direct supervision, complete 

engineering and design of the plant and the system shall be carried out by the 

Supplier/bidder himself which shall be got duly approved from the Owner. 

The heat load calculation should also take into consideration factors such as; change of 

air, door opening, breathing of the stores goods, air circulation, lighting, transmission 

heat load and heat load by persons and equipment apart from the cooling load of the 

stored goods. 

Heat load calculation sheet indicating the refrigeration load per Chamber as calculated 

by the Supplier/bidder shall be detailed in the offer. 

Internal Lighting 

The Supplier/bidder shall supply and install suitable lighting fixtures in the Banana 

Ripening Chambers. The type and number of fixtures shall be such that these are 

suitable for the intended use and provide natural sun light in the Chambers. The light 

intensity in the Chambers shall be around 150 lumens and shall be uniform through out 

the Chamber. All the light fixtures shall be suitable for operation on 240 Volts 50 Hz. AC 

electrical power supply. Fixtures shall be provided with Metal Halide lamps. ‘Exit’ 

indication light shall also be provided near the door. 

All the light fixtures in the Chamber shall be wired neatly in conduits / cable tray to a 

single point near the door and suitable control switches shall be provided in a surface 

mounted switch box with fuse. The switch box shall also be provided with a power plug 

and point and fuse for operation of light electrical appliances. The switch boxes of all the 

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Ripening Chambers shall be wired and connected in a central switchboard, with switch 

and fuse arrangement for the circuits and the incomer, near the MCC. Electrical power 

supply shall be provided to this switchboard by the Owner. 

Temperature Sensors and Indicators 

Suitable temperature indicators and sensors shall be provided and installed by the 

Supplier/bidder for each Ripening Chamber. The indicators shall be mounted in suitable 

boxes and shall be installed at approximate locations for each Chamber. The indicators 

shall be digital type and the size shall be such that these can be easily read from a 

distance of 10 metres. 

All the electrical appliances and equipment within a Chamber shall be pre-wired and the 

cabling / wiring shall be terminated in the electrical power distribution panel / control 

panel. All the electrical feeders in the power distribution panel shall be provided with 

short-circuit and overload protection. 

Hot-Dip Galvanized, Bolted Type Steel Structure 

a total of 48 pallets will be accommodated in each of the Banana Ripening Chambers in 

2 layers staking. A structure is, therefore, required to be installed in each Chamber which 

may, if required, be also used to support the air handling units. This structure should be 

installed in such a way that the fork-lift can move in the Chamber and place the pallets 

easily. The design must be pre-engineered to achieve optimum usage of materials. 

Air Refreshing Arrangement 

The periodical air change in the Chambers is to be obtained though a ventilation system. 

The ventilation system for each Ripening Chamber shall consist of electrically operated 

and controlled air-tight flaps with suitable ducting and an exhaust fan if necessary. 

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Ethylene free air is taken from outside and blown inside the Chambers. 

Design of ventilation system shall be such as to achieve the following objectives: 

- A ventilation short-circuit should never be possible i.e. it should not be 

possible to take exhausted from the Ripening Chambers in the Chamber 

again. 

- Flaps should not open under normal operating conditions which could 

lead to loss of ethylene during injection of gas. 

Ethylene Gas Station 

The Ethylene Gas Supply Station shall consist of a gas collector from gas cylinders, 

pressure reducers / pressure regulators and gas distributor. 

Gas collector shall be designed with two independent set of gas manifolds each suitable 

for collecting 6 nos. gas cylinders and each complete with a pressure reducer / regulator 

and gas distributor. It may be noted that the ethylene gas cylinders shall contain 

maximum of 5% ethylene gas. The automatic operation of the system should allow 

switch over from one set of cylinders to the other set of cylinders in the event of a fail in 

gas pressure below the pre-set point. In the event both the systems have low pressure, 

the system should sound an alarm. 

Pressure Reducing Station shall be designed to reduce the gas pressure from the 

cylinder pressure (200 bar) to a pre-set value such as 3-4 bar. 

The Gas Distributor with all accessories shall be designed to distribute desired quantity 

of ethylene gas from the cylinders to the designated Ripening Chamber in fully automatic 

operation. 

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Gas injection installation at each Ripening Chamber shall consist of gas filter, solenoid 

vale and flow mater to meter the quantity of gas injected in the Chamber. 

Entire gas tubing the interconnect various components of Gas Station the injection 

system shall be of copper of suitable diameter and thickness, and shall be sized and 

carried out in such a way that there shall be no frosting on the components under normal 

operating conditions. 

Electricals 

Cabling & Earthing 

Complete electrical for interconnecting individual motor and other electrical equipment in 

the Banana Ripening Chambers shall be supplied and installed by the supplier/bidder. 

Supply, laying and termination of required quantity of armored LT power cables/ control 

cables/ instrument cables of suitable sizes with cabling accessories in GI perforated 

cable trays and GI conduit pipes. Necessary GI perforated cable trays, GI conduit pipes, 

earthing conductors, earth pits, emergency-stop isolator in SS enclosures of totally 

water-proof construction near all motors should be supplied and installed. Vertical drop 

of the cable trays shall have to be covered with cable tray cover. 

Size of power cables for different capacity loads / motor ratings are indicated in enclosed 

cable selection charts and similarly for earthing. Accordingly, supplier/bidder should 

provide and install the same. Power cable suitable for use in 415 V system shall be of 

1100 Volts grade, copper conductor, PVC insulated, armoured and overall PVC 

sheathed strictly as per IS:1554 (Part-1) 1976 amended till date. The control cables 

should be of copper conductor with the specifications described as above. 

Supply and placement of rubber mats of proper sizes as per relevant rules are to be 

provided for MCC and control panels. 

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In control cabling, 20% spare cores in addition to the requirement shall be provided. 

Tentative information indicating total connected electrical load of the Banana Ripening 

Chambers as well as individual equipment load details along with single line diagram 

(showing the complete distribution network) and general arrangement drawing of the 

motor Control Center including control circuit diagram shall have to be provided in the 

offer to facilitate effective technical scrutiny. 

The electrical distribution system will be suitable to operate, control, and maintain all the 

parameters required for safe operation of the system. The electrical LT distribution 

system specification is detailed below but not limited to and is included within the scope 

of the bidder. 

Motor Control Centre for Banana Ripening Chambers 

Functional requirements: 

To receive, control and distribute AC electrical power at 415 V, 50 Hz in a sheet steel 

housing. 

Design Requirement and Scope of Supply: 

Statutory Requirements: 

Motor Control Center is to be manufactured/assembled as per the latest ISI 

specifications and Indian Electricity Rules including special requirements of concerned 

State Electrical Inspectorate and the detailed specifications as mentioned below. 

The motor control center should be completely dust, weather & vermin proof 

conforming to IP-55 standard. The MCC is to receive control & distribute AC electrical 

power at 415 V, 50 Hz to all the electrical loads proposed to be connected in the 

Ripening Chambers. 

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It should have all incoming and outgoing feeders for all the motors of all the Ripening 

Chambers. 

Type: 

Suitable for indoor installation with a provision for expansion and to be fabricated as per 

detailed specification described and as per IP-55. 

The rating of the incomer switchgear to the panel and the bus bars within the panel shall 

be 1.25 times of rates full load current of connected load of the panel. 

Out-going feeders: 

Required number of feeders to feed electrical power to all the motors and control points 

within the Ripening Chambers along with suitable ratings of switchgears and protections. 

Additional 20% spare feeders for future load of different ratings are to be provided in the 

MCC. One number 100A TPN SDF unit for welding point is to be provided in the MCC. 

All out going feeders shall have isolation facilities such as switch dis-connector fuse unit, 

contractor, thermal/magnetic over load protection and necessary operating control etc. 

Only switch dis-connector fuse units are to be used in the MCC for isolation purpose and 

not switch fuse unit. 

Switch gear ratings for out going feeders are to be selected as per the enclosed 

selection chart and accordingly the same are to be provided. 

The MCC shall be fabricated out of 14 SWG sheet steel and shall consist of free 

standing front openable panels arranged to form a continuous line-up of uniform height. 

Front door shall be hinged type and bus bars and cable alleys covers shall be bolted 

type. 

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MCC shall be extensible at both the ends by addition of vertical section. Ends of the bus 

bars shall be suitably drilled for this purpose. 

The MCC shall be totally enclosed, dust, weather and vermin proof Gaskets of durable 

material shall be provided for doors and other openings. Suitable hooks shall be 

provided for lifting the boards. These hooks when removed, shall not leave any opening 

in the board. 

All hardware shall be corrosion resistant. All joints and connections shall be made by 

galvanized zinc passivated or cadmium plated high tensile strength steel bolts, nuts and 

washers secured against loosening. 

The switchboard shall be in cubical design (each feeder components are housed in 

individual cubical). Suitable cable and bus bar alleys shall be provided. All components 

of the MCC shall be approachable from front. 

Painting: 

All metal surfaces shall be thoroughly cleaned and degreased to remove all scales, rust, 

grease and dirt. Fabricated structures shall be pickled and treated to remove any trace 

of acid. The under-surface shall be prepared by applying a coat of phosphate paint and 

a coat of yellow zinc chromate primer. The under-surface shall be made free from all 

imperfections before undertaking the final coat. 

After preparation of the under surface, the MCC shall be powder coated and finished in 

Siemens Grey texturised finish of 60-80 micron and sheet steel fabrication should be 

treated in seven tank cold pre-treatment process before powder coating. 

The finished panels shall be dried in stoving ovens in dust free atmosphere. Panel finish 

shall be free from imperfection like pin hole, orange peels, run-off paint etc. 

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All unpainted steel parts shall be cadmium plated or suitably treated to prevent rust, 

corrosion etc. 

Name Plates: 

Name plates for all incoming and outgoing feeders shall be provided on doors of each 

components. Name plates shall be fixed by screws only and not by adhesives. Special 

danger plates shall be provided as per requirement. 

Stickers should be provided for all components giving identification no. as per detailed 

writing diagram inside the MCC. 

Bus bar Sizing, Connections and Supports: 

The bus bars shall be made from high conductivity electrolytic copper conforming to 

grade E91E of IS-5082. The bus bars and supports shall be capable of withstanding the 

rated and short circuit current stated in the single line diagram/feeder details specified at 

3.0. Maximum current density for Aluminum bus bars shall be 0.8 amperes/sq.mm. An 

earthing bus bar shall be provided outside the MCC at bottom throughout the length of 

the panel. 

The bus bars shall be provided with heat shrinkable insulating sleeve. Supports for bus 

bars shall be made of suitable size heavy duty SMC heavy duty and these should be 

adequate in number so as to avoid any sag in the bus bars. 

For power interconnection within the MCC: 

Copper conductor PVC insulated cables of adequate cross section shall be used. 

Minimum size of copper conductor to be used shall be 2.5 sq. mm. Cable lugs / sockets 

of suitable size and type shall be used for all interconnections. 

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The copper surface will be silver plated and the aluminium surface will be properly 

cleaned and supplied with oxide inhibiting grease. 

For each outgoing feeder suitable size terminal blocks (min 3 ways) shall be provided in 

its cubical and wiring up to these from contractors shall be done by the panel supplier. 

For incoming and outgoing feeders of the MCC copper conductor cable will be used and 

hence the panel is to be designed for receiving these. 

To prevent accidental contacts, all interconnecting cables/busbars and all terminals also 

shall be shrouded. 

Standard colour code of Red, Yellow and Blue for phases and Black for neutral is to be 

followed for all bus bars/conductors. 

Auxiliary wiring and Terminals: 

Wiring for all controls, protection, metering and signaling etc. inside the witch board shall 

be done with 650 volts grey coloured PVC insulated copper conductors. Minimum size of 

these conductors shall be 1.5 sq.mm Control wiring to components fixed on doors shall 

be flexible type. 

All control wiring should be provided with necessary cable sockets/lugs at both ends. 

Conductors shall be terminated using compression type lugs. Each termination shall be 

identified at both the ends by PVC ferrules. The identification termination numbers 

should match with those on the drawings. 

Control wiring for motor feeders should be such that the Green indication lamp of motor 

feeder is “ON” only when the control as well as power circuit of the feeder is “ON” and it 

shall have its own fuse. 

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For all motor starter feeders, provision for control wiring to remote ON/OFF control is to 

be made. The auxiliary wiring for the same shall be brought up to terminal block in the 

feeders cubicle. 

Switchgears: 

Moulded Case Circuit Breakers (MCCB) 

MCCBs shall be provided with separate operating handle mechanism with door 

interlocking. The MCCBs shall be of three/four pole construction arranged for 

simultaneous three/four pole manual closing or opening and automatic instantaneous 

tripping on short circuits. Operating handle shall give a clear ON/OFF & TRIP indication. 

The ratings shall be as specified in feeder details. 

Rated breaking capacities of MCCBs shall be as under :- 

Up to 125A 

Above 125 A but up to 25A 

25A 

35A 

HRC fuses should be provided for MCCBs below 250 amps rating to make their rupturing 

capacity minimum 35 KA, if required. Control voltage shall be 240V. 

All feeders having MCCBs shall be provided with neutral link complete with isolating link. 

Switches: 

Switches shall be load-break, heavy duty, air break and continuous maximum rating type 

with manual quick make/break mechanism. Mechanical interlock shall be provided to 

prevent opening of door in switch ‘Closed’ position and prevent closing of switch in door 

‘Open’ position. However, it should be possible to defeat this arrangement for testing 

purpose. 

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Fuses: 

These shall be HRC cartridge link type with operation indicator which will be visible 

without removing the fuses for service. These shall be complete with moulded phenolic 

fuse base and cover. 

Contactors: 

The rating of the power contactors shall be as required depending upon the feeder rating 

indicated in the specifications and as per the table given at 6.21.7.4 below. Contractor 

coils shall be suitable for 240 volts. 50 Hz AC supply with ‘H’ class insulation, unless 

otherwise specified. All contactors shall be supplied with minimum 2 NO+2NC auxiliary 

contacts. Additional contacts, if required for interlocking, shall also be provided. 

All contactors of motor starters shall be suitable for mixed duly i.e. AC3 and AC4 

operation unless specified otherwise. 

Protective Devices: 

Bimetal overload relays shall be provided for all motor feeders. The relays shall be 

adjustable and self reset type. 

Any other relays, if required for motor feeders shall be specified in the feeder details. 

Push Buttons: 

Push buttons shall be with contact elements, generally mounted on openable covers. 

Colours shall be as follow: 

Stop/Open / Emergency 

Start/Close 

- Read 

- Green 

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It should have minimum 1 NO + 1 NC contacts. Push buttons with built-in indication 

lamps shall also be accepted in which case separate indication lamps are not required. 

Indication Lamps: 

All outgoing and incoming feeders shall be provided with ON indication lamps. 

Colours shall be as under : 

PHASE 

ON 

OFF 

TRIPPED 

: Red, Yelow & Blue 

: Red 

: Green 

: Yellow 

Indication lamps shall be in the form of cluster of high intensity light emitting diodes(LED) 

to give bright indication. These lamps shall be of 22.5 mm dia having operating voltage 

of 240 V, AC. 

Current Transformers: 

Current Transformers (CTs) shall be cast resin insulated types. Primary and secondary 

terminals shall be marked indelibly. CTs shall preferably be mounted on stationery parts. 

CT rating and ratios shall be as per feeder ratings. 

Separate CTs are to be provided for protection and metering purposes. 

Measuring Instruments: 

These shall be of square pattern having dimensions 96 mm x 96 mm, flush mounting 

type. Necessary auxiliary instruments like CTs, VTs, etc are also included in the scope of 

supply. 

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All AC meters shall be of Moving iron type having Class 1.0 accuracy. Ammeters for 

motor feeders shall have anon-linear compressed scale at the end of indicate starting 

current. 

Voltmeters shall be suitable for direct line connection and shall be connected through 

fuses only. 

Energy, meters shall be suitable to measure unbalanced loads of 3 switches and those 

for motors shall be without selector switches. 

Ammeters provided for switch fuse units shall be with rotary selector switches and those 

for motors shall be without selector switches. 

All voltmeters shall be provided with selector switches. 

Ammeters for 20 amps. And above shall be CT operated. 

Unless specified otherwise ammeter provided for switches fuse/MCCB/ACB units shall 

be with rotary selector switches to indicate current in all three phases and those for 

motors shall be without selector switches to read current in one phase only. 

The following selection table shall be followed for starters of motor feeders unless 

otherwise specified: 

Sr.No. 415V Motor HP Contactors Switch/MCCB Type 1.of 

Rating Amps. Rating Amps. Starter 

1. 0 to 3 HP 16 63 SDF DOL 

2. 3.7 to 5.0 HP 25 63 SDF DOL 

3. 5.1 to 7.5 HP 32 63 SDF DOL 

Fuse ratings shall be selected as per the motor rating. 

Electrical interlocking shall be provided between various feeders as required by the 

process and specified in feeder details. 

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Supplier/bidder submit General Arrangement & power circuit drawing for approval to 

owner before starting manufacture MCC. 

Whenever remote control is to be provided for motor feeders, only Red Push Button for ‘ 

‘OFF’ shall be provided on the MCC. 

Motor starters shall be suitable for mixed duty unless specified otherwise. 

Maximum length of a shipping section of the panel shall be 2500 mm 

For D.O.L. starter up to 5.0 HP Motor 4 mm sq. cable should be used and from 5.0 HP to 

7.0 HP 6 sq.mm cable should be used. 

Following selection table shall be followed for earthing of electrical loads: 

Control switches/glands 

Motor upto 7.5 HP 

- Copper wire 14 SWG 

- Copper wire 10 SWG 

Bidders should specify maximum two reputed “makes” of all the switchgear times, that 

they would like to supply, in order of preference. 

All the major components of an MCC shall be of same “make”. 

Testing & Inspection: 

During fabrication, if desired, switchgear shall be subject to inspection by the Owner or 

by an agency authorized by the Owner. Manufacturer shall furnish all necessary 

information concerning the supply to Owner’s inspector. 

Tests shall be carried out at manufacturer’s works under his care and expense. All 

routine tests as specified by the applicable standard code shall be conducted. 

132


In additional specific tests shall be conducted to check mechanical and electrical 

operation and switchboard wiring to specification and spermatic diagrams as detailed 

under :- 

These tests shall be provisionally conducted at the manufacturer’s works by providing 

temporary connections to switchgear unit to simulate the actual conditions. 

Tests shall be finally performed at the site in the presence of the manufacturer’s 

specialist, once the external cable connections have been completed. 

Shop tests shall be witnessed by an inspector of Owner or an agency authorized by the 

Owner. 

Drawings and Calculations: 

Schematic diagram shall be supplied to specify the control requirements for each 

feeder. 

These schematic diagrams shall also show any inter-tripping which has to be provided. 

The supplier/bidder shall develop the general arrangement and schematic drawing 

adding necessary auxiliary devices, accessories, components which are required for the 

safe, convenient, efficient and proper operation of the MCC. 

Once supplier’s /bidder’s schematic diagrams have been approved by Owner, the 

manufacturer shall prepare wiring connection diagram for each cubical. 

These diagrams shall show any wiring inside the cubicles starting from the cubicle 

terminals strips. These diagrams shall be used by the Owner for trouble shooting and 

shall show every device, terminal and wire number. 

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Manufacturer shall submit the required number of prints and reproducibles of schematic, 

general arrangement and wiring diagrams as indicated in the material requisition. 

Packing and transport: 

The switchboard shall be shipped to site packed in wooden crates. These shall be 

wrapped in polythene sheets before being placed in crates to prevent damage due to 

rains and moisture. Crates shall have skid bottoms for handling. 

Dust and vermin proof SS 304 2mm thick instrument panel conforming to IP 55 standard 

with all the instruments and controllers duly mounted complete with all inter-locking 

should be supplied. All the controllers and instruments are to be mounted on instrument 

panel. 

The instrument panel should be front openable and wall mounting type for mounting on 

the front outside of each of the Ripening Chambers. 

The instrument panel should be completely prewired upto terminal connectors. 

All the internal wiring and tubing for field connections should be connected to the 

terminal block located at the bottom panel. 

The system should be operational both manually and automatically. Manual over ride 

facility should also be provided. 

- One set of start and stop push buttons for all motors inclusive of spare 

feeders should be provided. 

- One space heater for moisture control. 

- Annunciation and interlock system 

- DDC Controllers. 

Electrical cabling & wiring 

All electrical cables and wires to be supplied and installed for interconnecting the various 

power usage points with the MCC and Instrument Control Panel shall be of copper 

134


conductor and its installation shall be carried out as per the applicable Indian 

Regulations for this purpose. 

Following points shall be specially noted by the Supplier / Bidder while carrying out the 

electrical cabling: 

- Minimum sweep radius for all cables and wires shall not be less than 8 dia 

of the cable. 

- The sign (marking) has to correspond with cable lists and charts. 

- Colour of the individual wires shall correspond to Indian standard. 

- All breaking-through and connecting passages shall have to be strain 

relieved. 

- Cables and wire entrance into the Ripening Chambers shall have to be 

made air tight. 

- Wires and cables laid on the wall have to be fastened at regular intervals. 

- Connection and jointing shall have to be made by connection terminal or 

connection material (no screw joints shall be allowed) 

- Power and data transfer cabling / instrument wiring shall be laid 

separately (as per the EMV Regulations). 

- Earthing systems (protective earth, measuring earth, working earth etc.) 

shall correspond to India Rules and Regulations. 

Process Control System 

Process control system shall consist of ten nos. DDC Controllers, all necessary periphery 

sensors and actuators, communication equipment, management station based on 

stationary PC-station with pre-installed basis and visual software and with option for 

alarm over the telephone pager. 

Low level communication installed close to the Ripening Chambers shall be suitable for 

and connected to a stationary Handheld or Portable P.C. The required software shall be 

supplied and installed by the Supplier/bidder. A soft copy of the software shall also be 

supplied by the Supplier/bidder for the purpose of loading in case of corruption of the 

loaded software. 

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The disk storage capacity of the PC shall be sufficient to store at least six month’s 

operational records of the Ripening Chambers and the ripening data. 

Side Distance Guiding Sheet Steels For Concrete Bumper. 

Supply and installation of the side guiding buffers shall involve supply of sheet steel 

buffers of approx. 200 mm height and approx. 300 mm width. 

The supporting structure shall be made of sheet steel which shall be fixed with the floor. 

The distance guiding sheets shall be of stainless steel. The sheet steel construction shall 

be robust (sheet thickness 2 to 3 mm) and shall be mounted such that no mechanical 

strain shall be transferred to the walls of the chamber. 

Chamber Protective Posts: 

The protective posts shall be mounted in front of the Ripening Chambers such that no 

damages to be door and chamber walls is caused forklift truck. 

In view of this the construction of the Protective Post and its fixing shall be such that it 

will be able to absorb the impact of the forklift truck if collided with it. 

The posts shall preferably be made of galvanized steel tube and fastened with bolts on 

the ground. 

Start-Up 

This shall cover all labour and deliveries when the installation is ready and its step-bystep 

operation is commenced. Start up time of the entire installation comprising 10 nos. 

Ripening Chambers shall not be more than ten days. 

4. Documentation of Complete Engineering Data within a period not exceeding 40 

days after signing the contract the Supplier/bidder shall supply a complete set of 

engineering data (documentation) for checking purpose. 

The documentation shall contain the following parts: 

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a. Construction Plans of the Banana Ripening Chambers 

b. PI flow charts with all basic and additional information 

c. Basic information: 

- All devices, machines and main flow charts necessary for the 

process 

- Naming the inputs and basic material, declaration of the flow & 

quantity of flow. 

- Naming the supplier/bidder of AHUs and all other equipment 

- Characteristic service conditions 

- All installed devices and machines incl. Prime movers, tubes, 

fittings and safety devices. 

- Size of pipes, tubes and wall thickness 

- Outlining the insulation of devices, machines and tubes 

- Typical sizes and data of devices and machines. 

d. Additional information: 

- Desired value for measuring, control, regulating, checking. 

- Supplementary service conditions 

- Specifications of tubes, pipes, devices, fittings, machines etc. 

e. List of parts of all devices, machines, fittings, control gear and 

other components with exact declaration such as : 

- Supplier 

- Year of manufacture 

- Type 

- Model 

f. Electrical installation plans with all necessary data of the installed 

devices, as e.g. function marking etc. 

g. Circuit diagrams: 

- Separately for power control circuits/wiring and cabling 

- Symbols for contact units and switching devices for electric supply 

or parts thereof to be separately marked and arranged so that the 

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flow of circuitry is as rectilinear as possible and can easily be 

traced. 

- All circuits shall be drawn in idle condition of equipment without 

being energized. 

- In order to easily trace the switching sections of contactors, tables 

shall be drawn under the contactor coils to list the location of 

contacts. 

- Connection plans of all distributors and devices shall be indicated. 

- Operational and trouble-shooting instructions shall be included in a 

functional description of the facility. 

5. Spare Parts 

The Supplier/bidder shall list out and indicate unit rates of all the spare parts 

required for two year’s normal operation of the entire facility. Owner shall be at 

liberty to order few or all the spare parts listed by the Supplier /bidder. 

All the ordered spare parts shall be supplied by the Supplier/bidder at least one 

week before starting the operation of the facility. 

Apart from the operational spare parts as described above the Supplier/bidder 

shall supply ‘start-up Kits’ of essential parts which may be needed at the time of 

starting the operation of the facility. 

6 General Technical Conditions 

The technical conditions pertain to: 

- Planning 

- <strong>Project</strong> work 

- Delivery (loading, transport to ICD Bangalore) of equipment 

- Supervision of erection at site (erection to be carried out through a local 

party) 

- Start-up operation 

- Handing over of project warranty 

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All equipment, appliances and components shall be brand new and unused and 

shall be from the latest production series, representing best quality and state-ofthe 

art duly delivered and shall be installed such as to function faultlessly. 

All equipment, appliances and components shall be supplied from manufacturers 

having relevant experience in this field for the past 5 years. 

Cost of materials shall mean all materials, machines, devices, and appliances 

etc., which are necessary as components parts of the finished Banana Ripening 

facility, which shall also include all auxiliary materials, which are necessary to 

install these items satisfactorily. 

Supervision shall include all indirect personal expenses incurred by the 

Supplier/bidder in connection with supervision of erection of this project. 

139


SPECIFICATION FOR PRE-FABRICATED PUF SANDWICH PANELS 

Introduction 

For majority of areas of the buildings in Vegetables Auction Market, Pre-fabricated PUF 

sandwich Panels will be used in walls, ceiling and partition walls. Many of these areas 

houses cold rooms and air-conditioned spaces and therefore, these panels will also 

provide necessary insulation from external heat to such areas. These panels are rigid, 

self-supporting type, which shall be erected on the finished floor of the building. Panels 

shall also be used in providing false ceiling in the aforementioned areas of the buildings. 

As far as floors in the cold stores are concerned, same will be insulated in conventional 

manner using PUF slabs. 

Functional Requirement 

The PUF pre-fabricated panels system shall be used in walls and false ceiling in most of 

the temperature controlled areas of the building. The panels shall be rigid, selfsupporting 

type having adequate insulating properties. 

Design Requirement 

The cold room and other controlled temperature areas shall be made of pre-fabricated, 

pre-engineered sandwich polyurethane foam (PUF) insulation panel sandwiched 

between 0.6mm thick pre-coated GI sheet steel with a continuous serrations on both the 

side for walls and ceiling in the required thickness generally as per the specification 

provided below. The scope include accessories like, anodized aluminum extruded 

angles, flashing ceiling support hardware, if required, silicon sealants, in-situ foaming at 

the required place so as to have appearance like modern cold rooms complex. 

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The ceiling and wall panels shall be self supported type. The complete cold room, as a 

self supported module, shall be able to with stand wind velocity of 125 km/hr. The cold 

room shall be designed with suitable impact protection arrangement considering the 

usage of pallet trucks/fork lift for material handling. The design of wall panels shall be 

suitable for mounting the sliding up or side-slide type motorized insulated doors, air 

curtains and lighting fixtures. Although it is proposed to support the service pipes, forced 

draft air coolers and cable trays for power cabling from the structural members, partial 

support may at times be necessary for these items from the walls/ ceiling and hence 

these may be designed accordingly. 

The wall panels shall not buckle under the operating weight of the same. Similarly, the 

ceiling panels should not sag under self-weight as well as the weight of light fitting, etc. 

which are to be suspended from the ceiling panels. 

Scope of Work 

The scope of work includes design, supply installation, testing and 

commissioning of 

the entire pre-fabricated rooms on turnkey basis, complete with fixtures for mounting light 

fittings, safety system and emergency lighting including installation and commissioning of 

suitable motorized/manual insulated side sliding/slide-up doors of various sizes with and 

without suitable high velocity air curtains as listed out in the schedule of quantities. All 

other materials and accessories, which are required for completion of the entire 

installation satisfactorily and to get the rated performance should be considered as 

included under the scope of this job, even though not specified in detail. The entire work 

shall have to be executed on turnkey basis. 

141


The scope of this job does not include the civil works. However, the panel manufacturercum-erector 

shall provide suitable openings in walls/ceiling panels for installation of 

forced draft coolers, chilled water piping, power and control cabling, ducting, motorized 

dampers, etc. and arrange to seal the gaps completely by in-situ injection of PUF/Silicon 

sealants and make good the same as required after installation of the units, without any 

extra cost. 

Technical Specification For Panels 

Supply, Installation, Testing and Commissioning of Sandwich PUF Panels for Ceiling and 

Walls. 

The wall and ceiling of the rooms are constructed using pre-fabricated, self supported, 

sandwich panels insulated with rigid polyurethane form (PUF-free of CFC) of 80/100mm 

thickness as per specifications. This foam is injected using high-pressure equipment in a 

precise proportion. The foam density is to be strictly controlled to provide excellent 

thermal insulation, strength and stability. The facing material (lamination) adhesion to 

foam shall be excellent and shall have adhesive strength substantially higher than the 

tear strength of the foam imparting good structural strength to the composite 

construction. The dimensions of the panel should be stable over a temperature range of 

minus 60 deg. C to 100 deg.C. 

Broad specification of the panels and PUF shall be as follows: 

Density : 40+2kg/cum 

K-Value of Insulation : Approx. 0.35 W per Sq.m per degK 

Thermal Conductivity : 0.023 W/sqm/dec C(Aged) 

Shear Strength : 0.1-0.3 N/Sqmm 

Compressive strength : 2.1 kg/sqcm (0.1-0.3 N/Sqm) 

Tensile strength : 3.7 kg/sqcm 

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Bending strength : 410 kg/sqm (0.1-0.3 N/sqmm) 

Adhesion strength : 2.9 kg/sqcm 

(PUF to steel) 

(0.1-0.3N/Sqmm) 

Closed cell contents : 90 to 95% 

Fire resistance : Self extinguishing as per ASTM D1692 

Water absorption : 0.2% by volume at 100% RH 

Vapour permeability : 0.08 to 0.12 gm/hr/sqm at 90% RH 

and 38 deg.C. 

Elasticity module : 2.5 – 8N/Sqmm 

Thickness of outer sheets : Min. 0.6mm 

Material of outer sheets : Profiled Galvanised Sheet steel with 

tread/depth of profile approx. 5 mm. 

Amount of zinc coating : Min. 275 gm/sqm 

Test certificates shall be produced to support above properties. 

Outer finish on the sheets 

The panels on both outer sides shall be pre-painted with 25 micron thick silicon modified 

polyester coating of colour to be decided by the purchaser. 

Jointing of panels 

Panels are joined by ‘tongue-and-groove’ system or other similar arrangement. The 

panels shall not have any conducting parts of whatsoever nature such as additional layer 

of sheet steel, bore holes, locks etc. between the outer and inner sheet steel layers. 

As far as the panels for ceiling are concerned, these shall be manufactured in full width 

and shall be mounted throughout the width of the Chambers without any longitudinal 

jointing of the panels and/or any intermediate supports. 

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The offer shall include cutting of PUF sandwich panels, wherever necessary, as well as 

assembly of doorframes. 

Internal /external angle 

The corner joints shall be homogeneously foamed (also to be CFC-Free), sealed with 

silicon sealing compound and shall be covered with galvanized sheet steel angles. 

Installation on Floor 

Panels shall be erected on the floor and sealed with galvanized corner steel (equal to the 

thickness of the panels), which shall then be fastened with plugs on the floor. 

All joints, angles and U-shells shall be foamed homogeneously and then sealed with 

Silicon Sealing Compound. 

All the materials to be used in this job shall meet the sanitary standards for Chambers for 

Storage of Food Products according to International regulations. 

General 

The system shall be compete with all ancillary items like, corner pieces (L panels), prepainted 

steel/aluminum profiles for inner/outer and joint corners, silicone sealants, foam 

chemicals and all other components and accessories as required. The costs of these 

ancillary items are included in the respective rates for ceiling/wall panels and no 

separate payment shall be made for this items. 

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Supply, Installation, Testing and Commissioning of Floor Insulation with PUF 

Slab:- 

Codes and Standards: 

The design, supply, testing and application of insulation system shall conform to the 

requirements of the following specifications (latest editions). 

a) IS: 661 code of practice for thermal insulation of cold storage. 

b) IS: 12436 specifications for PUF insulation materials. 

Materials Specifications 

Insulating materials shall be of polyurethane conforming to the requirements of latest 

edition of IS: 12436 insulation materials. The insulation material shall have the following 

properties: 

a) Should have a density of not less than 42.0 Kg/cubic meter (-) (-) 5%, if it is 

to be used for insulating the floor. 

b) Should have a compressive strength of not less than 2.1 Kg/sqcm. 

c) Should have a thermal conductivity at 10 degree centigrade not greater 

than 0.023W/Sq meter/degC (aged). 

d) Should have water vapour permeability 0.08 – 0.12gms/hr/sqm 

Bitumen used as adhesive shall be of industrial bitumen of Gr.85/40 or Gr. 85/25 

conforming to the requirement of IS-702. 

Thickness and Quantities of Insulation Material are specified at the end of the 

Specification. 

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Method of Application of Floor Insulation for Floors of the Cold Store:- 

a) Clean the surface and apply a coat of hot bitumen at the rate of 1.5 

Kg/Sqmtr, with the help of lime brush. 

b) Fix a layer of 1 to 1.2mm thick waterproof tarfelt sheet using bitumen as 

adhesive with 75mm overlap at all joints and 250mm overlap at the walls. 

Alternatively, the bidder shall use polythene film 200 micron thick a vapour 

barrier and it shall be applied on the concrete surface below the insulation 

layer as vapour barrier with bitumen as adhesive. 

The joints shall be staggered and shall have minimum 150mm overlap 

thoroughly sealed to make it a perfect vapour barrier. The ends shall be 

turned up the outer wall above the height of protective kerb and completely 

sealed with silicon sealant. 

c) Seal the joints with bitumen and then apply a coat of bitumen at the rate of 

1.5 kg/sqm on the outer surface of tarfelt and spread it uniformly with the 

help of lime brush. 

d) Fix 40mm thick PUF slab insulation using bitumen as adhesive as under. The 

contractor shall use the insulation slab of any size. Which shall not be less 

than 1000 x 500mm. 

e) Seal the joints with bitumen 

f) Apply a coat of bitumen on the outer surface of insulation material. The 

contact surface of the application should be such as to ensure a total of 1.5 

kg/sqm between the contacting surfaces. 

g) Seal the joints carefully with bitumen. 

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h) Fix a layer of approx. 3mm thick waterproof tarfelt sheet using bitumen a 

adhesive with 75mm overlap at all the joints and 250mm overlap at the walls. 

Alternatively, the bidder shall use Polythene film 200 micron thick shall be 

applied above the insulation as vapour barrier with bitumen 150mm overlap 

thoroughly sealed to make it waterproof barrier. The ends shall be turned up 

the inner wall above the height of protective kerb and completely sealed with 

silicon sealant. 

i) Seal the joints with bitumen. 

j) Concrete flooring (150 thick RCC) and concrete ridges between floor 

insulation and wall insulation shall be carried out by the <strong>Project</strong> 

Authority/MDFVL as per the requirement and based on the approved 

drawing. 

