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 

Fruit & Vegetables 

at Nasik 

Prepared By 

NATIONAL INSTITUTE OF AGRICULTURAL MARKETING 

(Govt. of India Organization) 

Kota Road, Bambala, Near Sanganer 

Jaipur – 303906

Ch. 

No. 

<strong>Project</strong> Summary 

C O N T E N T S 

P a r t i c u l a r s 

Page 

No. 

I-VII 

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

2. Present Scenario in Nasik Division 6-17 

3. Existing Wholesale Fruit and Vegetable Markets and Produce 

Flow 

18-38 

4. Problems in Existing System 39-41 

5. Perception of Stakeholders and Survey Results 42-66 

6. Proposed Concept for Market 67-81 

7. Electronic Auction System 82-106 

8. Modern Infrastructure in the Market 

107-235 

• 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 236-239 

10. Proposed Market Site and Locational Structure 240-248 

11. Backward Linkages 249-278 

12. Forward Linkages 279-291 

13. Business Process and IT Enabled Operations 292-303 

14. Management Ownership and Profile of Authority 304-320 

15. Implementation of the <strong>Project</strong> 321-3326 

16. Calculation of Financial and Economic Viability 327-342 

Proposals 

Quotations

PROJECT SUMMARY - NASIK 

Overview of the <strong>Project</strong> 

S.No. Particulars Description 

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

Nasik 

2. Promoters of the Market Maharashtra State Agricultural Marketing Board 

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) 

(ii) 

(iii) 

(iv) 

(v) 

(vi) 

Ojhar 

Sayyad Pimper 

Pimpalgaon Baswant 

Igatpuri 

Lasalgaon (NAFED) 

Pimpalgaon (NAFED) 

• <strong>Project</strong> Developed on Ojhar Site Basis 

4. Area Proposed 100 acre out of which 35 acres in I st phase 

of the said project. Rest for future expansion and 

phase II development. 

5. Major sourcing areas 12 blocks of Nasik district and 4 blocks of Ahmednagar, 

Two each in Pune and Jalgaon blocks of Maharashtra. 

6. Handling capacity • Terminal Market 1000 MT / day and 3.00 lac MT 

/ year. 

7. Expected peak throughput for 1500 MT/ day. 

• Collection Centre–50 MT/day and 15000 MT/ 

year

Terminal Market 

8. Modern Infrastructure in the 

Market 

• Central Electronic Auction 

• Underground Conveyor Based Material 

Movements and Mechanized Handling with Precooling 

units. 

• Wholesale block cum Godowns (75 big shops) 

• Four Electronic Grading Lines with State-of-Art 

Facility for Exports (common pay & use 

infrastructure) for Grapes, Onions, Mango, 

Pomegranate, Citrus and Vegetables. 

• Pack-house Facilities 

• Color Vision System Quality Station 

• Mechanized Pruning & Harvesters Ancillary 

Equipments. 

• Optional provision for Cash and Carry stores 

• 5000 MT Cold Storage and 6 Ripening 

chambers for Banana / Mango of 25 MT each 

• State of Art Testing/Certification Laboratory and 

R&D center to meet International SPS standards 

• NCDEX Platform for Electronic Trading 

• Automated Total Business Process. 

• 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. 

• One Stop Shopping Store for Inputs by Godrej 

Agrovet/ITC 

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

Foodworld and Radhakrishana Food Land in 

Mumbai for up to 30-50% of throughput need. 

9. Off-market site Infrastructure • 20 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 Yes Bank(ix) Investment Advice (x) 

Grading Facilities. (xi) One Stop Shopping for 

Input by Godrej Agrovet. (xii) Concessional 

Educational Loan to Farmer’s Ward and health 

Services (xiii) Volume Incentives to Growers. 

10 • Sale outlets in ten major cities of India for 

“Nasik Fresh” Brand 

11 • Cash & Carry stores (in city areas on Franchise 

basis) 

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

S.No. Particulars Amount (Rs. In Lacs) 

Cost of <strong>Project</strong> 

1 Land 420.00 

2 Building and Civil Work 2313.96 

3 Machines and Equipments 1519.22 

4 Misc Fixed Assets 877.27 

5 Furniture and Fixture 42.50 

6 Preliminary and Pre-Operative Expenses 288.35 

7 Contingencies and Escalations 184.47 

6 Security Deposits 0.60 

8 Working Capital (on the basis of IInd year of 

350.00 

Operation at 50% capacity Utilization) 

Total 5996.37 

Means of Finance 

1 Share Capital (29.43%) 1764.93 

2 Subsidy (23.54%) 1411.44 

3 Term Loan (47.03%) 2820.00 

Total 5996.37

COMPARISON WITH NDDB (SAFAL) MARKET, BANGALORE 

S.No. Item Bangalore Nasik 

1. Daily No. of Vehicle Arriving 600 300 

2. Expected Daily Arrival 2400 MT 

850 MT (2003) 

1000 MT 

200 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 75 in each) 

Plasma Display Clock 

3 Systems 

6. Cold Storage 10 (100 x 50) = 5 (100 x 50) = 5000 MT 

10,000 MT 

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

8. Queuing of Vehicles (Average 

4 meters length) 

2400 meters (600 

vehicles ) 

1200 meters 

(300 vehicles) 

9. Civil Cost 45 crores 23 crores 

10. Shops and Godowns 300 75 

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

Above Rs. 100 crore 

already spent 

Rs.59 crore 

12. (Forward Linkages) 

Registration of Buyers; 

Inadequate Buyers 

Rigid- (Advance 

Deposit ) 

Flexible - No Advance. 

Bank will Extend Credit Limit to 

Buyers. 

Tie up with Processor

13. Alternate Selling 

Arrangements 

14. Backward Linkages 

- Collection Centres 

- Farmers Association 

- Membership 

- Information 

Communication 

NIL 

45 

225 

Registered 

Inadequate and 

incomplete 

1) Electronic Trading Platform 

2) Sales Outlets at 10 Different 

Locations 

3) Arrangements with Bulk 

Buyers (Super Stores) and 

Input Suppliers 

20 

100 

Flexible 

Electronic Display Board & Multi 

Purpose Information Kiosks 

- Liquidity Arrangements 

for Buyers and Cash 

Daily Payment to 

Growers 

- Agri-clinic & Extension 

Support 

One Stop Shopping for 

Input 

- Transparency 

- Other Additional 

Attraction for Sellers 

No Arrangement 




NIL 

Provisions made with 

Installation of ATMs and 

Revolving Fund 

Arrangements made at CC level 



Free Weather Insurance 

Personal Insurance, Animal 

Health Insurance Accidental 

Insurance, Concessional 

Educational Loans to Farmers 

wards, Concessional Health 

services, etc. 

15. Export Infrastructure NIL Electronic Grading-sorting lines 

for Grapes, pomegranate, 

mango; shrink wrap packaging 

unit for vegetables 

palletisation, Testing & 

certification laboratory and 

state-of-art Colour Vision 

System Quality Station for 

Fruits.

PRE AND POST SCENARIO OF TERMINAL MARKET ESTABLISHMENT 

AT NASIK 

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, 

cold-store, 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 Nasik 

CHAPTER – I 

INTRODUCTION TO THE PROJECT 

The Existing Market structure of fruits and vegetables does not adequately 

address the complex problems of farmers. It has low marketing efficiency, high 

post harvest losses and does not foster competitiveness. A modern innovative 

system that can reduce the vested interests of a large intermediary chain, create 

competition, assure quality and modernize operations with IT applications in 

handling of fruits and vegetables, is necessary to raise income of actual farmers. 

To achieve this objective, National Dairy Development Board was asked to 

develop and establish operations for a 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 was 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 amended Karnataka State Agricultural 

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

Development Board to own, operate and manage fruits 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 

1


planned and assured production and supply of agricultural produce for the 

purpose of wholesale marketing. 

The SAFAL Market was 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 1600 MT tones of fresh fruit and vegetables per 

day, operating 312 days in a year. 

Backward and Forward Linkages 

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 

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 levels though the investment has 

already crossed more than 1,000 million rupees. 

The flower auction mainly 

2


caters to the flowers grown around the city. 

The market has 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 in inculcating 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 fallow 

up various states have amended their acts to pave the way for the 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 similar but improved model with removal of 

all weakness of previous system in different forms in 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 

3


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 Nasik Market of Maharashtra in the first phase 

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

The project is aimed to achieve the following objectives: - 

1. Improving returns of the farmers 

2. Enhance marketing efficiency 

3. Reduce wastage and post harvest losses 

4. Increase exports and foster competitiveness 

5. Ensure transparency 

6. Reduce Intermediary chain and create competition 

7. Assure quality of produce 

8. Modernize operations with IT-Applications 

Nasik is one of the largest fruit-growing districts in the country with enlightened 

back up of the farmers. Farming community with very high yield rate in 

horticultural commodities predominantly inhabits the area. Nasik market handles 

commodities valued at Rs.24, 000 lac annually with 6 th rank in the State in terms 

4


of arrival and probably the largest as primary fruit and vegetable market in the 

State. 

The market receives agriculture produce from the surrounding villages 

within radius of 15-20 k.m. There are about 1500 traders and 200 commission 

agents operating in the jurisdiction of APMC, Nasik. 

Annual arrival of Nasik 

market is 38.00 Lac MT that shows the size and volume of business of 

horticulture sector in one district. 

Therefore it has been proposed to establish a 

modern terminal market in Nasik or in surrounding area under private / semi 

govt. management. 

Therefore there is a need for a radical shift towards an efficient as well as 

sophisticated supply chain model to maximize returns to growers as well as meet 

ever increasing needs of the consumers, both in the international as well as the 

domestic markets. This can be achieved by organizing growers at the backend 

and creating modern terminal markets with state of the art infrastructure and 

managerial competence at the front end. 

5


CHAPTER – II 

PRESENT SCENARIO IN NASIK DIVISION 

Maharashtra is the one of the largest states in the production of fruits and 

vegetables contributing nineteen percent of the total fruit production in the 

country. The State produces around nine million tones of fruits having 

productivity of 16 MT per hectare, which is fairly good when compared to 

country’s average of 12 MT. It grows commodities like grapes, pomegranate, 

banana, mango, sapota, oranges, lime, strawberry, jackfruits etc in large 

quantity. 

The State holds prestigious position in vegetable production 

contributing 5% of the total production and stands 7 th 

in the country. Total 

production of vegetables in Maharashtra is approximately 5 million tones. 

Because of close proximity to Mumbai port and metropolitan market, the state 

enjoys the comparative advantages in exports as well as long distance supply. 

In certain commodities the state has occupied unique and prestigious position, 

e.g. onion, grapes, pomegranate etc. These commodities have far reaching 

upstream zone of influence where these commodities are known by the place 

itself i.e. Nasik. 

Nasik is the one of the most emerging horticultural hub of the State. It has 

tremendous potential for cultivation of aforesaid commodities and significant 

exports. In recent past there have been large-scale quantities of grape exports 

6


(20,000 MT annually). The quality of these grapes is considered to be very 

good in international markets. Being a major horticulture hub and especially in 

close proximity of trading and export hub, the triangle of Mumbai-Pune-Nasik 

cities will register a tremendous growth of horticultural production in 

Maharashtra. Progressive farmers of this region are adopting new technologies 

in the area of post harvest management and packaging etc., on a large scale. 

The following table presents a trend of growth in area and production of 

different commodities in Nasik district. 

No Item 2000-01 2001-02 2002-03 

Area 

(Ha) 

Prodn 

(MT) 

Area 

(Ha) 

Prodn 

(MT) 

Area 

(Ha) 

Prodn 

(MT) 

1 Mango 2620 7128 5102 17347 5576 18958 

2 Grape 15260 249920 27364 475800 17387 602400 

3 Banana 8 400 200 13190 100 6340 

4 Pomegranate 11729 173873 5102 77703 - - 

5 K.Lime 133 1711 209 1986 - - 

6 Onion - - 17056 180003 32184 300454 

7 Tomato - - 9472 320520 8112 162330 

The production of some key fruits and vegetables in the Nasik District are 

presented in the table above. The data shows that the production of fruits and 

vegetables is on the rise. The quantum of production is quite high in few of the 

7


commercially important commodities such as Grapes, Onion and Tomato and 

substantially less in other commodities such as Banana and K. Lime. The 

production of fruits in the next few years can go down due to unforeseen 

reasons such as drought or diseases, as was the case a few years ago in 

Pomegranate and Grape. Another factor that plays a major role in cutting down 

the production of Onion by farmers in the State is the high levels of price 

fluctuation in market. In the years to follow, due to the lower market prices for 

Onion in the State, the area under Onion would invariably come down reducing 

production and increasing prices in the subsequent years. 

Monthly wholesale prices of the last three years 

Typical monthly wholesale prices of key fresh produce in Nasik APMC are given 

below. The price difference is higher in perishable produce and lesser in semiperishable 

and less perishable produce. There is large variability in prices of 

produce during the day and during the season. The large difference in market 

price between the daily minimum and vs. maximum price for a produce is 

difficult to comprehend but it can be explained. This is because the present 

system of dissemination of market prices in the country does not provide 

additional details about the produce, which has a direct bearing on the market 

price such as the issues of produce quality and grade. Further this is 

complicated by the fact that a large number of transactions or auctions in the 

market take place on un-graded, un-sorted and un-packed produce. Traders 

8


who then get to arbitrarily fix price to his benefit patronize this practice. In other 

words grading of the produce and packaging before sale is not promoted in the 

existing market system where as it is reverse in the case of a modern Terminal 

market. The modern market system disseminated information on grades and 

quality of specific produce that was transacted at the market as part of a routine 

market information dissemination system. 