The <strong>Project</strong> Authority/MDFVL shall arrange to provide concrete flooring over the above 

waterproofing course. 

PUF Insulated Sectional Doors & Air Curtains 

Installation and Commissioning of Cold Room Manual /motorized Insulated Doors and 

Air Curtains: 

The Panel contractor is responsible to supply and install suitable motorized, sliding type, 

insulated cold room doors of size and thickness as indicated in the schedule of quantities 

with PUF insulation and suitable number of air curtains of width suitable to the door 

opening. 

Any additional reinforcement if any required in the wall/ceiling panels of the rooms shall 

be provided by the panel manufacturer cum erector without any extra cost. 

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Dimensions : As indicated in schedule 

Recommended blade width of : Approx. 50 mm 

Motorized doors 

`K’ value of insulation : 0.45 W per sqm per deg.K 

(Supplier shall carry out detailed design and obtain Client’s approval prior to 

manufacturing the items). 

Door shall be made of self-supporting sections of CFC-Free PUF Sandwich Panels. 

Jointing of sections shall be carried out in such a way that it shall be free of thermal 

bridge and shall be fitted with special seals. After installation, the doors shall form an 

airtight unit with the wall panels of the Ripening Chambers. 

Doors shall be equipped with all necessary safety devices such as gripping device in the 

event of rope breakage, under walk protection switch and any other item/device 

according to International /India security standards. 

Prior to starting the commissioning operation all rollers shall be adjusted and this 

process shall be repeated after about one month’s operation. 

The panel manufacturer cum erector shall arrange to unpack, assemble, move to the 

place of installation, install and commission the cold room motorized sliding doors and air 

curtains in proper alignment along with all accessories. The panel manufacturer cum 

erector would be held responsible for any damages caused to the door/air curtains due 

to defective installation leading to improper handling. 

Any gaps left out between the doors and the wall after installation shall be made good by 

the panel manufacturer cum erector by completely sealing the gaps by in-situ injection of 

148


polyurethane foam and silicone sealants to protect the integrity of the insulation and 

vapour barrier. Minor hardware items, as required for installation shall be supplied by the 

panel manufacturer cum erector without any extra cost. 

Testing 

Test Certificates from authorized laboratories shall be provided in support of all physical 

properties of insulating materials. 

All insulation material supplied shall be inspected and tested for density. Sampling of 

specimen shall be as per IS: 12436 and sampling shall be carried out at site by the 

Supplier when materials are being delivered. Samples shall be chosen at random by 

Owner/engineer. 

Special Notes 

The supply of necessary ancillary materials for fixing the panels is included in the scope 

of supply. 

will be required necessary SS holding rods anchor fastener and bolts for suspending 

the Air cooling units and piping works inside the insulated panel room will be 

provided by the Refrigeration Contractor, however, the panel supplier should 

coordinate accordingly with the Owner in advance for providing the openings in the 

panels. 

The measurement of the floor surface area where insulation work has to be carried out 

should be taken before application of insulation work and the same surface area would 

be considered for payment. 

149


Section – II 

Electronic Grading Lines 

150


1. Apple / Kinnow Sorting - Grading- Waxing Line - capacity - 5 MT/hr 

1) Qty 1 CRATE DUMPING AND ACCUMULATING TANK IN STAINLESS 

STEEL 

Consisting of : 

Qty 1 : Full crate conveyor belt, 7000mm long x 400mm wide. 

Qty 1 : stainless steel immersion tank 4500mm long x 900mm wide, with 

submerged chain conveyor suitably prepared and equipped for operation 

under water. 

Qty 1: Stainless steel chute for discharge of empty crates. 

Qty 1 : Stainless steel accumulation tank 6000 mm x 1500 mm x 300mm 

deep 

Qty 1 : Water level detection with automatic water infeed with electrovalve. 

Qty 1 : Pump 130 m3 / hour with pipework. 

Qty 1 : Motorized leaf extractor with stainless steel chassis and plastic mesh. 

Tank 1700mm x 600mm wide. 

Qty 1 : Stainless steel exit tank 1900mm long x 1500mm wide. 

Qty 1 : Set of waterproof connections. 

Dimensions: width 1500 mm, overall length approx. 8800mm. 

2) Qty 1 ROLLER ELEVATOR / SORTING TABLE WITH GALVANISED 

FRAME 


Qty 1 : Metal frame in stainless steel. 

Qty 1 : Set of anodised aluminium rollers. Rising section 1500mm long plus 

horizontal section serving as sorting table 1500mm long. Width 1000mm 

Qty 1 : Fixed device for roller rotation. 

Qty 1 : Drive with variable speed and phase inverter. 

Qty 2 : Aluminium platforms 800mm long x 1000mm wide, with access steps 

Qty 2 : Flat belt conveyor 4000 mm x 300 mm for removed product. Rots to 

join leaves. 

Qty 2 : Reject chutes. 

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2A Qty 1 SMALL FRUIT ELIMINATOR 

Consisting of: 

Qty 1 : Metal structure which has been properly welded and treated with 1 

coat of primer and 1 coat of gloss finish. 

Qty 1 Motorized hexagonal metal screen 1200mm wide with opening to allow 

elimination of fruit of less than 60mm diameter. 

Qty 1 Belt for small fruit 2500mm x 200mm wide with stainless steel contact 

points. 

3) Qty 1 WASHER BRUSHER AND WAXER MACHINE 



coat of primer and 1 coat of gloss finish, with all contact points in stainless 

steel. 

Qty 11 : PEX brushes for washing. 

Qty 10 : Rollers with donuts sponges for pre-drying. 

Qty 2 : PEX separator rollers. 

Qty 7 : Rollers with natural horse hair for waxing. 

Qty 1 : Set of nozzles and proportioning pump to apply cleaner to the fruit. 

Qty 1 : Set of nozzles to sprinkle fresh water on the fruit. 

Qty 1 : Set of nozzles and proportioning pump to apply wax on the fruit. 

Qty 1 : Drip tray to collect water and take to a central point for drainage. 

Dimensions : internal width 1250 mm, length 3600 mm. 

4) Qty 1 DRYING TUNNEL 


Qty 1 : Metal structure with primer and gloss finish. 

Qty 1 : Set of anodised aluminium rollers. 

Qty 1 : Device for roller rotation. 

Qty 1 : Fairing device to convey hot air. 

152


Qty 1 : Generator to produce hot air with 120000 Kcal / hour, diesel burner 

and generator. 

Qty 1 : Drive with variable speed . 

Qty 1 : Thermostat. 

Qty 1 : Electrical control board. 

Dimensions : internal width 1250 mm, length 5000 mm. 

5) Qty 2 BELT CONVEYORS FOR 90° TURN 


Qty 2 : Metal structures which have been properly welded and treated with 1 


steel. 

Qty 1 : Staggered belt conveyor with 2 belts, each 600 mm wide; Max length 

1300mm. 

Qty 1 : Belt conveyor with PVC belt, 2000 mm x 600 mm. 

Qty 2 : Main drives with fixed speed motor. 

Nota : above conveyors fitted with frequency inverter, controlled 

automatically by the grader computer. 

6) Qty 1 V BELT PREALIGNER TO FEED GRADER 




steel. 

Qty 2: V belts with differentiated speed. 

Qty 1 : Main drive with frequency inverter. 

Dimensions : total width 600 mm, approx. length 1200 mm. 

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7) Qty 1 ELECTRONIC SORTER WITH WEIGHT, OPTICAL SIZE AND 

COLOUR SELECTION 




Qty 1 : 2 lane roller singulator with separately driven rotation under cameras. 

Qty 1 : Weighing conveyor separate from carrier hand system with cradles 

providing minimum 3 point weighing. 

Qty 1 : Drive section with gear motor and frequency inverter, central 

lubrication, carrier cleaning system, electrical cabinet. 

Qty 2 : Lanes with carrying hands at 100 mm pitch, carried by a single chain. 

Qty 2 : High accuracy weighing system by means of load cells: tolerance +- 1 

gram 

Qty 1 : High resolution CCD / infrared cameras to cover both lanes and detect 

size (diameter, length and volume), colour and major skin blemishes. 

Qty 1 : Lighting system for optical vision. 

Qty 1 : Electronic control system complete with central unit, controllers, PC, 

printer, keyboard, touch screen monitor, UPS and Microsoft Windows based 

software. Operating language: English. 

PC, and associated equipment housed in dust free ventilated rack situated 

beside the grader. Router enabling remote access for on line service, fault 

diagnosis and assistance in programming (connection to normal PTT land line 

or broadband network). Possibility of linking computer to internal PC network 

to extract data for accounting and production control purposes. 

Computer is to provide at least 512 Mb of RAM; 80 Gigabytes hard disk 

memory; Pentium IV 3 GHz processor containing Microsoft Windows based 

software for grading programme. Possibility of grading into 16 sizes by length 

and/or diameter; 4 quality grades and 8 colours. Automatic control of grader 

speed and filling rate using the computer. All computer hardware to be 

guaranteed for 3 years with on-site service from the computer manufacturers. 

154


Qty 14 : Outlets for calibrated fruits to each side of the grader (total : 28 

packing positions). 

Qty 1 : Main drive with frequency inverter controlled directly from PC. 

Grader capacity : 10 sectors / second / lane providing a capacity of 50400 

fruits per hour at a filling rate of 70 %. 

Soft discharging system directly onto packing tables via driven rotary 

brushes.. 

8) Qty 28 PACKING TABLES 




Qty 1 : Internal PVC covered soft foam rubber coating. 

Qty 14: Steel box support stands for manual filling of boxes. 

9) Qty 2 GALVANISED STEEL TRAY FOR FEEDING EMPTY CARTONS TO 

PACKING STATIONS 


Qty 2 : Zinc coated metal structure 

Total length approx. 14000 mm each. 

10) Qty 1 SET OF TAKE AWAY CONVEYORS 


Qty 6 : Metal structures which have been properly welded and treated with 1 


Qty 1 : Heavy duty chain conveyor with chains at 12.7mm (1/2 inch) pitch, 

polyethylene tracks and independent chain tensioning inside the chassis. 

Length 12000mm. 

Qty 1 : Heavy duty chain conveyor with chains at 12.7mm (1/2 inch) pitch, 

polyethylene tracks and independent chain tensioning inside the chassis. 

Length 4000mm. 

155


Qty 1 : conveyor belt for full cartons , 1000 mm long x 400 mm wide with 

fixed speed drive. 

Qty 2: 90° curved gravity roller conveyors with radius of approx. 1200mm; 

width 600mm. 

Qty 1 : 12 m gravity roller conveyor, 500 mm wide. 

11) Qty 1 ELECTRICAL MAIN BOARD AND GENERAL PANEL 

General electric board and panel installed in accordance with EU quality and 

safety regulations. 

Shorting, Grading Line, Waxing Line for Mango, Pomegranate and other round 

fruits/oval fruits 

Apple Pack House site at Chaudhry Hira Singh New Fruit Market, Azadpur. 

SUPPLY COMPOSITION 

Capacity: 72,000 sectors/hour that means 50,400 fruits/hour with 70% filling rate. 

SCOPE OF SUPPLY- DESCRIPTION AND COMPOSITION: 

1) Qty. 1 DUMPING AND ACCUMULATING TANK IN STAINLESS STEEL 


Qty. 1 metal structure, which has been properly welded and enforced in 

stainless steel AISI 304, 

Width 1500 mm, 

Length 2000 mm; 

Qty. 1 pump and relative pipes for re circulating water; 

Qty. 1 double net static filter; 

Qty. 1 accumulation tank; 

Qty. 1 set of waterproof connections. 

Dimensions: width 1500 mm, 

Total length 4000 mm. 

2) Qty. 1 ROLLER ELEVATOR / SORTING TABLE WITH STAINLESS STEEL 

FRAME 


Qty. 1 metal structure in Stainless Steel AISI 304; 

156


Qty. 1 set of PVC rollers; 

Qty. 1 device for roller rotation; 

Qty. 1 motor drive with speed variator. 

Dimensions: internal width mm 1000, 

length 2000 (elevation) + 1500 (plane) mm. 

3) Qty 1 WASHER / BRUSHER AND WAXER MACHINE 


Qty. – no. 1 metal structure which has been properly welded and 

treated with no. 3 layers of epoxies varnish with internal parts in 

stainless steel AISI 304 

Qty. 11-12 brushes for washing . 

Qty. 2 PVC separator rollers or rollers corresponding . 

Qty. 8-10 rollers with donuts sponges for pre-drying; 

Qty. 6-7 rollers with natural horsehairs rollers for waxing; 

Qty. 1 set of nozzles and proportioning pump device to sprinkle 

cleaner on the fruits; 

Qty. 1 set of nozzles to sprinkle fresh water on the fruits; 

Qty. 1 set of nozzles and proportioning pump device to sprinkle wax on the 

fruits; 

Qty. 1 back water tank in Stainless Steel AISI 304. 

Dimensions: internal width 1000 mm, 

length 3500 mm. 

4) Qty. 1 DRYING TUNNEL 


Qty. 1 metal structure which has been properly welded and treated with no. 

3 layers of epoxies varnish; 

Qty. 1 set rollers; 

Qty. 1 device for roller rotation; 

Qty. 1 fairing device to convey hot air; 

No. 1 set to produce hot air with 80000-90000 Kcal/Hour gasoil burner and 

generator; 

Qty. 1 motor drive with speed variator; 

Qty. 1 thermostat; 

Qty. 1 electric control board. 

Dimensions: 

internal width 1000 mm, 

length 5500 mm. 

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5) Qty. 2 BELTS CONVEYOR FOR 90° FEEDING 

consisting of: 

Qty. 1 metal structure which has been properly welded and treated with no. 

3 layers of epoxies varnish with internal parts in stainless steel AISI 

304; 

Qty. 2 PVC conveyors suitable for foodstuff; 

Qty. 1 main drive by means of speed variator. 

Dimensions: width mm 1000, 

length mm 800 to 1000 aprox. 

6) Qty. 2 BELTS SINGULATORS FOR WELL ALIGNING OF FRUITS AND SIZER 

FEEDING 

Composition of each: 

Qty. 1 metal structure which has been properly welded and 

treated with no. 3 layers of epoxies varnish with internal parts in stainless 

steel AISI 304; 

Qty. 4 PVC conveyors suitable for foodstuff with differentiated speed; 

Qty. 1 main drives by means of electronic speed variator (INVERTER). 

Dimensions: total width mm 800, 

length mm 2500. 

7) Qty. 1 ELECTRONIC SORTER WITH WEIGHT, OPTICAL SIZE AND COLOUR 

SELECTION 

2 LANES AND 14 + 14 EXITS 

Specially designed for soft and delicate fruits, composed of: 

Qty. 1 metal structure which has been properly welded and 

treated with no. 2 layers of epoxy varnish/primer/gloss finish; 

Qty. 1 metal structure in contact with fruits in stainless steel AISI 304; 

Qty. lanes convertor with single chain transport systems; carrying at 100 

mm pitch. 

Qty. 1 high accuracy weighing system by mean of load cells; 

Qty. 1 high accuracy colour and size (diameter, length and volume) selection 

devices by means of CCD camaras; 

Qty. 1 lighting system for optical vision; 

Qty. 1 electronic control system complete with central unit, controllers, 

personal computer printer, U.P.S. and Microsoft Windows based on 

software; 

Qty. 1 P.C., printer and U.P.S.; 

Qty. 1 4 exits for calibrated fruits; 

Qty. 1 drop out device 

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Qty. 1 

main drive by means of electronic speed variator 

(INVERTER). 


length mm 24500 aprox. 

Sorter capacity: 10 sectors/sec/lane that means 72.000 sectors/hour for 2 lanes 

considering a filling rate of 70% this means 50.400 fruits/hour. 

(Independent weighing system by the fruit conveying and discharging system cell 

weighing system on each lane), with rollers system to rotate the fruits under the optical 

cameras , capacity 10 fruits / sec/ lane , automatic oiling system, washing and cleaning 

system for soft discharging system directly onto packing tables with electronic speed 

variator 

8) Qty. 28 PACKAGING TABLES 

composition of each: 

Qty. 1 metal structure which has been properly welded and treated with no. 3 layers of 

epoxy varnish/primer /gloss finish 

Qty. 1 internal pvc soft rubber coated; 

Qty. 1 support table/shelves for boxes to fill conveyor belt 400mm wide running full 

length of machine. 

9) Qty. 2 GRAVITY ROLLER CONVEYORS FOR EMPTY CARTON BOXES 

FEEDING 

composition of each : 

Qty. 1,zinc coated metal structure properly molded; 

Qty. 2 sets of fulll plastic rollers. 


length mm 12.000. 

10) Qty. 1 ELECTRICAL MAIN BOARD AND GENERAL ELECTRIC PLANT 

General electric board and installation following EC rules for safety and 

quality. 

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11) Qty. 1 ASSEMBLING AND TESTING 

PAYMENT TERMS: 

(In case of overseas supplier) 

-100% by Letter of Credit issued by Buyer Bank within 15 calendar days by the contract 

signature, payable as follows: 

-30% at the order confirmation by mean of International Swift; 

-70% by mean of Letter of Credit issued within 15 days. 60 % released at arrival of 

equipment at site and balance after commissioning and sucessful trail run.Validity of 

Letter of credit shall be to the extent of 30 days after trial run. 

(In case of indigenous supplier) 

-35% at the order confirmation by mean advance. 

-55% against the receipt of material against verification at site. 

-10% on commissioning and trial run at least for one apple season. 

DELIVERY TERMS: 

Within 160 days from the day of order confirmation, installed and commissioned at site. 

ERECTION, TESTING AND OPERATION: 

Erection at site, testing and operation is to be included in the offer. The supplier will 

operate the machine for at least one full apple harvesting season with their own 

technicians. 

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TRAINING AND OTHER TECHNICAL DETAILS: 

During the manufacturing, assembly and the testing period at SUPPLIERS factory, the 

APMC shall depute/ delegate 1 electric / electronic technician experienced with PC, 

Microsoft Windows software and electrical installations and 1 mechanical technician 

experienced with mechanic machineries that will be trained by SUPPLIER (For two 

weeks in India and one week in case of Overseas supplier) for in the use of the 

machinery and after the assembly at site they will be in charge of the machine. An 

overseas technician can be deputed for one crop season. The entire training expenses 

including traveling, boarding and lodging shall be borne by SUPPLIER. 

SUPPLIER will provide free of charge handbooks/CD rom containing technical 

references, electric installations schemes, software users instructions and basic 

mechanical operations for maintaining and operating the machineries that the customer 

has to apply for the good functioning of the machinery. 

TOOLS 

SUPPLIER will provide free for charge a complete set of tools for the maintenance 

purpose. 

AFTER SALE SERVICE SPECIFICATIONS: 

During 12 months from the day of commissioning or two apple harvesting seasons, the 

machinery will be under warranty service. 

The warranty service will be provided by SUPPLIER and in case of overseas supplier, 

should have Indian Partner to provide the service with efficiency and rapidity. 

161


During the warranty period SUPPLIER will service free of charge all the parts eventually 

Worn for their proper defects, the changed defective parts shall be returned to 

SUPPLIER by APMC. (Any amount for warranty) 

After warranty times the SUPPLIER will continue providing service and enter into a 

service contract. 

II. PORTABLE FRUIT QUALITY ANALYSIS STATION 

Apple Pack House site at, Chaudhry Hira Singh New Fruit Market, Azadpur. 

PORTABLE, NON-DESTRUCTIVE ANALYZER FOR FRUIT AND VEGETABLES 

INTERNAL QUALITY 

QUALITY STATION analyses the internal quality of fruit (Brix degree, firmness, ripening 

grade) without damaging the fruit in any way. 

The fruits are measured within a second by simply holding the sensor onto the fruit 

through an appropriate gun equipped with its own light. 

Data appear clearly on the colour display through numbers and graphics; they are 

automatically saved and processed so that they can provide immediate statistical 

analysis of the product. 

Data can also be printed through the incorporated printer. It is also possible to transfer 

the data onto a different system through a floppy disk or USB connection. 

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VEGETABLE SHRINK WRAP PACKING 

VEGETABLES LINE AND SHRINK WRAPPING UNIT 

Vegetable sorting line and shrink wrapping unit at Fruit & Vegetable Market, Azadpur. 

VEGETABLE SORTING AND PACKING LINE FOR CAULIFLOWER / CABBAGE / 

ROOT VEGETABLES 

SHRINK WRAPPING MACHINE FOR CAULIFLOWER AND CABBAGE 

V – CABBAGE CAULIFLOWER TRIMMING AND PACKING LINE 

1) Qty 1 INFEED BELT 

For manual placing of product onto line. 


Qty 1 : Metal structures which has been properly welded and treated with 1 coat of 

primer and 1 coat of gloss finish, with all contact points in stainless steel. 

Qty 1 : PVC conveyor suitable for food stuff. 

Qty 1 : Main drive for the belt by means of variable speed motor. 

Dimensions : width 1200 mm, length 5000 mm. 

2) Qty 1 ROLLER ELEVATOR 


Qty 1 : Metal structure which has been properly welded and treated with 1 coat of 


Qty 1 : Set of anodised aluminium rollers. 

Qty 1 : Main drive by means of variable speed motor. 


3) Qty 1 RAW PRODUCT BELT 





Qty 1 : Accumulation system with photocells. 

Qty 1 : Main drive by means of variable speed motor. 


Qty 24 : Preparation tables with chutes to underbelt. 

163


4) Qty 1 UNDERBELT FOR WASTE 


Qty 1 : Metal structure which has been properly welded and treated with 1 coat of 



Qty 1 : Main drive by means of fixed speed motor. 


Qty 1 : Elevator with cleated PVC belt, width 300 mm, length 2500 mm. 

5) Qty 1 OVER CONVEYOR FOR TRIMMED PRODUCT 




Qty 1 : PVC conveyor suitable for food stuff with descending end section. 



6) Qty 1 SHRINK WRAPPING MACHINE 

Designed for shrink wrapping of single product without tray. 

Automatic infeed with self-centering device for products up to 300 mm diameter. 

7) Qty 1 ROTATING TABLE 

Melamine type surface with cushioned edges. 

Diameter 1800 mm. 


8) NO 1 ELECTRICAL MAIN BOARD AND GENERAL ELECTRIC PLANT 

of adequate dimensions, consisting of: 

- automatic magnetothermic cut-out switch with door lock and realise coil; 

- electric line control equipment; 

- system automatic control equipment, with start/stop devices; 

- board internal wiring with appropriate cable section; min. mm 1,5 for 

control equipment and min. mm 2,5 for power circuits in according with the 

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European governing rules, copper bars, numbered clamps, finwing and 

finishing accessories for workmanlike performances; 

- wirings from switchboard to line uses. 

In order to operate the electric system, the following will be used and 

executed: 

- galvanized steel pipelines, provided with fitting; 

- antiflame cables of appropriate section (N1 VVK); 

sheathes and connectors; 

- main grounding system with copper rob between the various machines 

and between these and the shed grounding system. 

Boards being located along the line and relevant to machines and/or unites 

are realized with the same feature as the switchboard. 

PAYMENT TERMS: 

(In case of overseas supplier) 

-100% by Letter of Credit issued by Buyer Bank within 15 calendar days by the contract 

signature, payable as follows: 

-30% at the order confirmation by mean of International Swift; 

-70% by mean of Letter of Credit issued within 15 days. 60 % released at arrival of 

equipment at site and balance after commissioning and successful trail run. 

(In case of indigenous supplier) 

-35% at the order confirmation by mean advance. 

-55% against the receipt of material against verification at site. 

-10% on commissioning and trial run at least for one apple season. 

DELIVERY TERMS: 

Within 120 days from the day of order confirmation, TO BE INSTALLED AND 

COMMISSIONED AT SITE. 

165


ERECTION, TESTING AND OPERATION: 

Erection at site, testing and operation is to be included in the offer. The supplier will 

operate the machine for at least one full apple harvesting season with their own 

technicians. 

TRAINING AND OTHER TECHNICAL DETAILS: 

During the manufacturing, assembly and the testing period at SUPPLIERS factory, the 

APMC shall depute/ delegate 1 electric / electronic technician experienced with PC, 

Microsoft Windows software and electrical installations and 1 mechanical technician 

experienced with mechanic machineries that will be trained by SUPPLIER (For two 

weeks in India and one week in case of Overseas supplier) for in the use of the 

machinery and after the assembly at site they will be in charge of the machine. The enire 

training expenses including travelling, boarding, lodging shall be borne by SUPPLIER. 

SUPPLIER will provide free of charge handbooks/CD rom containing technical 

references, electric installations schemes, software users instructions and basic 

mechanical operations for maintaing and operating the machineries that the customer 

has to apply for the good functioning of the machinery. 

TOOLS 

SUPPLIER will provide free for charge a complete set of tools for the manteinance 

purpose. 

AFTER SALE SERVICE SPECIFICATIONS: 

During 12 months from the day of commissiong or two apple harvesting seasons, the 

machinery will be under warranty service. 

166


The warranty service will be provided by SUPPLIER and in case of overseas supplier, 

should have Indian Partner to provide the service with efficency and rapidity. 

During the warranty period SUPPLIER will service free of charge all the parts eventually 

Worn for their proper defects, the changed defective parts shall be returned to 

SUPPLIER by APMC 

After warranty times the SUPPLIER will continue providing service and enter into a 

service contract. 

167


Section –III 

Quality Evaluation Station 

168


QUALITY STATION 

PORTABLE, NON DESTRUCTIVE ANALYSER FOR FRUIT AND VEGETABLES 

INTERNAL QUALITY 

FUNCTIONING 

QUALITY STATION: 

Analyses the internal quality of fruit (Brix degree, firmness, ripening grade) without 

damanging the fruit in any way. 

The fruits is measured within a second by simply holding the sensor on to the fruit 

through an appropriate gun equipped with its own light. Data appear clearly on the color 

display through numbers and graphics; they are automatically saved and processed so 

that they can provide immediate statistical analysis of the product. 

Data can also be printed through the incorporated printer. 

It is also possible to transfer the data onto a different system through a floppy disk or 

USB connection. 

TECHNICAL FEATURES 

• Fruits that can be 

• The measuring times varies according to the setting (0.5 secs min) 

• Features measured: 

• Sugar content expressed in Brix degrees 

• Firmness expressed in kg/cm 

• Ripening grade expressed on a scale from 0 to 100 

169


COMPONENTS OF QUALITY STATION 

1) Qty. 1 Portable impact strength container in aluminum pre-painted containing all the 

accessories and instruments of quality station. Stationery station not 

required. 

Outer size: not exceeding width mm 470, length mm 400, height mm 200. 

2) Qty. 1 Sensor fitted on an appropriate gun equipped with its own light. 

3) Qty. 1 Built in computer consisting of a powerful pc, which allows the installation of 

different calculation and word processing software. 

4) Qty. 1 TFT super VGA high colour definition monitor. All data may be shown 

simultaneously (brix degree, firmness, ripening grade). It is also possible to 

read the minimum and maximum value for each batch 

5) Qty. 1 Electronic refractometer for spectrum analysis of the waves registered by the 

sensor 

6) Qty. 1 Printer working with thermal paper 58 mm wide 

7) Qty. 1 Keyboard directly fitted into the container 

8) Qty. 1 Supply through rechargeable battery or 110 / 220 volt ac circuit 

9) Qty. 1 Auto-calibration device required, manual not acceptable. 

10) Qty. 1 On and off switch, rechargeable battery. 

11) Qty. 1 Floppy-disk reader 

12) Qty. 1 Set of connection cables to the mains and for the sensor 

INSTALLATION AND STAFF TRAINING 

This include nr. 1 Technical Engineer from the installer for nr. 4 consecutive days to 

install the Unit as well as to advise and instruct the staff to use and calibrate the 

instrument for each kind of product. 

170


CREATION OF MODELS 

The supply of Quality Station include the creation and setting of nr. 3 models for 3 

different fruit varieties. 

For more models, your staff will have to carry out destructive 

tests, following the guidelines given out by our technical team, and send them the results 

via modem (which must be external to Quality Station): once our technical team have 

processed the data, they will send you the new model. The file of the new model can be 

directly loaded onto Quality Station. 

USE OF THE INSTRUMENT 

Quality Station must be used and handled by qualified and competent staff (i.e. basic PC 

knowledge): One of them will be appointed as interlocutor between supplier and the 

Buyer for the customer care and assistance in order to optimize the use of the instrument 

and to gain the best possible results. 

171


Section – IV 

Pre-cooling Unit with Underground Conveyor 

Based Movements and Mechanized Handling 

172


MECHANISED HANDLING SYSTEMS WITH PRE-COOLING 

INDIAN SCENARIO 

The post harvest handling systems undergone the revolutionary change just after 

the second world war when the newly emerged large economy looked into the 

food and nutrition problems of their citizens. 

The role of agriculture in the 

agriculturally based economy like France, USA, Australia, Holland, Canand etc. 

took the leading opposition in adopting the best cultivation technology and 

developed the mechanically handling systems as most of these country has 

shortage of manpower. 

Secondly development were also initiated because a 

very large volume need to handle in very short seasonal harvesting duration. 

The electronic developments and the advancement on scientific instrument lead 

to the deduction of various disease and injuries even not visible with the normal 

eyes. This also raised the consumers expectation in order to consume the best 

quality fruits and vegetable both from hygiene and nutrition point of view. 

The handling systems are not only required in the fresh fruit and vegetable sector 

but also need to be incorporated in the food processing industry where large 

volumes are handled to attain the optimum level of efficiency. 

The systems 

designing and erection depend upon the nature of a particular product and the 

purpose of preparing the product in a specific manner. 

173


The handling systems which work designed as per the needs at the various kind 

as undergone a tremendous change during the last few decades because of the 

overall development in technologies applied in the material handling systems. 

Rights from the harvesting till it final consumption the products moves through 

the gravity systems forced systems conveyors both on ground and overheads, 

elevators and lifting systems loading and unloading etc. All these systems need 

to be carefully incorporated in the handling systems so that the produces does 

not get spoiled during the operation. 

The modern handling systems are varying in nature requirements and in price 

depending upon the ultimate expectation from the particular set of equipment in 

an integrated manner. 

The large number of companies like Maf-Roda, FMC 

USA, Foasa Spain, Greffa neathrland, Esshat Eilon Israel, Faminia France, P & F 

Australia, Samma Italy, etc., are specially in manufacturing the specialized 

handling equipment as per the requirement of the industry. For instance apple 

need to be handle differently from tomato and mangoes definitely in a different 

manner from potatoes. 

Similarly the leafy crops needs a different kind of 

handling systems as designed and marketed by cryobac Australia. This concept 

is largely applicable in pack-houses. 

Incase of market level material handling, it is essential to have a more strong 

movement and mechanized handling system in place. 

Keeping in view the 

Indian condition of handling material by various stakeholder at different stages it 

is essential to introduce a system of conveyor based movement with 

174


underground provisions of pre-cooling with ducting system, so that it does not 

disturb movement of commodities on ground floor. 

There are now various specialized companies in India to provide such kind of 

emerging facilities which can boost in reduction in post harvest losses and 

enhance business opportunity in Horticulture trade. 

So far no attempts have 

been made designing such systems in markets but the same has been successfully 

proved in many other areas. 

In this direction, it is proposed that market material movement should be on 

conveyor based. 

Just after auction of the material it would be placed on 

conveyor directed towards shops and Godowns of the buyers through subsurface 

mechanized trolley based plastic crates. The movement system would be 

covered with duct and high speed pre-coolers placed for the purpose would 

make material reach in a cool and stress free condition. 

Technical details of the 

required length and breadth of the conveyors is given in the foregoing 

paragraphs. 

Pre-cooling 

The concept of Pre-cooling is crucial to stabilize many perishable produce. 

It 

means bringing the produce temperature to its optimum for storage as quickly as 

possible. 

It application as a technology wonder for produce to be stored for 

protected periods of when exported by sea freight are globally acknowledged for 

various products. 

175


Pre-cooling of the product is the process by which the field heat is removed from 

the product as quickly as possible without causing either dehydration or freezing 

injury. 

produce. 

This process is most essential to prolong the storage life of the fresh 

The basic idea of the rapid cooling is to slow down the rate of 

respiration as well as the ethylene production of the produce. 

This helps to 

prolong the storage life by reducing the carbon dioxide generation as well as 

slowing the ripening process. It also helps to some extent in slowing down the 

bacteriological action, which normally leads to spoilage of the produce. While it 

is essential to cool the product as quickly as possible it is also essential that the 

inflowing air is not too cold as it could lead to chilling or freezing injury to the 

produce especially to those which are very near to the air ducts. Normally if the 

pre-cooling time has to be reduced, or the input temperatures are high, it is done 

by having a higher air flow. Dehydration is avoided by maintaining as high a 

relative humidity as possible. Normally it is maintained around 90-95%. The 

balance to be maintained between temperature, Relative Humidity and period of 

storage is worked out meticulously for each product category to be pre-cooled. 

This translates into extended storage life for the produce. In addition, there are 

various methods of pre-cooling like pressure cooling, hydro cooling. 

Vacuum 

cooling etc., which are dealt with separately in detail later on in this report. 

These methods again are applied in accordance with nature of the produce to be 

pre-cooled and the desired results. 

176


Once produce is placed in the cold store, it will radiate heat to the room air by 

virtue of field-heat and heat of respiration. The sooner the produce is brought to 

its optimum storage temperature then the sooner will respiration be brought 

under control and the maximum storage life of the produce be realized. It has 

been said that every hour saved from the movement of harvest and removal of 

the field heat can add a day to the useful shelf life of the product. 

Usually 

storage rooms designed for holding produce under refrigeration do not have 

either the refrigeration capacity or the air movement needed for rapid cooling. 

Thus, pre-cooling for storage is generally a separate operation requiring special 

facilities and equipment. 

Pre-cooling therefore forms a key starting point in the “cool chain” concept, 

which is now essential for post harvest handling and marketing of fresh produce 

all over the world. The table below lists the conditions of temperature, relative 

humidity which ensure maximum shelf life for the various fruits and vegetables. 

However, such results can be obtained only if the necessary preparatory work for 

produce is done viz. timely and proper harvest, immediate movement for 

storage, proper segregation and grading of culled and damaged produce, post 

harvest treatment in pack-house etc. 

Failure to meet these preparatory 

requirements will result in shortening of the expected storage life of the produce. 

The product properties that should be well understood to properly manage the 

handling of fresh produce from farm to market are the product’s physiology and 

mechanical properties. 

177


Based on aforesaid requirement it is proposed to put up 3 pre-coolers (5 metric 

Tonne) capacity. 

The designing, planning, supplying and commencing of 

various components of pre-cooling which go into the conceptualization and 

execution the project on turnkey basis. Dimensions of cubes, anti chambers, 

situation of reefer systems, Location of Access & Interlinking Doors, Storage 

System, Electrical Control System etc., are need to be properly planned according 

to the size and length of the conveyor. This would cost approximately Rs. 50 

Lacs in total and 10 KW of power requirements. 

Technical Specification for Conveyors 

From the auction point, the material will be loaded on the 160 meter long 

conveyor by means of the 50 meter long conveyor, this conveyor will be 

horizontal + inclined and will run under the ground level 

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GENERAL TECHNICAL SPECIFICATIONS FOR BELT CONVEYORS 

Scope 

: Design, manufacturing & supply of, 

1) Conveyor Name: Belt Conveyor Ref.: BC-01 Qty.: 6 Nos. 

Assorted 

Material To Be Conveyed: Packages / 

Loose material 

Maximum Capacity: 10000 Kgs./Hour 250 Nos./Hour 

Please refer Annexure-III. All the conveyors will be built in modules of 

Conveyor Length: 

25 meters 

Belt Width: 750mm 

Working Height At Inlet: 750 Mm 

Working Ht At Discharge: 750 Mm 

Mezzanine Floor Ht. If any: N.A. 

Angle of Inclination if any: 0 Degrees 

Speed: 10.0 Meters/min. Fixed Speed 

Belt: PVC 3 Ply Color: Green 

Drive Pulley: MOC: MS Qty: 1 O/D: 114 

End Pulley: MOC: MS Qty: 1 O/D: 114 

Snub Pulleys if any: MOC: MS Qty: 0 O/D: ~ 

Carrying Path Support: MOC: MS 1.2 Thk Slider Plate 

Return Path Rollers: MOC: MS Qty: ~ O/D: 48 

Frame: MOC: MS Made of 2.5 Thk folded sections 

Leg Supports: MOC: MS 50 Sq Tubes 

Anti-Vibration Mounts: Provided Size: M16. 

Drive Unit: Gear Box Make: Bonfiglioli 

Motor Make: Bonfiglioli 

PRICE 

Sl.No. Block Conveyor Description Qty Rate Rs/Each Total Price Rs. 

01 A Horizontal Belt Conveyor 1 No. 23,10,100=00 23,10,100=00 

75 M long x 750mm 

wide 

TOTAL QUANTITY OF CONVEYORS FOR BLOCK-A 1 No. 23,10,100=00 

02 B Horizontal Belt Conveyor 2 Nos. 15,40,000=00 30,80,000=00 


wide 

TOTAL QUANTITY OF CONVEYORS FOR BLOCK-B 2 

30,80,000=00 

Nos. 

03 C Horizontal Belt Conveyor 1 No. 30,80,000=00 30,80,000=00 


wide 

TOTAL QUANTITY OF CONVEYORS FOR BLOCK-C 1 No. 30,80,000=00 

04 D Horizontal Belt Conveyor 1 No. 23,10,100=00 23,10,100=00 


wide 

TOTAL QUANTITY OF CONVEYORS FOR BLOCK-D 1Nos. 23,10,100=00 

TOTAL QUANTITY OF CONVEYORS 5 Nos. 1,07,80,200=00 

TOTAL LENGTH OF CONVEYORS =400 METERS 

179


Section – V 

IT-Applications and Networking 

180


IT APPLICATIONS AND NETWORKING 

The Market has been designed and structured to bring efficiency and 

transparency. 

Backward and forward linkages have been established with 

service role of banking. 

A efficient and integrated business process has been 

designed which would operate through IT-Applications. 

Right from the 

collection center till the final disposal of the produce, computer networking and 

automation will be considered. 

A separate business process plan has been 

proposed as result of total system study of operations, stakeholders, business, 

finance transactions and administrations. Farmers would be given free access to 

multiple kind of information free of cost at their door steps. Each collection 

center will be equipped with electronic display boards giving live demonstration 

of auctions and bids taking place at terminal market. 

Information Kiosk with 

various networks, providing information meaningful to the farmer, particularly 

arrivals and prices, schemes and programmes, etc., will open a new dimension of 

empowering farmers. 

Total transactional banking would be computerized right from bidding of the 

commodities till the final payment in the grower and realization of sale proceeds 

from the buyer. The whole system would be IT-enabled and managed by bank, 

certain banks express their interest. 

Electronic Auctions for spot trading as well 

as physical bidding would also be a IT-enabled solution. 

This effects that the 

181


said market would be first of its kind and pioneering in integration of banking, 

auctioning, payments, receipts, etc in an integrated manner. 

182


Section – VI 

Online Spot Commodity Trading on NCDEX 

Platform 

183


ONLINE SPOT COMMODITY TRADING ON NCDEX PLATFORM 

In the light of the perceived advantages from Forward and Futures Markets in 

terms of price discovery and risk management, as spot market based 

instruments, such markets have been identified as important tools of price 

stabilization. 

Extension of forward and futures markets to all major agro 

commodities has, therefore, assumed great importance. 

This urgency is also 

reflected in the National Agricultural Policy of Government of India announced 

in the year 2000. 

The need for commencing futures trading in all agricultural 

commodities has been further reiterated in the Budget Speech (2002-03) of the 

Finance Minster. 

National Commodity Derivative Exchange of India has realized possibility of 

Spot Market for different commodities. The Executive Director of NCDEX (Shri 

Narendra Gupta) discussed with NIAM on 25.04.2005 and showed his keen 

interest in providing electronic platform in the Terminal Market, Chandigarh. It 

has been proposed that technological back up, business support system, 

hardware and infrastructure provided to enable E-Trading partner, particularly 

live auction will be provided by NCDEX. In addition to the normal facilities of 

the market, this would be an additional feature whereby any distant trader can 

participate in online electronic auctions through network of NCDEX. 

184


ONLINE SPOT TRADING 

The purpose of providing separate platform for online spot commodity trading 

(preferably by NCDEX) is to Provide opportunity to transfer Fruits & Vegetables 

from Producer to Buyer / end user operating through commodity exchanges. It 

is also aimed at realization of consideration amount at the time of sale (preferably 

within 24 hrs.) with provisions of assured quality goods to buyer at contractual 

price and mitigation of third party risk. There are various kinds of participants 

of spot market. 

The sellers, buyers, Chandigarh Terminal Market Authority 

(Terminal Market Company, TMC), Assayer, Refrigerated Warehouse, Bank, 

NCDEX (NSCCL) etc., are prominent players having different roles, functions 

and responsibilities. The role and functions of different 

stakeholders/participants is given in the following paragraphs. 

1. Seller: 

Farmer through their Farmers Associations will bring/send material which 

would be in accordance with the quality standard for online Spot trading on 

NCDEX platform. 

The seller can sale Goods immediately at the given spot prices or can keep the 

goods in cold store to sale at later stage. Rates of various grades of goods would 

be displayed on trading terminal. Seller would receive payment directly from 

collection centre within 24 hours. They system of spot trading and payment will 

be attractive and simple. It would be in accordance with the prevailing system 

(in Mandi). 

185


All the payment to the seller would be made from collection centres. 

The 

consideration amount at which goods were sold would be debited in the buyer 

account. In spot trading collection centre account would be credited in all the 

transaction in order to facilitate direct payment to seller at the field itself. This 

procedure would be similar to pay-in and pay-out accured between buyer and 

seller in forward trading. 

Cold store would deduct rent and consideration 

amount at source itself if produce stored in cold storage. 

2. Buyer 

Buyer from any part can participate in spot trading from member terminal. Rate 

of various grades of commodities would be displayed on terminal after 12:00 

noon every day once regular physical auction is over. 

Looking to the buying rates available for spot trading, buyer need to deposit 

entire consideration amount with the concerned trading member as advance 

margin for the quotation. Every spot trading member need to have separate spot 

trading fund with NSCCL. 

This will facilitates smooth and fast transaction of 

fund from buyer to seller Via NSCCL. 

Once the trade takes place the ownership of the goods would be transferred in 

the buyer account and the consideration amount would be transferred in seller 

member account alongwith the next day pay out. 

The clearing of the trade 

would be executed by NSCCL. 

Buyer can take delivery directly from 

refrigerated. 

186


Role of Market Authority (TMC) 

TMC is the key participant for the spot commodity trading at NCDEX platform. 

It would have to take up the following responsibilities. It would provide. 

a) Refrigerated Warehouse 

b) Trading Terminal 

c) Facilitator for Loan against produce deposited in the Warehouse 

through bank 

TMC would pay a vital role in the entire operation. 

They will act as a single 

window shop for the aforesaid operations. This would be in direct competition 

to grain Mandi. Trader’s margins and their business are likely to suffered. 

This place would have all the facilities and cultivator/seller would have the 

option to sell on 

1. Current spot market 

2. Store cold store and sale on spot market at later stage 

3. Future market 

The NCDEX will pay @ 3.5% of value of commodity on any spot trading occurred 

through this market terminal. 

187


Role of Assayer: 

NCDEX will provide assayer at their cost who would facilitate the quality test of 

the goods offers for spot sale. Assayer report would be acceptable to both seller 

and Buyer. 

The Quality test of the goods would be in accordance with the 

tradeable quality standard within the tolerance limit. Each goods would have 3 

to 4 quality grades. Grade specification would be based on the common quality 

available with the seller in the given area. 

The validity period of the quality of the goods need to be mentioned clearly and 

revalidation is applicable only after the expiry of the validity date for any further 

trade of the goods. Quality test of goods should be quick so that cultivator can 

be ensured for the price available on the online spot trading platform and can sell 

immediately. 

Role of Refrigerated Warehouse 

Refrigerated Warehouse need to keep a check on quality deterioration of 

commodity stored and time to time preventive measure, steps should be taken 

up to maintained quality standard of stored commodity and Warehouse itself. 

Quality standard available should be no less than any other warehouse available 

in the vicinity. Warehouse need to collect rent from the concerned party before 

the final settlement. These rates need to be displayed for various duration and 

should be in accordance with the prevailing rates. Ownership of the goods 

would be transfer on buyer a/c as soon as the trade happens and warehouse 

charges henceforth would be levied upon the buyer till the goods remain in the 

warehouse. 

188


Role of Trading Terminal 

Trading terminal of NCDEX future market would provide the contract for spot 

market also. Spot market contract of various grades would be available on the 

terminal. 

The participants of the trade would be the Buyer collection centre based farmers 

associations and the Terminal Market. 

For any order NCDEX would collect 

margin equal to the value of the order from the buyer member and after the 

completion of trade the ownership of the goods would be transferred from seller 

to buyer and money would be transferred from buyer to TMC or farmers account 

as pay out against the trade. 

Seller would receive payment by cheque / DD 

directly or can withdraws from ATMs of collection centre within 24 hrs. 

It is important to ensure immediate payment to seller (cultivator) after the 

completion of trade. In the current situation (mandis) they are receiving direct 

payment from traders. 

Moreover small and marginal cultivator would like to 

take money immediately. There need to be some kind of payment system like if 

the sale take place before 12 am then payment can be made by 4 pm and for any 

trade after 12 pm the payment would go for the next day. 

189


Role of NSCCL 

Seller in all the cases money from buyer or be credited in his account for all the 

transaction. Collection centre will act pay directly to seller by cheque / DD / 

ATMs. 

Buyer would deposit margin money equal to trade with trading member in 

advance. Any member of NCDEX can participate on the spot trading. Trading 

member need to have separate fund for spot trading with NSCCL. So that for all 

buying from spot market, spot trading fund allotted with NSCCL would be 

utilized as margin and as pay-in-against the trade carried out by the buyer 

trading member. Trading member need to ensure some minimum fund available 

with NSCCL for spot trading. 

It is important for trading member to have 

advance payment from buyer for spot trading this will protect trading member 

from all king of spot trading risk. 

190


Section – VII 

Establishment of Testing and Certification 

Laboratory for Food Safety 

191


ESTABLISHMENT OF TESTING AND CERTIFICATION LABORATORY FOR 

FOOD SAFETY 

Under present agricultural marketing system, introduction of grading 

standardization and quality certification of agricultural produce of the 

farm/market level is of utmost importance to enhance the marketability of the 

produce and to enable the farmers to realize the better price. This is the first 

requirement to providing a major thrust in agricultural marketing. Further, for 

promotion of negotiable warehousing system, it would be necessary to 

determine/measure the grade of commodities and fix up the rate on the basis of 

quality. Even in the case of further contract for supply of agricultural 

commodities, it is possible with reference to different quality grade. With a 

view to encourage establishment of grading laboratory for testing of produces 

on the basis of physical and chemical food safety parameters, it is worthwhile 

to bring out these guidelines, which would facilitate for establishment a 

grading laboratory depending upon one’s requirements to facilitate for 

establishing a grading laboratory for testing food safety parameters viz 

Pesticides residues, Aflatoxin, Metallic contaminants and microbiological load 

in food. 

Minimum basic requirements are given below. 

1. Infrastructural facilities: 

Analytical room with a fume chamber (20x15 =300sq.ft) 

Room for microbiological & biochemical testing (20x15=300sq.ft) 

192


Instrument room: an air conditioner shall be provided 

15x10=150sq.ft) 

A room attached to the laboratory for receiving and keeping 

samples, for keeping records and may be used as a sitting room 

for the in charge of laboratory. (10x10=100sq.ft) 

The rooms should have proper ventilation and proper doors with 

which they can be securely closed. 

The analytical room should have a side working table 2.5, breadth 

and 3, height, covering the entire length and breadth of each side of 

the room which at least two washbasins at suitable places with 

proper drainage facilities. 

The laboratory should be provided with running water supply and 

electricity with three-phases connection. 

Wooden/steel almarah, a table and a chair may also be provided. 

The building with the above dimension and facilities may cost 

about 4 to 4.5 lakh. 

2. Laboratory organization 

The grading laboratory shall have at least three grading chemists, 

out of which two should be at least graduate in science with 

chemistry as one of the subject and one should have master’s 

degree in Microbiology or B.Sc with chemistry and microbiology. 

They should have successfully undergone training in the grading of 

the commodities at an approve laboratory. 

193


An attendant whom should have minimum 10th class pass as 

educational qualification with science as a subject shall assist the 

grading chemist. 

The chemist shall carry out the actual grading of agricultural 

commodities and keep all records pertaining to grading of 

commodities and shall issue report etc. 

3. Equipments, glassware and chemicals are given in the forgoing 

paragraphs. 

4. Laboratory safety and hygiene 

The laboratory building should have a Pucca construction and the 

premises should be maintained in a clean and hygienic condition 

free from contamination. 

The laboratory should have good ventilation and should be 

protected from rain. 

The laboratory should be clean at all times and be practically free 

from insect, rodents and microbial condition. 

The waste materials generated through grading and/or other 

operations should be deposed off immediately so as to avoid any 

type of contamination. 

The grading chemists shell strictly abide by the instruction given in 

the grading manual and follow the methods and procedures as the 

grading standards of respective commodities. 

194


Due care and precautions should be taken while handling 

hazardous chemicals and electrical apparatus, which should have 

proper- ear thing to avoid fire due to short-circuiting. 

Inflammable and poisonous chemicals should be kept away from 

he sources of heat and naked flame. 

Fire extinguisher for laboratory purpose should be provided. 

5. Maintenance of records and training of the chemists. 

The grading chemists shell keep all the registers in proper condition 

and record every details about the grading activities that they 

undertake at appropriates places. 

All analytical values should be entered in the analytical register up 

to the significant levels as required by the test methods and any 

over-writing or cutting etc. should be authenticated by significant 

of the grading chemist. 

It should be the endeavor of the grading station authorities to send 

the grading chemist for refresher course to organization conducting 

such programmes to the knowledge regarding their field of work. 

6. Permissible limits for Pesticide Residue, Aflatoxin and Metallic 

Contaminants and Microbial load in food. 

The edible agricultural produce for sale shell have to comply with the minimum 

statutory requirements under the prevention of Food and Adulteration Act and 

195


Rules as laid down for each item covered under the said Act and amended from 

time to time. 

A maximum permissible limit of 30 ppm is prescribed for Aflatoxin in food whereas 

for Pesticide Residues, Metallic Contaminants and Microbial load, different limits 

have been prescribed for different food items. 

As per Codex (Codex Alimentarius Vol. 1 A, 1999-Page 305), TLC analytical methods 

are recommended for quantification of Aflatoxin in peanuts, but the analytical 

variability ranges from 9 to 82 %. With TLC, the method being manual, chemistto-chemist 

variations will be more whereas with HPTLC/HPLC, the variation 

will minimize. 

For pesticide, Gas Liquid Chromatograph (GLC) with prescribed suitable 

columns for pesticide residues analysis along with other accessories should be 

provided. 

In case of metallic contamination, the Atomic Absorption Spectrophotometer 

(AAS) shell be sensitive enough to determine various metals well below the 

maximum, permissible limit prescribed by PFA and Codex for various at ppb 

level should be preferred. 

196


LIST OF APPARATUS FOR PESTICIDE RESIDUL ANALYSIS 

A 

Quantity Approx. cost 

Glassware and Apparatus 

(Rs) 

1 Explosion proof warring blender 1 No. 1200.00 

2 Buchner funnel (12 cm dia) 2 No. 150.00 

3 Graduated measuring cylinder, stoppered (10ml, 25ml, 1 each 750.00 

50ml, 100ml, 250ml) 

4 Separating funnel (Cap. 1 lit) 2 Nos. 700.00 

5 Beakers (50ml, 100ml, 250ml, 500ml) 6 each 1800.00 

6 Glass funnels (of different sizes) 2 each 500.00 

7 Glass rods 500 g 50.00 

8 Vacuum evaporator (Rotary) with accessories 1 No. 50000.00 

9 Centrifuge 1 No. 15000.00 

10 Centrifuge bottle (500 ml) 2 Nos. 300.00 

11 Centrifuge tubes, graduated and stoppered, 15 ml capacity 6 Nos. 500.00 

12 Water bath 1 No. 1500.00 

13 Filter paper, whatman No. 1and 4 (dia 12.5 cm) 1packet 1000.00 

each of 

100 circle 

14 All glass solvent distillation apparatus 1 No. 4000.00 

15 Air oven, electrically heated with thermostat 1 No. 15000.00 

16 Chromatographic column 22 mm id x 300 mm with stop- 2 Nos. 400.00 

cock 

17 Conical flask 1 lit. Capacity 3 Nos. 500.00 

18 Kuderna Danish concentrator with accessories 1 No. 2.5 to 3 Lakh 

19 Laboratory shaker 1 No. 20000.00 

20 TLC kit (with applicator, spreader, board, storage rack etc.) 1 No. 5000.00 

21 Glass Plates 20x20 cm 6 Nos. 400.00 

22 UV light source (long wave) cabinet 1 No. 2500.00 

23 TLC Plate holder 1 No. 500.00 

24 Sample applicator and template 1 No. 500.00 

25 Sprayer 1 No. 200.00 

26 Micro- syringe (10 µl) 1 No. 1000.00 

27 Calibrated glass micro-capillary tubes (10-25 µl) 6 Nos. 500.00 

28 Micro-pipette (10-25µl) 2 Nos. 300.00 

29 Chromatographic tank (28x7x26 cm) 2 Nos. 1000.00 

30 Gas chromatograph with accessories 10 Lakh 

31 Analytical balance 1 No. 50000.00 

32 Extractor for Pesticide Residue with accessories 1 No. 3.5 to 4 Lakh 

33 Vacuum oven with pump etc. 1 No. 50000.00 

197


LIST OF CHEMICALS FOR PESTICIDE RESIDUE ANALYSIS 

B Chemicals and Reagents Quantity Approx. 

Cost (Rs) 

1 Acetonitrile G.R. 3x500 ml. 1200.00 

2 Petroleum either G.R. (60-80 o C) 2.5 lit. 300.00 

3 Methyl alcohol G.R. 3x500 ml. 210.00 

4 Ethyl alcohol 3x500 ml. 450.00 

5 Sodium or potassium oxalate G.R. 500 g 150.00 

6 Sodium Chloride G.R. 500 g 60.00 

7 Phosphoric acid G.R. 500 g 190.00 

8 Phosphorus pentaoxide G.R. 500 g 425.00 

9 Sodium Hydroxide G.R. 500 g 100.00 

10 Potassium hydroxide G.R. 500 g 120.00 

11 Acetone G.R. 2.5 lit. 500.00 

12 Anhydrous sodium sulphate 500 g 100.00 

13 Distilled water 

14 Diethyl ether (Peroxide free) 3x500 ml. 450.00 

15 Florisil (60-100mesh,P.R.grade) activated at 650 o C) 500 g 10500.00 

16 Benzene 2x500 ml. 200.00 

17 n-Hexane 2.5 lit. 1700.00 

18 Hexane 2.5 lit. 470.00 

19 Magnesium oxide 500 g 435.00 

20 Aluminium oxide G 500 g 450.00 

21 Silver Nitrate A.R. 100 g 1816.00 

22 Heptanes 3x500 ml. 420.00 

23 Pure grade pesticide residue standards: 

Minimum 56000.00 

P,p’-DDT;o, p’-DDT;o, p’-DDE;p, p’-DDE;o, p’- packing of 

TDE;p, p’-TDE; α-BHC; β-BHC; γ-BHC; δ-BHC; 

aldrin, dieldrin, endosulphan, heptachlor etc. 

each 

(4x4000) 

24 O-Toluidine 500 ml. 408.00 

25 Silica gel G 500 g 340.00 

26 Hydrochloric acid G.R. 2x500 ml. 200.00 

27 Conc.Sulphuric acid Excelar or equivalent 2.5 lit. 430.00 

198


LIST OF APPARATUS FOR AFLATOXIN ANALYSIS 

A. Glassware and Apparatus Quantity Approx. 

Cost (Rs) 

1 Stoppered conical flask (500 ml) 5 Nos. 2000.0 

2 Measuring cylinders (cap. 25,50,100,250 ml.) 2 each 1600.00 

3 Chromatography columns (22 mm id x 300 mm 2 Nos. 400.00 

length with stop cock) 

4 Buchner funnels (15 cm dia) 2 Nos. 1500.00 

5 Water bath stainless steel, four holes 1 No. 2000.00 

6 TLC Kit (with applicator board, storage, rack etc.) 1 No. 5000.00 

7 Micro pipettes (25µl ) 1 No. 1000.00 

8 UV light chamber (365 nm) preferably in an 1 No. 2500.00 

enclosed cabinet 

9 Micro pipettes 1-10µl 1 each 1000.00 

10 HPTLC System with accessories/ HPLC with 1 No. 23 Lakh 

accessories 

11 Filter paper, whatman No. 1 and 4 (dia 12.5 cm) 1 packet 700.00 

of 100 

circles 

12 Refrigerator 1 No. 10000.00 

199


LIST OF CHEMICALS FOR AFLATOXIN ANALYSIS 

B. 

Chemicals 

QUANTITY 

Approx. 

cost (Rs.) 

1 Acetone AR 2.5 lit 500.00 

2 Benzene AR 2.5 lit 320.00 

3 Acetonitrile AR 2x500 ml 800.00 

4 Chloroform AR 2.5 lit 800.00 

5 Hexane 2.5 lit 470.00 

6 Methanol AR 3x500 ml 270.00 

7 Ether anhydrous, peroxide free 3x500 ml 700.00 

8 Silica gel (for column chromatography, 

500 g 320.00 

0.05-0.2 mm) 

9 Silica Gel G (for Thin layer 

500 g 350.00 

chromatography) 

10 Glass wool 250 g 110.00 

11 Diatomaceous earth (Celite) 500 g 300.00 

12 Sodium sulphate anhydrous 500 g 120.00 

13 Aflatoxin B 1 , B 2 , G 1 , and G 2 1 ampoules of 

each 

35000.00 

200


EQUIPMENTS AND APPARATUS REQUIRED FOR 

DETERMINATION OF METTALIC CONTAMINANTS 

(ARESENIC, CADMIUM, COPPER, LEAD, TIN, ZINC, MERCURY and 

METHYL MERCURY) 

A Glassware and apparatus Quantity Approx. cost 

(Rs) 

1 Pipettes 1 ml, 2 ml, 5ml, 10 ml Two each 400.00 

2 Beakers 25 ml, 50 ml, 100 ml, 250 ml, 500 ml Two each 800.00 

3 Volumetric flasks 10 ml, 25 ml, 50 ml,100 ml,250 ml Two each 800.00 

4 Volumetric flasks with stopper 250 ml, 500 ml Two each 1000.00 

5 Muffle furnace with Pyrometer to control temperature 

One No 10000.00 

range of 250 o C with variations of ±10 o C 

6 AAS Kjeldahl flasks 250ml, 500ml One each 600.00 

7 Burner Two each 600.00 

8 Spectrophotometer with accessories One No 120000.00 

9 A.A.S with accessories One No 10 Lakh 

201


EQUIPMENTS, APPRATUS AND CHEMICALS REQUIREMENTS FOR 

DETERMINATION OF METELLIC CONTAMINANTS 

B. Chemicals Quantity Approx. cost (Rs) 

1 Hydrochloric acid 2.5 lit 270.00 

2 Sulphuric acid 2.5 lit 430.00 

3 Concentrated Nitric acid Sp. Gr.1.40 2.5 lit 370.00 

4 Bromine 5x20 ml 250.00 

5 Ammonium Molybdate 250 g 750.00 

6 Potassium iodide AR 100 g 310.00 

7 Stannous chloride AR 100 g 140.00 

8 Lead acetate AR 500 g 200.00 

9 Arsenious oxide (Standard solution) 100 ml 1300.00 

10 Chloroform 500mlx2 400.00 

11 Carbon tetrachloride 2.5 lit 600.00 

12 Dithiozone 25 g 1000.000 

13 Thymol-blue indicator 5 g 100.00 

14 Absorbent cotton 450 g 100.00 

15 Sodium diethyl dithio carbamate 100 gm 220.00 

16 Dibasic ammonium citrate AR 500 gm 435.00 

17 Sodium salt of EDTA 100 gm 100.00 

18 Ammonium hydroxide 500 gm 938.00 

19 Copper wire 500 gm 500.00 

20 Lead Nitrite AR 500 gm 215.00 

21 Aluminium Nitrate 500 gm 200.00 

22 Calcium Nitrate to prepare ash-acid 500 gm 140.00 

23 Whatman filter paper No. 1 One pack (100 

350.00 

circles) 

24 Perchloric Acid 500 gm 600.00 

25 Hydrogen peroxide 1 lit 100.00 

26 Sodium hydroxide 500 gm 120.00 

27 Catechol violet 100 gm 1100.00 

28 Sodium Acetate 250 gm 180.00 

29 Cycolohexane 500 ml 250.00 

30 Granular Tin AR 100 gm 270.00 

31 Copper sulphate 500 gm 203.00 

32 Ammonium citrate 500 gm 436.00 

33 Phenol red 5 gm 100.00 

34 Dimethyl glyoxime AR 100 gm 415.00 

35 α-nitrose-β- naphthal 25 gm 800.00 

36 Pure Zinc 500 gm 305.00 

37 Potassium dihydrogen phosphate 500 gm 250.00 

38 Magnesium nitrate 500 gm 100.00 

39 Aluminium metal 500 gm 280.00 

40 Sodium bicarbonate AR 500 gm 130.00 

41 Soluble starch 500 gm 350.00 

42 Glass distilled water 

43 Standard solution of the elements Min. pack of each 16000.00 

202


LIST OF APPARATUS AND EQUIPMENTS FOR 

MICROBIOLOGICAL ANALYSIS 

S.N Description of the item Capacity Nos. 

Approx. 

cost (Rs) 

1 Petri Dish O.D. 100 mm Ht 17 mm 100 11500.00 

2 Test tubes without rim 6”x3/4” Box (100) 1100.00 

3 Durham’s Tube Box (100) 300.00 

4 Conical Flask flat bottomed 200 ml 24 2280.00 

500 ml 12 2040.00 

1 lit 6 1740.00 

5 Measuring Cylinder Graduated 250 ml 5 1125.00 

500 ml 5 2125.00 

1000 ml 2 1360.00 

6 Pipette Graduated up to 0.1 ml 1 ml 50 2250.00 

2 ml 25 1200.00 

5 ml 15 750.00 

10 ml 15 825.00 

7 Beaker 500 ml 6 280.00 

100 ml 8 210.00 

203


MEDIA & BIO-CHEMICALS REQUIRED FOR MICROBIOLOGICAL 

ANALYSIS 

Sr. No. Name of Media/Bio-chemical Quantity Required Approx. 

Amount (Rs) 

1 Gram Stain Kit 332/kit 332.00 

2 Negative Stain- Nigrosine 79/100 ml 79.00 

3 Malachite Green 79/100 ml 79.00 

4 Baird Parker Agar Emulsion 1902/500 g 1902.00 

5 Egg Yolk Tellurite Emulsion 620/5 vials 620.00 

6 Coagulase Mannitol Agar 1571/500 g 1571.00 

7 Tergitol 7 Agar 1549/500 g 1549.00 

8 T. T. C. Solution 1% 558/500 g 558.00 

9 VRBA (Violet Red Agar with Lactose) 1267/4500 g 1667.00 

10 Mac Conkey Agar 1093/500 g 1093.00 

11 Mac Conkey Broth for (MPN) or Lauryl Sulphate Broth Basie for (MPN) 1633/500 g 1633.00 

12 Brilliant green Bile Lactose Broth 2% 329/100 g 329.00 

13 Tryptone Broth 1200/500 g 1200.00 

14 p-di Methyl-amino Benzaldehyde 1612/100 g 1612.00 

15 M.R. VP Media 203/100 g 203.00 

16 Christensen Citrate Agar 355/100 g 355.00 

17 α- naphthol 723/500 g 723.00 

18 Sorbitol Mac Conkey Agar 1714/500 g 1714.00 

19 Triple Sugar Iron Agar (T. S. I.) 315/1000 g 315.00 

20 Lysine Iron Agar (L. I. A.) 355/100 g 100.00 

21 Urea Broth Base 428/100 g 428.00 

22 Urea 40% Sterilized 255/10 vials 255.00 

23 ONPG Disc 124/Vial 124.00 

24 Oxidase 79/Vial 79.00 

25 Tetrathionate Broth 214/100 g 214.00 

26 Selenite Cystine Broth 1504/500 g 1504.00 

27 Bismuth Sulphite Agar 1346/500 g 1346.00 

28 Motility Test Media 355/100 g 355.00 

29 Salmonella antiserum polyvalent 255/µl 255.00 

30 E. Coil antiserum 0157 1755/5 ml 1755.00 

31 Agar powder 2000/500 g 2000.00 

204


OTHER LABORATORY ITEMS 

Sl. 

No. 

Description of the item Quantity Nos. Approx. 

cost (Rs) 

1 Test tube racks (for 12 tubes) 12 1200.00 

2 PH paper tolls (PH range 1-10 universal 

indicator) 

2 rolls 200.00 

3 Steel cages for test tubes 6 Nos. 600.00 

4 Non- absorbent cotton 500 gm 12 packets 960.00 

5 Absorbent cotton 500 gm 6 packets 600.00 

6 Metal boxes (copper) for sterilization of 

pipettes 

6 Nos. 1200.00 

7 Slide boxes 6 Nos. 600.00 

8 Cover slip boxes 12 Nos. 240.00 

9 Hand gloves 12 240.00 

10 Cedar wood oil 125 gm 645.00 

11 Inoculating needles (std. Type) 6 600.00 

12 Filter paper sheets 12 600.00 

Note: 1. Sophisticated instruments and chemicals differ widely in prices 

depending upon the sensitivity and quality. 

2. Total expenditure for establishment of Grading laboratory for Food 

Safety Parameters comes to Rs.60 Lacs approximately inclusive of 

construction cost. 

205


PRINCIPLES OF THE HACCP SYSTEM 

The HACCP system consists of the following seven principles: 

PRINCIPLE 1 

Conduct a hazard analysis 

PRINCIPLE 2 

Determine the Critical Control Points (CCPs) 

PRINCIPLE 3 

Establish critical limit(s) 

PRINCIPLE 4 

Establish a system to monitor control of the CCP 

PRINCIPLE 5 

Establish the corrective action to be taken when monitoring indicates that a 

particular CCP is not under control 

PRINCIPLE 6 

Establish procedures for verification to confirm that the HACCP system is 

working effectively. 

PRINCIPLE 7 

Establish documentation concerning all procedures and records appropriate to 

these principles and their application. 

206


GUIDELINES FOR THE APPLICATION OF THE HACCP SYSTEM 

INTRODUCTION 

Prior to application of HACCP to any sector of the food chain, that sector should 

have in place prerequisite programs such as good hygienic practices according to 

the Codex General Principles of Food Hygiene, the appropriate Codex Codes of 

Practice, and appropriate food safety requirements. These prerequisite programs 

to HACCP, including training, should be well established, fully operational and 

verified in order to facilitate the successful application and implementation of the 

HACCP system. 

For all types of food business, management awareness and commitment is 

necessary for implementation of an effective HACCP system. The effectiveness 

will also rely upon management and employees having the appropriate HACCP 

knowledge and skills. 

During hazard identification, evaluation, and subsequent operations in designing 

and applying HACCP systems, consideration must be given to the impact of raw 

materials, ingredients, food manufacturing practices, role of manufacturing 

processes to control hazards, likely end-use of the product, categories of 

consumers of concern, and epidemiological evidence relative to food safety. 

The intent of the HACCP system is to focus control at Critical Control Points 

(CCPs). Redesign of the operation should be considered if a hazard, which must 

be controlled, is identified but no CCPs are found. 

207


HACCP should be applied to each specific operation separately. CCPs identified 

in any given example in any Codex Code of Hygienic Practice might not be the 

only ones identified for a specific application or might be of a different nature. 

The HACCP application should be reviewed and necessary changes made when 

any modification is made in the product, process, or any step. 

The application of the HACCP principles should be the responsibility of each 

individual business. However, it is recognised by governments and businesses 

that there may be obstacles that hinder the effective application of the HACCP 

principles by individual business. This is particularly relevant in small and/or 

less developed businesses. While it is recognized that when applying HACCP, 

flexibility appropriate to the business is important, all seven principles must be 

applied in the HACCP system. This flexibility should take into account the nature 

and size of the operation, including the human and financial resources, 

infrastructure, processes, knowledge and practical constraints. 

Small and/or less developed businesses do not always have the resources and 

the necessary expertise on site for the development and implementation of an 

effective HACCP plan. In such situations, expert advice should be obtained from 

other sources, which may include: trade and industry associations, independent 

experts and regulatory authorities. HACCP literature and especially sectorspecific 

HACCP guides can be valuable. HACCP guidance developed by experts 

relevant to the process or type of operation may provide a useful tool for 

businesses in designing and implementing the HACCP plan. Where businesses 

208


are using expertly developed HACCP guidance, it is essential that it is specific to 

the foods and/or processes under consideration. More detailed information on 

the obstacles in implementing HACCP, particularly in reference to SLDBs, and 

recommendations in resolving these obstacles, can be found in “Obstacles to the 

Application of HACCP, Particularly in Small and Less Developed Businesses, 

and Approaches to Overcome Them” (document in preparation by FAO/WHO). 

The efficacy of any HACCP system will nevertheless rely on management and 

employees having the appropriate HACCP knowledge and skills, therefore 

ongoing training is necessary for all levels of employees and managers, as 

appropriate. 

APPLICATION 

The application of HACCP principles consists of the following tasks as identified 

in the Logic Sequence for Application of HACCP (Diagram 1). 

CAC/RCP 1-1969, Rev. 4-2003 - Annex Page 25 

1. Assemble HACCP team 

The food operation should assure that the appropriate product specific 

knowledge and expertise is available for the development of an effective HACCP 

plan. Optimally, this may be accomplished by assembling a multidisciplinary 

team. Where such expertise is not available on site, expert advice should be 

obtained from other sources, such as, trade and industry associations, 

independent experts, regulatory authorities, HACCP literature and HACCP 

guidance (including sector-specific HACCP guides). It may be possible that a 

209


well-trained individual with access to such guidance is able to implement 

HACCP in-house. The scope of the HACCP plan should be identified. The scope 

should describe which segment of the food chain is involved and the general 

classes of hazards to be addressed (e.g. does it cover all classes of hazards or only 

selected classes). 

2. Describe product 

A full description of the product should be drawn up, including relevant safety 

information such as: composition, physical/chemical structure (including A w 

, 

pH, etc), microcidal/static treatments (heat-treatment, freezing, brining, 

smoking, etc), packaging, durability and storage conditions and method of 

distribution. Within businesses with multiple products, for example, catering 

operations, it may be effective to group products with similar characteristics or 

processing steps, for the purpose of development of the HACCP plan. 

3. Identify intended use 

The intended use should be based on the expected uses of the product by the end 

user or consumer. In specific cases, vulnerable groups of the population, e.g. 

institutional feeding, may have to be considered. 

4. Construct flow diagram 

The flow diagram should be constructed by the HACCP team (see also paragraph 

1 above). The flow diagram should cover all steps in the operation for a specific 

product. The same flow diagram may be used for a number of products that are 

210


manufactured using similar processing steps. When applying HACCP to a given 

operation, consideration should be given to steps preceding and following the 

specified operation. 