The large price variability during a season is explained by gluts or heavy arrivals 

in peak harvest season and receipt of significantly lower levels of supplies in off 

peak harvest season. 

Monthly Prices of Few Key Produce Traded in Nasik Market 

No. 

Item Minimum Maximum Model 

GRAPE – NASIK Rs/Quintal Rs/Quintal Rs / Quintal 

1 Feb 2000 1600 1800 1700 

2 Mar 2000 900 1300 1200 

3 Apr 2000 800 1400 1000 

4 May 2000 1900 2200 2000 

5 Mar 2001 1100 2000 2000 

6 Apr 2001 1900 2500 2000 

7 Jan 2002 900 2000 1050 

8 Feb 2002 800 1050 950 

9


No Item Minimum Maximum Model 

LEMON – NASIK Rs /Quintal Rs /Quintal Rs /Quintal 

1 Aug 2001 500 650 500 

2 Feb 2002 300 500 300 

3 Aug 2004 400 600 500 

4 Nov 2004 450 700 650 

Problem of Price Fluctuations and Benefits of Terminal Market 

High levels of price fluctuations in key produces from the Nasik area, viz. Onion, 

Tomato and Grape, have been calling for a satisfactory solution for quite some 

time now. One of the effective ways of addressing this problem is through more 

efficient and modern marketing practices including the setting up of Terminal 

market. With better post harvest management practices, better handling 

/storage practices, opportunities for quick and cost competitive transport plans 

and processing options the proposed Terminal market at Nasik is well equipped 

to address this problem. With good tie ups, backward and forward linkages the 

Terminal market is in a position to contribute to better production planning by 

farmers. 

It can provide farmers with feedback on consumer likes and 

requirement and help them in production planning and help tie up in marketing. 

Price Fluctuations in Onion 

Onion is one of the most price sensitive produce. Quite frequently farmers 

complain about less than remunerative prices received by them for their 

10


produce. Some times the prices of Onion falls to Rs 1 and 2 per Kg that is below 

their cost of cultivation. This has led to State intervention and purchase at 

minimum price in the past. The situation has improved in the past few years. 

Mainly because of two reasons, viz. availability of increased storage capacity for 

farmers and growing exports due to lifting of restrictions on exports by the 

Central Government. 

The impact of exports of onion, the single largest produce exported out of India 

at nearly 7 lakh MT during 2003-2004, also contributes to price stabilization and 

better prices for Onion. The improved situation in onion storage facilities in the 

State, because of setting up of nearly 2.5 lakh MT additional capacity under 

financial assistance scheme during the past three years, has led to lower post 

harvest losses and reducing the distress sales by the farmers. This has also 

contributed to price stability. 

Price Fluctuations in Tomato 

Tomato being a highly perishable produce unlike Onion, is subjected to frequent 

and large price fluctuations. During period of peak harvest, the prices of Tomato 

are ridiculously low at less than Rs 1 per Kg. This together with lack of adequate 

handling, storage and limited shelf life extension options or value addition 

opportunities the farmers has no choice but to dispose off at throwaway prices. 

There is a need for better organization of Tomato trade with better post harvest 

management practices and an efficient transportation and processing options. 

11


Terminal market has the capability to grasp the market signals and direct the 

farmers to produce to meet processors needs for high TSS Tomato and 

consumers need for specific grade of produce. 

Price Fluctuations in Grapes 

A price of fresh Grape fluctuates due to a number of reasons. Prices go up due 

to lower production because of water shortage in production season and unusual 

rains during harvest time that adversely affect Grape production. With its highly 

developed export trade, the prices of grape in the local market are influenced by 

export performance. When exports are high the prices in the local market are 

stable and remunerative for farmers. 

However due to high levels of 

competitiveness in the international Grape trade sometimes the Indian Grape 

fetches lower prices. This will lead to less export during the season and more 

availability in local market with reduced price realization by the farmer. An 

efficient Terminal market system would account for such contingencies and 

effect appropriate distribution and utilization plans to minimize price fluctuations. 

Harvesting Season 

The availability or harvesting season of fruit and vegetable is well spread 

throughout the year. This is ideal for profitable operation of the market at 

desirable capacity level all through the year. It is shown in the following table. 

12


Availability of fruits and vegetables are as below. 

No Fruit /Vegetable Peak 

Harvest 

months 

1. Banana Apr, May July, 

Aug, 

Nov, 

Sept, 

Off peak 

harvest 


Jan, Dec 

Remarks 

(No of 


available) 

10 months 

2. Grapes Feb, Mar, Apr Jan, May 5 months 

3 Mango Apr, May, Mar, Jun, Jul 5 months 

4 Pomegranate Feb, Mar 

Nov, Dec 

5 Lime /Lemon Feb, Mar 

6 Sweet Orange Feb 

Jul, Aug 

Nov 

7 Onion Feb, Mar 

Oct 

8 Tomato Aug, Sep 

Dec, Mar 

Jan 

Sept 

Dec, June 

Mar, Sep 

Jan, Oct 

Mar, Dec 

Jan, Sep 

Jan, Dec 






9 Cabbage Dec, Jan Nov, Mar 4 months 

10 Cauli flower Aug, Sep, Oct Jul, Feb 5 months 

11 Brinjal Feb, Mar 

Sep 

12 Okra Mar 

Sep, Oct 

Jan, Aug 

May, Sep 

Feb, Aug 

Apr, Nov 



13


The above table shows that the key fruits and vegetables are available 

throughout the year. The information such as peak arrival months and season of 

availability is useful while planning market operations. 

Inter and Intra State Movement 

Nasik is a major producer and supplier of fruits like Grapes and vegetables such 

as Onion for markets within the State, outside the State and outside the country. 

Nearly 90 % of Grapes and Onions are sent out of the State. 

Grape: Almost 60 % of the Grape production from the State is reported from 

Nasik. Fresh Grapes are sent to key markets in the State such as Mumbai, Pune, 

Nagpur, Aurangabad and so on and outside the State markets in Kolkatta, 

Chennai, Ahmedabad, New Delhi and so on. The produce is transported by road 

packed in corrugated boxes in regular trucks and tempos. Exports of fresh 

Grapes is carried out mainly by sea in refrigerated containers. There are more 

than hundred pre-cooling cum cold storage pack-houses in Nasik that facilitate 

exports. 

Onion: Nasik is also a major producer of Onion in the State. Onion production is 

reported to be 50 % or more of the State production. Since the State produces 

25 % of country’s production of onion, Nasik onion is transported to other parts 

of the State and outside the State and also exported out of the country. Most of 

the onion is transported in trucks packed in 40 kg gunny bags. Export onions 

14


are packed in smaller packs of 4 Kg to 10 kg as per consumer needs. Onion is 

exported today mainly to Asian and South East Asian countries besides Middle 

East. Since the Nasik onion (Agri Found Light Red) is a major produce with long 

shelf life exporters prefer Nasik onion to other types of onion. 

Tomato: Tomato is also produced in large quantities and sent out of the District 

to other parts of the State especially to major consumption centers like Mumbai 

and Aurangabad in the State and to other major markets such as Ahmedabad 

and even New Delhi market depending upon seasonal demand. 

Number of Traders operating in Markets 

A large number of traders and commission agents operate in the Nasik market – 

779 class A Traders and 194 class A Commission Agents. The above figure 

includes not only fruit and vegetable trade operatives but also other trade 

operatives such as grain and other produce operatives. 

The number of traders 

dealing in vegetables is estimated to at 200 or so and little less than half that 

number in fruits. 

Market charges applicable in Mandi 

The market charges are in the range of 9 to 13 % in case of fruits and vegetable 

trade. Of this the major share is received by Commission Agents. However, in 

reality, the farmer / trader is paying more than the approved charges. A typical 

market fee structure is given below. 

15


No Item Percentage* 

1 Market fee 1.0 – 2.0 

2 Supervision Fee 0.05 

3 GCA commission 8.0 – 11.00 

4 Unloading /Loading (Quintal) 1.25 – 2.0 

5 Weighment (Quintal) 0.9-1.2 

6 Cleaning charges (Quintals) 0.07 

Total 9.05 (+) – 13.05 (+) 

* Percentage of value of produce 

Growth in Mandi Arrivals - A <strong>Project</strong>ion 

Growth projections of arrivals in Mandi over the next 10 years have been 

prepared for Nasik Division. The projections are based on mandi arrival data 

collected over the last ten years. A summary table showing growth in arrivals in 

key markets and of key produce are shown below. 

No Category Key Markets /Produce in Nasik 

Division in which growth is 

projected over the next 10 years 

(2004 – 2014) 

Average 

percentage 

projected 

growth 

1 Banana Chopada, Raver. Yawal, Faizpur 1.38 

2 Mango Kalvan, Nasik 3.30 

3 Pomegranate Malegaon, Nasik 2.30 

4 Grapes Nasik, Pimpalgaon-Baswant 1.45 

5 Water Melon Sangamner 2.99 

6 Lemon Sangamner, Shrigonda, Yeola 1.37 

16


7 Okra Pimpalgaon-Baswant 2.63 

8 Onion Rahuri, Pimpalgaon-Baswant, Kalvan, 

Deola, Lasalgaon, Manmad, Yeola 

2.19 

9 Cabbage Yeola 2.43 

10 Tomato Sangamner, Pimpalgaon-Baswant 1.90 

11 Brinjal Pimpalgaon-Baswant 2.65 

12 Other vegetables Nasik, Dhule, Pimpalgaon-Baswant 0.80 

13 Vegetables 

(Market wise) 

Rahuri, Sangamner, Yeola, 

Pimpalgaon-Baswant, Kalvan, 

Lasalgaon 

2.00 

14 Vegetables Onion, Tomato, Corainder, 2.34 

15 Vegetables 

(Market wise) 

Nasik, Yeola, Sangamner, Chopada, 

Raver, Yawal 

1.56 

16 Fruits Banana, Lemon 1.20 

From the growth projections above it is evident that the arrivals (production) of 

key horticultural crops from Nasik Division is going to grow in key Mandi over the 

next 10 years. A positive linear rate of growth (growth) is projected in all key 

produce and key Mandi. 

17


CHAPTER - III 

EXISTING WHOLESALE FRUIT AND VEGETABLE MARKETS AND 

PRODUCE FLOW 

Agricultural trade in Maharashtra is regulated under Maharashtra State 

Agriculture Marketing (Regulation) Act 1963 whereby the State level Agricultural 

Marketing Board has established APMCs throughout the State for enforcement of 

farmer friendly provisions of the act 

MARKET PROFILES 

Nasik Market 

Nasik is the 6 th largest APMC in the State of Maharashtra with annual arrivals of 

381.52 lakh quintals in the year 2002-03, valued at Rs 23780 Lacs. 

The present APMC is being newly constructed at a distance of 6 km from the 

city, on Peth road. It is located on a 80 acres plot of land. Almost 70 % of the 

market work has been completed. The new market has started functioning to a 

great extent. Vegetable market is still to be shifted from its present location as 

well as the Grain market, which is spread out throughout the city of Nasik. 

The market receives agricultural produce from surrounding villages within a 

radius of 15 to 20 km. However sometimes produce also comes from as far 

away as 50 km. The arrival of produce is mainly in four wheelers - Truck, 

18


tempo, or tractor. The market receives a variety of agricultural produce – both 

perishables and non-perishables 

The market has 1493 traders of all types & 194 general commission agents 

operating today (see table below). The new market is well planned with enough 

parking spaces, good roads and shops and storage spaces for traders. However 

the market has some problems that include the lack of cold storage and cold 

chain for perishables such as fruits and vegetables on the market yard. 

TRADERS /ACOMMISSION AGENTS AND PROCESSORS OPERATING IN 

THE NASIK APMC – THE 6 TH LARGEST APMC IN THE STATE OF 

MAHARASHTRA 

No Functionary type Class Number Remarks 

1 Trader A 779 

2 Trader B 9 

Grains /Fruits and 

vegetables 

3 Trader C 439 

4 Commission Agent A 194 

5 Processor A 13 

6 Processor B 4 

7 Weigh man - 62 

8 Hamaal - 162 

9 Brokers (cattle) B 1 

10 Traders (Cattle) - 44 

19


The Nasik APMC is set up under the Maharashtra State APMC Act of 1963. The 

management of the APMC is in the hands of an elected body that has 

representation from the farmers, farmers groups, traders and Government 

officials. The APMC acts as a local authority and regulates all marketing activity 

in its area of operation. It works as a facilitator by providing needed 

infrastructures and support services for the functionaries’ viz. farmers and 

traders. 

APMC Chandavad 

Chandvad is a taluk headquarters in Nasik district. This is just one km inside the 

main Mumbai – Agra National Highway. The nearest railway station is Manamad. 

The APMC Chandwad was established on 01.04.1982. The market has 11.45 

hectares of market yard. It has two sub-markets.One is vadner – Bhairar and 

the other is Vadalibhovi. Vadnar – Bhairv sub-market is having a market yard of 

1.21 hectares. The second sub-market i.e Vadalibhovi has 1.84 hectares of 

land. 

The Chandawad main market is having the following facilities in its market yard. 

a) Sale hall b) Water tank c) Betelnut leaves shops 

d) Drinking Water e) Internal Roads and f) Compound Wall 

g) Godown of 700 MTS capacity 

20


In Chandvad main market 49 commission agent are doing business. The details 

of licensed traders are given below. 

1. A class traders - 46 

2. B class traders - 36 

3. C class traders - 776 

The total numbers of market functionaries serving the market are 1229. 

This 

market mainly deals with Onion, Betel leaves and Jowar. The important feature 

of this market is that 50 co-operative societies are doing business after obtaining 

license from the APMC. The market is having an annual turnover of 19.59 

crores. 

APMC Ghoti 

APMC Ghoti is in Igatpuri taluka of Nasik district. This APMC was established on 

15.09.1952. This is one of the oldest markets in this region. The main market 

is situated at Ghoti in an area of 2.09 hectares. 

This has one sub-market 

located at Wadivahe. 

Paddy, Rice, Wheat and Bajara and vegetables arrive in 

huge quantities to this market. There are 1529 market functionaries operating in 

this market. The number of commission agents is only urgent. 

The licenced 

traders are as follows: 

A class - 76 

B class - 68 

C class - 295 

21


The market is having the following infrastructure. 

1. Farmer’s Rest house 

2. Traders’ complex 

3. Cattle shed 

4. Cattle Plat Form 

5. Water Supply 

6. Shopping Center 

7. Shop cum godown 

Nearest high way is Mumbai – Agra National highway and the nearest railway 

station is Igatpuri. 

During 2002-03 the annual turnover of the market was of the magnitude of 

13.49 crores. 

APMC – Kalvan 

Kalavan is a taluka headquarters in Nasik district. 

The APMC Kalavan was 

established on 01.03.1971. This APMC has three sub-markets. They are 

1. Devla - 12.13 hac 

2. Abhona - 1.20 hac 

3. Kanashi - 1.20 hac 

22


Kalvan APMC is having a market of 6.07 hectares. The facilities available in the 

market are 

1. Weighment Shed 

2. Water Tank 

3. Auction Platform 

4. Weigh Bridge 

In all 1989 market functionaries are engaged in agricultural marketing 

operations. Number of commission agents are 44. The particulars at traders 

are as under:- 

A Class Traders - 96 

B Class Traders - 172 

C Class Traders - 333 

This market records the arrivals of Onion, Maize, Wheat, Bajara, Gram, 

Groundnut and Pulses. 

This is one of the important markets for Onion. 

The annual turnover of the 

market is 72.79 crores for the year 2002-03. Nearest highway is Mumbai – Agra 

National Highway and nearest railway station is Manamad. 

APMC Hasalgaon 

This APMC is in Niphad taluka of Nasik district. The nearest highway is Mumbai 

– Agra National highway. Lasalgaon has a railway station. This is one of the 

23


biggest onion markets of not only Maharashtra but also the entire country. Very 

high quality onion is cultivated in the hinterland of this market. 

The onion 

grown in this region is known for its keeping quality. 

Lasalgaon APMC was established on 27.07.1954. 

The main market is having a 

market yard of 16.51 hectares. The amenities provided in the main market yard 

are 

1. Internal Concrete Roads 

2. Weigh Bridge 

3. Farmers’ Rest House 

4. Warehouses 

5. Shopping Complex 

6. Canteen 

7. Under Ground Electrification 

8. Parking Place 

9. 1000 MT Godown 

Lasalgaon APMC is having two sub-markets. 

1. Niphad - 6.09 hac 

2. Vinchur - 1.5 hac 

In Lasalgaon main market totally 170 market functionaries are engaged in 

marketing activities. There are 116 commission agents. The particulars of 

traders are 

1. A Class Traders - 192 

24


2. B Class Traders - 5 

3. C Class Traders - 240 

This market is for the arrivals of Onion, Tomato and Soyabean. 

Lasalgaon 

market receives produce from traders at 15-20 kms. The annual turnover of the 

market for the year 2002-03 is 1.4.50 crores. 

APMC Malegaon 

Malagaon is a taluka head quarter. This is very near to Mumbai – Agra National 

Highway. Nearest railway station is Manamad. APMC Malagaon was 

established on 11.11.1948. 

This is also another oldest market of Nasik region. 

The main market has an area of 9.89 hectares. This APMC has four markets viz; 

1. Umarane 2.00 hac 

2. Zodage 2.00 hac 

3. Nomagaon No land 

4. Jalgaon (NI) 1.47 hac 

The important facilities provided in the Malagaon main market yard are 

1. Trader Shop 

2. Post Office 

3. Farmers Rest House 

4. Bank 

5. State Warehouse Godown 

6. Internal Roads 

25


The major commodities of this market are groundnut, onion, maize, bajra, 

wheat, pomegranate and potato. 

The annual turnover of the market for the year 2002 – 03 was 70.14 crores. 

The total number of market functionaries operating in the market yard are 2064. 

There are 12 commission agents. The particulars of traders are 



3. C Class traders - 162 

APMC Manamad 

Manamad is in Nandagaon taluka of Nasik district. This market was established 

on 18.07.195. The main market yard is developed on an area of 11.1 hectares. 

The important amenities provided by the market committee are 

1. Pump House 

2. Action Shed 

3. Weighing Bridge 

4. Parking Shed 

5. Farmer’s Rest House 

6. Farmer’s Market 

7. Godowns 

26


Good Number of market functionaries are doing business in this market and their 

number is 1068. There are 30 commission agents and the number of traders is 

given below. 




The major agricultural commodities grown in the hinterland of this market are 

onion, jowar, bajra and wheat. 

The total turnover of the market for the year 

2002-03 is 100.71 crores. 

APMC Nandgaon 

Nandagaon is a taluka headquarter in Nasik district. Nearest highway is 

Aurangabad. Nasik and Nandagaon are having a railway station. This APMC 

was established on 02.09.1949. 

This is another important oldest market of 

Nasik region. The extent of main market yard is 5.80 hectares. This APMC has 

two sub-markets viz; 

The major agricultural commodities of this area are onion, groundnut, maize and 

bajara. The important facilities available in the market yard are 

1. Electronic weighing bridge – 2 nos. 

2. Shopping Center 

27


3. Cattle Shed 

4. Canteen 

5. Compound Wall 

6. Drinking Water 

7. Farmers’ Rest House 

Total number of licensed market functionaries is 746. There are 50 commission 

agents performing business in this market. 

The particulars of licensed traders 

are as under 




The annual turnover of the APMC for the year 2002-03 is 24.25 crores. 

APMC, Satana 

Satana APMC is Baglan taluka of Nasik district. 

Mumbai – Agra National 

Highway is just one k.m from Satana. Nearest railway station is Manmad. This 

APMC was established on 24.09.1948. 

Main market Satana is having an area of .55 hectares. 

This is having only one 

sub-market at Nampur. The sub-market yard is having an area of 4.39 

hectares. The important facilities provided in the market yard by the APMC are 

1. Compound wall 

28


2. Vegetable market shed 

3. Shopping center 

4. Godowns 

5. Canteen 

6. Weighbridge 

7. Co-operative bank 

8. Farmers’ rest house 

Important agricultural commodities arriving in the market yard are groundnut, 

wheat, maize and onion. There are 1796 market functionaries functioning here. 

The number of commission agents engaged in business is 55. The particulars of 

traders are 




The annual turnover of the APMC for the year 2002-03 is Rs.277.00 crores. 

APMC Sinner 

Sinner is a taluka headquarters in Nasik district. This is just one kilometer away 

from Nasik – Pune State highway. Nearest railway station is Nasik road which is 

20 kms away from Sinner. APMC Sinner was established on 27.01.1956. The 

market yard of the APMC extends to 7.00 hectares. This APMC has established 

four submarkets. 

1. Wavi - 1.4 hac 

29


2. Nandur - 1.4 hac 

3. Dodi - 1.4 hac 

4. Pandhurli - 1.20 hac 

The major commodities arriving in the market yards are onion, wheat, bajra, 

hram, soyabean and vegetables. 

Farmers have been provided the following facilities by the market committee in 

the market yards. 



3. Sale hall 


5. Auction platform 

6. Canteen 

7. Tomato shed 

8. Weigh bridge 

9. Shopping center 

In all 1854 market functionaries are operating in the market yard. There are 55 

commission agents and the particulars of traders are as under 




The total turn over of one market for the year 2002-03 is Rs.16.02 crores. 

30


APMC Yeola 

Yeola is a taluka headquarters in Nasik district. 

Nearest highway is 

Ahamadnagar – Manamad and there is a railway station at yeola. The APMC was 

established on 12.03.1955. The main market is having an area of 10.00 

hectares. 

This market committee has only one sub-market at Andersul having 

an area of 4.70 hectares. 

The important crops cultivated in the hinterland of 

the market are wheat, gram, green gram, onion, bajra and vegetables. The 

market committee has provided the following facilities for the benefit of market 

users. 

1. Canteen 


3. Weight bridge 

4. <strong>Project</strong>ion T.V 


6. Auction plat form 

7. Drinking water facility 

8. International roads 

There are 84 market functionaries operating in the market yard out of which 7 

are commission agents. The details of traders are 



31



The turnover of the market for the year 2002-03 was Rs.36.30 crores. 

APMC Dindori 

Dindori is a taluka headquarters in Nasik district. The APMC was established on 

05.01.199. The extent of main market yard is 1.24 hectares. This committee 

has established a sub-market at Vani. The area of sub-market yard is 1.22 

hectares. The important facilities available in the main market yard are 

1. Drinking water 


3. Sale hall 


There are 334 market functionaries trading in this market. 

The number of 

commission agents is 46 and the particular of the traders is as under. 

1. A class - 87 

2. B class - 78 

3. C class - 118 

The important crops grown in the market area are onion, paddy, bajara and 

wheat. 

The annual turnover of the market for the year 2002-03 is Rs.14.44 crores. 

32


APMC Pimpal Gaon Basvani 

This market is situated in Niphad taluka of Nasik district. The APMC Pimpalgaon 

Baswant was established on 01.01.1996. The market is having an area of 2.66 

hectares. The market committee has established four sub-markets viz; 

1. Saikheada - 5-10 hac 

2. Ozar - 2.24 hac 

3. Kasabesukene - 3.07 hac 

4. Palkhed - 1.82 hac 

The market committee has provided the following amenities in the main market 

yard for the benefit of farmers. 

1. Canteen 

2. Sale hall 


4. <strong>Project</strong>ion T.V 



7. Internal roads 

8. Electrification 

The total number of market functionaries operating in this market yard are 1656, 

out of which 128 are commission agents. 

The details of trader category are 

given below; 



33


3. C class traders - 

This market mainly deals with onion, tomato, vegetables and maize. 

The total 

turn of the market during 2002-03 was Rs.169.28 crores. 

APMC Surgana 

Surgana is a taluka headquarters in Nasik district. 

This market committee was 

established on 27.03.2003. The extent of main market yard at Surgana is 1.30 

hac. Since this is a new market established very recently the market committee 

is making all out efforts to provide required facilities for one wholesale marketing 

of agricultural commodities. The facilities available for the users of this market 

are 


2. Godown 

3. Electricity 

4. Telephone 

The major commodities transacted at this market are narar, paddy, wheat and 

tur. The annual turnover of the market for the year 2002-03 is Rs.2.49 crores. 

APMC Reforms 

The State of Maharashtra has carried out major reforms in APMC Act. A major 

step in this direction was the decision to allow the setting up of a private market 

on the lines of the NDDB’s modern market for fruits and vegetables in the State 

34


outside the purview of the APMC Act. The amendment was made in April 2003. 

Similarly other reforms like allowing of Direct Marketing through establishment of 

Farmers Markets or Shetkari Bazaars, exempting exporters and processors from 

procurement without paying market fees or cess, E-trading single license for 

operating in the State on a case by case basis (under existing law until 

amendment pending with the Government is approved) etc. have been carried 

out. Since then a number of amendments have been approved by the State 

Cabinet. These amendments are in conformity with major recommendations in 

the draft Model Act circulated by the Government of India. 

This includes 

adoption of a model contract agreement and acceptance of contract farming in 

the State. All these amendments have already had an impact on the marketing 

system in the State and in the coming years they will revolutionize the present 

marketing system in the State for the better. 

Service Providers and Logistics 

The APMC has set up a number of service facilities on its market premises such 

as bank, post office, cafeteria, rest house etc. IT has made provision for setting 

up of transportation support services on market premises. 

1. Farmer 

The farmers brings his produce in tractor /truck /tempo /jeep to the market. 

The vehicle is either owned by the farmer or rented. Some commission agents 

working in villages provide credit or advance to some farmers and tie up with the 

farmer for marketing of their harvest. Many a times, they have long standing 

35


relationship with the producer. Mainly the vegetables are generally brought in to 

the market in loose form and the trader arranges for sorting, grading and 

packing at the market. In case of high value and sensitive fruits, besides loose 

transport, a number of farmers have started transportation after packing in 

cartons. In case of tomatoes a number of progressive farmers pack graded fruits 

in plastic crates before sending to the market. 

2. Transport 

Fruit & Vegetables transport is mainly by road. The freight costs for transport to 

New Delhi is quoted at Rs 7000 per and to Mumbai market Rs 1800 to 2000 per 

truck load of 9 to 10 MT. 

The produce when it comes to the Nasik market from the farmer comes in small 

loads of few quintals to 100 to 200 quintals for the most part. Few large farmers 

send their produce in truck loads, 8 to 10 tons capacity. 

The average distance that the produce travels before reaching the market is 

between 5 to 20 km. The cost of transportation in jeep or tempo is reported as 

Rs 0.10 per kg. And the travel time from production area to wholesale market is 

between 30 minutes to 1 hr in most instances. Occasionally when produce 

travels 100 km or 150 km the travel time would be 2 to 3 hours. 