5. On-site confirmation of flow diagram 

Steps must be taken to confirm the processing operation against the flow diagram 

during all stages and hours of operation and amend the flow diagram where 

appropriate. A person or persons with sufficient knowledge of the processing 

operation should perform the confirmation of the flow diagram. 

6. List all potential hazards associated with each step, conduct a hazard analysis, 

and consider any measures to control identified hazards 

(SEE PRINCIPLE 1) 

The HACCP team (see “assemble HACCP team” above) should list all of the 

hazards that may be reasonably expected to occur at each step according to the 

scope from primary production, processing, manufacture, and distribution until 

the point of consumption. 

The HACCP team (see “assemble HACCP team”) should next conduct a hazard 

analysis to identify for the HACCP plan, which hazards are of such a nature that 

their elimination or reduction to acceptable levels is essential to the production of 

a safe food. 

In conducting the hazard analysis, wherever possible the following should be 

included: 

211


• The likely occurrence of hazards and severity of their adverse health effects; 

• The qualitative and/or quantitative evaluation of the presence of hazards; 

212



• Survival or multiplication of micro-organisms of concern; 

• Production or persistence in foods of toxins, chemicals or physical agents; 

and, 

• Conditions leading to the above. 

Consideration should be given to what control measures, if any exist, can be 

applied to each hazard. 

More than one control measure may be required to control a specific 

hazard(s) and more than one hazard may be controlled by a specified control 

measure. 

7. Determine Critical Control Points 

(SEE PRINCIPLE 2) 3 

There may be more than one CCP at which control is applied to address the 

same hazard. The determination of a CCP in the HACCP system can be 

facilitated by the application of a decision tree (e.g., Diagram 2), which 

indicates a logic reasoning approach. Application of a decision tree should be 

flexible, given whether the operation is for production, slaughter, processing, 

storage, distribution or other. It should be used for guidance when 

determining CCPs. This example of a decision tree may not be applicable to 

all situations. Other approaches may be used. Training in the application of 

the decision tree is recommended. 

213


If a hazard has been identified at a step where control is necessary for safety, 

and no control measure exists at that step, or any other, then the product or 

process should be modified at that step, or at any earlier or later stage, to 

include a control measure. 

8. Establish critical limits for each CCP 


Critical limits must be specified and validated for each Critical Control Point. 

In some cases more than one critical limit will be elaborated at a particular 

step. Criteria often used include measurements of temperature, time, 

moisture level, pH, A w 

, available chlorine, and sensory parameters such as 

visual appearance and texture. 

Where HACCP guidance developed by experts has been used to establish the 

critical limits, care should be taken to ensure that these limits fully apply to 

the specific operation, product or groups of products under consideration. 

These critical limits should be measurable. 

9. Establish a monitoring system for each CCP 


Monitoring is the scheduled measurement or observation of a CCP relative to 

its critical limits. The monitoring procedures must be able to detect loss of 

control at the CCP. Further, monitoring should ideally provide this 

information in time to make adjustments to ensure control of the process to 

prevent violating the critical limits. Where possible, process adjustments 

214


should be made when monitoring results indicate a trend towards loss of 

control at a CCP. The adjustments should be taken before a deviation occurs. 

A designated person with knowledge and authority to carry out corrective 

actions when indicated must evaluate data derived from monitoring. If 

monitoring is not continuous, then the amount or frequency of monitoring 

must be sufficient to guarantee the CCP is in 

Since the publication of the decision tree by Codex, its use has been 

implemented many times for training purposes. In many instances, while this 

tree has been useful to explain the logic and depth of understanding needed 

to determine CCPs, it is not specific to all food operations, e.g., slaughter, and 

therefore it should be used in conjunction with professional judgement, and 

modified in some cases. 

Most monitoring procedures for CCPs will need to be done rapidly because 

they relate to on-line processes and there will not be time for lengthy 

analytical testing. Physical and chemical measurements are often preferred to 

microbiological testing because they may be done rapidly and can often 

indicate the microbiological control of the product. 

All records and documents associated with monitoring CCPs must be signed 

by the person(s) doing the monitoring and by a responsible reviewing 

official(s) of the company. 

10. Establish corrective actions 


215


Specific corrective actions must be developed for each CCP in the HACCP 

system in order to deal with deviations when they occur. 

The actions must ensure that the CCP has been brought under control. 

Actions taken must also include proper disposition of the affected product. 

Deviation and product disposition procedures must be documented in the 

HACCP record keeping. 

11. Establish verification procedures 


Establish procedures for verification. Verification and auditing methods, 

procedures and tests, including random sampling and analysis, can be used to 

determine if the HACCP system is working correctly. The frequency of 

verification should be sufficient to confirm that the HACCP system is 

working effectively. 

Someone other than the person who is responsible for performing the 

monitoring and corrective actions should carry out verification. Where certain 

verification activities cannot be performed in house, verification should be 

performed on behalf of the business by external experts or qualified third 

parties. 

Examples of verification activities include: 

• Review of the HACCP system and plan and its records; 

• Review of deviations and product dispositions; 

• Confirmation that CCPs are kept under control. 

216


Where possible, validation activities should include actions to confirm the 

efficacy of all elements of the HACCP system. 

12. Establish Documentation and Record Keeping 


Efficient and accurate record keeping is essential to the application of a 

HACCP system. HACCP procedures should be documented. Documentation 

and record keeping should be appropriate to the nature and size of the 

operation and sufficient to assist the business to verify that the HACCP 

controls are in place and being maintained. Expertly developed HACCP 

guidance materials (e.g. sector-specific HACCP guides) may be utilised as 

part of the documentation, provided that those materials reflect the specific 

food operations of the business. 

Documentation examples are: 

Hazard analysis; 

CCP determination; 


Critical limit determination 

Record examples are: 

• CCP monitoring activities; 

• Deviations and associated corrective actions; 

• Verification procedures performed; 

217


• Modifications to the HACCP plan; 

A simple record-keeping system can be effective and easily communicated to 

employees. It may be integrated into existing operations and may use existing 

paperwork, such as delivery invoices and checklists to record, for example, 

product temperatures. 

TRAINING 

Training of personnel in industry, government and academia in HACCP 

principles and applications and increasing awareness of consumers are 

essential elements for the effective implementation of HACCP. As an aid in 

developing specific training to support a HACCP plan, working instructions 

and procedures should be developed which define the tasks of the operating 

personnel to be stationed at each Critical Control Point. 

Cooperation between primary producer, industry, trade groups, consumer 

organisations, and responsible authorities is of vital important. Opportunities 

should be provided for the joint training of industry and control authorities to 

encourage and maintain a continuous dialogue and create a climate of 

understanding in the practical application of HACCP. 

218


LOGIC SEQUENCE FOR APPLICATION OF HACCP 

Assemble HACCP Team 

Describe Product 

Identify Intended Use 

Construct Flow Diagram 

On-site Confirmation of 

List all Potential Hazards Conduct a Hazard Analysis Consider Control Measures 

Determine CCPs 

Establish Critical Limits for each CCP 

Establish a Monitoring System for each CCP 

Establish Corrective Actions 

Establish Verification Procedures 

Establish Documentation and Record 

219


CHAPTER – IX 

DESCRIPTION OF VARIOUS SECTIONS IN PROPOSED MARKETS 

The proposed model of modern terminal market for fruits and vegetables is 

an improved version of SAFAL (NDDB) venture at Bangalore, a pioneer project 

of the country. Based on the feedback received and focusing on state-of-art 

of facility, the present market has been designed and equipped and tried to 

conceptualize at par with be best markets of international repute. Special 

attention has been paid to understand socio-economic background of our 

farmers and traders. The market will address all requirements of farmers, 

traders their linkages, service providers with most modern common amenities 

and facilities. Lay-out of various facilities and traffic flow has been well 

depicted and explained in the drawings and subsequent chapters. The 

infrastructure including that of ripening chamber, cold-storages, pre-cooling 

units, electronic grading lines, and automation of business process, IT 

application and networking, quality evaluation stations, conveyor based 

material movement and handling system etc. are some of the hardcore 

infrastructure which would find place in the market. The market is expected 

to meet the requirement of all stake-holders for next 10-15 years. Various 

norms of space for facilities like building, parking, waste disposal, site plan 

have been taken up based on recommendations of FAO and IULA manual. 

220


What the market will serve 

Ideally an efficient and modern market should offer a-win-win position to all 

stakeholders and must serve following three main functions. 

1. Exchange Function 

2. Physical Function 

3. Facilitative Function 

In the Exchange Function the market must serve buying, selling, pricing 

estimates in totality. The stakeholders as engaged in business activities need 

to be facilitated towards services on exchange function. Physical Function of 

a market must address provisions for storage, grading, standardization, 

transportation, packaging, handling, labeling, traceability and above all 

efficiency. Without these functions neither buying nor selling can take place. 

Therefore, inter-dependency of these two fold functions result into optimum 

utilization of resources and revenue generation. The third important function 

of a market is the Facilitative Function. Under this a market must provide 

credit facilities, empowering the users by providing information and mitigating 

the risk of producers. All three functions together make a model acceptable, 

sustainable and viable. Isolated approach will lead to distortions in market 

and can not ensure optimal returns on investment. Therefore, in order to 

raise the maximum benefits of the system and bringing efficiency in an 

221


organized manner, it is essential that a holistic and integrated approach is 

adopted. In this project, key factor remains the holistic approach and all care 

has been taken to integrate all functions to the extent possible. This would 

be an ideal and probably first of its kind model which offers win-win position 

to all stakeholders. 

Sections of Markets: 

• The proposed modern terminal market will have following sections :- 

• Central Auction Halls and Commercial Activities. 

• Fruit and Vegetable Display Area. 

• Fruits and Vegetables Stacking Hall. 

• Ancillary Equipment Area 

• Shops cum Godown Area 

• Modern Facility Section 

• Exporter’s Section 

• International Buyer’s Section 

• One Cash and Carry Store 

• Sub-Surface Conveyor based Material Movement and Handling System 

with Ducting based Pre-cooling 

• Utility area and ETP 

• Future Expansion and Processing /Value Added Centre. 

All sections in the market will be integrated with time and motion detailing for 

which system study would be carried-out at the time of installation of 

222


machinery and equipments. To run the business of the market in a 

systematic and un-interrupted manner the total business process and 

operations have to be IT enabled. In the market it has been suggested to 

take-up a total business process and solutions in an integrated manner, 

linking it up with backward and forward stations and terminal auction station 

systematically. Operations at all three stations need understanding of every 

activity which need to be documented in a form of process, workflow. 

Compositions of various departments have been explained in chapter 11 

where complete harmony has been suggested. Total IT enabled solutions will 

take care of requirement for which sufficient provisions of funds have been 

proposed in the report in relevant sections. Human Resource, Payroll, Auction, 

Security, Finance, Logistics, Sales, Purchase, Storage, Quality etc. would be 

totally governed by IT based solutions. 

Central Auction System will develop its own grading standards, the details of 

which will be made available to collection centres and sufficient training would 

be given to farmers and supervisors, managing collection centres. The 

auction department will also train the farmers continuously on the merit of 

grading. The traders and buyers will also be upgraded in terms of knowledge 

of trade and the quality standards. The details of consignment will be 

computerized and linked with the collection centres, which automatically will 

display it on electronic display board manned for the purpose. Details of total 

auction system have been explained in separate chapter. 

223


CHAPTER – X 

PROPOSED MARKET STRUCTURE 

For any project planning process first steps is the identification of site on which the 

physical facilities are to be built up. Selection of site for any project has great impact 

on the utilization of facilities, lay-outs and design. After having detailed discussion 

with the Chief Administrator Haryana State Marketing Board, Director of Horticulture, 

Traders; Farmers and other Service Providers, following sites were identified. A well 

structured primary survey was organized and conducted seeking the order of 

reference of all concerned. 

1. National High Way - 1 Rai 

Main features of the identified site at Rai and its analysis is as under : 

Approx site area : 57.00 acres (total land available-87.73 acre) 

Phase I : 500 M x 300 M Area : 37.00 Acres (approx) 

Phase II : 800 M x 101.70 M Area : 20.00 Acres (approx) 

1. Site is located approximately 38 kms away from New Delhi. 

2. Located on National Highway, hence easy accessibility from 

surrounding villages, states and will not affect the city traffic. 

3. The land is relatively flat and this will help in minimizing the 

development cost 

4. Site surrounded by cold storages and proposed food park. 

5. Services like Bore well water, electrical transformer available 

6. The site is partly fenced. 

7. Common facilities like open space, garbage disposals, convenient 

shopping, utility, common parking spaces can be used from the 

surrounding food park areas. 

8. Haryana Tourism complex and food facilities are available adjacent to 

the site. 

224


9. Processing units of the adjacent food park will help to consume the 

produce auctioned from the Terminal market. This will reduce the 

traffic load and fuel consumption. 

10. The existing cold storages, located in the near vicinity of the site, will 

also receive the produce auctioned from the Terminal Market. This will 

help the Private sector to enhance their activity and economy. 

However, the present site has been recommended based on the following criteria:- 

1. Approachability and Accessibility 

2. Closeness to the Hinterland 

3. Proximity to the Consuming Place 

4. Convenient Accessibility to Buyers and Sellers 

5. Road Load Factor 

6. Social Infrastructure Available 

7. Sourcing & Catchments Area & 

8. Area Available 

1. Approachability and Accessibility: 

. The proposed location is on National Highway No -1 31 Kms from Delhi bud stand.. 

The suggested site is just tentative and indicative. The designs proposed can be 

adjusted accordingly with to the final decision of the site. Approximately an area of 

88 acres is available. As per base minimum needs for initial state and designs 

proposed by the architect, an area of 45 acre is found to be essential for first phase. 

For the second phase and future expansion and to accommodate technological 

advancements, it is essential that at least 70-80 acres of land is minimally acquired. 

It would be appropriate if 100 acres is arranged. The cost of land has been 

calculated based on prevailing price of the market for a piece of 35 acres. 

225


2. Close to the Hinterland 

Proposed sites are found to be amidst the hinterland which offers convenience to the 

producers. While analyzing the mode of transportation used by the farmers, it has 

been found that small farmers (50%) can not travel more than 30-40 Kms to sell their 

produce in the market. Therefore, this point has been specifically considered. Rai 

has been preferred because of this reason only and the same is situated on situated 

on the main highway and close to New Delhin. For an economically efficient market 

there has to be around the year arrival and business. Meaning thereby regular flow 

of commodities including other fruits and vegetables is essential to invite bidders on 

daily basis. 

3. Proximity to Consuming Place 

Material arrived in the market has to be either consumed locally (Delhi) or dispatched 

to distant markets. In a natural way city consumption will be linked with the market. 

Keeping in view the closeness of market to Delhi City, the selection of site has been 

made. The second best player for the business in market is trader and buyer. 

Without his presence and active participation in a dynamic manner and on regular 

basis, the show can’t run successfully. Therefore, the location of the market has to 

match with the convenience and requirement of traders in terms of security, daily 

traveling, transportation of money, material, manpower etc. Keeping these things in 

mind Rai has been proposed for the said terminal market. Delhi buyers will 

participate in this market. 

4. Convenient Accessibility to Buyer and Sellers 

The trader has to play a very dynamic role in promotion of trade and making 

commodities reach at far distant places. Without his involvement, it is not possible to 

make a market functional at all. There have been many examples where the 

226


government developed markets but traders not shifted their trade. Therefore, the site 

itself must be an attractive proposition to the buyer. Sometime buyers have to 

contact distant traders and operate till late hours, therefore, the convenience of 

traders in terms of relative and security is major criteria for consideration. In this 

market the proposed site qualifies this requirement. 

5. Road Load Factor 

In order to finalize a site for market it is necessary to examine as to which road has 

the high load of arrival and dispatches together. Higher the % of load higher will be 

importance of the location. In this case Rai has been treated as first priority location 

as compared to other sites. 

6. Social Infrastructure Available 

Facilities like telecommunication, electricity, public transport, health, education, 

drainage etc. are essential to be considered for any market development programme. 

Rai site has been considered most advantageous for the said terminal market in 

terms of aforesaid amenities. 

7. Sourcing of Commodities and Areas From 

While examining and analyzing the commodity coverage and sourcing thereof it was 

found that Rai has good potential for wide range of commodities; therefore, this 

locations have been given preference. 

8. Area Coverage 

The sourcing area would cover districts of Sonipat, Panipat, Rohtak Jhajjar. The 

collection centres have been proposed in these districts. 

227


9. Sale Outlets 

In order to enable sale of excess material at a competitive price outside the state, a 

successful experiment was done by CAMPCO in Karnataka. The same model has 

been proposed in this case also. Based on the demand for a particular commodity 

sale out-lets would be opened at 10 centres in different parts of the country. The 

selections of these sites have been based on highest paying price on that day. 

Azadpur, Guwahati, Calcutta, Ahmedabad, Bangalore, Kanpur, Jaipur, Chennai, 

Ludhiana, Mumbai, Rai etc. have been proposed where excess material will be sold 

and raw cheap material will be sourced from there. This will develop contacts with 

retail Chain, Super stores, Malls and metros in different cities. 

Export Opportunity 

Rai is one of the biggest hub of horticulture having tremendous potential for exports 

of commodities like apples, potato, Kinnows, and other vegetables. Being close to 

the major international airport large quantities of fruits and vegetables can be 

exported from Rai. This can be done either through the terminal market or directly 

from the collection centres as most of the exporters are presently operating from the 

hinterland. The collection centres would be well equipped with need based 

infrastructure for grading, packing, pre-cooling etc. Problems of quality deterioration, 

low shelf-life of produce etc. will be overcomed. 

228


CHAPTER - XI 

BACKWARD LINKAGES 

In brief, backward linkages are supply chain related activities. The development 

and ensuring of regular supplies of adequate volume of produce to meet capacity 

needs for successful operation of Terminal market it is necessary to develop 

backward linkages. The Backward Linkages are also to ensure that produce 

meets end user and market requirements of quality and grade and quality 

standards. 

Rai Region – The Key Horticulture Production – Distribution Hub 

Rai is the hub for horticulture activities– major center for production, 

consumption and distribution of fruits and vegetables. 

There is no 

professionally organized market for selling of vegetables such as Onion, Peas, 

Tomato, Radish, Carrots, Cabbage, Okra, Brinjal, Cucurbits, Cauliflower, Leafy 

Vegetables, Arvi and Mushrooms (Sonipat dist. is the major production center 

for mushrooms in the state). And also for fruits produced in plenty in and 

around the District or in the region. Hence the Terminal Market is proposed at 

or near Rai - a small town in the State of Haryana, which is also well connected to 

key consumption center of Delhi through N H 1. Main produce from Sonipat, 

Panipat, Jhajjar and Rohtak District include: 

229


1. Onion: Gurgaon, Sonipat and Jhajjar 

2. Peas: Sonipat, Yamunanagar, Kurukshetra and Karnal. 

3. Tomato: Karnal, Kurukshetra and Sonipat. 

4. Radish: Sonipat, Rohtak. 

5. Carrots: Sonipat, Bhiwani and Yamunanagar. 

6. Cabbage: Sonipat, Gurgaon and Panipat. 

7. Okra: Sonipat, Panipat and Jhajjar. 

8. Brinjal: Sonipat, Gurgaon and Panipat. 

9. Cucurbits: Karnal, Panipat and Sonipat. 

10. Cauliflower: Sonipat, Panipat and Gurgaon. 

11. Leafy Vegetables: Gurgaon, Karnal, Panipat and Sonipat. 

12. Arvi: Yamunanagar, Sonipat and Kurukshetra. 

13. Mushrooms: Sonipat is the major production center of Mushrooms in the 

state. 

14. Mango: Yamunanagar, Karnal, Kurukshetra and Ambala. 

15. Guava: Ambala, Jind, Faridabad and Hisar. 

16. Ber: Jind, Gurgaon and Rohtak 

230


Besides key production centers from Sonepat District few more production areas 

from neighboring Districts of Panipat, Jhajjar and Rohtak are included as part of 

the Backward linkages plan. The production volume of key fruits and vegetables 

of Sonipat and adjoining Districts is given below. It shows that these Districts 

account for a major share of production in the State. 

Production of Key Vegetables In Sonipat and Adjoining District 

Major Vegetables Production in Sonipat & Panipat (in MT) 

60000 


50000 

Panipat 

40000 

30000 

20000 

10000 

0 

Potato 


Tomato 

Radish 

Carrot 

Cabbage 

Cauliflower 

Chilies 

Bhindi 

Brinjal 

Cucurbits 

Leafy veg 

Pea 

Arbi 

others 

Source: HSAMB 

Quantum wise the vegetable having the highest production in Sonipat is 

Cauliflower with a production of 0.59 lakh tonnes, followed by Carrots with 0.45 

lakh tonnes. In Panipat district the highest production is seen in case of 

Cauliflower with 0.4 lakh tonnes and Cucurbits with 0.4 lakh tonnes. 

In Jhajjar district the highest production is seen in Onion with a production of 

0.26 lakh tonnes, followed by Cucurbits with 0.15 lakh tonnes. In Rohtak district 

231


the highest production is seen in case of Radish with 0.14 lakh tonnes followed 

by Carrots with 0.125 lakh tonnes. 

Major Vegetables Production in Jhajjar & Rohtak (in MT) 

30000 

25000 

Jhajjar 

Rohtak 

20000 

15000 

10000 

5000 

0 

Potato 


Tomato 

Radish 

Carrot 

Cabbage 

Cauliflower 

Chilies 

Bhindi 

Brinjal 

Cucurbits 

Leafy veg 

Pea 

others 

Source: HSAMB 

Production of key fruits in Sonipat and adjoining districts is given in MT 

Quantum wise the fruit having the highest production in Sonipat is Ber with a 

production of 0.036 lakh tonnes, followed by Guava with 0.033 lakh tonnes. In 

Panipat district the highest production is seen in case of Ber with 0.017 lakh 

tonnes followed by Guava with 0.012 lakh tonnes. In Jhajjar district the highest 

production is seen in case of Ber with 0.024 lakh tonnes followed by Guava with 

0.018 lakh tonnes. In Rohtak district the highest production is seen in case of Ber 

with 0.041 lakh tonnes followed by Guava with 0.01 lakh tonnes. 

232


4500 

4000 

3500 

Major Fruits Production in Sonipat & adjoining districts (in MT) 


Panipat 

Jhajjar 

Rohtak 

3000 

2500 

2000 

1500 

1000 

500 

0 

Mango P Guava Citrus Ber Grape Aonla Litchi Papaya Others 

Source: HSAMB 

Arrival Pattern of Fruits and Vegetables: 

Arrivals Of Major Fruits And Vegetable In Sonipat Mandi 

9000 

8000 

7000 

6000 

5000 

4000 

3000 

2000 

1000 

0 

Arrivals in Sonipat mandi (in MT) 

Potato 

banana 

onion 

tomato 

mango 

apr may jun jul aug sep oct nov dec jan feb mar 

Source: HSAMB 

233


In Sonipat Mandi, the highest arrivals are seen in case of Mangoes in July with 

arrivals of 0.08 lakh tonnes in July. In case of Potatoes the highest arrivals are 

seen in December with 0.057 lakh tonnes. 

12000 

10000 

Arrivals in Sonipat mandi (in MT) 

8000 

6000 

4000 

2000 

0 

apr may jun jul aug sep oct nov dec jan feb mar 

cauliflow er 

Radish 

Brinjal 

Peas 

Carrots 

Other fruits and vegetables 

Source: HSAMB 

Arrival Pattern of Fruits and Vegetable in Delhi Market 

Percentage of consumption position of fruits and vegetables in Delhi and 

transported to other states 

FRUITS 

CONSUMED IN DELHI 

% 

TRANSPORTED 

OUTSIDE DELHI % 

Malta 100 0 

Melon and Watermelon 90 10 

Anar 85 15 

Mosambi 80 20 

Amrood (UP) 70 30 

Mango (UP) 70 30 

TO 

234


Kinnow 70 30 

Grapes 70 30 

Banana 70 30 

Apple (J&K) 60 40 

Mango (South) 60 40 

Apple Himachal Pradesh 

55 45 

(Shimla Kinnor) 

Apple Himachal Pradesh 

55 45 

(Kullu) 

Orange 55 45 

VEGETABLES 

Tomato 95 5 

Brinjal, Cauliflower & 

90 10 

Cabbage 

Cucumber 90 10 

Garlic 85 15 

Potato & Onion 85 15 

Lemon 80 20 

Green Vegetable 75 25 

Ginger 72.5 27.5 

Sweet Potato 70 30 

Shimla Gobhi, Bandh 

65 35 

Gobhi, Shimla Mirch 

Carrot 60 40 

Source: NIAM Survey 

This table shows that the commodity that comes to Delhi Mandi is not for total 

consumption in Delhi but for redistribution to states outside of Delhi. This 

material can easily be accommodated in the proposed Rai terminal market. 

235


Sources of arrivals of fruits and vegetables in Delhi (2001-02) 

Details Qty ‘000 tonnes % to Total 

From local areas 82.6 2.0 

From NCR excluding 

859.6 20.8 

Delhi 

From outside the NCR 3190.6 77.2 

Total 4133 100.0 


The dependence of Delhi on areas outside the NCR for more than three fourths 

of its supply of fresh fruits and vegetables is highlighted. These commodities 

coming from outside of Delhi can come to the proposed Rai Terminal market and 

then it can move to Delhi for consumption instead of the Delhi Mandi (especially 

those commodities originating in Haryana and areas around Rai). 

Arrivals of Fruits and Vegetables in Delhi markets from the NCR (excluding 

Delhi) 2001-02 (in ‘000 tonnes) 

NCR 

Sub- 

Region 

Uttar 

Pradesh 

Via 

organized 

markets 

In % age Direct 

from 

farms 

In % age Total In % age 

77.6 17.4 368 82.6 446 51.9 

Haryana 54.9 17.4 261 82.6 316 36.9 

Rajasthan 17.2 17.4 81 82.6 98.9 11.5 

Total 149 710 859 100 


236


Around 3.16 lakh tonnes of fruits and vegetables move from Haryana to Delhi 

markets. Of the total commodities moving to Delhi markets these commodities 

can arrive at the proposed terminal market at Rai and then move to Delhi for 

final retail consumption. Even if a portion of the 3.16 lakh tonnes especially of 

the 2.61 lakh tonnes, the commodities coming from farms can directly come to 

the proposed Terminal Market at Rai. 

Arrival of fruits and vegetables in Delhi markets by rail and road (‘000 tonnes) 

Travel mode Quantity % to total 

By rail 778 18.8 

By road 3355 81.2 

Total 4133 100.0 


More than 80% of the arrivals reach Delhi markets by road. Only about 19% 

arrive by rail. 

The 1978 survey came up with a share of 27.5 % arrivals by rail against 18.8 % 

during 1990-91. This indicates that the consigning fruits and vegetables to Delhi 

by road are preferred to a greater extent now then before. 

Mode of Transportation for fruits and vegetables 

Sl. No. Commodity % by Rail % by road 

1. Banana 90 10 

2. Apple 0 100 

3. Mango 11 89 

4. Grapes 100 

237


5. Kinnow 100 

6. Oranges 10 90 

7. Onion 13 87 

8. Potato 100 

9. Cauliflower 100 

10. Tomato 100 


Those commodities that arrive by road to Delhi market, like Apple, Mango, 

Grape, Kinnow, Orange, Potato, Cauliflower and Tomato have a good potential 

of coming to the proposed Rai Terminal Market. Assuming that these 

commodities are equally distributed among the 5 National Highways then also it 

represents a huge quantity of commodities passing through NH 1. Even if a 

portion of this comes to the proposed Terminal Market at Rai, then also it will 

make the market viable. 

Quantities of fruit and vegetables entering Delhi markets by different roads 

(2001-02) 

ROAD QTY ARRIVING (‘000 % TO TOTAL BY 

TONNES) 

ROAD 

National Highway – 24 1202.7 29.1 





Total 4133 100.0 


238


Maximum inflow of 32.9 % is by Ambala – Sonipat – Delhi (NH – 1). This is 

mainly because of temperate fruits entering Delhi from growing areas in 

Himachal Pradesh and J& K. Of this apples form a major part. In 2001-02 apples 

accounted for 28% of total arrivals. Around 9 lakh tonnes of Apples arrive from 

Himachal and J&K through N H 1. Of this 9 lakh tonne even if 20 % of the apples 

i.e. 1.8 lakh tonnes comes to the proposed Terminal market at Rai then also the 

capacity of this market will be met easily. 

Dispatch of fruits and vegetables from Delhi (2001-02) 

Destination Quantity (‘000 tonnes) % to Total 

Local Areas in Delhi 1221 43.4 

Areas (excluding Delhi) 103 4.4 

Dispatch to areas 1015 52.2 

outside NCR 

Total 2339 100.0 


As much as 52.2 % of the total dispatches were to areas outside of NCR. This 

constitutes a huge segment of market met by the Delhi market. From this figure 

of 10.15 lakh tonne, even if a portion arrives into the Rai Terminal market it will 

help in fulfilling the capacity of the proposed Market. 

Dispatch of Fruit and Vegetables from Delhi by different roads 

ROAD QTY ARRIVING (‘000 % TO TOTAL BY 

TONNES) 

ROAD 

National Highway – 24 701 30 





Total 2339 100.0 


239


One fourth of the total outflow passes through NH-1. So even if a portion of this 

5.85 lakh tonne of fruits and vegetable comes to the Rai Terminal Market it will 

fulfill the capacity of the proposed market. 

Combined Road Load Factor for arrivals and dispatches of fruits & vegetables 

Road 

Arrivals (Qty Dispatches (Qty Total % to total 

‘000 tonnes) ‘000 tonnes) 

Arrivals & 

Dispatches 

National 1202 701 1903 29.5 

Highway – 24 


Highway – 1 


Highway – 10 


Highway – 8 


Highway – 2 

Total 4133 2339 6472 100.0 


National Highway – 1 has the second most important road for the inflow / 

outflow of fruits and vegetable taken together which is around 28% of the total 

arrivals and dispatches. Even if a portion of this 19.44 lakh tonne of fruits and 

vegetables comes to Rai Terminal Market then also it will make the Terminal 

Market viable. 

240


Peak and lean period for commodity arrivals in the proposed Terminal Market 

of Rai: 

This is the most important aspect of involvement of backward linkage with the 

terminal market and understanding the intra and inters state dynamics of 

produce flow. The following analysis will provide a background to understand 

the basic operational pattern of the terminal market and targeting the 

appropriate market I.e. the source market and the destination market on the basis 

of the Lean and Peak period of arrivals of the produce respectively. If there will 

be a glut condition of commodities in the terminal market then the produced will 

be exported to the deficient market on the other hand it will be imported from 

other market in case of paucity of arrivals. 

On the basis of the information provide by the HSAMB about the district wise 

production of fruits & vegetables, average block level production was chalked 

out and the final conclusion is based on these facts. Findings and analysis are as 

follows: 

241


Commodity Arrival chart showing the Peak and Lean situation of commodities in the Proposed Terminal 

Market at Rai (in MT) 

Sl. 

No. Commodities Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total 

1 Potato 9707 6429 31493 7539 8663 8540 10697 11313 17531 15087 14301 17825 159090 

2 Banana 7169 8164 9749 9380 10592 15455 15339 8679 6698 4572 5706 8834 110335 

3 Onion 6941 6944 5398 4290 4247 4331 3252 4352 4734 3615 3697 5924 57722 

4 Apples 261 43 41 299 1329 4555 3709 2513 2021 1717 1458 1341 19284 

5 Carrots 56 11 31 0 14 22 507 2403 5313 4899 4148 1556 18959 

6 Mango 699 4912 10023 12593 5481 806 0 1 1 0 6 136 34657 

7 Tomato 5801 5907 6058 4166 3664 4311 3902 3318 2820 3506 3834 4508 51792 

8 Cauliflower 2099 505 524 449 558 1894 3545 5815 5053 6140 5156 3993 35729 

9 Peas 361 126 159 227 339 112 236 990 2059 3928 4501 9554 22589 

10 Radish 867 623 256 457 544 1396 2148 2789 1975 1812 1510 887 15260 

11 Pumpkin 1701 1795 2069 2295 2108 2407 1858 849 158 21 20 359 15638 

12 Brinjal 1526 1045 693 809 1151 1389 1110 1483 2101 1772 2032 1893 17001 

13 

Leafy 

Vegetable 464 1374 3121 312 569 577 520 1429 1291 1087 1087 944 12785 

14 Chilli 552 772 661 1291 1221 1117 972 644 802 540 607 496 9675 

15 Citrus group 2859 810 723 483 473 562 1114 1051 1586 1276 1669 2091 14693 

Total 

<strong>Project</strong>ed 

Arrivals 41060 39455 70997 44585 40950 47470 48905 47627 54141 49967 49730 60337 595206 

Targeted 

Arrival 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000 25000 300000 

Source: HSAMB 

Normal Level Arrivals 

Peak Level Arrivals 

242


Total <strong>Project</strong>ed Annual Arrivals of Fruits and Vegetables in the proposed Rai 

Terminal Market are 5.95 lakh tonnes. 

Assumptions: 

The following Assumptions are taken into account while arriving at the Total 

projected Arrivals for the Rai Terminal Market: 

1. It is assumed that the total arrivals only 50% of the commodities grown 

and brought to the different mandi’s in Sonipat district (Sonipat, Gohona 

and Gannaur Mandi) will get shifted to the Modern Terminal Market in 

Rai in Sonipat district. 

2. 

3. The 50% of the arrivals in the neighboring mandi’s of Sonipat district i.e. 

Rohtak, Jhajjar, Maham and Sapla will get shifted to the Modern Terminal 

Market in Rai in Sonipat district. 

4. 

5. Only the major 15 commodities arriving in the above mentioned Mandi’s 

have been taken. Though the number of commodities arriving was quite 

large, but their arrivals were of very low quantity. If all these commodities 

have been taken into account then the projected arrivals would have 

reached 7.48 lakh tonnes. 

6. 

Findings: 

1. The total <strong>Project</strong>ed Arrivals of the major fruits and vegetables are 5.95 

lakh tonnes against the targeted arrivals of 3 lakh tonnes. 

243


2. The Average <strong>Project</strong>ed Arrivals per month comes out to 0.49 lakh tonnes, 

which are double the targeted average arrivals of 0.25 lakh tonnes. 

80000 

70000 

60000 

50000 

40000 

30000 

20000 

10000 

Arrivals in MT 

Total <strong>Project</strong>ed Arrivals 

Targeted Arrival 

0 

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 

From the graph it can be conspicuously seen that, in all the 12 months of the 

year, the total monthly arrivals of fruits and vegetables are successfully 

exceeding the targeted monthly arrivals of fruits and vegetables in the proposed 

terminal market. In some cases the Total <strong>Project</strong>ed Arrival is double the amount 

of the Targeted Arrivals. 

The <strong>Project</strong>ed Arrivals are expected to reach the highest levels of 0.70 lakh tonnes 

in June. In fact in June, December and March the Total <strong>Project</strong>ed Arrival are more 

than double the Targeted Arrivals. In the rest of the months (except May) the 

<strong>Project</strong>ed Arrivals are nearly double the Targeted Arrivals or 0.25 lakh tonnes. 

Delhi market Scenario vis-à-vis Proposed Rai Terminal Market 

1. National Highway 1 (passing through Rai) currently handles 33% of the 

total arrivals coming to Delhi market. That means of the 43 lakh MT (total 

244


arrival of fruits and vegetables in Delhi market), 14 lakh tonnes arrive via 

N H 1. Assuming that of this even if only 10 % i.e. 1.4 lakh tonnes arrive 

into the Rai Terminal Market, then also it will make the market viable. 

2. The material moving from Haryana, Himachal Pradesh and Punjab to 

Delhi market, a part of it can definitely be with held in the Rai terminal 

market. 