36


3. Train Transport: 

Nasik is well connected by rail with other markets and consumption centers 

within the State and outside the State. Produce such as Grapes and sometimes 

onion are dispatched by train and produce such as Apples and Potato are 

received at Nasik. However, generally, fruits and vegetables are not shipped by 

train. During the season few loads of Grapes are being sent to distant markets 

such as Calcutta and New Delhi. The produce reaches the markets in 24 or 48 

hours. 

4. Pack-House: 

There are more than 100 pack houses in Nasik today. A typical pack-house 

includes a pre-cooling unit and a cold storage, with a capacity of 4 tons per 6 

hour and 50 MT, respectively. Almost all pack-houses are used during the 

season to export fresh table Grapes. The total cold storage capacity of these 

pack-houses is estimated to be around 5000 MT. Besides there are some 

commercial cold storages in the private sector in the Nasik area. They have an 

estimated storage capacity of 40000 MT. 

The commercial cold storages are used to store a number of perishables such as 

seasonal fruits, vegetables and for most part dry goods such as potato, chilly etc. 

The utilization of cold storage fairly high at 70 % in commercial cold storages 

and at a low of 25 to 30 % in seasonal cold storages used for export of fresh 

Grapes. 

37


5. Supply to Export and Domestic markets 

Onion is the largest exported vegetable from the country today. Last year nearly 

7 lakh MT of onion was exported valued at an estimated Rs 500 crore. Of the 

total onion exports it is reported that nearly 70 % of all exports takes place from 

Maharashtra and 70 % of Maharashtra exports from Nasik. During the past year 

an estimated 400 container loads of fresh Grapes (approximately 6000 MT) were 

exported from the Nasik region. Pomegranate is another important fruit that is 

exported from Nasik in fairly large amounts. The same pre-cooling cum cold 

storage units that are used for export of fresh Grapes is used for this purpose 

also. It is estimated that nearly 1500 MT of Pomegranates were exported from 

Nasik region during the past year. In case of fresh Grapes a portion of export 

grade produce is directly sourced from Nasik market. Whereas most quantity of 

onion for exports is directly sourced from Nasik markets. 

Nasik is the main source of a number of fruits and vegetables for many of the 

key domestic markets in the country and the State. Major markets within the 

State like Mumbai, Nagpur, Pune, Aurangabad and Kolhapur receives fresh 

Grapes, Pomegranates and Onions during the season. Besides, distant consumer 

markets such as New Delhi, Calcutta, Ahmedabad, Bangalore, Chennai and 

Hyderabad also receive produce from Nasik during the season. 

38


CHAPTER - IV 

PROBLEMS IN EXISTING SYSTEM 

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 the farmers to organize logistics. 

Since most of the 

farmers are 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 yards 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 create a market place, which works, 

in its natural form where large number of buyers and large number of sellers 

participate in transactions and decide price without monopoly of any single 

community with total transparency. 

• Designing and Planning of existing Market has not been efficiency linked 

and quality driven. Inside the market the land use pattern is faulty. 

Spaces allocated to marketing activities are quite enormous, while parking 

in circulation area either openly ignored or uncrossed open. 

Designs of 

39


the shops and godowns are not functional utility oriented and cultural 

friendly. This results into overall inadequacy of space in the market for 

handling per metric ton. Facilities to handle the produce and adding the 

value to the commodity as well as extending shelf-life are either 

inadequate or non-existing. 

• Management of facilities and infrastructure within the market yard 

happens to be extremely poor. 

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 and in a un sequential order. This 

creates unnecessarily 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. 

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

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

palatization, labeling, pre-cooling, cold-store, ripening chambers and 

exports, in fruits and vegetables markets. Banana is still ripened in a 

40


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 is there a common facility for sorting-grading 

nor at farm level, hence growers undertake these activities at individual 

level and in a traditional/conventional manner. 

This results in high level 

of damages and waste of the produce. On one hand it creates problems 

in the market place while on the other hand post harvest losses are direct 

loss to the farmer and national economy. 

• Another important problem 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 in the level of intermediaries 

and handling chain is essential. 

• 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. 

41


CHAPTER – V 

PERCEPTION OF STAKEHOLDERS AND SURVEY RESULTS 

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

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

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

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 to be considered. 

A survey was conducted by contacting the farmers of all the blocks of Nasik 

district. The survey team visited the sample villages and elicited information 

from the farmers. A schedule was designed for this purpose and pilot study was 

conducted. Based on the pilot study the schedule was redesigned. 

Sample sizes were the three markets in Nasik region. 

1. Pimpalgaon 

2. Nasik 

3. Lasalgaon 

42


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 of arrivals coming to market, 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, which is the most 

convenient site for the development for planning and designing of the proposed 

new terminal market. 

With the main object of knowing the views of the major 

stakeholders a sample size of ten local traders, five traders who are dealing with 

outside state markets was considered. Thus, from each market a total of 15 

traders were interviewed with schedule. A total of 30 local traders and 15 

traders dealing with the outside the market was taken up. Similarly, the 

research investigators interviewed 10 farmers from each block of NAFED, Nasik, 

Chandwad, Sinnar and Dindori. 

With regard to the staff 3 officials of 

Pimpalgaon, Nasik and Lasalgaon 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 13 Grapes Onion, Tomato, Brinjal, Cabbage, Lady Finger 

& Others 

3-5 18 Grapes Tomato, Brinjal, Cabbage, Lady Finger, 

43


Capsicum, Garlic & Others 

5-10 43 Grapes, 

Pomegranate 

10 - 

Above 

26 Grapes, 

Pomegranate 

Onion, Tomato, Brinjal, Cabbage, Lady Finger, 

Capsicum, Garlic & Others 

Onion, Tomato, Brinjal, Cabbage, Coriander, 

Lady Finger, Capsicum, Garlic & Others 

As per the table one reveals that 43% of farmers are having holding size of 5 to 

10 acres and 26% of farmers are having the holding size of more than 10 acres. 

it is important to note that 69% of 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 three acres is 

13 and that of 3 to 5 acres is 18. The farmers whose size of holding is up to 5 

acres are only growing grapes where as farmers having a holding size above 5 

acres are cultivating both grapes and pomegranate. 

The survey clearly reveals 

that all most all the farmers of the study are cultivating vegetables like onion, 

tomato, brinjal, cabbage, ladies fingers etc. Only big orchard owners possessing 

more than five acres of land are growing both grapes and pomegranate, 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 

Local Market 

20 

100 

20 

100 

% Share 

Other Market 

80 

0 

80 

0 

44


5-10 Fruits 

Vegetables 

10 - Above Fruits 

Vegetables 

10 

80 

20 

80 

90 

20 

80 

20 

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 domestic market and selling 80 % 

through outside market. Whereas big farmers having an area above 5 acres are 

marketing 10% of their fruits in domestic market and remaining in out side 

markets. The farmers having larger holdings are selling 80% of vegetables in 

domestic markets and are sending 20% production for sale out side markets. It 

is very important to note that big farmers are selling only 10 to 20 % fruits in 

local markets and are dispatching 80 to 90 % fruits to outside markets for sale. 

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 markets. The marketing of fruits in the local 

market by big farmers is only 10 to 20 %. This fact indicates that grapes, 

pomegranates and onion could be dispatched to out side state markets directly 

from collection centers. The fruits and vegetables assembled at the collection 

centers need not again be brought to terminal market instead it could directly be 

dispatched to the consumer market. This enables to reduce our unnecessary 

transportation cost. 

Table - 3 

Level of Marketable Surplus / Supplies of Farmers Size 

Size of Holding (acre) % of Average Turnover (Qntl) 

45


Respon Daily Monthly Annual 

dents 

0-3 13 1 20 160 

3-5 18 2 50 430 

5-10 43 5 60 480 

10 - Above 26 10 190-200 1500 

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

3 acres, which are 13%, have a marketable surplus of one quintal daily, 20 

quintals monthly and 160 quintals annually. The farmers having holding size of 3 

to 5 acres who are 18 % have a daily marketable surplus of 2 quintals daily, 50 

quintals monthly and 430 quintals annually. The marketable surplus of 43 % of 

farmers having an area of 5 to 10 acres is 5 quintals daily, 60 quintals monthly 

and 480 quintals annually. Big farmers having holding size of above 10 acres 

have a marketable surplus 10 quintals daily, 190 to 200 quintals monthly and 

1500 quintals annually. 

Table - 4 

Average Distance Covered to Sell Produce 

Size of Holding % of Respondents Average Distance (Km) 

0-3 13 1-30 

3-5 18 1-40 

5-10 43 1-200 

10 - Above 26 1-1700 

Table 4 clearly indicates that small farmers having the holding size up to 5 acres 

travel a distance up to 40 Kms. to market their produce. Whereas 43 % of 

46


farmers having a holding size of 5 to 10 acres travel a distance up to 200 Kms. 

to reach the market place. The distance traveled by 26 % of farmers having a 

holding size of more than 10 acres is even up to 1700 Kms. The big farmers 

who have developed good contacts with distant markets are taking their produce 

to far off place in search of higher price and more income. 

Size of 

Holding 


Respondents 

Table - 5 

Mode of Transport by Distance 

Average 

Distance 

(Km) 

Mode 

0-3 13 1-30 Tractor Trolley, Bullock cart, 

Tempo, Bus 

3-5 18 1-40 Tractor Trolley, Bullock cart, 

Tempo 

5-10 43 1-200 LMV, Tractor Trolley 

10 - 

Above 

26 1-1700 Truck, Tractor Trolley, LMV 

Table five 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 use bullock cart. Medium farmers having an area of 3 to 4 acres use 

tractor trolley, bullock cart 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 99.99% 

There is no need to develop alternate market 0.01% 

47


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

development of modern new terminal market for fruits and vegetables. it is very 

important to note that 99.99 % 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. 

Table - 7 

Problems Faced in the Existing Market 

1. Transportation. 

2. Traders cheat us. 

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. 

• 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. 

48


• 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. 

Table - 8 

Opinion of the Farmers For Using the Proposed Market 

S.No. Opinion Percentage 

1. Like to sell produce in proposed market 99.99% 

2. Not sell produce in the proposed market 0.01% 

3. Expected average distance likely to be covered 35 (Km. 

Average) 

4. Percentage of commodities, farmers willing to sell in 

alternate market. 

100% 

A critical analysis of table 8 above clearly indicates that 99.99% 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 35 

Kms. to reach the proposed market. This aspect is to be taken care by the 

planers to see that the new proposed terminal market is within this limit for 

maximum number of farmers. 

49


Table - 9 

Order of Preference for CCs: 

(Refer to the table 7 of traders survey conclusion) 

Table - 10 

Selection of Site 

S.No. Site Name Order of preference 

I II III 

Percentage of respondents 

1. Nafed Site at pimpalgaon 80 

2. HAL – Ojhar 30 5 

3. Mundagaon – Igatpuri 0 

4. Nafed Complex – Lasangaon 5 

5. Pipalgaon - Chinchkhed Road 100% audience proffered this site, 

but were not aware of this location. 

A perusal of table 10 reveals that 80 % of farmers are in favor of establishing 

new terminal market at NAFED site at Pimpalgaon. Only 30 % of farmers have 

preferred HAL – Ozar site. Hardly 5 % respondents have opined as a second 

alternative site for HAL – Ozar. Only 5% have selected Nafed comples Lasalgaon 

as a third preference but 100% of farmers have given their consent for 

Pimpalgaon, Chinchkhed Road site. Farmers when approached expressed their 

willingness for this site and informed the survey team that they were totally 

unaware of this site. All the farmers of the region are in favor of establishing the 

new modern terminal market at Pimpalgaon, Chinchkhed Road site 

50


TRADERS SURVEY CONCLUSION 

Table - 1 

Per trader Average Quantity Handled and Annual Turn Over 

Size of Quantity 

(Qntl) 


respondents 

Average turnover (Rs.) 

Fruits 

Vegetables 

0-100 10 200000 18000 

101-500 20 1000000 36000 

501-1000 10 3000000 12000 

1001-5000 20 15000000 24000 

5001-10000 10 10000000 24000 

10001 – Above 30 10000000 72000 

The critical analysis of table 1 reveals that 30% of traders are handling more 

than 10,000 quintals of produce worth Rs. 1 Crore of fruits and Rs. 72,000 worth 

vegetables per annum. Another 10 % are handling 5,000 to 10,000 quintals 

worth Rs. 1 Crore fruits and vegetables worth Rs. 24,000. 

The percentage of 

traders dealing 1,000 to 5,000 quintals per annum is 20. The turnover of 10 

percent traders is in the range of 501 to 1,000 quintals per year. Ten percent 

traders handle hardly 100 quintals per year worth Rs. 2 Lacs of fruits and Rs. 

18,000 worth vegetables. 

51


Table – 2 

Commodity Wise Arrival and Hinter Land as Trader Receive 

S.No Name of commodity Area 

1. Onion 80 Km 

2. Grapes 30 Km 

3. Pomegranate 40 Km 

4. Water Melon 900 Km 

5. Other Vegetable 30 Km 

Onion, grapes, pomegranate, watermelon and other vegetables are the 

important fruits and vegetables which are grown in this region. Generally 

vegetables come to market from distance of 30 Kms. The survey has revealed 

that watermelon arrives to market from a far of distance of 900 Kms. Onion 

arrives from a distance of 80 Kms radius, Vegetables in the radius of 30 Kms 

Grapes in radius of 30 Kms. As such it could be seen that the hinterland of the 

market is spread from 30 Kms. to 900 Kms. 

Table - 3 

Selling Pattern of Commodities By Traders 

S.No. Commodity Name Local Market Other Market (in %) 

(in %) 

1. Onion 0 100 

2. Grapes 10 90 

3. Pomegranate 20 80 

4. Water Melon 100 0 

5. Other Vegetable 20 80 

52


A perusal of table 3 indicates that onion grown in the hinterland is not marketed 

in the local market, but it dispatched to outside markets for sale. Hardly, 10 % 

of grapes are sold in the local domestic market and the remaining 90% is sent 

outside. Same is the case with pomegranate, where only 20% is sold in the local 

market and the balance 80 % is exported to other outside markets. The only 

fruit, which is sold in the local market, is watermelon. 100% of the production is 

sold in the domestic market. 

Table - 4 

Dispatch Pattern of Commodity from Nasik Region 

S.No. Commodity Name % of Commodity dispatched to 

Within Within Outside Total 

District State State 

1 Fruits 10 10 80 100 

2 Other Vegetables 20 36 44 100 

3 Onion 0 20 80 100 

A critical analysis of the table 4 shows that 80% of fruits are sent outside state 

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

10% within the sate. As far as vegetables are concerned, 20% are sold within 

the district and 36% within the state and remaining 44 % outside the state. It is 

pertinent to know that 80 % of Onion is dispatched outside Maharashtra for sale 

and only 20% is sold within the state. It is clear that 80% of fruits and onion 

53


grown in this region are dispatched to other markets outside the state of 

Maharashtra. 

Table - 5 

Problems faced by the traders in present structure of markets 

1. Non-graded Material. 

2. Transportation Problem to Mumbai. 

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 functionaries 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 

Mumbai. The survey team was appraised by the traders about the water 

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

54


much of dust. One of the major complaints was about the non-availability 

grading produce and quality awareness. The traders also insisted the facility of 

private banks. 

Table - 6 

Opinions About Need To Develop Alternate Market Other Than 

APMC Market 

1 % of respondents says yes 90% 

2 % of respondents says No 10% 

3 % of respondents who would like to sell their produce in 

Modern Terminal Market 

4 Expected distance which can he covered by farmers 

according to traders 

5. Average % commodity willing to trade in proposed market 

by traders 

100% 

75 Km 

100% 

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

and vegetable terminal market, 90 % of the traders replied in favour of the 

proposal. Only 10% of respondents said that they were contented with the 

present market. However all the 100% 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 75 Kms. to 

reach the new terminal market but may be reluctant to travel more than 75 

Kms. to reach the market. 

55


Table – 7 

Order of Preference Given by Trader for Opening Collection Centers 

Sl.No. 

1. Nifad 

Name 

2. Sinnar 

3. Chandori 

4. Nandgam 

5. Koparagaon 

6. Kalvan 


8. Lasangaon 

9. Dindori 

10. Satana 

11. Ojhar 

12. Vani 

13. Ugaho 

14. Khedgaon 

The order of preference suggested by the interviewed traders is 1) Nafed 2) 

Sinnar 3) Chandori 4) Nandgaon 5) Kopargaon 6) Kalvan 7) Pimpalgaon 8) 

Lasalgaon 9) Dindori 10) Satana 11) Ozar 12) vani 13) Ugaho and 14) Khedgaon 

56


Table - 8 

Opinion About Collection Centers By Traders 

Within Nashik District 98% 

Within 75 – 100 Kms. 2% 

Entire Maharashtra 0 

Outside State 0 

Within State commodity specific 0 

It is crystal clear from the observation of table 8 that all the traders desire that 

the new terminal market be situated within Nasik district. 98% of traders have 

opted for the establishment of terminal market within Nasik district and only 2 % 

have said that it could be any where within the radius of 75 to 100 Kms. 

Table - 9 

Order of Preference for Selection of Site 

Sl.No. Site Name 

Order of Preference 

I II III 

% of respondents 

1. Nafed Site at 

90 

pimpalgaon 

2. HAL – Ojhar 5 80 15 

3. Mundagaon – 

0 0 0 

Igatpuri 

4. Nafed Complex – 5 80 15 

Lasangaon 

Audience from Officials and vendors were only aware of the below site. 

5. Pimpalgaon - 

Chinchkhed Road 

95 0 0 

A critical observation of table 9 indicates that 90 % of traders are in favor of 

Nafed site at Pimpalgaon. The second alternative is HAL- Ozar site (80%). The 

third preference of the traders is Nafed Complex Lasalgaon. However, the staff 

57


of vendors, institutions and local vendors have proposed a totally new site at 

Pimpalgaon – Chinchkhed road. 95% of staff and vendors have recommended 

this new site. 

Opinion about the model and concept of proposed market 

Table - 10 

Sl.No. 


1. Large scale distribution centers 100 

2. Wholesale cum retail 0 

The figures presented at table 10 above indicate that the traders are in favour of 

establishment of a large-scale distribution center. They have not opted for a 

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

wholesale trade be developed in this region. 

Table - 11 

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. Radiation technology should be on trolley rather than gunny bag. 

9. Need to change labor laws. Same rate of Hamal traders. 

10. Traders should be included in advisory committee to government 

where fluctuation in onion market can be forecast. 

58


The contacted traders have offered suggestions, which are presented in table 11. 

It could be seen from this table that the traders demand locker facility in banks, 

which increased banking hours. They suggest that the radiation technology 

should be on trolley rather than gunny bags. A suggestion also has come 

regarding awareness regarding 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 

1. Approximate of hinterland area with quantity and monthly turnover 

Table - 1 

Lasalgaon Market 

Sl.No. 

Commodity 

Name 

Area 

1 Onion Nashik, Ahamednagar, Jalgaon, 

Dhule 

App. Qty. 

Received in 

the mkt. 

30,000 Qtl 

59


2 Tomato 45980 Qtl 

3 Grapes 8151 Qtl 

In the market area of Lasalgaon onion, tomato, and grapes are extensively 

cultivated. Onion is cultivated in Nasik, Ahamednagar, Jalgaon and Dhule areas. 

The quantity of onion arriving to this market daily is 30,000 quintals. The tomato 

arrivals are to the tune of 45,980 quintals. Lasalgaon market receives 8151 

quintals of grapes. 

Table – 2 

Pimpalgaon Market 

Sl.No. Commodity 

Name 

Area 

1 Onion Kalvan, Sinnar, Yewala, 

Chandwad, Nifad, Dindori, 

A’Nagar, Other District 

App Qty 

Received 

in the 

mkt. 

Monthly 

Turnover 

3214152 16169 

2 Tomato Yewala, Chandwad, Nifad 1064807 4388 

3 Grapes Nifad 1977 14 

4 Kismis Nifad 61781 3608 

In the market area of Pimpalgaon onion is grown extensively in Kalvan, Sinnar, 

Yeola, Chandvad, Nifad, Dindori and Ahamednagar. 

The arrivals of onion to this market is 32,14,152 quintals. Tomato is cultivated 

at Yeola, Chandvad and Nifad. The arrivals are 10,64,807 quintals. It could be 

seen that Pimpalgaon market is known for the heavy arrivals of onion and 

60


tomato. The other two important commodities arriving to this market are grapes 

and kismis. The exact arrivals and corresponding quantities are furnished in the 

table 2. 

Sl.No. 

Commodity 

Name 

Table 3 

Nasik Market 

Area 

App Qty 

Received in 

the mkt. 

1 Watermelon Karnataka 60 MT 

Monthly 

Turnover 

2 Pomegranate Nashik District 200 MT 

3 Grapes Local 15 MT 

4 Apple Delhi 25 MT 

The main fruits arriving to this market are watermelon, pomegranate, grapes and 

apple. 

Watermelon comes from Karnataka and Apple comes from Delhi. 

Pomegranate is grown in Nasik district. 

2. Zone of Influence Marketwise 

Sl. 

No. 

Table - 4 

Lasalgaon Market 

Commodity Local Market Qty Other Market Qty 

Name 8-20 Km 20-50 Average 

8- 20-50 Aver 

Km 

20 Km age 

Km Km 

Km 

1 Onion 30% 70% 

2 Tomato 50 

3 Grapes 

61


Lasalgaon market receives 30 % of onion arrivals from the radius of 8 to 20 Kms. 

The remaining 70 % of onion comes from a radius of 20 to 50 Kms. Thus, it is 

clear from table 4 that the hinterland of Lasalgaon market has a radius of 8 Kms. 

to 50 Kms. 

Table - 5 

Pimpalgaon Market 

Sl. 

Commo- 

Local Market Qty Other Market Qty 

No. 

dity 

Name 

8-20 

Km 

20-50 

Km 

Average 

Km 

8-20 

Km 

20-50 

Km 

Aver 

age 

Km 

1 Onion 35% 65% 

2 Tomato 40% 60% 

3 Grapes 40% 60% 

4 Pomegranate 60% 40% 

In this market 35% of onion arrivals are from a radius of 8 to 20 Kms. and 65 % 

of arrivals are from a radius of 20 to 50 Kms. With regard to tomato, 40% 

arrivals come from a radius of 8 to 20 Kms. and the balance 60 % from a radius 

of 20 to 50 Kms. It is the case with grapes also. In case of pomegranate 60% 

of arrivals are from a radius of 8 to 20 Kms. and the remaining 40% from a 

radius of 20 to 50 K.m. 

62


Table - 6 

Sl. 

N 

o. 

Commodity 

Name 

1 Watermelon 

8- 

20 

Km 

Nasik Market 

Local Market Qty Other Market Qty 

20-50 

Km 

Ave 

- 

rage 

Km 

8-20 

Km 

20- 

50 

Km 

Ave 

rage 

Km 

2 Pomegranate 80% 20% 

3 Grapes 100 

% 

4 Apple 1100 

In this market 80% of pomegranate arrivals are from a radius of 8 to 20 Kms. 

and 20% of arrivals are from a radius of 20 to 50 Kms. And in Grapes, 100% 

arrivals come from a radius of 8 to 20 Kms, while inapples 100% of arrivals are 

from other markets. 

3. Flow Pattern of Commodities 

Table - 7 Arrivals 

Sl.No. Commodity Name Local Market (in Other Market 

%) 

(in %) 

1 Onion 0 100 

2 Grapes 10 90 

3 Pomegranate 20 80 

4 Water Melon 100 0 

5 Other Vegetable 20 80 

63


The perusal of table 7 indicates that 100% onion arrivals from outside markets. 

Grape also is receiving from other markets only. 80 % of pomegranate comes 

from outside markets. Only watermelon comes from local markets. In case of 

vegetables 80% comes from other markets and the remaining 20 % comes from 

local markets. 

Sl.No. 

Table - 8 

Dispatch Pattern 

Commodity Name % of Commodity dispatched to 

Within 

District 

Within 

State 

Outside 

State 

Total 

1 Fruits 10 10 80 100 

2 Other Vegetables 20 36 44 100 

3 Onion 0 20 80 100 

It is indicated from table 8 that 80% fruits are dispatched to outside Maharashtra 

for sale. Only 10 % are sold within Maharashtra and balance 10% within the 

district markets. In case of vegetables, 20% is sold within the district and 36 % 

within Maharashtra and the balance 44 % outside the state markets. As far as 

onion is concerned 80% is sold outside the state markets and remaining 20 % 

within Maharashtra state. 

Table - 9 

Need to Develop CC’s 

1 % of respondents says Yes 100% 

2 % of respondents says No 0% 

64


Observations of table 9 show that 100% of the respondents are in favour of 

developing collection centers in the market area. 

With regard to the selection of location for the establishment of collection 

centers the views of the staff and that of traders are identical. 

CC’s Location: Refer to table 7 of Traders Survey Conclusion 

Table – 10 

Selection of Site or Location 

(Refer to table 10 of traders survey conclusion) 

Sl.No. 

Site Name 

1. Nafed Site at 

Pimpalgaon 

Order of preference 

I II III 

% Of respondents 

90 

2. HAL – Ojhar 5 80 15 

3. Mundagaon – 

Igatpuri 

4. Nafed Complex – 

Lasangaon 

0 0 0 

5 80 15 

Audience from Officials and vendors were only aware of the below site. 

5. Pimpalgaon - 

Chinchkhed Road 

95 0 0 

Here again the staff of various marketing organizational functioning in the study 

area is of the opinion that the most ideal site for the proposed terminal market is 

Pimpalgaon- Chinchkhed road site. 

65


Table – 11 

Opinion about the Model and Concept of Proposed Market 

Sl.No. 


1. Large scale distribution centers 100 

2. Wholesale cum retail 0 

It could be seen from the opinion expressed at table 11, that even the staff of 

various marketing institutions, engaged in the market are also desire that a large 

scale distribution center should be developed. 

They are not in favor of a 

wholesale cum retail market. 

66


CHAPTER –VI 

PROPOSED CONCEPT FOR MARKET 

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

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

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 

cool chain , electronic grading, central electronic auction, ripening chambers, 

color vision system, quality station, spot commodity trading, laboratory for 

testing and certification, total banking support, electronic display boards for 

auction, cash spot payment through ATM’s to the growers, one stop shopping for 

input, agri-clinic and extension services, information kiosk, with some free 

products on weather insurance, Life insurance, animal health insurance, and 

Concessional educational loan facility etc. 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 100 acres, located off the National 

Highway No.3. It is at a distance of approx. 21 kms from Nasik, at the Ojhar 

67


Village near the HAL factory. The site is a linear piece of land, which is relatively 

flat with very little vegetation. On the North Western side of the site is the 

National Highway No.3 whereas towards the North Eastern side is a road, which 

also forms the site boundary. On the South West side of the site is the Hindustan 

Aeronautical Limited (HAL) residential zone whereas towards the West, across 

NH-3, is the HAL factory. 