3. 

4. The Rai Terminal Market can become the hub of the NCR district with the 

construction of the Outer Ring Road in Delhi (this road passes through 

Rai). The material can easily move into the Delhi market. 

5. 

6. Commodity wise, around 9 lakh tonnes of Apples reach the Delhi market 

from Himachal through N H 1. Assuming that 10 % of the Apples are with 

held at Rai, it comes out to a huge figure of 0.9 lakh tonnes. In case of 

mangoes coming from the mango-growing belt of Uttar Pradesh, this can 

also be withheld at Rai. 

7. 

8. Considering the perishable nature of fruits and vegetables, it requires 

immediate processing and handling. In case of Delhi market there are 

huge delays due to the traffic inside Delhi. More over when inside the 

market there are delays due to unavailability of auction platforms (as the 

Azadpur Mandi is currently handling more than 40 lakh tonnes, though 

its infrastructure is only suitable to handle 8 lakh tonnes. All of these 

cause considerable losses to fruits and vegetables. These concerns can be 

adequately taken care of by Rai Terminal Market. 

9. 

Besides a functional issue, the Backward Linkages is also a business process for 

the Terminal Market. It forms the first critical linkage in an integrated Terminal 

market. The central driving force in this is the Collection Center (CC). A 

245


Collection center acts as a consolidation center and it is set up in key production 

areas in the area of operation – a District/s. The actors who form part of the 

Backward Linkages include: the farmers, the Farmers Association (FA), the 

logistics people or transporters and other service providers. The Collection 

Center meets the value addition needs and marketing needs of a group of 

farmers operating in a key production area may it be a Taluka or a block. 

Considering the criticality of the Backward Linkages in the successful 

implementation of Terminal market a major Department is set up to look after 

this aspect. Keeping the most conservation estimates it is assumed that at least 

3.00 lac MT material will be received by market annually. 

Issues of Grading and Standardization 

There are few important issues that are needed for the successful development of 

backward linkages. And the success of backward linkages is a necessity for the 

success of Terminal market. In all this the farmer, a key part of the backward 

linkages, benefits from training and extension activities related to modern 

practices of production technology. Improved yields, reduced use of pesticides 

and quality production help reduce the cost of production and make available 

better quality and cost competitive produce. The post harvest support provided 

by the Terminal market such as dissemination of information with regard to 

proper post harvest practices, grading and standardization of produce and 

market needs in terms of product specifications and demand are useful in 

extending the shelf life of produce and receiving better prices. Proper grading 

and standardization of produce is promoted at the farmer level through Farmers 

Associations and Collection centers by the terminal market to promote 

marketing. Uniform grading and packing standards facilitate the farmer to 

246


receive good prices for his produce and make it possible for the buyer to meet his 

requirements. This also results in value addition at the farm level. 

Since grades and standards are preferred by the consumer but not implemented 

in any significant way in the Indian context, the role of farmer groups in 

implementing the same with the help of market lead extension is a major 

objective of the terminal market. The development of standards and grades and 

trade in graded and packed produce only at the terminal market helps bring 

about transparency in transactions. 

The management of Terminal market also gains if the farmer fully participates in 

the process and supplies as per market feedback and demand. Pricing of 

produce becomes more objective, quality related and grade and standard linked. 

By receiving better prices for graded and packed produce the farmer promotes 

grades and standards. Once grades and standards are well understood and they 

become standard practices the need for physical movement of produce to market 

is reduced. To effectively implement the grade standards at farm level is 

important for the development of backward linkages. In this the terminal market 

would have to invest in training, demonstration, setting up facilities for grading 

and certifications to meet market needs. 

247


Activities of the Backward Linkage Department: 

The Backward Linkage Department in a Terminal market is primarily 

responsible for procurement of produce and getting it to the Terminal Market. 

The structure of the Department is diagrammatically shown as below. 

Rai Terminal Market 

(Backward linkage department) 

Collection 

Of graded 

Produces to T.M 

Collection Center 


Farmers 

association 1 

Farmers 


Farmers 


Collection of Ungraded and small Quantity produce from 

farmers to a common collection center in the Village for 

efficient transportation & grading 

Member Farmers 

from Identified 

villages 



villages 



villages 



villages 

Fig: Structure of Backward Linkages Department 

248


Responsibility of each in the above chain: 

1. Backward Linkage Department in Terminal Market: 

2. 

It is responsible for the formation of various Collection Centers. It is responsible 

for ensuring supply of produce to Terminal Market, the payment to various links 

in the Backward Linkages, and for providing proper training in the areas of 

produce cultivation, harvesting, Grades, logistics, Quality standards and 

management of necessary logistics proposed at collection Centers. 

3. Collection Centers: 

4. 

These centers are fully owned or jointly managed by the Terminal Market with 

the Farmers Association. A professional Manager with the help of an Assistant 

runs the Collection Center. The Manager is responsible for day to day running of 

the center. The Terminal market will see to it that proper infrastructure facilities 

will be made at the collection center for proper handling, storage and packing of 

produce. Activities of a typical Collection Center include: 

a. Farmer Registration 

b. Receiving produce from farmer 

c. Produce consolidation and dispatch to Terminal market 

d. Payment to farmer 

e. Training to farmers 

f. Making of a crop plan and dissemination 

Collection center would be at a place, which is surrounded by maximum number 

of villages where key fruits and vegetables are grown. It is reachable by a proper 

road. 

249

The facilities at each Collection Center will include: 


S.No. Particulars Amount Remarks 

A Equipment 

1. Ordinary mechanical Grading Line for Round 

Fruits-Quantity -01 

60,000 Taken in Machinery 

and Equipment 

2. Vegetable Trimming Machine with Washing & 1,00,000 --------do---------- 

Grading Facilities-Quantity-01 

3. Electronic Display Board 3,50,000 Taken in Misc. Fixed 

Assets 

4. Full Fledged Information Kiosk 1,00,000 Taken in Machinery & 

Equipment 

Equipment Cost 6,10,000 

B Furniture 

1. Grading Tables 10,000 Taken in Furniture & 

Fixture 

2. Table & Chair to sit 10,000 -----------do---------- 

3. Telephone Line 2,000 -----------do---------- 

4. Possibly CDMA/ GSMin 3,000 -----------do---------- 

Furniture Cost 25,000 

C Computer 

1. Taken Computer 40,000 Taken in Schedule “A” 

2. Networking-on line monitoring 200000 Taken in Machinery 

Equipment 

3. Taken Printer 4000 Taken in Schedule “A” 

Computer Cost 2,44,000 

D Plastic Crates 

1. Plastic Crates –4000/- @220 8,80,000 Taken in Misc. Fixed 

Assets 

Plastic Crates Costs 8,80,000 

E Rent 

1. Grading Building measuring a total of 2500 sq. 

ft. area Rental 

10,000 Taken in Cost of 

Operations 

2. Storage space for at least 4000 crates ( Rental ) 4,000 -----------do---------- 

for 2000 sq. ft. open space @ Rs. 2/- 

3. Place to clean and wash products 5,000 -----------do---------- 

4. Parking space for at least three trucks –500sq. 5,000 -----------do---------- 

ft. @1/- 

Rent Cost 24,000 

F. Electricity & Water 

1. Electricity & Water Supply ( Actual ) 5,000 -----------do---------- 

Electricity & Water Cost 5,000 

Total 17,88,000 

250


Besides sending produce to Terminal market, depending on the demand placed 

by the proposed bulk buyers the CC will send produce to the super stores or 

chain suppliers. 

Once produce is dispatched from Collection Center, the payment is collected the 

same day it has been auctioned off or sold. This is possible by having a 

revolving fund created for the purpose. A farmer who does not wish to send his 

produce to a Collection center can have an option to directly take his sorted and 

graded produce to the Terminal Market. 

5. Farmers Association: 

The Collection center is tied up with Farmers Associations – a form of loose 

grouping of farmers from a village or a group of villages that is part of a 

Farmers Association. Each Farmers Association will cater to a village or more 

than one village. Farmers: 

6. Farmer: 

Farmer who grows fruits and vegetables for supply to Terminal market can be a 

member of Farmer Association. He is responsible for bringing the produce to the 

Farmers Association from where the produce is consolidated before sending it to 

the Collection center. At the farm level or the Farmers Association level post 

harvest value addition activities such as sorting, grading and packing takes 

place. 

251


Criterion for the selection of location for Collection Center 

1. Collection centers are set up in major production areas in the vicinity of 

the proposed Terminal market (Sonipat District and neighboring 

Districts). 

2. Collection centers having sufficient land available (3-4 acres). 

3. The collection centers are easily approachable from the Terminal market. 

4. Collection centers are set up along a regular supply route. 

5. Collection center is always set up in rural area. 

6. Collection center will have the capability to handle more than one 

commodity. 

Structure of Collection Center System proposed for the Rai Terminal Market 

For practical purposes 20 villages in a Block / Taluka are identified for service by 

one Collection center within a radius of 15 km. There would be 25 such 

collection centers across the area of operation of the market. In other words 500 

villages are linked up with the proposed market. At village level farmers are 

organized through farmers associations. 

Each Collection center /block will serve 7 farmer associations or approximately 1 

farmer association serves the needs of farmer members of 3 villages. Each 

farmers association will have 100 farmer members from 3 villages (this is 

assuming, on an average, there are 1000 persons in a village who represent 200 

families or 100 farming families - 50 % engaged in direct farming /horticulture). 

252


From three villages there are 300 farmers and assuming that a third of all farmers 

(33 %) join a farmers association to supply to Terminal market there would be 

100 farmer members in an Association. 

In all there would be direct participation by 20000-25000 farmers, representing 

300 villages from 4 Districts as identified under the Terminal market project. 

Under the proposed structure there are 30 Collection centers with each center 

served by 8 farmers association in a geographical radius of 15 K.m.. 

Produce handled in Collection Center: 

Each Collection center is geared to handle an average of 20-30 MT per day. The 

center will supply an average of 25 MT of fruits and vegetables per day to the 

Terminal market. This is equivalent to each member farmer of the farmers 

association supplying an average of 125 Kg to the Collection center through 

farmers association (produce harvested once in 2 days hence, half of the total 

average of 2.5 Qtls taken for consideration). The assumption that approximately 

1.25 quintals of produce are supplied in a day is supported by the results of a 

survey-study carried out by NIAM as part of this project (results included 

elsewhere in the report). 

The NIAM study concluded that presently the daily supply of produce by the 

farmer to the regulated market varies from farmer to farmer. On an average a 

small farmer with a holding of 0-3 acres supplies 0.5 quintal, a farmer with 3-5 

acre land holding supplies 1 quintals, a farmer with 5-10 acre holding supplies 4 

quintals while a farmer with 10 acre and supplies above 6 quintals per day 

making average size of supply to 2.5 Qtls per day. 

253


The table below provides a summary of assumptions that went into the 

planning of Backward Linkage: 

No Assumption Number proposed 

1 Number of villages served by one Collection Center 20 

2 Number of Farmer Associations under each 7 


3 Number Farmer members in each Association 100 

4 Registered farmers with one Collection center 700 

5 Registered farmers per village (three to four villages 25 – 35 

per Association 

6 Approximate qty per Collection Center per day 25 MT (250 Qtls) 

7 Approximate Qty per village per day 1 MT (10 Quintals) 

8 Approximate Qty per Farmer per day 62.5 Kg (0.55 Quintal) 

9 Total number of Villages covered under the project 500 

10 Total number of farmers covered under the project 15000 – 20000 

11 Number of Farmer Associations set up under the 140 

project 

12 Average day of availability of commodities 320 

13 Total arrival/ Annum 2. 0 Lac MTonne 

(31.25 MTonne x 30C.Cx 320 

D) 

14 Total value of commodities from 30 C.C @ Rs 7/Kg Rs 210.0 Crores 

In the above projection the farmers from Rai and other key production centers 

just across the District border form a part of supply chain. A basis for the 

selection of 30 Collection centers under the Rai Terminal market project and the 

254


flow of key fruit /vegetables from these Collection centers are shown in the table 

below. 

Possible locations for Collection Centers and the key fruits / Vegetable to be 

Supplied to the Terminal market 

No Fruit or Vegetable Proposed Taluka/location 

1. Onion Sonipat, Jhajjar 

2. Peas Sonipat 

3. Tomato Sonipat 

4. Radish Sonipat, Rohtak 

5. Carrots Sonipat 

6. Cabbage Sonipat, Panipat 

7. Okra Sonipat, Panipat and Jhajjar 

8. Brinjal Sonipat, Panipat 

9. Cucurbits Panipat, Sonipat 

10. Cauliflower Sonipat, Panipat 

11. Leafy Vegetables Panipat and Sonipat 

12. Arvi Sonipat 

13. Mushrooms Sonipat 

14. Mango Yamunanagar 

15. Guava Jind 

16. Papaya Yamunanagar 

17. Ber Rohtak, Jind 

On the above basis 30 Collection centers were finalized in 4 districts. The 

selection was based mainly on production volumes in the Block or Taluka and 

255


the logistic advantages. And final list of Collection centers include 7 in Sonepat 

District, 18 in Panipat District, 2 in Rohtak and 3 in Jhajjar. 

The locations are as under: 

S.N Proposed C.C District Shortest distance Distance from 

between two C.C 

(In km) 

Collection Center to 

T.M 

1. Farmana Sonepat 15 10 

2. Biswameel Sonepat 15 10 

3. Datauli Panipat 15 25 

4. Sanpera Panipat 15 20 

5. Sanauli Panipat 25 70 

6. Babail Panipat 13 60 

7. Munak Panipat 13 70 

8. Salwan Panipat 15 83 

9. Purkhas Panipat 15 40 

10. Naultha Panipat 20 65 

11. Ahar Panipat 15 70 

12. Urlan Kalan Panipat 15 85 

13. Samalkha Panipat 16 100 

14. Dadwana Panipat 20 63 

15. Kasandhi Panipat 25 68 

16. Bichperi Panipat 15 75 

17. Ludana Panipat 15 82 

18. Siwanmal Panipat 10 50 

19. Achra Kalan Panipat 15 60 

20. Hatt Panipat 15 50 

256


21. Bainswan Sonepat 10 82 

22. Rukhi Sonepat 10 50 

23. Sanghi Sonepat 5 60 

24. Kathua Sonepat 10 50 

25. Lakhan majra Sonepat 10 54 

26. Kiloi Rohtak 25 40 

27. Madina Rohtak 35 75 

28. Charra Jhajjar 15 50 

29. Duban 

Dhanmajra 

Jhajjar 30 80 

30. Kahnaur Jhajjar 15 85 

All these collection centers are selected after taking into consideration the three 

important constraints related to marketing of agricultural produce, which are: 

1. Hinterland area 

2. Distance from the terminal market & the time associated with 

transportation and the distance from other C.C 

3. Roadways facility 

As the District is a major producer and supplier of Vegetables the list of 

Collection centers reflect the same. Thus the Terminal market tries to address the 

marketing needs of the local farmers. Besides the key fruit and vegetable from 

identified production areas the areas covered by Collection centers also account 

for a variety of produce. The marketing needs of these other produce is also 

given due weightage in the Terminal market. 

257


Close to Rai is a major hub in Kudali, which is an important place for 

consolidation of horticultural produce with its already existing storage and 

handling facilities. It is on the national highway and well connected to good 

transportation network to various parts of the country. It can be very easily 

developed into a Mega Storage center.. 

Role of transportation: Transportation of produce from the collection center to 

the terminal market or the destination market is the key to success of this mega 

scale project. Transportation covers 40-60% of logistics cost. So it plays a vital 

role in the smooth functioning of the channel. Smaller faster more frequent and 

more on time shipments is the desired level of transportation. Transportation 

Performance is measured by its: 

• Accessibility 

• Capacity 

• Cost 

• Speed or transit time 

• Dependability 

1. Transit time variability 

2. Loss and damages 

Because of budget limitations, the miles of constructed roads must be the 

absolute minimum that allows direct or indirect traffic linkage among the 

different rural areas, the Minimal Spanning Tree Problem Model has been 

adopted to design the route from the Collection Centers to the terminal market. 

258


A transportation /supply route connecting key production areas /identified 

Collection centers to facilitate efficient collection of produce has been drawn up 

for the Rai Terminal market. 

The supply routes are broadly drawn up as under. 

Route-01 

Route -02 

Route -03 

Route -04 

Route -05 

Route-06 

Route –07 

Route –08 

Rai, Farmana, Biswameel 

Rai, Datauli, Sanpera 

Rai, Samalakha, Sanauli, Babail, Munak, Salwan 

Rai, Purkhas, Naulthas, Ahar, Urlan kalan, Dadwana 

Rai, Kasandhi, Bichperi, Ludana, Siwanmal, Achra kalan, 

Hatt 

Rai, Bainswal, Rukhi, Sanghi, kathua, Lakhan Majra 

Rai, Kiloi, Madina 

Rai, Chahara, Duban Dhan Majra, Kahnaur 

The above routes are suggestive at this time and may undergo changes 

depending on ground realities and future road developments and many 

proposed roads can come into effect for the efficient functioning of the chain. 

The location of Collection centers and the supply or transport routes are shown 

illustrated in a map format in the following page. 

259


Munak 

Salwan 

Dadwana 

Babail 

Urlan 

kalan 

Ahar 

Sanaul 

Hatt 

Achra 

kalan 

Naulthas 

Samalakha 

Siwan 

Ludan 

Bichperi 

Datauli 

Kasandh 

Sanpera 

kathua 

Bainswal 

Lakhan 

Majra 

Sanghi 

Rukhi 

Rai 

Madina 

Kiloi 

Kahnaur 

Chahara 

Farmana 

Biswameel 

Dhan 

Majra 

Duban 

Route map of roads connecting the C.C to Terminal Market 

260


Investment needs for setting up of a Collection Center 

The capital expenditure and the recurring expenditure of setting up of a typical 

Collection center are presented below. The expenditure on office such as 

deposit, computer with Internet facility and telephone facility is estimated to cost 

Rs 103000. The major capital expenditure is on purchase of plastic crates at Rs 

18.25 lakh for 7300 numbers of 15 Kg crates. This will suffice for handling and 

transport of all of the 25 MT of produce planned to be handled in a day at the 

Collection Center, including an additional set for return crates. The crates would 

be rented out by the Collection center to farmers at Rs 0.10 per day for 250 days 

in a year. The Collection center will have facility to receive on-line market 

intelligence with the help of an electronic display board. This will be a free 

service to the farmers from the area. An integrated Pruning cum Harvester 

machine would also be available for use by farmers at a reasonable fee. The 

introduction of pruning and harvester for use by farmers is a way of introduction 

of modern pre-harvest and post harvest practices to bring about improvements 

in efficiency of operations and productivity. 

The running expenditure of Collection center that involves mainly expenditure 

on running of the office, communication expenditure and charges for utility etc 

as shown in the financial estimates. 

<strong>Project</strong>ions of produce handled by Collection center 

Keeping in mind the seasonal nature of produce a daily average arrival and a 

cumulated annual average arrival of various commodities at the Collection 

Centers are worked out as below. As expected the largest volume of arrivals at 

the Collection center would be of green vegetables followed by potato, banana 

261


and mango. Assuming an average price of Rs 8 per Kg the value of produce 

handled at the Collection centers in the 25 centers is estimated at Rs 104 Crore. 

Arrivals break up of major commodities in Sonipat and 

Adjoining Districts 

Peas 

4% 

Cauliflower 

6% 

Leafy Vegetable 

Pumpkin 2% Chilli 

3% 

2% 

Radish 

3% 

Brinjal 

3% 

Citrus group 

2% 

Potato 

26% 

Tomato 

9% 

Mango 

6% Carrots 

3% 

Apples 

3% 


10% 

Banana 

18% 

Source: HSAMB 

Note: The Sonipat, Gohona, Gannaur, Rohtak, Maham, Jhajjar and Sapla 

mandi’s were considered in arriving at the arrivals 

The highest arrivals of commodity taking place in the mandi’s are Potato (1.56 

lakh tonnes) followed by Banana and Onion of the total arrivals of 5.95 lakh 

tonnes. 

It is assumed that the Collection centers will operate at 100 % capacity by the end 

of 4 th year of operation. The assumed capacity utilization of Collection centers is 

of 20 %, 60 %, 80 % and 100 % with an estimated arrival of approximately 0.40, 

1.20, 1.60 and 2.0 lakh MT in years 1, 2, 3 and 4 respectively. 

Tie up with Bank for funding of trader and spot payment to farmers 

The NDDB’s first experiment in the country in modern market or Terminal 

market, the SAFAL market for fruits and vegetables at Bangalore city, is 

262


operating without adequate funding tie up. The buyer operating in the market 

has to deposit cash before he can take part in auctions. This has resulted in 

reduced purchasing power of the buyer. And there are issues of delayed 

payment to farmers bringing their produce to the Safal Terminal market 

/Collection centers. This issue is being addressed in the present project by tieups 

with Banks/s. Already two leading Banks have shown considerable interest 

in extending term loan. It is proposed in the project that management create a 

revolving fund to facilitate immediate payment to farmers. 

Requirement of Revolving Fund for Collection Center: 

Average turnover / day/C.C = 31.25 MT 

31.25 MT X Price (Rs 7/Kg) = Rs, 2.19 Lac 

Amount required/ day/ C.C = Rs, 2.19 Lac 

Amount required for every fifth day / C.C 

(5 X 2.19 Lac) = Rs. 10.94 Lacs 

Total Number of CC = 30 

For all 30 collection (10.94 X 30) = Rs 328.13 lacs 

First Year (i.e. 2007) (20 % cap. utilization) 

Rs 65.63 lacs 

For second year (60 % cap. utilization) = Rs 196.88. lacs 

Products and Services offered by the Terminal Market for Farmers directly 

participating in the market. 

Insurance 

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The Terminal market would provide for comprehensive insurance coverage of all 

farmers who are members of the Farmers Association. At the rate of Rs 100 per 

year per farmer as premium, Janshree scheme announced by LIC, the 

management of the market will pay Rs 20 lakhs per annum as premium. In 

addition to this the bank (Yes Bank) has also been requested to provide free 

weather insurance, animal health insurance, personal accident insurance, and 

crop insurance, etc. free of cost to the registered farmers so as to attract them in 

the present system. 

ATM/ Debit Card/ Credit Card / Kisan Card 

To facilitate easier and quick financial transactions for the benefit of the farmers 

and the traders operating in the market the installation of ATM at Collection 

centers and providing of Debit cards and Credit cards to the farmers is being 

considered. Preliminary discussions with Banks have resulted in the receiving of 

letters of interest in funding the project, both revolving fund and term loan to 

finance the project with provision of ATM facilities at collection Center level. 

Agri-clinics / Extension 

As a purely extension activity the farmers participating in the Terminal market 

/collection center would be provided with Agri-clinic services. Through Agriclinic 

set up at each of the 25 Collection centers, the farmers would receive 

information on modern production, post harvest practices and marketing 

methods. The Terminal market would pay for the infrastructure facilities for the 

same. 

Spot payment 

Spot payment to farmers who bring their produce to the Terminal market and 

payment to farmers at the Collection center level or at the farmers Association 

264


level is one of the key objectives to promote greater participation by farmers in 

the backward linkages. The proposal for use of ATMs /Debit cards and Credit 

cards are part of the same game plan. Immediate payment would be debited to 

the account of the farmer on completion of the auction transaction. 

Information Kiosks 

The Collection centers would have information kiosks for the benefit of farmers. 

The kiosks will provide useful data and information that the farmer would need. 

It may include among others data on travel, investments, entertainment etc. 

Such a facility has the added benefit of enhancing social and cultural awareness 

level among the rural community. 

Electronic Display Board 

Electronic display board for spot prices of commodities in the local markets as 

well as live auctions of terminal markets and prices of the distant markets and 

even international markets would be displayed on-line. The same system may 

be used to provide other useful information that the farmer may find it 

beneficial. 

Transactional Banking 

The Banks could be asked to support transactional funding requirements of the 

trade. The terminal market would provide needed support and assurances as 

may be required on case-to-case basis. 

265


Investment Advice 

The farmer’s need for sound investment advises is another area that the 

management will try to address through appropriate programmes and seminars. 

Grading Facilities 

All collection centers would be provided with need based grading facilities so 

that farmers can grade their material at collection Centers and only sorted 

material is dispatched for terminal market. 

One stop shopping for Input 

Modern Input Malls so called as One Stop Shopping for Input is an innovative 

and pioneering effort aimed at providing farmers, need based inputs and fulfill 

occupational requirements. It is an answer under one roof to all agricultural 

needs of the farmers including quality inputs, quality extension, vital out put 

linkage and FMCG products. In order to create an integrated impact on the 

project the consultant contacted the following presently operating prominent 

players in the country in this venture. 

S.No. Name of the Company Brand Name 

1. Tata Chemicals Tata Kisan Sansar 

2. DSCL Hariyali 

3. ITC e-choupal 

4. Godrej Agrovet Aadhar 

5. Cargill Kissan Seva Sangh 

6. Mahindra & Mahindra Subh Labh 

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Dear Sir, 

You may be aware that Govt. of India is now proposing to establish 7-8 Modern Terminal Markets for Fruits and 

Vegetables at different locations for which the job of preparation of <strong>Detailed</strong> <strong>Project</strong> <strong>Report</strong> has been assigned to National 

Institute of Agricultural Marketing, Kota Road, Jaipur. We have already completed Rai <strong>Project</strong> <strong>Report</strong> and in the process 

of reports for other places. I am enclosing herewith a brief profile of Rai <strong>Project</strong> for reference. We propose to collaborate 

with your organization in establishing modern input shop. 

Kindly examine as to whether your organization can open one stop shopping for inputs at all collection centers (Approx. 

20) in the hinter land of proposed Modern Terminal Market for Fruit and Vegetables at Rai, Bhopal, Rai, Chandigarh, 

Bilaspur, Rai etc. 

You can provide the said "one stop shopping" for input and FMCG at each collection center, also if necessary you can 

procure material (optional) from the said collection center. If interested, kindly contact me on my mobile: 09829210012. 

J.S. Yadav 

Director, NIAM 

In response to the enquiry M/s Godrej Agrovet, Mumbai is expressed their 

interest in opening of Godrej – Adhar at collection Centers falling under the 

jurisdiction of Rai Terminal Market. They have also agreed for ensuring projects 

and happily associate themselves. A critical examination was done as to which 

input company would be appropriate for its association. It was observed that 

all companies accept Godrej Agrovet and ITC are input supply only. ITC 

through its e-choupal malls is procuring food-grain pulses and oil seeds. Godrej 

Agrovet is equally involved in procurement of fruits and vegetables over and 

above input supply. Therefore, it was found that Godrej Agrovet limited could 

be the best choice for this collaboration. A letter of expression of interest by 

M/s Godrej Agrovet is placed in the proposals. The managing authority will 

provide only space at collection Center and terminal market against payment. 

Mechanized Harvester cum Prunner . 

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In order to inculcate a culture of mechanization in harvesting and pruning, it has 

been proposed to provide 1 Prunner cum harvester has been proposed. This 

harvest would be made available at collection center and farmers association will 

take it services on payment basis. The farmers will pay @ of Rs.1, 000/- per day 

and they can use the same for either purpose. Details of income for harvester 

and pruner have been reflected in financial section. 

Volume Incentives 

In order to attract more arrivals in the market and invite potential aggregators, it 

is proposed that volume incentive Programme should be introduced by which 

some rebating service charge (say 0.5 per cent) can be provided to the large 

volume suppliers after assessing their regular credibility. This payment can be 

made out of other incomes. 

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CHAPTER - XII 

FORWARD LINKAGES 

In Rai region the production of fruits and vegetables is in huge quantities 

especially that of Apples, potato, Kinnows etc. 

As such the production is 

excess of local demand. This marketable surplus is to be sent to out side 

markets in order to help the farmers to get higher prices. 

Hence, it is very 

essential to plan for forward markets. 

Apples, Potato, Kinnows etc. and other fruits and vegetables are seasonal in 

production but are in greater demand out side Haryana. 

To search for 

markets where the prices are high and also to arrange for the dispatch of 

physical goods a “Forward Link’s Team” will be constituted at Rai Terminal 

Market. This professional team will find out the daily rates prevailing in all 

important markets of India and find out the possibility of dispatching the 

produce. Once the market is identified the produce will be sent directly from 

the collection center to the required market. This will arrest the unnecessary 

movement of produce to terminal market and also reduce the transportation 

cost. 

Opening of sale centres / outlets / out side the State 

Based on the demand for a particular commodity sale centres / outlets will be 

opened in all the important markets of India. 

This will enable the sale of 

excess production at a very competitive rate out side the state. 

This 

269


experiment is very successfully being done in case of Arecanut by CAMPCO 

in Karnataka State. 

Arecanut is produced in South Indian Markets. Earlier traders from Karnataka 

used to send Arecanut to North-Indian Traders. 

Thus, the entire Arecanut 

trade was only through middlemen. 

Govt. of India established Central Cooperative 

Arecanut marketing and processing society ( A Joint venture of 

Kerala and Karnataka) in 1984. This co-op society opened sale centers in 

almost all-important markets of North India. The Arecanut procured from 

member farmers is being sent to these out side State sale centers and sold 

directly to traders. 

This system is very successful and Arecanut farmers 

started receiving higher price for their produce. 

The establishment of 

CAMPCO a co-operative society has totally avoided the chain of middlemen 

existing in the Arecanut marketing channel. 

Similarly, in all-important markets where Onion, Grapes and Pomegrant are in 

greater demand Rai terminal market management can open sale centers / 

outlets by obtaining license from the concerned APMC and start transacting. 

This will enable the market management to sell directly to a trader without 

engaging a commission agent as is practiced in case of NAFED. 

The 

produce assembled at collection center could be dispatched to distant 

markets as per the recommendations of the forward market team situated at 

Rai market. 

Similarly instead of engaging a commission agent at the outside the market it 

is better if the Rai terminal market management opens their own sale center / 

270


outlets to take control of the situation and fro timely collection of sale 

proceeds. 

Similarly everyday this exercise will be done by the forward market 

professional team and fruits and vegetables will be dispatched to out side 

State markets directly from the collection centers. 

This will enable the 

terminal market management to arrange for the dispatch of the produce to 

distant markets to ease out glut situation. 

Sale centers / outlets as 

discussed above are to be established in these markets for successful 

operations. 

The project team during its field visits had discussions with traders and 

exporters and collected information regarding the export of fruits and 

vegetables to various distinct markets outside Haryana State. Apart from this 

extensive price data was analysed to identify the markets outside Haryana 

State to find out the demand for Apple, Potato and Kinnows etc.. 

Prices 

prevailing in the markets were studied and considering both of these aspects 

i.e. field survey and price analyses the following 10 markets have been 

identified for the establishment of sale centers / outlets. 

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Sl.No. Name of the Market State / Country 

1. Azadpur Delhi 

2. Gauwhati Assam 

3. Calcutta West Bengal 

4. Ahemedabad Gujarat 

5. Bangalore Karnataka 

6. Kanpor Utter Pradesh 

7. Jaipur Rajasthan 

8. Chennai Tamil Nadu 

9. Ludhiyana Punjab 

10. Mumbai Maharastra 

Performance of Sale Center: 

10 sale centers would be established by the Rai Terminal Fruits and 

Vegetable Market throughout the length and breath of the country. 

The 

performance sale centers indicating the annual quantity traded its value, total 

income, expenditure and net profit are presented in the following paragraph. 

Turnover: It is estimated that everyday 5 truck loads of fruits and vegetables 

i.e. 9 MTs will be dispatched from each collection center to sale centers. 

On 

an average it is presumed that the markets will operate for 250 days in a year. 

Thus, the total quantity handled each sale center would be 11250 MTs. All 

the 10 sale centers will handled 112500 MTs of Fruits and Vegetables 

272


annually. 

The Annual turnover of the sale center would be worth Rs.78.75 

crores considering the average rate of Rs.7,000/- per MT. 

Income: It could be seen that all the 10 sale centers together will handle an 

annual turnover of 112500 MTs worth Rs.78.75 crores. 

It is presumed that 

identified commission agent at sales outlet will transfer either half of the 

prescribed commission rate of at least 7%, which works out to be 3.5% or will 

offer flat administrative charges @ 3.5% of sale value. Cost of transport will 

be paid by the commission agent. A transparent mechanism of online 

financial transactions will be evolved with identified commission agent. 

Hence, the income of each sale center works out to Rs. 27.56 lacs. 

The 

annual income from all the 10 sale counters is estimated worth Rs.275.63 lacs 

crores without any major investment. Each sale center will have a profit 

margin of Rs.27.56 lac thus from 10 sale centers the total profit per annum 

would be Rs.275.63 lacs crore. 

All the ten sale centers, when independently fully developed, would be inter 

connected and they would be required to develop a business of products 

which are in great demand locally but are not grown in that region. 

The sale 

centers by doing this business will also earn good amount of income. 

However, the income that would be generated by this business is not taken 

into consideration at this stage. It is assumed that these sale centers will 

achieve performance level at 15 MT, 27 MT, 36 MT, 45 MT during I year, II 

year, III year and IV year respectively and at same level from V year to X 

year. 

273


Expenditure : 

The particulars of expenditure of sale centers are as under. 

Market fee 1% (to be paid to APMC) 

Unloading Charges 

Transit Insurance (1%) 

Miscellanious (1%) 

Rs.5.40,000=00 

Rs.1,62,000=00 

Rs.5,40,000=00 

Rs.5,40,000=00 

Total 

Rs.17,82,000=00 

The expenditure of 1 sale center works out to Rs.17.82 lacs per annum and 

for 10 sale centers it would be Rs.1.7 crores. After taking into consideration 

the recurring expenditure of Rs.6.84 lacs per annum per sale center the total 

expenditure works out to Rs.24.66 lacs. For 10 sale centers it works out to 

Rs.2.46 crores. 

Each service center will have a profit margin of Rs.1.31 thousand, thus from 

10 sale centers the total profit per annum would be Rs.13,10,000. 

All the ten sale centers would be inter connected and they would be required 

to develop a business of products which are in great demand locally but are 

not grown in that region. 

The sale centers by doing this business will also 

earn good amount of income. However, the income that would be generated 

by this business is not taken into consideration at this stage. 

274


The details of the performance of sale centers are summarized in the 

following table. 

Summary of Performance of Sale Centers 

Despatch F & V for Sales 

Potato 4 Months in 2 Seasons, 

1 (M.T.) 27 250 6750 Apples 3 months in 2 Seasons, 

KInnows 2 months in 1 

Seasons 

Value of F & V Rs 8000 / 

2 MT 8000 

5400000 

0 

Marketing Cost (1% of 

3 Value) 540000 

4 Unloading/Loading 162000 

Transit Insurance (Rs. 1000 per 

5 Lakhs) 540000 

3 Misc Charges 540000 

Total Expenditure 1782000 

Income (Service Charges 

5%) 10% 2700000 

Other Income* 0 

Expenditure 2569000 

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Net Profit 131000 

Profit from 10 sale centers 1310000 

* Selling of Commodities which are in local demand received from different Sales 

Centres of Terminal Markets 

Note: It is assumed that these sale centers will achieve performance level of 

100% in the first year itself. 

There will be interlinking between all the ten proposed sale centers/outlets. 

These sale centers will not only sell the produce dispatched from collection 

centers but also find out which agricultural and horticultural commodity is in 

demand at that market. 

After accessing the demand and the studying the 

price prevailing the manager of the sales center will workout the economic 

cost and order for that commodity from his counter part situated in other state. 

This will help to enhance the annual turnover and thereby net income of each 

sale center/outlets. 

In all metros like Mumbai, Delhi, Bangalore, Chennai and Calcutta chain of 

super bazaars, big bazaars, mals, food world, Rajtech, retail outlets are 

coming up. These big retail chains procure their requirements in bulk 

quantities. 

Hence the Rai Terminal Market Management will develop 

contacts with retail chain outlets like 

1. Super Bazars 

2. Mals 

276


3. Food World, Rajtech chains etc., 

4. Metros 

Apples, potato, and kinnows will be supplied directly to these big retail chains 

from collection centers. A direct contact with retail establishments will help a 

collection centers to dispatch their produce directly to consuming centers. 

The trend of establishing retail chains in all mega cities is picking up in India. 

Hence there is tremendous scope for the direct linking of collection centers to 

retail marketing chains. 

The most urgent requirement is the facility of transporting fruits and 

vegetables by railway containers. Rail transport is to be made available, so 

that fruits and vegetables are transported to the destination in bulk and within 

no time. 

The container corporation of India has to make necessary 

arrangements for the availability of required number of containers. 

Hence 

rail transport support is very essential at Rai market place. 

Tie up with processing Firm: 

TMC will establish tie up with some processing firm so as to do value addition 

in the comparatively low grade product, which amounts up to 25-30% of the 

total volume. 

Export outside the Country: 

In Haryana especially in Rai region individual progressive farmers themselves 

are undertaking export of horticultural produce very successfully. The State 

Board shall extend its full support at this region for export activities to all the 

farmers and institutions engaged in export activities. 

277


New Approach to Transactional Banking: 

The proposed model terminal market will have collection centers established 

in the hinterland for backward linkages and also will have sale centers/outlets 

in different states for forward linkages. All the financial transactions will be 

done through banks. Kisan credit cards are to be issued to farmers and also 

every farmer has to open a bank account at the collection center / terminal 

market. 

The farmers’ financial transactions their credit requirements etc. will 

have to be taken care by the banks. As stated in earlier paragraphs of this 

chapter the farmers will be paid out of the corpus of revolving fund at the 

collection centers. The money collected out of the sale proceeds is to be 

pumped back from the sale centers to the revolving fund account. As such 

there will be huge transactional banking here. <strong>Project</strong> team was contacted by 

ING Vashya Bank and Rabo Bank and had discussions regarding bank 

requirements. The bank officers were very happy to know about the 

development of terminal markets and have come forward to offer their 

services. 

The letter received from ING-Vashya Bank, Pune Branch is 

enclosed at annexure. 

This new transactional banking will open up a new era of agricultural banking 

in rural India. The days of farmers using the ATMs for their credit cards, debit 

cards and kisan cards are not far away in India. 

278


CHAPTER - XIII 

BUSINESS PROCESS AND IT ENABLED OPERATIONS 

To run any business first we need to understand the business. After that every process 

should be documented. After understanding every activity of business, they are written in 

the form of processes in the form of workflows and steps of activities. Various 

departments are formed and organization hierarchy is prepared. Departmental manual is 

prepared for every department with descriptive details of their functioning. Here business 

process consist of three major components: 

• Backward Linkage 

• Terminal Market Operation 

• Forward Linkage 

Backward Linkage 

The Backward Linkage department is primarily responsible for procurement of produce 

and getting it to the Terminal Market as well as sales outlets and bulk buyers. They form 

collection center, which are responsible for sorting and grading of produce. Once the 

produce is received from farmer, a receipt note is given to the farmer. Later depending 

the price at which the produce is sold in the market, farmer is paid by collection center. 

Thus the collection center plays an important role between TM as farmer as a bridge to 

transact. These farmers form farmers association. Every collection center will have atleast 

three associations under them and further every association will have minimum of 

279


hundred-farmer member. Backward linkage department is also responsible for giving 

training, harvest plan to every collection center and in-turn to every association and their 

members. Details of backward linkage are given separate chapter. 

Terminal Market Operations 

Once the produce is received from Collection Center, then till it is sold in auction and 

dispatched to the buyer, the whole functional chain is part of Terminal Market operation. 

The diagram shown below depicts the business flow in the Terminal Market. 

Produce from 


Produce for 

Storage 

Produce received 

at Terminal 

Produce 

unloading 

Quality Check 


Operation 

Bank Access 


Pallet 

Stacking 

Storage Hall 

Dispatch 

stored Produce 

Produce 

Palletization 

Buyer with 

payment 

information 

Cold Storage 

Ripening Chamber 

Fig 1.2: General representation of Terminal Market Operation 

280


There are various departments in Terminal Market, which are responsible for the daily 

function of the Terminal Market. A list of these departments are listed below with their 

brief functionalities: 

i) Human Resource & Payroll: This department is responsible for handling 

issues related to employee, labor, their benefits, salary, allowance and all other 

legal issues. 

ii) 

Finance: This department is responsible for all finance related issues including 

payment of produce sold and purchased. Apart from this is also responsible for 

keeping track of company related accounts as per the standard accounting 

procedures. 

iii) 

Operations: Once the produce is received, this department is responsible to 

receive it and similarly dispatch the produce after it is sold. It is also 

responsible for the operation of cold storage, ripening chamber, weighing 

bridge, water treatment plant etc. 

iv) 

Quality Assurance department is responsible for making sure that the produce 

stored, received and dispatched is as per the specified quality. 

v) Maintenance: This department is responsible for the maintenance of all 

equipment in the Terminal Market. 

vi) 

Auction: Details of this department is given in a separate topic “Auction”. 

vii) 

Security: This department is responsible for keeping track of vehicle, people 

who came in the Terminal Market and gone out of the Terminal Market. This 

department is also responsible for collecting the entry fee from various entities. 

281


viii) Logistics: Primarily responsible for arranging transportation for produce and 

crates management. 

ix) 

Backward Linkage: Already discussed earlier. 

x) Sales and Marketing: Getting buyers to the market, and resolving their 

disputes. This department is also responsible for selling produce space of 

ripening chamber, cold storages quality station, certification, grading lines, etc. 

This department also conducts various activities to promote the market. 

xi) 

Purchase and Stores: This department is responsible for day to day inventory 

management of all types items (except produce) required in the Terminal 

Market 

Forward Linkages 

a) Forward Linkages: Consist of following departments: 

i) Sales and Marketing already discussed above 

ii) Shops and Godowns 

iii) Terminal Market owned retail shop (Cash and Carry) 

iv) Buyers 

v) Exporters 

vi) Processors 

vii) Forwarders / Transport Trade 

282


The Forward Linkage part is shown in following figure. 

Forward Linkage 

Sales and 

Marketing 

Retails 

shops in 

Terminal 

Market 


Owned retail shop 

(Cash and Carry) 

Buyers 

Customer for 

booking in 

storage 

Buyers 

Exporters 

Processors 

Forwarders/T 

ra 

Transit Traders Traders 

Fig 1.4: Forward Linkages 

i) Sales and Marketing already discussed above 

ii) 

Shops and Godowns: these are the mega shops in the Terminal Market, 

which are rented to the buyers on contract basis. These buyers are 

authorized to sale, store the purchased produce by them in these shops. 

Every shop will have a storage area and an office. 

iii) 

Terminal Market owned retail shop cum cash and carry: these are the retails 

shops owned by the Terminal Market. These shops will sell the produce at 

the rate defined by the Sales and Marketing department. These shops are for 

keeping cap on the prices of various produce and also a channel for selling 

unsold produce. These are also called as Cash and Carry. 

283


iv) 

Buyers: Normal buyers are registered by a sales and marketing department 

person and this buyer can participate in auction to buy produce. He may be 

an exporter, a processor or a forward trading entity or delivery arranges. 

Business Process Design and Implementation 

1) Design 

i. List of some of the identified business processes for various departments 

are listed below: 

1. Backward Linkages: 

a. Preparatory activities of Backward Linkage Department like making 

guidelines for formation of collection center, agreements etc. 

b. Identifications of Collection Center. After identification, formation of 

collection center and monitoring them. 

c. Produce movement monitoring. 

d. Training to all entities of BL 

2. Collection Center 

a. Registration of farmers. 

b. Crop planning and harvest planning 

c. Produce receive, consolidation and dispatch to TM 

d. Disbursing payment received from TM to farmers. 

e. Training to farmers. 

f. Crates management with TM and with farmers. 

284


3. Quality Assurance: 

a. Defining quality norms for all produce i.e. Fruits and Vegetables, 

flowers. 

b. Quality check at fruits and vegetables dock. 

c. Defining norms for Ripening chamber, Cold Storage. 

d. Quality check in Ripening chamber and Cold Storage. 

4. Auction: 

a. Pre-Auction activities. 

b. Pre-Bids. 

c. Dutch Auction 

d. English Auction 

e. English-Dutch Auction 

f. Tender type of Auction 

g. Operations. 

h. Material Receipt at security 

i. Gate entry fee. 

j. Produce receives at fruits and vegetables docs, ripening chamber, 

cold Storage. 

k. Weighing and palletisation of produce. 

l. Repining chamber, cold storage management and warehouse 

management. 

m. Dispatch of produce. 

n. Produce exit. 

285


o. Operation procedures of all equipment e.g. Cold Storage, Ripening 

chamber, waste treatment plant and electric Generator etc. 

p. Security services. 

5. Finance 

a. Finance related activities 

b. Maintaining voucher 

c. Preparing trial balance 

d. Profit and loss account 

e. Balance sheet 

f. TDS certificate 

g. Depreciation computation 

h. Budgeting 

i. Cost-Centers. 

6. Human Resource 

a. Employee requisition 

b. Recruitment 

c. Induction 

d. Training 

e. Arrears 

f. Allowance 

g. Deductions 

h. Bonus 

i. Taxes 

286


j. Salary computation 

k. Leave management 

l. Statutory requirements 

m. PF, ESI 

7. Purchase and Stores 

a. Material grading, coding. 

b. Sub Stores. 

c. Vendors’ Management. 

d. Material requisition, issue, analysis (like MSN, ABC, XYZ). 

e. Tender, quotation, negotiation, PO generation, material receipt. 

f. Inventory management 

g. Issue of material 

8. Logistics 

a. Transporter registration norms 

b. Transporter registration 

c. Road mapping 

d. Offsite transportation 

e. Transport allocation for produce movement 

f. Transporter payment 

9. Sales and marketing 

a. Preparatory activity for buyer registration, retail shops etc. 

b. Buyer registration 

287


c. Direct marketing 

d. Publicity, launch, demonstration and feedback 

e. Indents for unplanned items 

f. Marketing plan 

g. Training of buyers 

h. Produce indents from retailers 

i. Pre bids 

j. Buyer dispute resolution 

k. Ripening chamber and cold storage booking 

ii. 

The identified party for process automation should identify all business 

processes and write them in detail. The departmental manuals should be 

prepared from the same, and the part, which can be automated, should 

be identified. 

iii. 

There will be three types of Auctions. Dutch, English, English-Dutch, and 

Tendering System. 

2) Implementation 

i. Business Process Automation 

1. Once the business processes are implemented, the company who 

automated the business processes should manage the IT department for 

at least two years. The automation should be done in two phases. After 

the first phase is over, future enhancements and modifications required 

by users should be done. 

ii. 

Hardware 

1. Hardware should be procured from two different companies. 

288


Cost Estimates for Computers and Networking at Terminal Market, NasiK 

Desktop 

(Nos) 

Printers 

Dot Matrix 

(Nos) 

Laser 

(Nos) 

Servers 

(Nos) 

DataStore 

(Nos) 

Tape 

Backup 

(Nos) 

Grand Total 

(Nos) 

Fruits Halls 

2 1 

Vegetables Halls 

2 1 

PO hall 

2 1 

Crates and 

Dispaches Section 

2 1 

Security 

2 2 

HR 

3 1 1 

Finance Division 

4 1 1 

Bank 

Ripening Chamber 

1 1 

Cold Storage 

2 1 

Produce Receiving 

4 4 

Produce Dispatch 

Section 4 4 

Operations 4 1 1 

Backward Linkages 6 1 1 

IT Division 6 1 2 4 1 1 

Electronic Auction 

(2) 6 2 0 2 

Others 12 3 3 

Total Nos 62 26 9 6 1 1 

Unit Cost 45000 4000 15000 130000 70000 45000 

Total Amount in Rs 2790000 104000 135000 780000 70000 45000 3,924,000.00 

Financial Statement 

Unit 

Cost 

289


Router 

Switches 

Cabling (Cat V or 

Latest Tech) 

Contegency 

Total 

Hardware 

Networking 

1.00 150,000.00 150000 

10.00 80,000.00 800000 

1000000 

881100 

6,755,100.00 

3,924,000.00 

2,831,100.00 

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CHAPTER – XIV 

MANAGEMENT OWNERSHIP 

Success of any business and organization depends on its management system. 

Ownership structure and its professional approach in managing the activities is key to 

success for any venture. In agricultural marketing, the problem of unorganized, 

inefficient and non-professional approach towards management of markets is well 

known. 

Wholesaling as well as retailing has its own problem in the process. 

Wholesaling is largely monopolized by APMC managed markets and operations by 

licensed traders and as such, managing authority concentrate on collection of market 

fees and no service is provided to the stakeholders. In this background, it has been 

proposed by Govt. of India through its Modal Act and resultant ratification by State 

Govt. that private markets should be allowed to be established. 

TYPE OF MARKET OWNERSHIP 

Alternative institutional strategies for the ownership and management of a market will 

need to be fully examined before selecting the ideal form. This might be a parasitical 

public enterprise, a private corporation or company, a cooperative or traders' group, 

or a combination of these. The choice will determined by local socio-economic and 

political factors, but the principal options are discussed here to provide a basis for 

evaluating their relative merits. A joint venture is often the most appropriate form. 

Marketing corporations. A traditional approach to the problem is to establish a 

marketing corporation or authority (sometimes called a public benefit corporation). 

However, there are now pressures to reduce rather than increase the number of 

parasitical corporations. Public corporation performances are frequently poor and 

their operation bureaucratic. Because markets involve politically sensitive basic food 

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commodities, such corporations cannot avoid government participation in much of 

their decision-making. This might lead to excessive control and interference. For a 

public corporation to implement new operational regulations commonly requires 

legislation, for which legal drafting and legislative processes may be protracted. For 

these reasons, management by a state corporation is not generally recommended. 

Limited-liability companies. For the establishment of a limited-liability company, 

shareholders need to be identified and the directors would require a share holding 

qualification. This might not be feasible in a management structure where it is 

necessary to have a broad spectrum of expertise gathered together from both the 

private and public sectors. Private companies are flexible institutions, but their 

formation does not completely free a venture from detailed procedures, as it will still 

need to comply with the provisions of legislation. 

Although a wholesale market may be set up on an alternative institutional basis, 

when it is fully functional and operating at a profit there may be pressure to pass the 

operation to the private sector. In the short term, when there are marginal financial 

returns, it may not be possible to attract willing investors. The registration as a limited 

company may be the long-term aim, but not necessarily a practical solution to 

immediate management demands. 

Cooperative societies A cooperative society is another possibility for establishing a 

market, but must be viewed critically as it may not answer the need for effective 

management. Cooperatives often have a poor record in the management of markets, 

although it must be stressed that this varies substantially between countries, to the 

extent that some of the most successful markets in the world are cooperative nun. 

A cooperative of wholesale traders is the most common form, but may be counterproductive; 

self-interest dictating behaviour which is detrimental to the needs of both 

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producers or consumers. Often, a buying and selling ring is created, keeping prices 

down for the producers and high for the retailers and consumers. Again, there are 

exceptions to the rule. The cooperative format is often the most appropriate method 

for a grouping of producers. It facilitates the concentration of produce at collection 

centers and the organization of joint transport to market. Other examples of 

cooperative ventures include markets established and run by religious organizations, 

friendly societies charities and ex-servicemen’s organizations. 

Local authorities. The most usual form of market ownership is by a state, local or 

municipal authority. These often have the power to establish and regulate markets, to 

lease space, charging fees as necessary, and to clean the market area. Although 

there are a number of significant exceptions, control solely by a local authority is 

unlikely to be the best management system for an urban wholesale market. 

Experience has shown that the main motivation of many local authorities is to 

maximize local revenues. Space is often let to retailers of commodities quite 

unrelated to agriculture, thus defeating the objective of a food market. However, as 

the relevant local authority, the municipal government will need to be represented on 

any proposed management forum. 

Development boards: Legislation often exists for the establishment of a 

development board. This particular institutional format, one step beyond the standard 

government departmental organization, offers greater administrative flexibility in the 

management of specific projects. The principal advantage of this form of institution is 

that the authority has to be self-accounting. Staff may, however, need to be 

appointed in accordance with government rules. This can allow management to 

remain closely tied to government for an interim development period while, in the 

light of experience; the final format of the market management system is evolving. 

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By special statute: Markets can also be created under Special Statute, which 

enables an institution to be created exactly matching particular local requirements. 

Such a measure could be used to establish a market authority and define the area 

within which it would be the sole authorized location for wholesale produce 

transactions. The main components included in a Special Statute might be a 

definition of the board representatives and their powers, the establishment of a selfaccounting 

fund, the setting of regulations and the prescribing of penalties. This 

approach is often an ideal mechanism because it can accommodate the most 

appropriate mixture of private and public participation, allowing a mixed form of 

ownership, and equally importantly, a system for joint financing. 

Short-term measures: The legal form in which a marketing institution might be 

created will need to be examined in detail. If appropriate measures already exist this 

obviates any operational delays that might occur whilst awaiting government 

approval for specific enabling legislation, such as a special statute. If a project is to 

proceed immediately there may be a need for such an interim institutional 

arrangement, but care should be taken that this will not preclude a more satisfactory 

long-term arrangement. A development board is often the most flexible form of initial 

institution. 

RECOMMENDATION: 

The Govt. of Haryana has allowed private sector to invest, manage and trade through 

development of their own modern markets establishing backward and forward 

linkages. Under this provision, now development of Modern Terminal Markets for all 

agricultural commodities have been allowed by any organization or body of corporate 

under State Act, Govt. corporations, company registered under companies act 1956 

directly or through any organization set up by it or in association with Farmers 

Association / other organization by inserting a new section under chapter V i.e 

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section ‘ A’ and sub section (1). This amendment would not only enable investors by 

development of private markets in the country but would also ensure efficiency and 

bring professionalism. 

For proposed Modern Terminal Market at Rai it is desirable to propose a system of 

management which qualifies on following parameters: - 

• (i) Professional approach 

• (ii) Deep insight and knowledge about fruits and vegetable trade 

• (iii) Capacity to invest 

• (iv) Available manpower 

• (v) Network through out country 

• (vi) Sufficient Infrastructure 

• (vii) Bulk and retail handling experience 

• (viii) Interest in Public-Private Partnership for market management. 

A criterion for identification of organization has been discussed by the consultant with 

various stakeholders and industry people. On the basis of above various alternative 

options have been suggested for final selection of the model. 

The consultant has been asked to prepare report, keeping in view HSAMB in mind 

and propose suitable structure of management for the said market. 

HSAMB has been identified as one of the most potential organization, which can 

qualify all criteria stated above and has the liberty to operate with private sector 

participation. Actual Management Authority may be different in terms of governing 

day to day activities of the said terminal market which is proposed and subsequent 

paragraphs. 

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Based on aforesaid analysis it is suggested that HSAMB should invest, developed, 

own, manage and operate the said terminal market at Rai with any of the model 

suggested below. 

Proposed Options 

Option - I - Joint Venture Company 

(Two partners – Govt. Owned Organization and 

Private Entrepreneur 

Option - II - Joint Venture Company 

(Three partners – Govt. Owned Organization, 

Private Entrepreneur and Financial Institution 

Option – III - Fully Owned and Managed by Govt. 

Organization 

Option – IV - Owned by Govt. Organization and Managed by 

Private Entrepreneur 

Option – V - Fully Owned and Managed by Private 

Entrepreneur 

Proposed structure of management is in order of priority. 

The best model 

contemplated to be most efficient and convenient is Joint Venture Company (JVC) 

between two partners, preferably one Govt. organization and another private 

entrepreneur. Joint company, would be more appropriate structure more particularly 

in this case as HSAMB has large strength of manpower and bulk handling 

experience with outlets and infrastructure in country and outside. The people need 

to be tuned and trained to suit to the changed professional environment that available 

with private sector. Although there has not been much encouraging response from 

private sector to invest in this field as long gestation infrastructure development 

creates hindrance. 

However, strategic location of Rai being adjacent to Delhi and 

one of the best hub of horticulture in the country as well as futuristic development of 

business provides an opportunity to attract private investment and sharing in 

management of proposed auction centre. 

It would be appropriate to firm a separate 

company which can undertake the operations and management while ownership 

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remains with the HSAMB. The company will equally share the powers and 

responsibilities and become proportionate share holders of the company. Loan from 

the bank can be raised by HSAMB availing due subsidy and through a MOU both 

partners can share the equity. For this purpose HSAMB can invest 100 percent while 

day to day management being with private sector. 

HSAMB can have option to 

divert its share in favour of private sector partner or in favour of other stakeholder in 

future or vice versa. 

Any other pattern of shareholding may also be examined 

keeping in view the capabilities of both partners and future agenda as suggested in 

next chapter. 

Management of Market: 

The joint venture company will appoint a team of regular personal drawn from 

HSAMB (10%) and recruited directly (50%) for the project. Till appointment process 

and training is over interim arrangements may be made which can start working with 

the farmer immediately to ensure their whole hearted involvement. The promoters 

will also appoint the Board of Directors for managing the affairs of the company. 

Besides the nominee of the promoters representatives of Farmer association, 

Institutional buyers, Traders, Financial institutions, Transporters and Service 

providers may be included in the board of directors. 

Market management boards 

Every market requires an overall control and policy body. This is typically a 

management board. 

Composition of the board: For a central wholesale market it is usual for the 

membership of the board to broadly cover the following sectors: fruit and vegetable 

producers; consumers; banks and credit organizations; local government; central and 

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regional administrations; traders; cooperatives; and users' organizations, such as 

retailers and hoteliers. 

Commercial representation on the board might be from the local chamber of 

commerce and from wholesale traders who are licensed to operate in the market. 

These may be elected by a local association of traders, although if this does not 

already exist it may need to be promoted by the market authority. 

Government representatives are usually drawn from the local ministry of agriculture, 

as technical advisers on food and agricultural marketing services, on horticultural 

matters and on quality control. Representation is also sometimes given to the police 

and public works departments, because of the importance of traffic control and waste 

disposal. Although these are important issues they can best be covered by an 

appropriate form of liaison, thus limiting the overall size of the board and reducing the 

influence of government bodies. 

Chairing the board : the election (or sometimes appointment) of the chairperson of 

the board is a critical step in a market's establishment. 

Board meetings: Meetings would normally be convened by the chairperson as and 

when required, with more in the early years of market establishment than in 

subsequent years. A schedule of quarterly meetings is quite commonly adopted, but 

if producers' representatives are in dispersed locations this may have to be reduced 

to two meetings a year. Key appointments, the annual budget and the setting of fees 

and charges should require full board approval. The board can also, however, be 

represented on management information committees, which would meet as and 

when required. Board members are usually paid attendance fees in accordance with 

those paid by similar institutions. 

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Powers of the Board: 

Apart from overall administration of the market, the members would also contribute 

towards establishing trading system, maintaining systems for services, registration, 

condition of lease, contracts, rents, parking fees, penalties etc. 

4. PERSONNEL /ORGANISATIONAL STRUCTURE 

BOARD OF DIRECTORS 

1 

MANAGING DIRECTOR 

(CEO) 2 

GENERAL MANAGER 

(WHOLESALE) 

3 

GENERAL MANAGER 

(AUCTION) 

HRD 

FINANCE 

ADMN 

4 

Marketing 

team 

Logistics 

Procureme 

nt 

Quality 

Outlet 

technician 

Technical 

Manpower set-up for Market: 

There will be one Chief Executive Officer for day-to-day management, who will be 

appointed by the Board of Directors. Organogram depicted above shows a set up of 

various departments in two broad categories namely, (a) Wholesale Market (b) 

Auction Center. Each department will work in close coordination and contribute 

towards efficient working of the market. Specialization of performance, specific 

functions will be developed separately according to the need of infrastructure. 

The 

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Chief Executive Officer should have wide experience in the field with zeal to drive 

and convert vision into action. 

according to their capabilities. 

He should motivate the staff and depute them 

Administration, finance and human resource 

development would be looked after by one senior level officer preferably, designated 

as general manager (Wholesale Market) who will also take care of administrative 

requirement of collection centers and sales outlets. 

As proposed 10 percent of staff would be drawn from HSAMB it is essential to 

organize training to improve their efficiency, skill, motivation and bring 

professionalism. 

The change in attitude of people towards the management, 

marketing, cleanliness of market and customer care is essential. 

Therefore, training 

on modern management technical, communication skills, quality consciousness, 

leadership style, management of change and tasks and responsibility with least 

stress and strain is paramount important. 

The functions of finance department would be budgeting, accounting, dealing and 

disbursement etc apart from the normal activities the section would also take care of 

cash, management of receivable, profit and loss account and control system. 

The 

general administration will work directly with CEO and would be contributing towards 

traffic management, surveillance, complaint handling, security, cleanliness and waste 

disposal etc. 

Table 7.1 Check-list of typical working at a major wholesale market 

General Manager Auction Hall Manager Cold Store Manager 

Deputy Gen. Manager Chief Auctioneer Maintenance Manager 

Management Info. Officer Auction Assistants Maintenance Engineer 

Administrative Officers Auction Cashiers Mechanics 

Accountant Auction Hall Clerks Electricians 

Accounts Assistants Computer Operators Plumbers 

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Secretaries/Typists Training Officer Labourers 

Clerical Assistant Packaging Supervisors Cleaners 

Farmers' Market Inspector Packing Clerks 

Sweepers 

Entry Supervisor Grading Clerks Porters 

Tally Clerks Senior Security Officer Handcartmen 

Toll Collectors Security Officers Car Park Attendants 

Storekeepers Watchmen Gardeners 

Hostel Supervisor First Aid Nurse Drivers 

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CHAPTER – XV 

PROPOSED HOLDING AND OPERATIONAL STRUCTURE 

Consequent upon the presentation on draft report for Patna before the Secretary 

(A&C) on 25.05.05 and it was decided to work out more specific holding and 

operational structure for ownership and management of Terminal Market as well 

as for Collection Centres. YES BANK was mandated by to suggest an optimal 

holding and operational structure for the proposed Nashik Terminal Market 

under the principles of Public Private Partnership in such a manner that both the 

commercial as well as the social objectives of the project are achieved. 

It was examined and found that development of this pilot project at Patna on 

principles of Public Private Partnership (PPP) requires greater role from 

government at initial stages. Progressive larger involvement of private sector at 

later stages can be envisaged based on the performance of the project and 

achievement of slated objectives. The project set up structure therefore assumes 

full government ownership for Terminal Market and Collection Centres with 

operations and management being competitively bid out to the private sector. 

The terminal market and collection centres are proposed as two separate 

companies with collection Centres Company being a subsidiary of terminal 

market company. Upon commencement of operations, a minor stake can be 

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offered to private sector in these companies (through growers association and 

O&M operator) while government still retains the majority (through the process 

of increase of authorized capital). Upon stabilized operations being set in (the 

criteria can be multifold and can be agreed upon by government considering 

various factors) an ideal ownership structure has been suggested. A couple of 

other alternative structures that were evaluated have also been described. A 

transparent bidding mechanism has also been suggested in foregoing 

paragraphs. 

Key Assumptions 

The key assumptions on which the optimal holding and operational structure 

has been built are the following: 

Government’s prime objective is to establish an efficient terminal market. It has 

been assumed that the government’s prime objective is to establish an efficient 

terminal market where there would be facilities that are required for cleaning, 

grading, sorting and storage of fresh produce accompanied by a transparent 

price discovery mechanism using state of the art technologies leading to all 

stakeholders benefiting from the entire process against the present imperfections 

in the marketing systems. 

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Government shall play the role of facilitator for the terminal market. It has been 

assumed that the government would play the role of a facilitator in the setting up 

and running of the terminal market in the spirit of Public-Private Partnership 

(PPP). This would ensure the social aspect of the proposed project while the 

Private enterprise would be able to achieve its commercial objectives and make 

the terminal market commercially viable and profitable. 

Government shall invest in equity of the proposed project. For efficient 

operations and professional management of the project, the government shall 

consider dilution of its effective stake vis-à-vis the private entity in the project 

company by progressively increasing the authorized share capital. 

As mentioned in the aforesaid point, the government has been assumed to 

provide the initial capital in order to kick start the process and involve the 

private sector participants in the functioning of the terminal market. 

Progressively, however, the government intends to bring in enhanced efficiency 

and professional management by greater involvement of the private sector. The 

terminal market has an established viability as indicated in the DPR. 

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Institutional structure 

The following is an analysis and recommendation of the proposed institutional 

structure that is the most pragmatic and suitable model out of the various 

models possible. 

Business Model Envisaged 

The most suitable institutional structure would be in the form of a Hub and 

Spoke Model wherein the Terminal Market (TM) will be set up as the hub (in 

Nashik) and Collection Centers (CC) spread across a 25 km radius around the 

hub. The distance of 25 kms has been arrived at keeping in mind the optimal 

radial distance up to which the farmer’s cost of transportation and availability of 

various other options do not overweigh the returns expected from the terminal 

market. 

Role of the Terminal Market and the Collection Centre 

The Terminal market would perform the main function of conducting the 

auction of the fresh produce as well as ancillary functions of grading, storage, 

packaging and selective retail. The Collection centre would, on the other hand, 

perform the main function of consolidation and aggregation of produce from 

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growers and ancillary functions of sorting, price display of auction markets and 

cash settlements to growers. 

Corporate structure 

In the structuring of the terminal market corporate structure, it has been 

envisaged that both the Terminal Market as well as the Collection Centre would 

have a Company form of structure which would permit the following 

flexibilities: 

That the Company, being an incorporated or registered association of persons, is 

amenable to representation from the various participants (government, grower 

associations and private enterprise). 

The Government would have significant stake in the development phase of the 

project. The government would initiate and plan the project as well finance major 

site infrastructure components. 

Government’s role in the development stage would enable standardization for 

appropriate institutional arrangements, regulation and development of 

operational procedures and systems for the terminal markets and collection 

centres keeping stake holder’s interests in mind. 

306


It would require private sector to establish itself progressively as the current 

legislation and incentives for attracting private sector participation in agriculture 

sector are still in an evolutionary phase. Towards this, the challenge is to migrate 

large scale infrastructure project development approaches with PPP principles 

into the agriculture sector. The suggested structure is an attempt towards the 

same. 

The Operation and Maintenance (O&M) activities of the terminal market can be 

outsourced to the private enterprise through O&M contract. This would provide 

the terminal market access to the efficient operations of the private enterprise 

thus kick-starting PPP while at the same time range-bounding the commercial 

interests of the private enterprise within acceptable parameters. This would also 

enable reliable and efficient services to the farmer as a consumer reducing his 

disguised costs and working towards sustainable farmer empowerment and 

entrepreneurship development. 

A separation of management from ownership can be affected in the company 

charter to enable broad-basing of the management along professional lines and 

achievement of objectives as outlined in B&C above. 

307


The company can be fully owned and managed by the private enterprise in due 

course. 

Ownership structure 

The proposed ownership structure for TM and CC companies has been 

developed based on the following considerations: Criteria that qualify an entity 

for Government grant. 

Adequate Representation of private enterprise (to ensure commitment and 

sustain interest over a period of time. 

Autonomy to outsource functions and increase authorized capital in favor of 

private enterprise1. 

Tax efficiency 

The suggested structure is as follows: 

Ownership of the TM shall reside in a company (X) and that of CC in a company 

(Y) while the Operation and maintenance works shall be carried out by an O&M 

308


company (Z). The private enterprise shall have complete ownership and control 

of ‘Z’2. 

Dynamic Ownership Structure 

Under the Dynamic Ownership Structure envisaged the ownership of the 

companies X & Y can be changed progressively post the commencement of 

operations during its consolidation and growth phase of the project. An 

important factor that will determine the extent of private sector participation in 

ownership of X & Y shall be the mutual comfort that the growers associations 

and the private enterprise develop for each other 

Phase structure 

The dynamic ownership can be evolved over various phases as explained below: 

Phase I – Ownership during construction stage 

Entity 

Terminal 


Effective 

Government/State 

Government entities 


Market Company (X) Centres (Y) Equity in Y 

100% 0% 100% 

- 100% - 

Company (X) 

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Terminal Market Company (X) - The government shall own the entire 

shareholding in ‘X’. The government equity includes equity from state 

government through its agencies. The equity could be by way of land provided 

by state government. 

Collection Centre Company (Y) - Company Y will be a wholly owned subsidiary 

of Company X. 

Phase II- Ownership post commencement of operations 

Entity 

Terminal Collection Effective 

Market 

(X) 

Centres 

(Y) 

Equity 

in 


Y 

Min 76% 0% Min 58% 


Private Enterprise incl Growers 

Upto 

24% 

Association 

Terminal Market - Company (X) - Min 76% - 

Upto 24% Upto 

42% 

Terminal Market Company (X) - Government reduces its effective stake in ‘X’ in 

favor of private enterprise (including growers association) upto 24% by 

increasing the authorized share capital of X. It shall however continue to have 

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majority stake in ‘X’. The OM company (Z)¸ executing the O&M contract , shall 

have the right of first refusal to subscribe to the increased share capital. 

Collection Centre Company (Y) – X shall continue to have majority stake in Y. It 

will however reduce its stake in favor of Private enterprise by increasing the 

authorised share capital of Y upto 24%. The Growers Association shall have the 

right of first refusal to subscribe to the increased share capital3. 

Phase III- Ideal Ownership Structure after Stabilized Commercially 

Sustainable Operation has been effectively established 

Entity 

Terminal 


Effective 

Market (X) 

Centres (Y) 

Equity in 


CC 

0% 0% 0% 


Private Enterprise 74% Upto 23% 43% 

Growers Association 26% Min 51% 57% 


- Min 26% - 

Company (X) 

During this phase, the Government can progressively dilute its stake in 

Company X with an option to exit totally through an increase of authorized share 

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capital. An ideal structure could be entire private sector ownership through 

different stakeholders. It would be desirable to have X’s stake in Y to ensure 

uninterrupted supplies to X. This can be offered to private enterprise or to 

another strategic investor. Company X’s share in Company Y can also be 

progressively reduced in favor of Growers association. 

Shareholders 

Agreement 

Terminal 

Market 

Company 

X 

Shareholding 

Agreement 

O & M 

Contract 

Government / 

State Government 

O& M 

Company 

Z 


Centre 

Company 

Y 

Shareholders 

Agreement 

Private 

Enterprise 

Growers 

Association 

Figure 3: Diagrammatic Representation of An Ideal Ownership Structure 

O & M Company 

The O & M contract to be executed over next five/ ten years shall be awarded to 

the private enterprise through a competitive bidding process. The O & M 

contractor shall be obligated to: 

312


Develop and promote trade through the terminal market. Efficiently manage, 

make available and maintain the terminal market facilities consistent with 

prudent standards of safety and technical sufficiency. 

Provide non 

discriminatory access of the facilities to the users 

Provide the necessary resource for the operations and maintenance of the 

terminal market. 

The contract can be bid on the basis of Royalty payable per tonne of agriculture 

produce handled by the O & M contractor subject to a minimum of an amount 

annually. The minimum amount payable to Company X shall be worked out on 

the basis of the amount required by the terminal market to pay for its operations 

and service its debt obligations. The royalty payable shall be escalated every 

three years by an appropriate index. 

O & M Contract 

The detailing of the O & M contract shall be critical to the effective participation 

of the private enterprise in the project. 

The O &M contract could be bid by a single company or through a joint venture 

between two or more companies. The successful bidder (one who bids the 

313


maximum) shall have to form a distinct O &M company (Z) to execute the 

contract. Amongst other obligations, the following would have to be met with: 

The O & M Company (Z) shall provide a performance guarantee in favor of the 

Terminal Market Company (X) 

The sponsors of the O & M Company shall be obligated to not to dilute their 

shareholding to less than 51% for a period of ten years. 

The O & M Company (Z) shall have to augment capacity to maintain delivery 

standards. 