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

advantages: 

Accessibility: 

The location of the site off the National Highway No.3 establishes its connectivity 

and linkages to surrounding areas, as this highway connects Nasik to 

Aurangabad. The site is well connected and easily accessible from the 

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. 

Produce from surrounding areas of Lasalgaon, Challisgaon, Malegaon, etc i.e. the 

Northeastern part of Maharashtra can be brought here. Also Nasik, as an urban 

center, lies in close proximity. 

68


Facilities: 

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

available in the near 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 

architects. 

Therefore NIAM contacted Karnataka State Marketing Board and 

procured list of NDDB empanelled Architects for recently proposed markets at 

Mumbai, Hyderabad etc, as well as the Architects 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:- 

69


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 HAL Ojhar 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 

2. To ensure efficient and unhindered movement of men and 

material, the following were considered. 

70


• 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 has 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 

72


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. 

• 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 entrance has to be provided for the 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 has to be provided near the entry, so 

that the local buyers need not enter the market complex. 

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• A Service Core has to be 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 have to be provided for circulation and 

movement of goods. 

• Provision has to be 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. 

Market facilities: 

Various activities have to be provided for a 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 to be provided adjacent to the parking and the loading/ 

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

74


halls should have receiving areas, display areas, electronic auction areas and 

distribution areas. The halls should have fairly large spaces and have the 

flexibility for their division into smaller areas, which could be used for fruits, 

vegetables, as per requirements so that the activities can be divided easily 

without disturbing other areas. 

Display Areas 

These areas have to be 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 to be provided at mezzanine floor level of auction hall for getting a 

complete overview of the system. It should 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. 

Large Halls for Grading and Packing 

These have to be 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 

75


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 to be provided which will connect all areas of 

various activities within the complex horizontally. The corridor should be 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 to be 

provided which act as vertical corridors for the movement of goods. 

Cold Storage Units 

These units have to be 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. 

Loading and Unloading Areas 

These are to be provided adjacent to the parking areas and near the wholesale 

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

76


unloading as per the requirement. About 8544 sq.m of space is to be 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 leased out basis or rent. Long 

term parking, short-term parking and docking areas for Containers, trucks, light 

motor vehicles, two - wheelers have been provided. Circulation in the parking 

area is to be planned in such a manner that congestion and pollution are 

avoided. 

Traditional Shops for Local Markets 

Shops have to be provided for the wholesalers and producers of the local 

market. The shops should have a size measuring about 18 sq.m to 20 sq.m. It 

will be possible to have a display area in the front, an office space in the rear 

and stacking in mezzanine area in each individual office. Corridors have to be 

provided in front of the shops for buyers to visit, discuss and negotiate. Shops 

should be of the same size so that a trader can purchase two shops if he wants 

to have a larger shop or can divide them into two for smaller shops. 

Office Areas/Quarter 

These have to be provided for traders, wholesalers, Service provider etc who are 

interested in having individual office spaces. These could also be sold / let out to 

77


local traders, etc. Besides these other supplementary facilities like bank counters, 

ATM centers, etc could be housed. 

Other Service Areas 

Administrative areas are to be provided which will have cash desk, conference 

rooms, training rooms, etc. Areas have to be provided for logistics companies, 

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

Public Conveniences such as rest rooms, wash rooms, toilets, cafeterias, also are 

to be provided for large number of truck drivers coming to these areas. 

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 to be provided which will 

give information regarding produce, cost, etc. 

• Info way lines to connect to nodal centers in catchments areas to 

ensure connectivity with farmers, to establish forward linkages. Ten 

nodal centers are already present. 

• Rain Water Harvesting is proposed. 

• Solar panels are proposed for street lighting in the market complex. 

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• Green zone and landscaping are proposed to control pollution. 

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

dispensaries, etc is to be made for emergency services. 

• Bus stops, street furniture, food kiosks, guesthouses, refreshment 

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

guide and enable smooth circulation within the complex. 

• Part of the site has to be 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 to be provided for 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. 

79


• Roads, approaches and entry exit points of vehicles have to be 

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 the market. Mechanical systems of recording their 

contents and movement have to be 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 

have to be planned in such a manner that the traffic flow is 

unidirectional which will avoid any chaos due to truck traffic. 

• Short-term parking has to be provided for smaller transport vehicles 

like tempos near the shops. 

• Docking areas for trucks is to be 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 to be done on the basis 

of the circulation pattern. The advantages are: 

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• 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. 

• 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. 

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 23.1396 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. 

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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. 

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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 processes 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 

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price). The current price is displayed in figures as also represented on a giant 

circular dial with 100 segments. 

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 

84


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 

85


English 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. 

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Pre-Auction 

Card Issue 

Auction 

Server 

Database 

Lot Preparation 

Price Fixation 

Catalog Preparation 

Pre-Bidding 


Dutch Auction English Auction Combi-Auction 

Results 

Fig; A framework of the Electronic Auction System 

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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. 

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 

88


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

capsicum). 

PRICE Fixation 

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 and 

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 up to 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). 

89



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

conducting a given type of auction. 

Dutch Auction Module 

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 

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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 

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 an 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 up to six different regional languages on 

its large 42-inch color 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: 

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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 

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. 

92


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. 

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. 

93


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 

Fig: A framework of Bidding terminal 

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-clock wise direction (reverse clock). Each segment can be programmed to 

94


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). 

95


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 color 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. 

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. 

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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 

External Bid button 

housing 

Indicators 

Announciators 



Setup Data 

: 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) 

: Table mounted, rugged Bid Button in Stainless steel 

: 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 

: 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) 

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Power Supply 

• Terminal ID 

• Host connect (TCP) timeout 

• Host connect (TCP) retry count 

: +24V DC regulated, 0.1A maximum 

Mechanical construction 

Dimensions 

Telephone Handset 

operation 

: Stainless Steel brushed finish for top panel 

: 150mm (W) x 250mm (H) x 60mm (D) 

: Standard, 2-wire telephone instrument, 24V DC 

Appendix B 

Microprocessor 

Non-Volatile Memory 

Operating System 

Firmware 

Protocols 



LED Clock Dial 

Segment colour 

: Technical Specifications of Auction Clock 

: 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 bit 

: 1.6m diameter, 100 segments 

: Super Bright Red; 30 LEDs per segment 

Segment construction: Contoured Plastic molded housing with embedded PCB 

Alphanumeric: 4” Character height, Red colour, high brightness; 5x7 Dot Matrix 

Module type : Sealed, molded Alphanumeric Dot Matrix module, AlGaAs LED 

No. of Alphanumeric: 138 characters total 

Info. Fields 

: Total of 15 fields (each clock) 

• Items to be auctioned x 3 (20 chrs each) 

• Item grade (above) x 3 (2 chr each) 

• Current item being auctioned x 1 (20 chrs) 

• Item grade (above) x 1 (2 chr) 

• Lot number x 1 (4 chr) 

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• 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 

Master’s console 

: 16 levels of brightness; adjustable via Auction 

(software setting) 

Maximum Clock speed : 25 milli-second per step; 1 full revolution in 2.5 

seconds 

Power consumption 

Dimensions 

: 750Watts maximum at 230V AC, 50 Hz 

: 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 75. 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. 

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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. 

Quotation – Hardware 

Sl Description Qty Rate Amt. 

Per 

order 

In Rs. 

In Rs. 

Hardware Components 

1 

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 

150 

pcs 

25,000 37,50,000 

100


2 

3 

4 

6 

7 

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 backup 

(for bidding terminals) 

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) 

2 pcs 15,50000 31,00,000 

2 pcs 2,50,000 5,00,000 

2 pcs 2,50,000 5,00,000 

2 pc 75,000 150,000 

Sub Total 80,00,000 

2 sets 1,00,000 2,00,000 

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8 

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 sets 5,00,000 10,00,000 

Total in Rs. 92,00,000 

Quotation – Software 


Software Components 

Pre-Auction Module 

Includes various modules required for preauction 

activity 

Per 

order 

In Rs. 

In Rs. 

1 

2 

• Card Issue Module (with Card Reader 

station) 

• Lot Preparation Module 

• Price Fixation Module 

• Pre-Bid Module 

Auction Console 

Auction Master’s Console application 

• Supports 3 types of Auctions 

• Easy to use Graphical User Interface 

(GUI) 

• Runs under the .NET framework 

• Requires a Microsoft Windows XP 

Professional based PC (not included) 

1 set 5,50,000 5,50,000 

2 pcs 5,50,000 11,00,000 

102


3 

4 

5 

6 

Attendance Console 

Displays the status of the Auction hall, the 

occupancy 

• Easy to use Graphical User Interface 

(GUI) 




Product Display Screen 

Displays the current item being auctioned 

and it name 

• Supports upto 6 different languages 




Auction Server 

• 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 

(server) 

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 

2 pcs 3,00,000 6,00,000 

2 pcs 2,00,000 4,00,000 

1 pc 6,50,000 6,50,000 

1 set 


15,00,00 

0 

15,00,000 

Total in Rs. 48,00,000 

103


Quotation – Miscellaneous. 


Miscellaneous Components 

Auction Table & Chair assembly (Dual 

Seat) 

Rugged, space saving design. 

Per 

order 

In Rs. 

In Rs. 

1 

2 

3 

• Includes a 55” x 20” table top with cutout 

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 

75 

sets 

20,000 15,00,000 

1 pc 5,00,000 5,00,000 

6 pcs 75,000 4,50,000 

104


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 dial-up 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. 39,50,000 

TERMS & CONDITIONS OF SALE: 

‣ Payment Schedule: 

• 50% Advance payment along with Purchase Order against Bank 

Guarantee of equal amount 

• 30% on Delivery of goods at site 

• 20% after installation & commissioning 

‣ Delivery Schedule: 

• Delivery of items will be made as per the following schedule 

• Delivery of total order quantity: within 6 months after receipt of Order 

105


‣ Warranty: 

All products carry a warranty of 12 months from the date of installation or 13 

months from the date of delivery whichever is earlier. The warranty covers all 

malfunction due to manufacturing defects. The warranty does not apply to 

consumables and other parts that may wear out in normal operation. The 

warranty will be deemed void if the product is not used as instructed. 

Damage caused in transit during shipping will not be covered under the 

warranty. 

‣ Annual Maintenance Contract: 

Upon completion of the warranty period, the customer may enter into an 

Annual Maintenance Contract (AMC) with Techno-Magica. The AMC charge 

will be equal to 10% of the total invoice value, for the year immediately after 

the warranty period. For subsequent years, the AMC charge will increase at 

the rate of 1% per year thereafter. If the customer does not enter into an 

AMC with Techno-Magica immediately after the warranty period, or breaks his 

contract with Techno-Magica, then Techno-Magica reserves the right to 

refuse the AMC. The AMC will cover all parts and Labour and will exclude 

consumables and other parts that may be explicitly removed from the AMC by 

Techno-Magica on a case-to-case basis. 

‣ Taxes: 

All local and inter-state Taxes and duties will be charged extra as applicable 

at the time of delivery. 

106


CHAPTER – VIII 

MODERN INFRASTRUCTURE IN 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. 

Apart 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, pre-cooling units clubbed with underground conveyor based movement 

of material and handling, IT enabled operations, one-stop shopping for input and 

out-put, transactional banking and automation / networking, Electronic Display 

Boards with latest technological application has been proposed. 

Broadly 

following sections constitute major features of the proposed market at Nasik. 

Section – I 

Ripening Chambers and Cold Storage, 

Section – II Electronic Grading Lines 

Section –III Quality Evaluation Station 

Section –IV Pre-cooling Unit with underground Conveyor Based 

Movements and Mechanized Material Handling System 

Section – V IT Applications and Networking 

Section – VI Online Spot Commodity Trading on NCDEX Platform 

Section – VII Testing and Certification Laboratory 

107


Section – I 

Ripening Chambers and Cold Storages 

108


DEVELOPMENT OF RIPENING CHAMBERS 

It has been proposed to develop 6 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 Nasik, Pune, 

Mumbai. 

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 

• Electrical 

• Process Control System 

• Side distance guiding sheet 

• Chamber protective posts 

109


3. Start-up 

4. Documentation of complete data 

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. 

110


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. 

- 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 aluminum 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 that is needed during installation of the facility and for 

its completion & commissioning. 

111


- 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. 

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 

3.7 m 

4.05 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- 

112


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 excelor, 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 

K-value of insulation: approx. 

Thermal conductivity 

Shear strength 

Compressive strength 

: 40+2 kg/cu.m 

: 0.35 W per sq.m per deg. K 

: 0.023 W/sq.m/deg.K (AGED) 

: 0.1-0.3 N/sq.mm 

: 2.1 kg/sq.m 

(0.1-0.3 N/sq.mm) 

Tensile strength 

Bending strength 

Adhesion strength 

(PUF to steel) 

: 3.7 kg/sq.m 

: 2.9 kg/sq.m 

(0.1-0.3 N/sq.m) 

: 2.9 kg/sq.cm 

(0.1-0.5 N/sq.m) 

Closed cell contents : 90 to 95% 

Fire resistance 

Water Absorption 

Vapour permeability 

: Self extinguishing as 

per ASTM D 1692 

: 0.2% by volume at 100% RH 

: 0.08 to 0.12 gm/hr/sq.m at 90% RH 

And 38 deg. C 

113


Elasticity module 

Thickness of outer sheets 

: 2.5 – 8 N/Sq.m 

: 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. 

114


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), pre-painted 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 

115


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. 

Electrically driven overhead Doors 

Number of doors 

: 5 Nos. 

• Width approx. 2.6 – 2.8 m 

• Height approx. 4.1 m 

Recommended blade thickness 

‘K’ Value of Insulation 

: approx. 50 mm 

: 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: 

116


High-capacity Air Handling Unit (AHU) equipped with fans, cooling coils and 

controls. Internal lighting in the Chambers to deliver natural sunlight. 

Temperature sensors and indicators. Hot-dip galvanized, bolted type steel 

structure for stacking the layer of pallets in the Chambers. 

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. 

117


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 thermo Cole or 

equivalent material pipe sections of suitable thickness. The insulated pipelines 

shall then be cladded with 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. 

118


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 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. The Owner shall provide electrical power supply to this 

switchboard. 

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 

119


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 meters. 

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 forklift 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 airtight flaps with suitable ducting and an 

exhaust fan if necessary. 

Ethylene free air is taken from outside and blown inside the Chambers. 

120


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 bars. 

121


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. 

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. 

Electrical 

Cabling & Earthling 

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, 

122


GI conduit pipes, earthling 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 earthling. 

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, 

armored 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. 

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. 

123


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 Center 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. 

124


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. 

125


Switchgear 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. 

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. 

126


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 undersurface 

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 pinhole, orange peels, run-off paint etc. 

All unpainted steel parts shall be cadmium plated or suitably treated to prevent 

rust, corrosion etc. 

Name Plates: 

Nameplates for all incoming and outgoing feeders shall be provided on doors of 

each components. Nameplates shall be fixed by screws only and not by 

adhesives. Special danger plates shall be provided as per requirement. 

127


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. 

The copper surface will be silver-plated and the aluminum surface will be 

properly cleaned and supplied with oxide inhibiting grease. 

128


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 color 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 gray colored 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. 

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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. 

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 feeder’s cubicle. 

Switchgears: 

Molded 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. 

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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. 

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. 

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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 

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: 

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PHASE 

ON 

OFF 

TRIPPED 

: Red, Yellow & 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. 

• 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. 

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• 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 

Rating Amps. 

Switch/MCC 

B Rating 

Amps. 

Type 1.of 

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 

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• 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. 

• 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 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”. 

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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. 

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. 

An inspector of Owner or an agency authorized by the Owner shall witness shop 

tests. 

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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. 

Manufacturer shall submit the required number of prints and reproducible 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. 

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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 up to 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 conductor and its installation shall be carried out as per the applicable 

Indian Regulations for this purpose. 

138


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. 

- Color 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 airtight. 

- 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). 

- Earthling systems (protective earth, measuring earth, working 

earth etc.) shall correspond to India Rules and Regulations. 

2.7 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. 

139


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. 

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. 

2.3 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. 

2.9 Chamber Protective Posts: 

The protective posts shall be mounted in front of the Ripening Chambers such 

that no damages to the door and chamber walls are caused. 

140


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. 

2.10 Start-Up 

This shall cover all labor and deliveries when the installation is ready and its stepby-step 

operation is commenced. Start up time of the entire installation 

comprising 10 nos. Ripening Chambers shall not be more than ten days. 

1. 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: 

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 

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• 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 flow of circuitry is as rectilinear as 

possible and can easily be traced. 

142


- 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. 

6.0 General Technical Conditions 

The technical conditions pertain to: 

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- 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 

All equipment, appliances and components shall be brand new and unused 

and shall be from the latest production series, representing best quality 

and state-of-the 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. 

144


SPECIFICATION FOR PRE-FABRICATED PUF SANDWICH PANELS FOR 

COLD SOTRE AND PRE-COOLING UNITS 

Introduction 

For majority of areas of the buildings in Vegetables Auction Market, Prefabricated 

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, self-supporting type having adequate insulating properties. 

Design Requirement 

The cold room and other controlled temperature areas shall be made of prefabricated, 

pre-engineered sandwich polyurethane foam (PUF) insulation panel 

sandwiched between 0.6mm thick pre-coated GI sheet steel with continuous 

serrations on both the side for walls and ceiling in the required thickness 

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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. 

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 sideslide 

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 

146


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. 

The scope of this job does not include the civil works. However, the panel 

manufacturer-cum-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 

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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 

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 

148


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. 

Joining 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. 

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. 

149


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), pre-painted 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. 

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. 

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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 vapor 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. 

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 tar felt 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 

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thick a vapor barrier and it shall be applied on the concrete surface 

below the insulation layer as vapor barrier with bitumen as adhesive. 

The joints shall be staggered and shall have minimum 150mm overlap 

thoroughly sealed to make it a perfect vapor 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 tar felt 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. 

h) Fix a layer of approx. 3mm thick waterproof tar felt 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 vapor 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. 

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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. 

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 

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(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 polyurethane foam and silicone sealants to protect the 

integrity of the insulation and vapour barrier. Minor hardware items, as required 

154


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. 

155


Section – II 

Electronic Grading Lines 

156


ELECTRONIC GRADING - SORTING LINES 

The marketing of the fresh produce without the support of adequate 

infrastructure too presents a major hindrance to scattered export efforts. 

The 

various export promotion bodies and private exporters who are at a distinct 

disadvantage in the international market due to the absence of these vital inputs 

have acutely felt this. 

The role of infrastructure in sustaining development of horticulture has been 

recognized by some states in the country. 

An effort has been made in some 

states with success for development of infrastructure to supplement the 

marketing exercise of the fruits and vegetables. 

As a producer, handler and / or marketer of fruits or vegetables one has already 

some experience with many steps of post harvest handling of horticultural crops 

and the general flow of produce from field to market. Small-scale growers and 

direct marketers world wise often express concern over produce losses and 

quality changes during handling that decrease their return on investment, and 

have to deal with consumers concerns about loss of nutritional value and 

perceptions of problems with food safety. 

The electronic grading system is an integral part of the modern market - Packhouse. 

The system fully supported by other anciallary equipments and facilities 

157


will perform as per expectations. In other words, the electronic grading system 

in isolation will not be able to perform and produce the desired results. 

Apart from the various kinds of ancillary equipment and facilities, the other 

parameters which directly effect the functioning of the Mechanised system is the 

availability of water in terms of quality and quantity. 

Electrical power and 

standby arrangement, water and waste disposal facilities and the other hygienic 

parameters need to be incorporated in modern market or the pack-house while 

establishing the system. 

The systems are specifically designed for a produce or a set of produces having 

similarity in terms of shape, size etc. For example the round and oval fruits like 

Mangoes, Oranges, lemon, Pomegranate and apples etc. can be processed on 

the same line subject to incorporation of some modifications in grading and 

waxing systems. 

The basic function of the system is to prepare the fruits by 

providing a better cosmetic appearance and special coating to enhance its shelf 

life. 

The system has to be perfect in terms of avoiding any mechanical or 

handling injury during this transformation right from the loading station to the 

delivery end. 

The specialized handling and cushioning material at the different 

critical stages is required to be incorporated in the line so that any kind of 

bruising or injury which is invisible to the eye, can be avoided. 

158


RECENT ADVANCEMENTS IN ELECTRONIC GRADING LINES 

Historically the function of Pack house remained confined to mankind of 

technologies applied in. 

Initially, the main function of the pack-house was to 

provide platform for grading the commodities only. 

In early years of 20 th 

century, Europe, initiated providing sorting facilities for apple growers. It was, 

then, clubbed with packing and over the years, it reshaped the whole concept by 

providing integrated facilities including assembly, washing, drying, waxing, 

grading, treating, packing, cooling and storing etc. 

Now the whole focus is on 

reducing the pressure on manual handling to mechanical and electrical handling. 

Recently, technologies have been developed which even check and control 

quality from various point of view. 

Chronological and historical development of 

pack-house technologies is briefly described as below:- 

1924 First fruit sorter in UK – Wooden line 

1950 First mechanical fruit sorter in UK 

1980 Electronic cup sizer introduced 

1986 Higher capacity electronic intelligent sizers developed and introduced. 

1986 Optical camera based intelligent sizers. 

1998 Higher capacity based optical camera based intelligent sizers 

introduce. (can identify external defects and asses weight and color) 

Small size liners capacity 

Medium size liners capacity 

Large size liners capacity 

1.5 – 2.5 MT / Hour 

5 – 10 MT / Hour 

20 – 100 MT / Hour 

2000 - 70 Mt / hour line for tomato, largest in Europe. 

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PROPOSED FACILITIES 

In order to boost exports various commodities and reduce post harvest loses 

while improving quality of produce, it is proposed to create integrated facilities 

for grading, sorting, packing, washing, waxing etc., for following commodities:- 

1. Grapes Electronic Grading Sorting Line – 2.5 MT per hour 

2. Pomegranate/Mango and oval fruit sorting – grading waxing line–5 MT/hr. 

3. Onion Electronic Grading Line – 10 MT/ hour 

4. Vegetable Washing Sorting and Shrink Wrapping Line – 2.5 MT / hour 

5. Colour Vision System Quality Station – 

6. Pruning/harvesting machines with accessories 

<strong>Detailed</strong> specification with some drawings or given below:- 

ELECTRONIC OPTICAL GRAPE SORTING LINE 

1) INTRODUCTION OF FULL BOXES OF BUNCHES OF GRAPES 

Consisting of : 

Qty 1 : Metal structure which has been properly welded and painted. 

Qty 1 : Gravity roller conveyor with PVC rollers; width 500mm length 4000mm 

Qty 1 : Full box belt motorized conveyor 21000mm long x 400mm wide. 

2) LOADING STATIONS 

Note: bunches of grapes are removed from incoming full crates, while the crates 

are in motion. The bunches are then tidied to remove any damaged berries and 

the cleaned bunches are suspended on hooks which convey the bunches to the 

160


packing stations. The crates when empty are transferred to a conveyor which 

returns the empty crates to the beginning of the line. 

Qty 1 : Twin loading stations ( total 14 persons) each consisting of : 

Qty 1 : Metal structure which has been properly welded and painted. 

Qty 1: Supports for crates of rejected grapes 600mm x 400mm. 

Qty 1: Conveyor for suspended bunches of grapes. 

3) REMOVAL OF EMPTY CRATES 

Qty 1 : Belt conveyor for empty crates 19500mm long x 400mm wide 

Qty 1 : Belt conveyor for empty crates 2500mm long x 400mm wide 

Qty 1 : Gravity roller conveyor 7000mm x 500mm 

4) OPTICAL GRADING SYSTEM 

Consisting of: 

Qty 1 : Metal structure which has been properly welded and galvanized. 

Qty 2 : colour and infrared electronic cameras with separate colour and IR 

lenses; 

Qty 1 : Software to measure and select average bunch colour, average size of 

bunch and average diameter of the individual berries. 

5) WEIGHING OF BUNCHES 


Qty 1 : Metal structure which has been properly welded and galvanized. 

Qty 1 : Weighing section with aluminium load cells with a load capacity of up to 7 

kilograms. 

Qty 1: Software assisting the packer in obtaining accurate pack weights. 

161


The machinery must indicate to the packer in which of two crates the bunch 

should be placed. 

6) PACKING STATIONS 


Qty 20: stainless steel workstations, each comprising 2 carton positions 600mm x 

400m for 4.5 and 8.00 kilogram boxes; central position for wrapping individual 

bunches; dispenser of preprinted labels; one operator interface with lights to 

assist in the control of box weights; pivoting device enabling operator to transfer 

the full box to the take-away conveyor without lifting; protective tarpaulin sheet. 

7) FULL CARTON TAKE-AWAY CONVEYOR 

Qty 1: full carton take-away belt conveyor 21000mm x 400mm. 

8) OVERHEAD CONVEYOR FOR EMPTY CARTONS 

Qty 1: Main drive motor with pulley mounted on mast. 

Qty 4: 90° turn masts with idle pulleys; 

Qty 19: Intermediary masts to support conveyor 

Qty: 117 metres of conveyor with two-tier cradles at 2100mm centres. 

9) FULL CARTON PREPARATION 

Qty 1: Full carton belt conveyor 7 metres long x 400mm wide. 

Qty 6: Pedals to control advance of belt. 

Qty 6: Workstations for placing of paper covering sheet and lid with box support 

stand and pivoting mechanism to transfer carton to under roller conveyor without 

lifting. 

162


Qty: 16 rollers to suspend paper covering sheets corresponding to various types 

of sheet to be used. 

Qty: 1 roller conveyor for finished pack 13000mm long x 500mm wide. 

10) EMPTY CARTON PREPARATION 

Qty 2: Empty carton preparation tables each with 2 workstations ergonomically 

designed for placing inner lining in empty carton. 

Qty 4: Stations for loading empty cartons onto overhead conveyor 

11) CONTROL STATION 

Qty 1: Cabin with lockable door and polycarbonate window panes. 

Qty 1: set comprising desk and chair 

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. All computer hardware to be guaranteed for 3 years with 

on-site service from the computer manufacturers. 

163


1. ELECTRONIC ONION GRADING FACILITY 

10 MT/hr Onion Grading and Sorting Line 

1. Quality 1 feeding hopper for discharging of bulk onions in small 

boxes or bags – holding capacity 3 tons 


Qty 1 : Metal structure which has been properly welded and treated with 1 coat 

of primer and 1 coat of gloss finish. 

Qty 1: Rubber chevron belt elevator suitable for food stuff on the bottom of 

hopper, 900 mm wide. 

Qty 1: Photocell to detect the level of the product. 