In the event of default, the O & M contract shall be terminated and 

the performance bank guarantee of Company Z shall be invoked. The 

performance of the O & M contractor could be benchmarked against various 

indicators. These might include: 

Increased per capita consumption of fruits and vegetables in line with national 

basic-needs targets; Expanded production areas for fruits vegetables and related 

increases in producer's incomes; and Lower consumer prices for fruits and 

vegetables, accompanied by a leveling-out of seasonal fluctuations in consumer 

prices. 

Increased forward linkages (with retailers and processors both at the 

domestic as well as international markets). 

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4.3 Perceived Benefits 

The perceived benefit from the proposed system of dynamic ownership and 

management will be the following: Provide the best value for the investments to 

the Government. Ensure a fair degree of the competition to the private 

enterprise. 

Enable the private enterprise to operate freely with a well defined path for 

growth and ownership. 

Reduce the welfare interventions by governments over a phased manner. 

Ensure/give remunerative prices to the farmers for their produce and realization 

of their payments on the spot. 

Reduce the price gap between the producer and consumer, help in stabilization 

prices of the agricultural commodities at reasonable level to the advantage of 

farmers and save farmers from making distress sale of their produce. 

Operating model 

The enunciation of the operational model and the various operational functions 

of the holding structures is very important keeping in view the execution of the 

315


project. Towards this end, YES BANK believes that the functioning of the 

Terminal Market Company (‘X’) will be Strategic in nature while the functioning 

of the O&M would be Tactical to start with but move gradually towards a 

Strategic role (as equity participation increases). 

5.1 Functions of the Terminal Market Company (X) 

The function of the Terminal Market Company(X) has been envisaged to be the 

following: Ensure overall development of market with stakeholders interests in 

mind. 

Collection of the revenues by way of taxes and other charges as may be required 

under law from market participants. 

Monitoring of the O & M Company 

Establishment of proper trading systems 

Issuing of licenses to traders and retailers 

Recruitment and hiring of TMC personnel 

Imposition of various penalties as may be applicable under law in the form of 

fines, expulsions and withdrawal of trading licenses. 

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Liaison with the District Administration and Agricultural Bodies. Enabling the 

flow of produce into the market through suitable market and non-market 

interventions such as Village Extension, Collection and Monitoring of Prices, etc. 

Monitoring of <strong>Project</strong> Implementation 

Functions of the O&M 

Ensure smooth operations (such as Traffic Management, Weighment, Loading 

and Unloading operations, Sorting, Grading, Packing and Dispatch) in 

accordance with the provisions of the contract with the TMC. 

Conduct inspection of produce, undertake repair and maintenance of machinery 

and buildings in the market premises. 

Facilitate the smooth running of MIS 

system to enable regular collection and analysis of prices and arrivals in the 

market. 

Work in close coordination with the TMC for implementation of 

decisions concerning the market. Take appropriate steps in order to ensure 

safety in the operations and security of the premises. 

6.0 Bidding Mechanism 

The O&M contract shall be awarded on competitive bidding by the terminal 

market company. The prequalification for the prospective bidders shall be done 

317


on the basis of technical and financial criteria. The O& M contract could be bid by 

a single company or through a joint venture between two companies. The 

Contract can be bid on the basis of royalty payable per tonne of produce handled 

by the O&M contractor subject to a minimum payment of an amount annually. 

The royalty payable shall be escalated every three years by an appropriate index. 

An indicative two stage bidding process is as given on the next page. 

318


The selection of the O & M Contractor shall be through a bidding process. The 

key steps involved in this phase are presented in the following figure 

Steps involved in Bid Process Management 

Design of the 

Bid Process 

Managing the 

Bid Process 

Induction of 

the Preferred 

Bidder 

Design of the Bid Process 

The process of selection of the private sector participant through an independent, 

unbiased and competitive process is referred to as bid process management. The 

bid process would be designed in such a way that private participant with the 

following competencies would be selected ultimately. 

• Technical capability and has demonstrated track record in operating 

projects of similar nature, 

• Financial capability to invest in the equity of the Terminal market and 

Collection centre company, and 

319


• Provides the best terms to the government/ is able to ensure that 

government objectives for developing the project are met in the best 

possible manner 

Typically the Bid Process would be two staged with the first stage resulting in a 

shortlist of private sector participants who are capable to operate the terminal 

market. This is called the pre bid stage. The second stage would involve the 

bidders providing techno-commercial bids based on the bidding criterion 

decided by the TM company. These bids would be sealed and would typically 

contain a response to the bid variable. 

Step 1: Managing the Bid Process 

Managing the Bid Process designed along the principles laid down above in the 

highest standards of transparency, objectivity and independence needs to be 

ensured. The typical steps involved in a two stage bidding process are shown in 

the following figure: 

Steps involved in a two stage bidding process 

Invitation of Expression of Interest 

Discussions with Potential Bidders 

Preparation of RFQ Document 

Bidder Conference 

Evaluation & Short listing of Bidders 

Preparation of RFP Document 

Bidder Conference 

Presentation and submission of Bids 

Evaluation & Ranking of Bidders 

Negotiation with top ranked bidders 

Selection of a preferred bidder 

320


Step 2: Inducting the Preferred Bidder 

• The O & M agreements (for operating and maintaining the terminal 

market) to be signed between Terminal Market Company and the 

successful bidder will be prepared. 

Deliverables: 

• Draft Advertisement for release 

• RFQ Document 

• Evaluation <strong>Report</strong> for Applications Received 

• RFP Document 

• O& M Agreement 

• Evaluation <strong>Report</strong> for Proposals Received 

7.0 Viability Analysis and Financial Estimation 

The financial analysis and risk assessment is based on the financial model 

provided by NIAM. The model, its formulas and linkages have been assumed to 

be correct and no financial auditing of the model has been done as it is beyond 

the scope of the current project. Likewise the cost related assumptions have been 

assumed to be correct. The analysis is done considering PPP as the model for 

developing and operating the project. 

Base Case 

The base case analysis can be summarized as under:- 

321


Financial Parameters of the <strong>Project</strong> 

Sn Particulars V alue 

1 Debt Equity Ratio 1.60 

2 Debt Service Coverage Ratio 1.82 

3 Pay Back Period (Years) 10.00 

5 Break Even Point (%age) 46.68 

6 Cash Break Even Point (%age) 28.79 

7 IRR (in %age) 17.25 

Avg DSCR for Repayment Period 1.82 

Cost of <strong>Project</strong> and Means of Finance 

Sn Particulars Amount (Rs. In Lacs) 


1 Land 420.00 

2 Building and Civil W ork 2313.96 







8 W orking Capital Margins (on the basis of IInd 

350.00 

year of Operation at 50% capacity Utilization) 

Total 5996.37 



2 Subsidy 1411.44 


Total 5996.37 

322


Throughput Analysis 

The throughput (of fruits and vegetables) is assumed at 1000 Tons per day at full 

capacity. The full capacity is assumed in 4th year of operation. The following 

chart summarizes the capacity built up of the project: 

Year 1 3 4 5 6 7 8 9 10 

Basis 

No. of Days in Operation 300 

Arrival per Days (M.T.) 1000 Sensitivity swirtch on arrivals 100% 

Capacity in Lacs M.T. at (100%) 3.00 

Utilisation in %age 20% 50% 80% 100% 100% 100% 100% 100% 

Based on the above a comparison was made with the total throughput of F&V at 

the existing Mandi at Nasik. The key observations are as under: 

• The total throughput for this project is assumed at 200 Tons per day for 

the first year. This is less that 5% of the average last two years throughput 

of Nasik Mandi. 

• At full capacity operations of the project, the total throughput assumed is 

approximately 11% of the average last two years throughput of Nasik 

Mandi. 

• The throughput assumptions therefore, appear of be achievable and upon 

efficient functioning of the project at full capacity on PPP principles 

should be possible for the O&M private sector strategic operator to exceed 

these levels. 

323


Cost Assumptions 

The detailed analysis of costs both construction and maintenance is beyond the 

scope of current assignment. Therefore the costs given in the financial model 

have been assumed as correct. 

Financing Assumptions 

The key financial assumptions have been summarized in the table above. 

The irrs have been worked out based on the project cash flows and the linkage to 

the initial investment as well as to the terminal values has not been assumed. The 

same needs to be calculated on the basis of a terminal value of the project and a 

linkage to the equity irrs for getting a more realistic estimate of the same. 

The interest rate for project debt have been assumed at 6.75% per annum with a 

two year moratorium and a ten year repayment period. The average DSCR in the 

base case is 1.82. We have calculated year to year DSCR and observe that the 

annual DSCRs fall below the acceptable levels in the first two years of operations. 

Therefore we believe that these assumptions we believe are on the aggressive 

side. It will be difficult to obtain a twelve year debt at the price mentioned from 

commercial channels. As also due to DSCR falling below the acceptable levels 

(more than 1.2) 

324


One of the key risks of the project is the Supply Risk. This is further dependent 

on the Performance of the project as also the general market supply and demand 

conditions. The pricing considered for a twelve year loan at 6.75% per annum 

appears conservative in this context. 

Therefore sensitivity was run assuming two cases:- 

Interest Rate assumed at 11%- Average DSCR is 1.60. 

Interest Rate assumed at 10% - Average DSCR is 1.65 

In both the above cases, the annual DSCRs for the first two years of operations 

are much below the acceptable levels. 

Further, as mentioned earlier, it will be difficult to obtain a twelve year debt for 

the project considering its present risk profile. Therefore, a detailed financial 

analysis of the project seems necessary to look at debt financing with shorter 

tenors (five year to seven year inclusive of moratorium) that seem more realistic 

to achieve. 

It is also important to mention here that in context of financing of the Terminal 

Market, it was assumed that entire financing would be arranged by government 

and/or its agencies. Therefore, while we are not commenting on the financing 

arrangements, the observations that are relevant from debt perspective and as 

they appear in the financial model have been brought out and commented. While 

325


during actual planning and implementation stage of the projects, it may become 

necessary to look at these debt and viability considerations in detail to ensure 

that the private sector participation in the holding structures as suggested are 

ensured and no issue arises from the project viability and debt financing 

perspective that has a bearing on the private sector equity interest in the 

suggested project structure. 

Collection Centres 

In the present financial model, there is no provision for the Collection Centres. 

However, it will be necessary to structure an appropriate supply mechanism that 

assures quality supply of F&V to the Terminal Market. These collections centres 

can operate under two basic mechanisms:- 

As Independent Profit Centers – In this mechanism, the CC will be set up and 

operated by an SPV that operates independently of Terminal Market. It can itself 

decide on where to supply the procured throughput based on price 

considerations. Therefore, it can supply to the terminal market, existing mandis 

or independently to individual/corporate customers. While this mechanism can 

induce the Terminal Market to work efficiently and give a better price to CC, this 

has significant risk from the Terminal Market viability point of view in case the 

Operator of the terminal market and the CC are independent. Therefore to detail 

326


this option, an appropriate common operator model for the CC and terminal 

market will be required. 

As a subsidiary of terminal market company – In this mechanism, the CC 

company will be set up as a partially or wholly owned subsidiary of terminal 

market company. The CC will be obligated to send the entire qualifying products 

that have been procured to the terminal market. It will get a transaction fee for 

the work performed. In this case while the performance risk of the terminal 

market is reduced, there income of CC is directly a factor of throughput supplied 

to the terminal market. There can be another option where the CC company 

even being a subsidiary works as an independent profit centre. 

In both the options above, and their variants, there will be a need to structure a 

common link between the operators of terminal market and the CC. This link can 

either be obligatory thru a contract or implicit be creating a common equity 

holding by the operator in both Operating SPV of terminal market and the CC 

company. 

A detailed financial analysis and structuring exercise will be required on the 

Collection Centres before a more definitive view can emerge. 

327


Summary of Key Risks in the Terminal Market <strong>Project</strong> 

Sr. RISK RISK Details Mitigation 

No 

1 Performance Efficiency and Private Sector to undertake 

Risk 

management of the O&M under an O&M SPV. 

terminal market is the Selection of PSP on the basis 

key to ensure its of bidding 

viability 

2 Throughput 

Risk 

Arrival of quality F&V 

through CC in the 

terminal. Factor of 

efficient price 

discovery in terminal 

market and overall 

availability of F&V in 

the market 

Equity holding structures of 

O&M SPV and CC can have 

common PSP. Else a 

contractual obligation for CC 

to supply to Terminal market 

3 Market Risk Demand for the price Efficient price discovery in 

terminal markets is based on 

the market demand that is 

well understood by the 

traders. 

4 Financing Risk Equity and Debt for 

the Terminal Market 

SPV 

Not an issue in case govt put 

in the entire financing 

through subsidy and equity 

(no debt). There appears 

some issues in case debt is 

required for the project set up 

and will require a detailed 

due diligence as mentioned 

earlier in this chapter. 

328


Key Success Factors 

As suggested in this report, the terminal market holding structure has been 

structured considering the socio economic factors influencing the Indian 

agriculture sector and the important objectives of farmer empowerment and 

entrepreneurship development (by linking farmers to the demand side of the 

food value chain) while striving to provide the state of art modern marketing 

facility. However, the project‘s success depends upon the following key factors 

which would need to be seen closely to make the outcome a true mirror of the 

stated objectives of the project: 

A. Financial viability of the project 

B. Watertight O & M contract 

C. Legally binding shareholders agreement 

D. Separation of management functions and ownership functions 

E. Dilution of the government shareholding along suggested lines 

F. Sustained government role as a facilitator 

329


CHAPTER – XVI 

IMPLEMENTATION OF THE PROJECT 

Once the <strong>Project</strong> Framework has been made, its implementation holds a key. This 

involves the activities involved, the time frame, Scheduling and actual 

implementation. It’s very important firstly, to well define the activities involved 

and then prepare the scheduling for the actual implementation accordingly. 

Activities 

The implementation strategy for the project involves three types of activities: 

• Construction, Improvement and Development of the Physical 

Infrastructure 

• Developing the Commercial Facilities by marketing and sales of shops 

and the existing facilities 

• Development of organisation and the systems. 

Scheduling 

The first two activities are interrelated and hence require to be scheduled at the 

same time. 

These activities, therefore, have been represented in a combined 

PERT CHART. The third activity has been depicted separately. The scheduling 

330


of various activities in two PERT CHARTS has been done keeping in view the 

interdependence of factors of each. 

<strong>Project</strong> Undertaker 

The implementation of the project would be taken by a separate company 

formed by Marketing Board after taking management level decision on the 

investment, organisation structure and commitment of funds. The financial tieups 

also have to be managed by Marketing Board. These activities are preproject 

activities and hence, not specifically depicted in the implementation 

schedules. 

STEPS IN THE ACTUAL PROJECT IMPLEMENTATION 

<strong>Project</strong> Management Team 

Marketing Board along with private sector investor (if involved) would promote 

a company, which will appoint an interim management team to start the 

implementation activities. It is therefore recommended that the managers of the 

project, responsible for project co-ordination and operations, be involved right 

from the beginning and the critical managers such as chief executive, technical 

and operations head, auction director, some personnel from general 

administration and finance be recruited expeditiously. 

331


Management during designing and construction 

The construction phase is quite critical, specially since this project is one of its 

kind in the country, as it is not only sophisticated in terms of the equipment and 

facilities but also in terms of systems and procedures. The entire operations need 

close monitoring and professional guidance. 

<strong>Detailed</strong> engineering and architectural design and drawings need to be prepared, 

which will require engagement of professional engineering and architectural 

companies. 

Preparation of NIT specifying the designs and bills of material for equipment 

The management team would appoint architects for the designing and 

preparation of detailed engineering drawings that will lead to preparation of 

bills of materials and tender notices. 

In order to invite quotations and offers 

from suppliers of various equipment and contractors for erection etc. 

specification and bill of materials will have to be prepared by consultants. The 

consultants will help the project management team in NIT preparation, 

evaluation of tenders/offers and inspection and testing. 

In order to get 

international quality infrastructure, professional consultants should be 

associated for preparing implementation systems including supervision of 

construction, development of market rules and procedures. 

332


Appointment of Contractors for the construction of Infrastructure and 

buildings 

Thereafter, contractors will be appointed for various construction works such as 

development of infrastructural facilities, wholesale blocks, auction hall, 

exporters’ block, transit area and administrative buildings. 

Purchase and installation of plant, machinery and equipment 

When buildings are 75% complete the process of acquisition of plant and 

machinery, development of interiors for office and administrative blocks may be 

initiated. Since a large number of buildings are to be constructed, it is expected 

that the process of completion of various blocks will take place at different points 

in time. The management of market will take due care that the construction of 

independent buildings are completed in the minimum possible time and 

accordingly internal fitting equipments etc. may be purchased. It will be 

advisable to prepare more detailed activity schedules and critical path charts for 

close monitoring. 

Setting up of systems and sale of shops and plots 

In between the consultative committee may be appointed as soon as the 

development of physical infrastructure is initiated. This committee assists the 

333


management in strategic decision making and setting up of systems with regard 

to the following issues: 

• Procedure for inspection and quality marking 

• Development of synchronized software for entire operations right from 

receiving till dispatch. 

• Rules and regulations for registration of suppliers and buyers 

• Financial systems relating to billing and receiving of payments 

• Development of MIS 

• Feed back to supplier on quality, prices and payments etc. 

• Extensions and production enhancement activities 

• Supply and demand forecasting for different commodities 

Recruitment of Staff and Training 

The recruitment of staff and their training will have to be ensured. The trained 

staffs are to be in their positions at least 2-3 months before the commencement of 

the operations in the market. 

Inaugurating the operations of the market 

The start of auction and wholesale activities are independent of each other but 

can be started simultaneously. 

However, it may be helpful to start wholesale 

section before the auction so that a buyer base is already developed before 

central auctions take place. Similarly farmers’ involvement and establishment of 

334


collection centres have to take place alongside other developments in the market. 

Before inauguration of the market, the staff will have to carry out operational 

rehearsals and dry runs. 

Each department has to make its own plan and 

schedule of activities for the efficient operation of the market. 

Implementation Schedule 

Sn Activities/Time (in Months) 0-3 3-6 6-9 9-12 12-15 15-18 18-21 21-24 

1 Land/Location Identification 

2 Preparation of Feasibility <strong>Report</strong> and 

Sanction of Term Loan 

3 Land Development 

4 Stuctural Designing & Drawing of 

Building 

5 Approval of Maps from Competent 

Authority 

6 Preparation of Specification Design 

Parameters etc 

7 Tendering of Civil Works 

8 Evauation and Awarding of Works 

9 Construction of Boundary Wall and 

Gates 

10 Construction of Civil Works 

11 Formation of Farmers Groups 

12 Finalisation of Collection and Sales 

Centre 

13 Tendering for Plant and Equipments and 

MFA 

14 Evaluation and Finalisation of Orders 

15 Receipt of Equipments and their 


16 Commentioning of Plants and 

Equipments 

Fig; Chart showing the implementation schedule of the <strong>Project</strong> 

335


CHAPTER - XVII 

CALCULATION OF FINANCIAL AND ECONOMIC VIABILITY 

Financial and economic appraisal is an important component of any project 

without which it is incomplete. Increasing awareness about the use of scare 

resources and the returns obtainable from it makes the issue more important. 

Financial analysis is used to describe the commercial viability of the project and 

shows its strength from financial angle. The concept of economic analysis can be 

considered as an extension of the financial analysis. In economic analysis the 

concern is on the developmental effect on the society/economy as a whole as 

against the financial analysis that bothers the interest of the specific entity. In the 

present report, financial analysis has been done for Terminal Market. 

i) Economic Life of the <strong>Project</strong> 

The horizon is important for calculation of benefit and cost of a project. 

Generally, 10-15 years period is considered proper as economic life of the project. 

In present case, calculations have been made assuming the economic life of the 

markets as 10 years. 

336


ii) 

Gestation Period 

It has been assumed that two-years period will be sufficient for completion of 

the proposed construction to make the new market yard fully operational. 

The full revenue in the form of ground rent is expected to flow after a 

gestation period of two years only. 

iii) 

Occupancy 

While making calculations, it has been assumed that all 20% utilization of 

total capacity will be achieved in new market in the 3 rd year of the project, as 

growers and traders would get better remunerations/trading facilities. 

Occupancy of space in shops and godowns has been estimated for full year. 

iv) Income and Expenditure 

The main source of income of market is service/handling charges, 

leased/rent, parking and other sources of income. The income from market 

is assumption on following parameters: - 

Assumptions 

In the absence of past trends and its proper records it is necessary to make 

certain assumptions based on the reality of situations for assessing the true 

viability of any project. For this project, following assumptions have been taken: 

337



i) The cost of project has been estimated on the basis of prevailing 

market rates assessment- Quotations. 

ii) 

The means of finance have been taken as follows: 

(a) Term Loan @ 50% and subsidy @ 25% of cost of capital assets of 

Rs. 6366.65 lacs comprises of cost of Land, Building & Civil 

Work, Machine and Equipments, the Pre-operative Expenses 

and Contingencies and Escalations being capitalized and 

allocated to different capital assets. 

(b) The promoter's contributions in the Form of share capital have 

been taken as Rs. 1806.62 lacs being 27.52 % of total cost of 

project. 

(c) The debt equity ratio is 1: 1.75 

Building & Civil Construction 

1. The area of construction has been taken on the basis of drawings 

enclosed. 

2. The rates of construction have been on the basis of estimate as per 

Architect's working of enclosed. 

3. The costs taken on Lump Sum basis have been on basis of prevailing 

market rate and requirement in the project. 

Misc. Fixed Assets 

1. Plastic crates have been taken as 4000 crates for one collection centres and 

for 30 collection centres it works out to be 1,20,000 crates 

338


2. The solar system is street lighting in 47 acre area. The No. of lights have 

been estimated 100. 

Interest during Construction Period 

1. The construction period is as per implementation schedule enclosed and the 

interest has been calculated at borrowing rate of 6.75% per annum. 

Cost of Operations 

Following expenses have been increased by indicated % against each head for 

next following years and freezing them during 6th year of operation when the 

capacity utilization is advised at 100% . 

Following expenses have been increased at indicated % against each head for 

next following years and freezing them during 4th year of operation when the 

capacity utilization is advised at 100% 

(1) Salary, Rent, Repair and Maintenance, Security Services Electricity and 

Water, Vehicle Hiring and Travelling, Communication cost @ 5% every year. 

(2) Printing and Stationery and Postages Courier @ 10% every year. 

(3) It is presumed that 10% of the cost of crates for the first year will be required 

for replacement of crates every year from IInd year of operations. 

(4) The Advertisement and Publicity, Rates and Taxes and Miscellaneous 

expenses have been taken on fix ammount every year. 

(5) Insurance as per schedule "H" 

(6) Power & Fuel taken on basis of capacity utilisation. 

339


Income Estimates 

(1) The Registration fee from Farmers, Entrance fee from Growers, and Entrance 

fee for dispatch vehicles taken NIL 

(2) The number of Truck Arrival and Dispatch have been assumed as 5000 trucks 

each. 

(3) Handling charges and service charges have been taken as 0.50% and 3.50% of 

total turnover respectively. 

(4) The Rental for crates for Farmers and Buyers have been on basis of 26.67 lac 

crates each considering 15Kg goods in one crate as per capacity utilization. 

(5) Rentals for 75 shops cum godown have been estimated at Rs.15000/- each 

per month with 3% increase every year 

(6) The total acre for commercial activities have been taken 66650 sq. ft.t and 

Rentals @ Rs.20/- per sq ft with 3% increase every year 

(7) Other income includes income from cold storage, Ripening Chamber, 

Harvesters and pruning Machines, Grading, Waxing machines, Colour Vision 

System and Laboratory. Increase @ 20% per Year. 

340


Interest on Term Loan 

The Rate of Interest on Term loan has been presumed @ 6.75% per annum. 

Repayment of Loan 

Repayment of Loan has been presumed within 10 years in equal quarterly 

installments with moratorium period of 2 years for project implementation. 

Dividend 

It has been presumed that 7.5% dividend will be paid on the share capital from 

the fourth year of operations. 

Profitability 

Operating profit has been worked out for 10 years of operations by deducting 

total operating expenditure from total income. Net benefits are net of interest 

payment, depreciation and taxes. 

Depreciation 

Depreciation has been estimated by the straight-line method for calculation of 

profitability and WDV method as per Income Tax laws for calculation of tax 

liability. 

341


Financial Analysis 

In Terminal Market main source of the market revenue is from service charge 

from buyers, Sales Centers and ground rent from the marketers for space 

occupied / allotted. Income and expenditure items taken into consideration 

have been explained earlier. Now, cash flow statement and cost-benefit analysis 

are important to be analyzed. 

Cash Flow <strong>Project</strong>ions 

<strong>Project</strong>ed cash flow statements as well as income and expenditure statements are 

enclosed in financial projections. The statements indicate the flow for next 10 

years of operation. As could be seen from annexure that development proposals 

for markets would be able to repay the loan along with interest with the 

projected volume of throughput. 

Cost-Benefit Analysis 

In order to assess the financial viability of development proposals, Internal Rate 

of Return (IRR) of each market has been worked out with reference to total 

capital cost and expected gross benefits from the third year to the 10th year of 

operation. The IRR of market is very much high i.e. 16.34% which for an 

infrastructure project with funding at 6.75% rate of interest would be considered 

very good. 

342


Financial Parameters 

The project fulfills all financial parameters as per following details 


Sn Particulars Value 






6 IRR (in %age) 16.34 

Sensitivity Analysis 

The project is very much sustainable at reduction of main source of income i.e. 

service charges by 5% and also in case the cost of operations are increased by 3%. 

The result of both the sensitivity analysis on IRR is as follows: 

IRR 

Service charges decrease by 5% 10.36% 

Cost of operations are increased by 3% 7.70% 

Economic Benefits 

Although the project seems to be viable from commercial point of view, 

economic benefits likely to be accrued are also quite high. In case of markets, 

which have been found viable, the project can be considered. Major tangible and 

intangible benefits such markets will generate are: 

343


‣ Better backward-forward integration will bring efficiency, Reduce PH 

losses end incur higher net returns to grower because of special feature of 

transparency and cash payment. 

‣ The market will become attractive and accessible to producers. Provision 

of better market facilities will reduce market congestion and improve 

hygienic condition. 

‣ Provision of modern infrastructure facilities like electronic grading lines, 

ripening chambers, cool chain and Electronic Auctioning will reduce the 

loss of the commodities both qualitatively and by offering better 

mechanized conveyor base material handling facilities quality and shelf 

life of produce will increase. 

‣ Development of modern market will provide employment opportunities 

to local poor during the course of trading and construction. Of course, 

since capital investments will depend on grants, it can be clubbed with 

like agri-clinic for agricultural graduates. 

‣ In a state like Bihar where cooperative sector is not playing important role, 

only Farmers Associations can function as ‘growth centres’ besides 

meeting place for rural folk. Construction of a pucca market will enhance 

socio-economic interaction enormously in addition to marketing activities. 

Marketing extension, market information service etc will get a direct 

344


boost. Procurement of various commodities will become easier and 

increase zone of influence of commodities. 

‣ Better marketing facilities through collection centers in interior areas of 

the state will provide incentive to the producers to market efforts to 

enhance their production, so that whatever surplus is generated may be 

marketed easily. Thus the production of commodities, even by small 

producers will go higher and income of the producers will go up due to 

better price and higher marketed surplus. 

‣ In the absence of an appropriate technique for quantification of benefits 

derived from qualitative developments in social/ agriculture sector, it 

could not be minutely worked out. 

345

Proposals


Cost of <strong>Project</strong> and Means of Finance 

Sn Particulars Amount (Rs. In Lacs) 


1 Land 517.00 

2 Building and Civil Work 2781.46 







8 Working Capital Margins (on the basis of IInd 

196.88 

year of Operation at 60% capacity Utilization) 

Total 6564.33 



2 Subsidy 1591.71 


Total 6564.33 

Note 

(i) The cost of project have been estimated on the basis of prevailing 

market rates assessment- Quatations. 

(2) The means of finance have been taken as follows: (a) Term Loan @ 

50% and subsidy @ 25% of cost of capital assets of Rs. 6366.85 lacs 

comprises of cost of Land, Building & Civil Work, Machine and 

Equipments, the Pre-operative Expenses and Cotingencies and Esclations 

being capitalised and allocated to different capital assets. (b) The 

promotors contribution in the Form of share cpaital have been taken as Rs. 

1806.62 lacs being 27.52 % of total cost of project. (c) The debt equity 

ratio is 1: 1.75 

Page 1



Sn Particulars Value 






6 IRR (in %age) 16.34 

Page 2


PROPOSED TERMINAL MARKET WHOLESALE AT RAI, HARYANA 

Details of Building and Civil Work 


1 Auction Halls, Commercial building, 2250.00 m 2 9000.00 20250000.00 

Administration (25m x 30m) 

2 Display area (10m x 40m) 400.00 m 2 6000.00 2400000.00 

3 (i) Fruit halls, Crate, Despatch (25mx75m, 2875.00 m 2 6000.00 17250000.00 

50mx20m 

4 (ii) Docks 330.00 m 2 6000.00 1980000.00 

5 (I) Vegetable Halls, Crate, Despatch 2875.00 m 2 6000.00 17250000.00 

(25mx75m, 50mx20m) 

6 (ii) Docks 330.00 m 2 6000.00 1980000.00 

7 Corridor - GF + FF (F&V) (8m wide) 1200.00 m 2 6000.00 7200000.00 

8 Corridor - GF + FF (Part) (4.5m wide) 775.00 m 2 6000.00 4650000.00 

9 Kinnow Hall (25m*55m) 1375.00 m 2 6000.00 8250000.00 

10 Shop(1) including dock (40m*75m) 5800.00 m 2 7000.00 40600000.00 

11 Shop(2) including dock (40m*75m) 5800.00 m 2 7000.00 40600000.00 

12 Cold store * 4500.00 m 2 6000.00 27000000.00 

13 Precooling & Repening (50m*20m) 1000.00 m 2 6000.00 6000000.00 

14 Refrigeration plant & workshop (12m x 20m) 240.00 m 2 6500.00 1560000.00 

15 Shed for cleaning snacks (12 x 12) 144.00 m 2 4000.00 576000.00 

16 Utility block (20m x 25m) 500.00 m 2 6000.00 3000000.00 

17 Security kiosk, Entrance gates LS 2000000.00 

18 Toilet Blocks - 2 nos. LS 2500000.00 

19 Garbage Collection shed - 2 nos. LS 1000000.00 

20 Under Ground Sump (200 KL) LS 1000000.00 

21 Overhead Tank - 1 no. (100 KL each) LS 1600000.00 

22 Compound Wall etc. LS 12500000.00 

23 Roads, Yards, Drains - RCC-50000 m 2 , BT- LS 57500000.00 

12500 m 2 

24 Sewer Treatment Plant/ Effluent Treatment LS 2000000.00 

Plant 

25 Gardening and Pathways LS 4000000.00 

26 Signages etc. LS 1000000.00 

27 External sewerage, recycled water LS 6000000.00 

distribution 

Note: 

Less : Cost of Construction of Cold Storage 

-13500000.00 

area in excess of 2250 sq. mts I.e. 2250 

Sq.Mts Rs. Rs. 135.00 Lacs) 

278146000.00 

(1)* The total area 4100 Sq.Mts. has been on basis of cold storage of capacity of 10000M.T. 

whereas in Patna the cold storage is of 2550 Sq. Mt. and hence cost of construction has been 

taken for 2250 Sq. Mts. only i.e. 2250*Rs. 6000 per Sq. Mts Rs.135.00 Lacs (2) The items at 

S.No. 15, 25 and 27 as per estimate of architect enclosed in the report have been taken in Misc. 

Fixed Assets (MFA) hence excluded from civil costs. (3) The area of construction has been taken 

Page 3


NAME AND SPECIFICATION OF MACHINERY AND EQUIPMENTS 

S.No. Name of Specifications of Machine Quantity Size Unit Rate (Rs.)Amount 

A. Material Handling Equipments 

Hydraulic Trucks 2 3MT 185000 3.70 

Battery Operated Forklift 2 2MT 75000 1.50 

Weighing Scales 10 300 kg 4000 0.40 

Box Strapping Machinery 10 3200 0.32 

Brand Hydraulic Pallet Lifting Truck 1 3 MT 4854000 48.54 

B. Grading Sorting Lines & Machinery 

Automatics Fruits Gradingh and Sorting Lines 1 5.0 MT/hr. 15000000 150.00 

Vegetable Treaming and Packing Line with Shrink 1 2.5 MT/hr 20000000 200.00 

Wrap Units 

C Portable Quality Station (Internal Quality Sansor 1 2600000 26.00 

Analyser) 

D 

Refrigeration, Cold Store, Pre-Cooling & Ripenning 

Chamber Machinery 

Ethylone Gas Gnerator and Fruits Ripening 

6 25 MT 500000 30.00 

Chambers 

Pre-cooling Unit of 50 MT capacity in a bathch of 6 4 50 MT 1000000 40.00 

Hrs (1 Static Chamber abd 2 Units in Conveyars 

preferably Wet Air Pre Cooling Unit 

Cold Store Unit (4000 MT General Cold Storage & 1 5000MT 40000000 400.00 

1000 MT CA) 

Centrally Airconditoning Machines 20 2 Tonne. 20000 4.00 

E Mechanized & Conveyor Movement Equipment 

Horizontal Conveyar 750 MM width and 100 

1 3080000 30.80 

Length. 

Horizontal and reversable belt conveyar- 750 MM 2 1540000 30.80 

width X 50 Meter Length 





F Ancillary Equipments 

Water Treatment Plant 1 30000 ltr. 30 30.00 

Water Lifting Motors 5 1.00 

G Small Material Handling Equipments 

Chain Pulling LS 0.20 

Wire Rope LS 0.10 

Chain Electric LS 0.20 

Traveling Trolley LS 0.40 

Worm Gear LS 0.10 

Gantry Crane LS 0.50 

Tripod LS 0.30 

Crab Winch LS 0.30 

Jib Crane LS 0.50 

H Collection Centre Infrastructure 

Grading, Washing, Packing tables 

and other equipments and accessories 

@ Rs. 4.36 Lcas per collection centre 30 460000 138.00 

Total 1199.26 

Add @ 15% of total Cost for Excise Duty, Sales Tax, Service Tax, Freight, Erection and 

179.89 

G. Total 1379.15 

Page 4


Details of Repair, Maintenance and Insurance 

Schedule -H 

Repair and Maintenance 

Sn Item Value Rate 

%age 

Insurance 

Amount Amount 

Rs in Lacs Rs in Lacs 

1 Building 2781.46 1% 27.81 0.28 

2 Machinery and Equipment 1379.15 2% 27.58 6.90 

3 Misc Fixed Assets 1132.50 2% 22.65 11.32 

4 Furniture and Fixture 47.50 2% 0.95 0.24 

5 Farmers insurance (200 per Collection 0 0% 0 6.00 

Centre @ Rs 100 per Annuam for 30 

Collection Centres ) 

Total 79.00 24.74 

Page 5


Schedule G 

Sn Item Power 

Requirem 

ent in 

KW 

A 

Calculation of Cost of Power and Fuel 

Power 

requireme 

nt in Units 

No. of 

Hours 

per day 


Days 

To. No. of 

Units per 

Year 

Unit 

Rate in 

Rs 

Annual 

Amount 

(Rs.) 

Power 

1 Electronic Auction Hall 150 150 8 320 384000 5.50 2112000 

2 Cold Storage 500 500 24 350 4200000 5.50 23100000 

3 Grading and Sorting and 

Cleaning Lines 200 200 10 300 600000 5.50 3300000 

4 Mechenical Handling 

Machine with pre-cooling unit 

100 100 10 300 300000 5.50 1650000 

5 Ripening Chambers 333 333 24 350 2797200 5.50 15384600 

6 Fork Lift 50 50 10 300 150000 5.50 825000 

7 Weighing Scale 10 10 8 300 24000 5.50 132000 

8 A.C. 200 200 10 300 600000 5.50 3300000 

9 Misc 50 50 10 300 150000 5.50 825000 

Total 1593 1593 114 2820 9205200 50628600 

At 100% Capacity Utilisation Rs in Lacs 506.286 

B 

80% from BSEB @ 7364160 5.5 40502880 

20% from DG Sets @ 1841040 5.94 10935778 

Fuel 

H.P.Diesel 

No. of. Liters 386423.2 

Unit Rate 28.3 

Total Amount 10935778 

Year 

Amount Amount Total 

Capacity MSEB in DG Sets Amount 

Utilisation Lacs in Lacs in Lacs 

1st year 20% 81.01 21.87 102.88 

2nd year 60% 243.02 65.61 308.63 

3rd year 80% 324.02 87.49 411.51 

4th year 100% 405.03 109.36 514.39 

Note : The expenses from 4th Year onward have been estimated on the basis of capacity utilisation of 

100% and presuming no changes in HSEB tariff and diesel prices 

C. Electricity & Water 

Administrative Block 200 200 10 210 420000 5.5 2310000 

Tubewell 150 150 5 350 262500 5.5 1443750 

Total 350 350 15 560 682500 11 3753750 

Page 6

Year wise Cost of Operation 


3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year 11th 12th 

1st YeIInd Year 

Year Year 

1 Salary & Wages 212.98 223.62 234.81 246.55 246.55 246.55 246.55 246.55 246.55 246.55 

2 Rents 86.40 90.72 95.26 100.02 100.02 100.02 100.02 100.02 100.02 100.02 

3 Power & Fuel 102.88 308.63 411.51 514.39 514.39 514.39 514.39 514.39 514.39 514.39 

4 Electricity & Water T.M. 37.54 39.41 41.39 43.45 43.45 43.45 43.45 43.45 43.45 43.45 

Electricity & Water Collection Centre. 

5 

18.00 18.90 19.85 20.84 20.84 20.84 20.84 20.84 20.84 20.84 

6 Cost of Crates Replacement 0.00 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 26.40 

7 Repair & Maintenance as Schedule- 

0.00 79.00 82.95 87.09 91.45 91.45 91.45 91.45 91.45 91.45 

D 

8 Vehicle Hiring & Travelling 12.00 12.60 13.23 13.89 14.59 14.59 14.59 14.59 14.59 14.59 

9 Communication 6.00 6.30 6.62 6.95 7.29 7.66 8.04 8.44 8.86 9.31 

10 Printing and Stationary 2.40 2.64 2.90 3.19 3.51 3.51 3.51 3.51 3.51 3.51 

11 Postage, Couriers 0.60 0.66 0.73 0.80 0.88 0.88 0.88 0.88 0.88 0.88 

12 Security Services 12.96 13.61 14.29 15.00 15.75 15.75 15.75 15.75 15.75 15.75 

13 Advertisement and Publicity 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 

14 Insurance 24.74 22.26 20.04 18.03 16.23 14.61 13.15 11.83 10.65 9.58 

15 Rates and Taxes 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 

16 Misc. Expenses 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 

Gestation Period of the <strong>Project</strong> i.e. first 2 years 

Total 522.49 850.76 975.95 1102.60 1107.35 1106.09 1105.01 1104.10 1103.34 1102.72 

Page 7


Cost of Land and Site Development 

A 

Particulars 

Unit in 

Acre 

Rate per 

Acre 

Amount ( in 

Rs) 

Cost of Land 

1 Area (acres ) 47 1000000 47000000 

2 Land Registration Cost (10% of Cost) 4700000 

Basis 

On basis of 

Market Price 

Assessment 

Total 51700000 

Page 8


Details of Preliminary and Pre-Operating Expenses 

A Priliminary Expenses Amount in Rs Basis 

1 Company Incorporation Expenses 4000000 Prevailing Rates 

B 

Total A 4000000 

Pre Operating Expenses 

2 Consultancy Charges 

Preparation of DPR LS 6500000 

Archetect Fee including Cost of 

LS 8300000 

Preparation of Tender Documents 

3 Loan Processing Fee LS 1583000 

4 Expenses during <strong>Project</strong> Implementation LS 500000 

Salary, Traveling, Communication and 

Misc 

5 Advertisement, Publicity and Awareness 

3900000 

Programmes (Annexure-1) 

6 Interest on Loan during Construction 11219513 

Total B 32002513 

Tota A + B 36002513 

Note 

The construction period is as per implementation schedule enclosed and the interest has 

been calculated at borrowing rate. 

Page 9


Details of Misc. Fixed Assets 

Sn. Broad Specification Qty Rate Amount Basis of Valuation 

(Nos) (in Rs.) (Rs in Lacs) 

1 DG Sets (500 KVA) 2 3000000 60.00 As per Quotations 

2 Electricals (External Electrification 1500 

1 15000000 150.00 As per Quotations 

KVA) 

3 Fire Fiting Station System 10 50000 5.00 As per Quotations 

4 Intercome Telephone Exchange (200 Lines) 300 5000 15.00 As per Quotations 

5 Cost of Telephone Cabling LS 10.00 As per Quotations 

6 Electronic Weighbridge 2 275000 5.50 As per Quotations 

7 Computer and Networking (Schedule -A) 62.78 As per Quotations 

8 Electronic Display Boards 30 350000 105.00 As per Quotations 

9 Softwareds Business Process cum Mandi 


Software 

10 Hardware for Electronic Auctioning 

104.50 As per Quotations 

(Schedule B) 

Software for Electronic Auctioning 


11 (Schedule C) 

12 Misc Components for Electronic Auctioning 

43.50 As per Quotations 

House as per schedule D 

13 Plastic Crates (4000 X30 ) 120000 220 264.00 As per Quotations 

14 Solar System (100 lights) 100 11500 11.50 As per Quotations 

15 State of Art Laboratory 1 6000000 60.00 As per Quotations 

Total 984.78 

Add @ 15% of Total cost for Excise Duty, Sales Tax, Service Tax, 147.72 

Freight Erection and Commissioning 

G. Total 1132.50 

Note (i) Plastic crates have been taken as 4000 crates for one collection centres and for 30 collection 

centres it works out to be 1,20,000 crates.(2) The solar system is street lighting in 35 acre area. The 

No. of lights have been estimated 100. 

Page 10


Details of Furniture and Fixtures 

Sn Particulars Qty Unit rate Amount 

(in Rs) (in Rs) 

1 Electronic Auction House Furniture (Schedule 

2000000 

E) 

2 Racks and Pallets LS 1000000 

3 Administrative Block Furniture LS 1000000 

4 Collection Centres 30 25000 750000 

Total 4750000 

Page 11


Details of Contingency and Escalation 

Sn. Particulars Firm Cost Non Firm 

Rs in Lacs Cost Rs in 

%age 

Amount 

Rs in Lacs 

Lacs 

1 Land and Site Development 517 0 0 0.00 

2 Building and Civil Work 1390.73 1390.73 5 69.54 

3 Machines and Equipments 965.40 413.74 5 20.69 

4 Misc Fixed Assets 0 1132.50 5 56.62 

5 Furniture & Fixtures 0 47.50 5 2.38 

149.22 

Page 12


<strong>Project</strong>ed Cashflow Statement 

Rs in Lacs 

 

Particulars 1 2 3 4 5 6 7 8 9 10 11 12 

Sources of Funds 

Share Capital 903.31 903.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Subsidy 795.86 795.86 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Increase in Term Loan 0 3166.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Increase in Working 

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Capital Loan 

Net Profit Before 

0.00 0.00 190.52 418.18 625.23 839.09 899.03 976.82 1068.62 1177.27 1306.13 1459.26 

Interest and Taxes 

Increase in Current 

Libilities 0.00 150.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Total 1699.17 5015.17 190.52 418.18 625.23 839.09 899.03 976.82 1068.62 1177.27 1306.13 1459.26 

Application of Funds 

Increase in Fixed Assets 1039.97 4775.64 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Payment of Interest 0.00 0.00 205.69 184.32 162.95 141.58 120.21 98.84 77.47 56.10 34.73 13.36 

Repayment of Term 

0.00 0.00 316.60 316.60 316.60 316.60 316.60 316.60 316.60 316.60 316.60 316.60 

Loan 

Payment of Income Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 140.38 297.50 357.47 424.41 

Increase in Security 

0.60 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Deposits 

Dividend 0.00 0.00 0.00 0.37 17.50 35.15 41.24 48.68 46.64 44.61 51.38 59.44 

Dividend Tax 0.00 0.00 0.00 0.04 1.75 3.51 4.12 4.87 4.66 4.46 5.14 5.94 

Preliminary and Pre 

Operative Tax 

360.03 0 0 0 0 0 0 0 0 0 0 0 

Total 1400.60 4775.64 522.29 501.33 498.80 496.84 482.18 468.99 585.75 719.26 765.31 819.75 

Opening Balance 0.00 298.57 538.10 206.33 123.18 249.61 591.86 1008.71 1516.54 1999.42 2457.42 2998.24 

+/- During the Year 298.57 239.53 -331.77 -83.15 126.43 342.25 416.85 507.83 482.87 458.01 540.82 639.51 

Closing Balance 298.57 538.10 206.33 123.18 249.61 591.86 1008.71 1516.54 1999.42 2457.42 2998.24 3637.75 

Page 13


Sn 

<strong>Project</strong>ed Balance Sheet 

Rs in Lacs 

 

Particulars 1 2 3 4 5 6 7 8 9 10 11 12 

LIABILITIES 

1 Share Capital 903.31 1806.62 1806.62 1806.62 1806.62 1806.62 1806.62 1806.62 1806.62 1806.62 1806.62 1806.62 

2 Subsidy 795.86 1591.71 1591.71 1591.71 1591.71 1591.71 1591.71 1591.71 1591.71 1591.71 1591.71 1591.71 

3 Reserve & Surplus 0.00 0.00 -244.08 -239.54 -25.42 404.52 909.06 1504.58 2075.14 2620.83 3249.34 3976.54 

4 Term Loan 0 3166.00 2849.40 2532.80 2216.20 1899.60 1583.00 1266.40 949.80 633.20 316.60 0.00 

5 Working Capital Loan 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

6 Current Liabilities (Deposits 

from Shop owners) 

0.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 

Total Libilities 1699.17 6714.33 6153.65 5841.60 5739.11 5852.45 6040.39 6319.31 6573.27 6802.37 7114.27 7524.87 

ASSETS 

1 Fixed Assets 1360.00 6135.64 5910.73 5685.81 5460.90 5235.99 5011.08 4786.17 4561.26 4336.34 4111.43 3886.52 

2 Current Assets 

a Security Deposites 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 

d Cash in Hand and at Bank 298.57 538.10 206.33 123.18 249.61 591.86 1008.71 1516.54 1999.42 2457.42 2998.24 3637.75 

Preliminary Operating 

40.00 40.00 36.00 32.00 28.00 24.00 20.00 16.00 12.00 8.00 4.00 0.00 

Expenses to the extent not 

written off 

Total Assets 1699.17 6714.33 6153.65 5841.60 5739.11 5852.45 6040.39 6319.31 6573.27 6802.37 7114.27 7524.87 

Page 14


Sn Activities/Time (in Months) 0-3 3-6 6-9 9-12 12-15 15-18 18-21 21-24 

1 Land/Location Identification 

2 Preparation of Feasibility <strong>Report</strong> and 

Sanction of Term Loan 

3 Land Development 

4 Stuctural Designing & Drawing of 

Building 

5 Approval of Maps from Competent 

Authority 

6 Preparation of Specification Design 

Parameters etc 

7 Tendering of Civil Works 

8 Evauation and Awarding of Works 

9 Construction of Boundary Wall and 

Gates 

10 Construction of Civil Works 

11 Formation of Farmers Groups 

12 Finalisation of Collection and Sales 

Centre 

13 Tendering for Plant and Equipments 

and MFA 

14 Evaluation and Finalisation of Orders 

15 Receipt of Equipments and their 


16 Commentioning of Plants and 

Equipments 

Implementation Schedule 

Page 15


Calculation of Break Even Point 

(on Basis of 6th Year of Operation) 

Rs in Lacs 

Sn Expenditure Head Basis Fixed Cost Variable Total 

Cost 

1 Salary & Wages 25% Fixed 61.64 184.91 246.55 

Rents 100% Fixed 100.02 0.00 100.02 

Power & Fuel 20% Fixed 102.88 411.51 514.39 

Electricity & Water T.M. 20% Fixed 8.69 34.76 43.45 

electricity & Water Collection Centre 20% Fixed 3.60 14.40 18.00 

Repair & Maintenance as Schedule-D 100% Variable 0.00 87.09 87.09 

Vehicle Hiring & Travelling 100% Variable 0.00 13.89 13.89 

Cost of Crates Replacement 100% Variable 0.00 26.40 26.40 

Communication 100% Variable 0.00 6.95 6.95 

Printing and Stationary 100% Variable 0.00 3.19 3.19 

Postage, Couriers 100% Variable 0.00 0.80 0.80 

Security Services 20% Fixed 3.00 12.00 15.00 

Advertisement and Publicity 100% Vaiable 0.00 5.00 5.00 

Insurance 50% Fixed 9.02 9.02 18.03 

Rates and Taxes 50% Fixed 0.50 0.50 1.00 

Misc. Expenses 50% Fixed 0.50 0.50 1.00 

Depreciation 100% Fixed 224.91 0.00 224.91 

Interest on Term Loan 100% Fixed 141.58 0.00 141.58 

Interest on Woking Loan 100% Variable 0.00 0.00 0.00 

Preliminary Expenses Written Off 100% Fixed 4.00 0.00 4.00 

Total 660.33 810.93 1471.26 

Total Income 1941.70 

Less Variable Cost 810.93 

Contribution 1130.77 

Break Even Point (in %age Capacity 

Utilisation)) 

58.40 

Cash Break Even Point (in %age 

38.15 

Capacity Utilisation) 

Cash Break Even Point has been calculated excluding depreciation and preliminary expenses written off 

Note from fixed cost 

Page 16


Calculation of Debt Service Coverage Ratio (DSCR) 

Repayment Period Moratorium 2 Years 

Repayment 10 Years 

Rs in Lacs 

Term Loan 3166.00 

Year Cash Profit Interest on 

Term loan 

1 0.00 0 

2 0.00 112.20 

3 -15.17 205.69 

4 233.86 184.32 

5 462.28 162.95 

6 697.51 141.58 

7 778.82 120.21 

8 877.98 98.84 

9 850.78 77.47 

10 823.68 56.10 

11 913.93 34.73 

12 1021.50 13.36 

6645.16 1207.43 

Avg DSCR for Repayment Period 1.80 

Page 17


Sn 

Calculation of Income Tax 

Rs in Lacs 

 

Particulars 1 2 3 4 5 6 7 8 9 10 11 12 

Net Profit Before Tax 0.00 0.00 -244.08 4.95 233.37 468.60 549.90 649.07 762.24 892.26 1042.49 1216.99 

Add Depeciation on SLM as 

Companies Act 

0 0 224.91 224.91 224.91 224.91 224.91 224.91 224.91 224.91 224.91 224.91 

Total 0.00 0.00 -19.17 229.86 458.28 693.51 774.82 873.98 987.16 1117.17 1267.40 1441.90 

Less Depeciation of WDV as 

per Income Tax Act 

0 0 1152.92 615.83 487.59 406.93 349.03 303.46 265.63 233.35 205.40 181.04 

Total Taxable Profit 0.00 0.00 -1172.09 -385.97 -29.31 286.58 425.79 570.52 721.52 883.83 1062.00 1260.86 

Depreciation Carried Forward 0 0.00 -1172.09 -1558.06 -1587.37 -1300.78 -874.99 -304.47 0.00 0.00 0.00 0.00 

Balance Taxable Profit 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 417.05 883.83 1062.00 1260.86 

Income Tax @ 33.66% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 140.38 297.50 357.47 424.41 

Page 18


Pay back Period of the <strong>Project</strong> 

Cost of <strong>Project</strong> 6564.33 

Cash Flow for 10 Years of Operation 6645.16 

Pay Back Period 10 

Page 19

<strong>Project</strong>ed Profitability Statement 


Rs in Lacs 

 

Particulars 1 2 3 4 5 6 7 8 9 10 11 12 

Income from Operations as 

Schedule of Estimate of Income 

0.00 0.00 713.01 1268.94 1601.18 1941.70 2006.37 2082.90 2173.63 2281.37 2409.47 2561.98 

Total A 0.00 0.00 713.01 1268.94 1601.18 1941.70 2006.37 2082.90 2173.63 2281.37 2409.47 2561.98 

Cost of Operation as per 

Schedule showing yearwise cost 

of Operatio 

0.00 0.00 522.49 850.76 975.95 1102.60 1107.35 1106.09 1105.01 1104.10 1103.34 1102.72 

Total B 0.00 0.00 522.49 850.76 975.95 1102.60 1107.35 1106.09 1105.01 1104.10 1103.34 1102.72 

Profit from Operations (A-B) 0.00 0.00 190.52 418.18 625.23 839.09 899.03 976.82 1068.62 1177.27 1306.13 1459.26 

Less Interest on Term Loan 0.00 0.00 205.69 184.32 162.95 141.58 120.21 98.84 77.47 56.10 34.73 13.36 

Less Interest on Working Capital 0.00 0 0 0 0 0 0 0 0 0 0 0 

Total Interest 0.00 0.00 205.69 184.32 162.95 141.58 120.21 98.84 77.47 56.10 34.73 13.36 

Profit after Interest 0.00 0.00 -15.17 233.86 462.28 697.51 778.82 877.98 991.16 1121.17 1271.40 1445.90 

Less Depreciation 0.00 0 224.91 224.91 224.91 224.91 224.91 224.91 224.91 224.91 224.91 224.91 

Net Profit After Depreciation 0.00 0.00 -240.08 8.95 237.37 472.60 553.90 653.07 766.24 896.26 1046.49 1220.99 

Less Prelimnary Expenses of 

Written off 

0.00 0.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 

Net Profit Before Income Tax 0.00 0.00 -244.08 4.95 233.37 468.60 549.90 649.07 762.24 892.26 1042.49 1216.99 

Less Income Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 140.38 297.50 357.47 424.41 

Net Profit after Income Tax 0.00 0.00 -244.08 4.95 233.37 468.60 549.90 649.07 621.87 594.76 685.02 792.59 

Cash Profit 0.00 0.00 -15.17 233.86 462.28 697.51 778.82 877.98 850.78 823.68 913.93 1021.50 

Less Dividend 0.00 0.00 0.00 0.37 17.50 35.15 41.24 48.68 46.64 44.61 51.38 59.44 

Less Dividend Tax (@ 10%) 0.00 0.00 0.00 0.04 1.75 3.51 4.12 4.87 4.66 4.46 5.14 5.94 

Retained Profit 0.00 0.00 -244.08 4.54 214.12 429.94 504.54 595.52 570.56 545.70 628.51 727.20 

Reserve & Surplus 0.00 0.00 -244.08 -239.54 -25.42 404.52 909.06 1504.58 2075.14 2620.83 3249.34 3976.54 

IRR= 16.34 

Page 20

Year 

Quarter 

Schedule 

Modern 

of Interest 

Terminal 

and 

Market 

Loan Repayment 

Rai 

Loan 

Received 

Opening 

Balance 

Repayme Interest @ Closing 

nt of Term 6.75% Balance 

Loan 

Yearly 

Interest 

Rs in Lacs 

Yearly 

Repayme 

nt 

1 I 0 0 0 0 0 

II 0 0 0 0 0 

III 0 0 0 0 0 

IV 0 0 0 0 0 0 

2 I 633.20 633.20 0.00 0.00 633.20 0.00 

II 633.20 1266.40 0.00 21.37 1266.40 0.00 

III 949.80 2216.20 0.00 37.40 2216.20 0.00 

IV 949.80 3166.00 0.00 53.43 3166.00 112.20 0.00 

3 I 0.00 3166.00 79.15 53.43 3086.85 

II 0.00 3086.85 79.15 52.09 3007.70 

III 0.00 3007.70 79.15 50.75 2928.55 

IV 0.00 2928.55 79.15 49.42 2849.40 205.69 316.60 

4 I 0.00 2849.40 79.15 48.08 2770.25 

II 0.00 2770.25 79.15 46.75 2691.10 

III 0.00 2691.10 79.15 45.41 2611.95 

IV 0.00 2611.95 79.15 44.08 2532.80 184.32 316.60 

5 I 0.00 2532.80 79.15 42.74 2453.65 

II 0.00 2453.65 79.15 41.41 2374.50 

III 0.00 2374.50 79.15 40.07 2295.35 

IV 0.00 2295.35 79.15 38.73 2216.20 162.95 316.60 

6 I 0.00 2216.20 79.15 37.40 2137.05 

II 0.00 2137.05 79.15 36.06 2057.90 

III 0.00 2057.90 79.15 34.73 1978.75 

IV 0.00 1978.75 79.15 33.39 1899.60 141.58 316.60 

7 I 0.00 1899.60 79.15 32.06 1820.45 

II 0.00 1820.45 79.15 30.72 1741.30 

III 0.00 1741.30 79.15 29.38 1662.15 

IV 0.00 1662.15 79.15 28.05 1583.00 120.21 316.60 

8 I 0.00 1583.00 79.15 26.71 1503.85 

II 0.00 1503.85 79.15 25.38 1424.70 

III 0.00 1424.70 79.15 24.04 1345.55 

IV 0.00 1345.55 79.15 22.71 1266.40 98.84 316.60 

9 I 0.00 1266.40 79.15 21.37 1187.25 

II 0.00 1187.25 79.15 20.03 1108.10 

III 0.00 1108.10 79.15 18.70 1028.95 

IV 0.00 1028.95 79.15 17.36 949.80 77.47 316.60 

10 I 0.00 949.80 79.15 16.03 870.65 

II 0.00 870.65 79.15 14.69 791.50 

III 0.00 791.50 79.15 13.36 712.35 

IV 0.00 712.35 79.15 12.02 633.20 56.10 316.60 

11 I 0.00 633.20 79.15 10.69 554.05 

II 0.00 554.05 79.15 9.35 474.90 

III 0.00 474.90 79.15 8.01 395.75 

IV 0.00 395.75 79.15 6.68 316.60 34.73 316.60 

12 I 0.00 316.60 79.15 5.34 237.45 

II 0.00 237.45 79.15 4.01 158.30 

III 0.00 158.30 79.15 2.67 79.15 

IV 0.00 79.15 79.15 1.34 0.00 13.36 316.60 

Page 21


Year 

Schedule of Depreciation on WDV Method as per Income Tax Act 

Rs in Lacs 

Particulars 

Misc Fixed Assets 

Building 

and Civil 

Work 

Machines 

and 

Equipmen 

ts 

Furniture WDV/ 

& Fixtures Total 

Depreciati 

on 

Rate of Depe. 

10% 15% 15% 60% 100% 15% 

3 Cost 

3034.93 1504.83 267.87 458.58 300.61 51.83 5618.64 


303.49 225.72 40.18 275.15 300.61 7.77 1152.92 

4 WDV 

2731.43 1279.10 227.69 183.43 0.00 44.05 4465.71 


273.14 191.87 34.15 110.06 0.00 6.61 615.83 

5 WDV 

2458.29 1087.24 193.54 73.37 0.00 37.45 3849.88 


245.83 163.09 29.03 44.02 0.00 5.62 487.59 

6 WDV 

2212.46 924.15 164.51 29.35 0.00 31.83 3362.30 


221.25 138.62 24.68 17.61 0.00 4.77 406.93 

7 WDV 

1991.22 785.53 139.83 11.74 0.00 27.05 2955.37 


199.12 117.83 20.97 7.04 0.00 4.06 349.03 

8 WDV 

1792.09 667.70 118.86 4.70 0.00 23.00 2606.34 


179.21 100.15 17.83 2.82 0.00 3.45 303.46 

9 WDV 

1612.88 567.54 101.03 1.88 0.00 19.55 2302.88 


161.29 85.13 15.15 1.13 0.00 2.93 265.63 

10 WDV 

1451.60 482.41 85.87 0.75 0.00 16.62 2037.25 


145.16 72.36 12.88 0.45 0.00 2.49 233.35 

11 WDV 

1306.44 410.05 72.99 0.30 0.00 14.12 1803.90 


130.64 61.51 10.95 0.18 0.00 2.12 205.40 

12 WDV 

1175.79 348.54 62.04 0.12 0.00 12.00 1598.50 


117.58 52.28 9.31 0.07 0.00 1.80 181.04 

Page 22


Details Allocation of Contingencies and Pre Operative Expenses 

Sn Particulars Cost ( Rs) Contingen 

cy (Rs.) 

Total Cost 

Including 

Contingen 

cy (Rs) 

Pre 

Operative 

Expenses 

Total (Rs) 

1 Building and Civil Work 2781.46 80.60 2862.06 172.86 3034.93 

2 Machines and Equipments 1379.15 39.97 1419.12 85.71 1504.83 

MFA Category -A (15% Depreciation) 245.50 7.11 252.61 15.26 267.87 

MFA Category -B (60% Depreciation) 420.28 12.18 432.46 26.12 458.58 

MFA Category -C (100% Depreciation) 275.50 7.98 283.48 17.12 300.61 

3 Furniture and Fixture 47.50 1.38 48.88 2.95 51.83 

Total 5149.39 149.22 5298.61 320.03 5618.64 

Note: The category A, B and C of MFA i.e for calculation of Depreciation at different rates in different categories 

Page 23


DETAILS OF OTHER INCOME DURING FIRST YEAR OF OPERATIONS 

Schedule H 

A. Cold Store 

Capacity 

Approxim No. of days 

(MT) 

ate 

Volume 

of 

5000 2000 140 days 

Rate (As per Amount 

Rajasthan Cold store (Rs. In 

Association Rs 450 Lacs) 

/MT per Month i.e. Rs 

Rs.15 MT/day 42.00 

B. Ripening Chambers 

90 MT/ 

3 day 

30 140 days Rs.1/kg/ 

3 days 

42.00 

C. Harvesters & Pruning Machines 

Number of operative 

Per day charges 

Total Income 

days in a year. 

140 Rs.1000/- daily 1.40 

D. Grading-Waxing-Machines 


Lines 

Per line 

approxima 

te days of 

utilization 

Total 

Day 

Aggregate Volume to 

be processed with Av: 

2.5 MT/hr capacity 

(MT per day) 

Rate 

Amount 

2 70 140 40 

Rs 1/kg 56.00 

E. Colour Vision System Quality Station 

No. of operative days Approximate No. of Quality 

Rate Amount 

in a year 

140 

Evaluation Tests per day 

20 

(Per Test) 

Rs.50/- 

1.40 

F Laboratory Testing & Certification 

No. of operative days 

in a year 

Approximate No. of Quality 

Evaluation Tests per day 

Rate 

(Per Test) 

Amount 

140 10 1000 

14.00 

G. Selling of 

Organic 

Compost 

12.00 

Total 168.80 

Page 24

Rs. In Lacs 

Year 1 3 4 5 6 7 8 9 10 11 12 

Basis 

No. of Days in Operation 320 

Arrival per Days (M.T.) 937.5 

Capacity in Lacs M.T. at (100%) 3.00 

Utilisation in %age 20% 60% 80% 100% 100% 100% 100% 100% 100% 100% 

1 Total Fruits & Vegetables Arrival (MT) 60000 180000 240000 300000 300000 300000 300000 300000 300000 300000 

2 Total Turnover(@ 7000/ M.T.) 4200 12600 16800 21000 21000 21000 21000 21000 21000 21000 

Registraion Fee from Farmers 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

3 Enterance Fee Charged to the Growers 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

4 Enterance Fee for Despatch Vehicle 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

5 Parking Charges (@ Rs 10/ per Truck for 

1.50 4.50 6.00 7.50 7.50 7.50 7.50 7.50 7.50 7.50 

Arrival and Despatch) 

6 Handling Charges from Buyers 0.50 

21.00 63.00 84.00 105.00 105.00 105.00 105.00 105.00 105.00 105.00 

percent 

8 Service Charges from Buyers @ 3.5% 147.00 441.00 588.00 735.00 735.00 735.00 735.00 735.00 735.00 735.00 

9 Income from Forward Linkages from 

110.25 165.38 220.50 275.63 275.63 275.63 275.63 275.63 275.63 275.63 

Schedule-I 

10 Rentals for Crates (Farmers) Rs .75 per 

30.00 90.00 120.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 

Crate 

11 Rentals for Crates (Buyers) Rs. 0.75 per 

30.00 90.00 120.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 

Crate 

13 Rentals from Shops and Godowns (Rs 

180.00 185.40 190.96 196.69 202.59 208.67 214.93 221.38 228.02 234.86 

15000 per Shop per Month) 

14 Rentals from Commercial Activities Rs 20 

13.33 13.73 14.15 14.57 15.01 15.46 15.92 16.40 16.89 17.40 

per Sqft 

14 Weigh Bridge Charges Rs. 15 per truck 1.13 3.38 4.50 5.63 5.63 5.63 5.63 5.63 5.63 5.63 

15 Interest @ 5% on Deposits against 

10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 

Shops/Godowns @ Rs 2,00,000 each (100 

X 2,00,0000) 

16 Others income from Cold Storages, 

168.80 202.56 243.07 291.69 350.02 420.03 504.03 604.84 725.81 870.97 

Repening Chamber, Harvester/Pruning 

Total Income G / 

713.01 1268.94 1601.18 1941.70 2006.37 2082.90 2173.63 2281.37 2409.47 2561.98 

Gestation Period of the <strong>Project</strong> i.e. first 2 years 

Modern Income Terminal Estimates Market Rai 

Note: The Registeration fee from Farmers, Entrance fee from Growers, and Entrance fee for despatch vehicles taken NIL (2) The number of Truck Arrival and 

Despatch have been assumed as 5000 trucks each. (3) Handling charges and service charges have been taken as 0.50% and 3.50% of total turnover respectively. 

(4) The Rental for crates for Farmers and Buyers have been on basis of 26.67 lac crates each considering 15Kg goods in one crate as per capacity utilisation. (5) 

Rentals for 75 shops cum godown have been estimated at Rs.15000/- each per month with 3% increase every year (6) The total acre for commercial activities have 

been taken 66650 sq. ft.t and Rentals @ Rs.20/- per sq ft with 3% increase every year (7) Other income includes income from cold storage, Ripening Chanmber, 

Harvestors and pruning Machines, Grading, Waxing machines, Colour Vision System and Laboratory. Increase @ 20% per Year. 

Page 25


Schedule F 

Publicity & Advertisement and Awareness Programmes 

Sn 

Amount 

Particulars 

(in Rs.) 

1 Organisation of Farmers Associations @ 30 CC X 8 2400000 

Farmers Assocaitions= 240 X Rs 10,000 

2 Awareness Programme for Farmers ( Distriwise - 4, 500000 

Villages =500 in a cluster of 10 villages and 50 

Programmes @10000 

3 Pubility Material Print and Print Media 1000000 

Total 3900000 

Page 26


Yearwise Performance of Frenchies Agents Centres 

Year 3 4 5 6 7 8 9 10 11 12 

Income 

Total Arrival 4500 6750 9000 11250 11250 11250 11250 11250 11250 11250 

Turn Over (Rs 7000/- per Tonnes) 31500000 47250000 63000000 78750000 78750000 78750000 78750000 78750000 78750000 78750000 

Income from Frenchies Agents @ 1102500 1653750 2205000 2756250 2756250 2756250 2756250 2756250 2756250 2756250 

3.5% from 10 Centres 

Total Income 11025000 16537500 22050000 27562500 27562500 27562500 27562500 27562500 27562500 27562500 

Page 27


s.No. 

I. HARDWARE ESTIMATE 

Activity Location 

Cost Estimates for Terminal Market at Rai, Haryana 

Computers and Networking 

Schedule - A 

Desktop 

(Nos) 

Printers 

Dot Matrix 

(Nos) 

Laser 

(Nos) 

Servers 

(Nos) 

DataStore 

(Nos) 

Tape 

Backup 

(Nos) 

Fruits Halls 2 1 

1 Vegetables Halls 2 1 

2 Purchase Operations Hall 2 1 

Crates and Dispaches 

3 Section 2 1 

4 Security 2 2 

5 Human Resource 3 1 1 

6 Finance Division 3 1 1 

7 Ripening Chamber 1 1 

8 Cold Storage 2 1 

9 Produce Receiving 3 3 

10 Produce Dispatch Section 3 3 

11 Operations 4 1 1 

12 Backward Linkages 2 1 1 

13 IT Division 6 1 2 4 1 1 

14 Electronic Auction (2) 6 2 0 2 

15 Collection Centres 30 30 0 

16 Others 5 1 1 

Grand Total 

(Nos) 

Total Nos 78 52 7 6 1 1 

Unit Cost 40000 4000 15000 130000 70000 45000 

Total Amount in Rs 3120000 208000 105000 780000 70000 45000 4,328,000.00 

II. Networking Estimate 

Unit Cost 

Router 1.00 150,000.00 150000 

Switches 10.00 80,000.00 800000 

Cabling (Cat V or Latest 

Tech) 1000000 

Hardware 4,328,000.00 

Networking 1,950,000.00 

Total 6,278,000.00 

Page 28


Assessment of Working Capital 

Page 29

Cost of Operations 

Sn. Particulars No. Rs. Per Amount per Amount per 

Modern Terminal 

of 

Market 

PersonRai 

Month (Rs) Annum (Rs) 

Perso 

ns 

1 Salary & Wages & Administrative 

Cost 

Managing Director 1 100000 100000 1200000 

General Manager 2 40000 80000 960000 

Manger (Operations) 1 30000 30000 360000 

Manager (Finance) 1 30000 30000 360000 

Manager (HRD & Admin) 1 30000 30000 360000 

Manger (Vegetable Hall) 1 30000 30000 360000 

Manger(Fruit Hall) 1 30000 30000 360000 

Manager (Marketing) 1 30000 30000 360000 

Manager (Logestic) 1 30000 30000 360000 

Manager (Procurement & QC) 1 30000 30000 360000 

Assistant Manager Collection 

30 20000 600000 7200000 

Centres 

Assistane Manager (Crate Section) 1 20000 20000 240000 

Assistant Manager (Ripening & cold 1 20000 20000 240000 

storageSection & Electricals 

Assistant Manager (Produce 

1 20000 20000 240000 

Receiving) 

Assistant Manager (Produce 

1 20000 20000 240000 

Despatch) 

Assistant Manager (IT) 1 20000 20000 240000 

Lab Technician 1 12000 12000 144000 

Lab Assistant 1 8000 8000 96000 

Accountants 2 12000 24000 288000 

Office Assistant 30 8000 240000 2880000 

Peons 15 5000 75000 900000 

Total 95 1479000 17748000 

Add Fringe Benefits @ 20% 295800 3549600 

Grand Total 1774800 21297600 

2 Rent of Office Building Collection 30 24000 720000 8640000 

Centre 

3 Power and Fuel (Schedule G) 10287732 

4 Electricity and Water Expenses T.M. 3753750 

5 Electricity and Water Expenses 30 5000 150000 1800000 

Collection Centre Rs. 5000/-p.m.per 

Collection Centre. 

6 Cost of Crate Replacement @ 10% 

2640000 

annually i.e. 10,000 Crate per year 

@ Rs 220/- 

7 Repair and Maintenance ( Schedule 

7899752 

H) 

8 Vehicle Hiring & Traveling (Rs 

1200000 

100000 pm) 

9 Communication (Rs 50000 pm) 600000 

10 Printing and Stationary (Rs 20000 

240000 

pm) 

11 Postage, Couriers (Rs 5000 per 

60000 

Month) 

12 Security Services ((12 Persons X 3 

1296000 

Shifts X 12 Months X 3000) 

13 Advertisement and Publicity LS 500000 

14 Insurance (Schedule H ) 2473636 

15 Rates and Taxes LS 100000 

16 Misc. Expenses LS 100000 

Page 30

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