Qty 1: Infinitely variable timer to adjust the advancing of the conveyor belt. 

Qty 1: Main drive by means of gear motor with frequency inverter. 

Dimensions : overall width 2500 mm, overall length 4572 mm. 

2) Qty 1 STONE AND SOIL/UNDERSIZED ONIONS SEPARATOR Consisting 

of : 



Qty 1 : 6 row adjustable coil cleaner with steel shafts and coils. Gap adjustable 

from 25 to 40 mm. 

Qty 1 : PVG (PVC / rubber mix) endless belt conveyor for soil and stone removal. 

Length 2900 mm x 600 mm wide. 

Qty 1 : Main drive by fixed speed gear motor. 

Dimensions : internal width : 900 mm. 

3) Qty 1 LEAF REMOVAL 


164


Qty 1 : Metal structures which has been properly welded and treated with 1 coat 


Qty 1 : Device for removal of leaf from head of product with takeaway conveyor 

and elevator for waste. 

4) Qty 1 DRY BRUSHER 


Qty 1 : Metal structure 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 18 : Rollers with brushes (12 soft, 6 hard). 

Qty 1 : Motor drive by means of manual speed variator. 

Qty 1 : Rubber overflap. 

4a) Qty 1 DUST SUCTION UNIT WITH CANOPY ON DRY BRUSHER 

5) Qty 1 MANUAL INSPECTION ROLLER TABLE 



of primer and 1 coat of gloss finish, with all contact points in stainless steel. 

Qty 1 : Set of PVC rollers. 

Qty 1 : Fixed device for roller rotation. 

Qty 1 : Motor drive with speed variator. 

Dimensions : width 900 mm, length 2400 mm. 

6) Qty 2 PLATFORM FOR SORTING PERSONNEL 

Dimensions : width 800 mm, length 2000 mm, 4 access steps. 

7) Qty 1 WASTE PRODUCT CONVEYOR BELT 




165


Qty 1 : PVG conveyor suitable for food stuff. 

Qty 1 : Chutes to connect with waste bin. 

Qty 1 : Main drive by means of gearmotor. 


1) Qty 1 INFEED BELT 


Qty 1 : Metal structures which has been properly welded and treated with 1 coat 


Qty 1 : PVC conveyor suitable for food stuff. 

Qty 1 : Main drive for the belt by means of gear motor with frequency inverter. 


2) Qty 4 PREALIGNER V BELTS TO FEED GRADER 




Qty 8 : Belts (4 V belts) with differentiated speed. 

Qty 1 : Main drive with frequency inverter. 

Dimensions : total width 1200 mm, approx. length 1200 mm. 

Qty 1 : 4 lane roller singulator with separately driven rotation under cameras. 

Qty 1 : Weighing conveyor. 

Qty 1 : Drive section with gear motor and frequency inverter, central lubrication, 

carrier cleaning system, electrical cabinet. 

Qty 1 : Set of recycling belts for excess product. 

Dimensions : overall length 7300 mm. 

166


3) Qty 1 ELECTRONIC SORTER WITH WEIGHT, OPTICAL SIZE AND 

COLOUR SELECTION 




Qty 4 : Lanes with carrying hands at 100 mm pitch, carried by a single chain. 

Qty 4 : High accuracy weighing system by means of load cells. 

Qty 2 : High resolution CCD / infrared cameras to cover all lanes and detect size 

(diameter, length and volume) , colour and skin blemishes. 

Qty 1 : Lighting system for optical vision. 

Qty 1 : Electronic control system complete with central unit, controllers, PC, 

printer, keyboard, monitor, UPS and Microsoft Windows based software. 

Qty 5 : Outlets for calibrated onions with conveyor belts, width 400 mm, length 

1600 mm. 

Qty 1 : Main drive with frequency inverter controlled directly from PC. 

Dimensions : approx. width 1800 mm. 

Grader capacity : 10 sectors / second / lane providing a capacity of 100800 

onions per hour at a filling rate of 70 %. 

11) Qty 4 SEMI AUTOMATIC PACKING MACHINE IN PP RAFIA BAGS 

FROM 5 TO 50 KG 




Qty 1 : Set of bag coupling devices for bags of 5 to 50 kg. 

Qty 1 : Automatic tare adjustment system. 

Qty 1 : Electronic weigher with high precision weighing to pre-set data. 

Qty 1 : Elevator with cleated belt and separate trickle feed belt to ensure 

accurate pack weight. 

12) Qty 4 GRAVITY CONVEYOR 

167



4 x 1,5 m gravity roller conveyor, 500 mm wide. 

13) Qty 1 BULK BIN FILLER 


Qty 1 : Semi automatic bin filler for pallet based bins, 1800 mm x 1200 mm x 

900 mm. 

Qty 1 : Belt conveyor receiving potatoes from grader outlet belt, 1200 mm x 

1200 mm, with fixed speed motor. 

Qty 1 : Hydraulic system to tilt box over outlet conveyor. 

Qty 1 : Fall breaker on end of outlet belt to reduce the drop into the bin. 

Qty 1 : Automatic lowering of bin, via probe with auto stop to conveyor when bin 

is full. 

Qty 1 : Manual press button "start". 

Qty 1 : Light guard access protection. 

18) NO 1 GENERAL ELECTRIC INSTALLATION AND CORRESPONDENT 

BOARD TO SERVE THE LINE 

of adequate dimensions, consisting of: 

- automatic magneto-thermic 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 European 

governing rules, copper bars, numbered clamps, finwing and finishing accessories 

for workmanlike performances; 

- wiring from switchboard to line uses. 

In order to operate the electric system, the following will be used and executed: 

- galvanised steel pipelines, provided with fitting; 

168


- anti - flame 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 

made with the same feature as the switchboard. 

2. SORTING, GRADING LINE, WAXING LINE FOR MANGO, 

POMEGRANATE AND OTHER ROUND FRUITS/OVAL FRUITS 

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 

Length 

1500 mm, 

2000 mm; 

Qty. 1 

Qty. 1 

Qty. 1 

Qty. 1 

pump and relative pipes for re circulating water; 

double net static filter; 

accumulation tank; 

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; 

169


Qty. 1 

Qty. 1 

Qty. 1 

set of PVC rollers; 

device for roller rotation; 

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: 

4) Qty. 1 DRYING TUNNEL 


internal width 1000 mm, 

length 3500 mm. 

Qty. 1 metal structure which has been properly welded and treated 

with no. 3 layers of epoxies varnish; 

170


Qty. 1 

Qty. 1 

Qty. 1 

set rollers; 

device for roller rotation; 

fairing device to convey hot air; 

No. 1 set to produce hot air with 80000-90000 Kcal/Hour gasoil 

burner and generator; 

Qty. 1 

Qty. 1 

Qty. 1 

motor drive with speed variator; 

thermostat; 

electric control board. 

Dimensions: 

internal width 1000 mm, 

length 5500 mm. 

5) Qty. 2 BELTS CONVEYOR FOR 90° FEEDING 

consisting of: 


with no. 3 layers of epoxies varnish with internal parts in 

stainless steel AISI 304; 

Qty. 2 

Qty. 1 

PVC conveyors suitable for foodstuff; 

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: 


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). 

171


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 

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. 

172


(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 full 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. 

3. VEGETABLE WASHING - SORTING AND SHRINK WRAP PACKING 

UNIT 

VEGETABLES LINE AND SHRINK WRAPPING UNIT 

173


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 

4) Qty 1 INFEED BELT 

For manual placing of product onto line. 


174


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 : Main drive for the belt by means of variable speed motor. 


5) Qty 1 ROLLER ELEVATOR 


Qty 1 : Metal structure which has been properly welded and treated with 1 


steel. 

Qty 1 : Set of anodised aluminium rollers. 

Qty 1 : Main drive by means of variable speed motor. 


6) Qty 1 RAW PRODUCT BELT 




steel. 


Qty 1 : Accumulation system with photocells. 

Qty 1: Main drive by means of variable speed motor. 

Dimensions: width 1000 mm, length 12000 mm. 

Qty 24: Preparation tables with chutes to under belt. 

7) Qty 1 UNDERBELT FOR WASTE 


Qty 1 : Metal structure which has been properly welded and treated with 1 


steel. 

175



Qty 1 : Main drive by means of fixed speed motor. 


Qty 1 : Elevator with cleated PVC belt, width 300 mm, length 2500 mm. 

8) Qty 1 OVER CONVEYOR FOR TRIMMED PRODUCT 




steel. 

Qty 1 : PVC conveyor suitable for food stuff with descending end section. 



9) Qty 1 SHRINK WRAPPING MACHINE 

Designed for shrink wrapping of single product without tray. 

Automatic in feed with self-centering device for products up to 300 mm 

diameter. 

10) Qty 1 ROTATING TABLE 

Melamine type surface with cushioned edges. 

Diameter 1800 mm. 


9) 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; 

176


- 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 European governing rules, copper bars, 

numbered clamps, fin wing 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; 

- anti-flame 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. 

PROPOSED PRODUCE MIX SEASONAL CALENDAR 

This market pack house ideally is designed for one kind of produces keeping in 

view their treatment requirements, shape, size and packing considerations. 

At 

the same time in conditions of markets differ significantly from tht of the ordinary 

commodity specific pack house. 

The market receives different kinds of round 

and oval shape of fruits, which can be commonly process by the same facility. 

For instance, the line specially designed for pomegranate or for citrus can easily 

process mango with same efficiency. 

Common processing facility for pomegranate, citrus and mango 

177


The general facilities in this proposed pack house are being designed keeping in 

view the pack house requirements of pomegranate citrus and mango. 

The 

sequence of stages or in other words the flow of produces from one end to the 

other is specifically designed commonly suiting to these commodities. 

The shape of these fruits is such that it can be mechanically graded by size or 

shape graders, and additionally, an electronic weight grader is also 

recommended in which the size of the fruit is determined by the weight of the 

fruit irrespective of its size and shape. 

Proposed market will receive fruits in quite large quantity. 

Secondly, the pack 

house facilities can also be used for bringing the product from different region 

and preparing in the pack house as per the target market requirements. In this 

fashion the pack house facilities will be utilized for the year around. 

This will 

also lead to have the better financial viability of the proposed investment in the 

project. Following users have been identified which may prefer quality produced 

well processed in the pack-house and make the same financially viable. 

• Exporters 

• Cold Storage Owners 

• Transit Traders 

• Bulk Buyers and Cash & Carry 

• Institutional Buyers 

• Importers 

• Government Agencies engaged in marketing 

178


• Processors 

• Quality Conscious consumers 

The same processing line can also be used by not using the certain portion of the 

machine specifically required for certain treatments. 

For instance the following 

fruits will be processed or prepared for the market in the same pack house 

during the other period of time. 

FRUITS 

• Pomegranate 

• Kinnow 

• Organge / mandarin 

• Malta 

• Lemon & Lime 

• Other citrus 

• Mango 

• Guava 

• Ber 

VEGETABLES: 

• Okra 

• Green Chillies 

• Cauliflower 

179


• Cabbage 

• Tomatos 

• Orange / Red Carrot 

• Reddish 

• Peas 

The above fruits and vegetables will be available throughout the year depending 

upon their harvesting season. 

SEASONAL PRODUCTION CALENDER 

The targeted fruits and vegetables are proposed to be handled under the project 

in the following manner coinciding with the seasonal availability and plant 

capacity to ensure maximum value addition in the produce:- 

Fruit Line 

Production Mix Calendar 

Round/Oval Fruit Peak Harvest Off peak harvest Number of Days 

Line 

Month 


Mango April-May March, June, July 60 

Pomegranate Feb, march, 

November, 

December 

Lime/Lemons February, march, 

July, August 

January, 

September 

December, June, 

March, September 

120 

120 

Sweet Orange 

February, 

January, October, 

60 

November 

March, December 

180


Even at 50% capacity utilization 180 days will make it a viable proposition. 

B. Onion Grading Line 

Fruit Line 


Peak 

Harvest 

Off peak harvest 

Number of Days 



Onion 

February, 

January, 

150 days 

march, October 

September 

C. Grapes Grading Line 

Fruit Line 


Peak Harvest Off peak harvest 



Grapes February, March, January, May 

April 


100 days 

D. Vegetable Sorting Line with Shrink Wrap Unit 

Vegetable 


sorting line with 

Peak 

Harvest 

Off peak harvest 


Shrink 

Wrap 



Unit 

Tomato 

August, 

January, 

120 

September, 

December 

December, March 

181


Brinjal February, March, 

January, 

August, 

100 

September, 

May, September 

Okra 

March, September, 

February, August, 

100 

October 

April, November 

Cabbage 

Cauliflower 

December, 

January 

August, 

September, 

October 

Total 

November, March 60 

July, February 100 

480 days 

182


Section – III 

Colour Vision System - Quality Station 

183


COLOUR VISION SYSTEM - QUALITY STATION 

PORTABLE, NON DESTRUCTIVE ANALYSER FOR FRUIT AND 

VEGETABLES INTERNAL QUALITY 

FUNCTIONING 

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 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 

• 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 

184


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 refract meter 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 

185


INSTALLATION AND STAFF TRAINING 

This includes 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. 

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. 

186


Section – IV 

Pre-cooling Unit with Underground 

Conveyor Based Movements and 

Mechanized Handling 

187


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. 

188


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 

189


is essential to introduce a system of conveyor based movement with 

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 

190


protected periods of when exported by sea freight are globally acknowledged for 

various products. 

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. 

191


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. 

192


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. 

Based on aforesaid requirement it is proposed to put up 2 pre-coolers (4 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 

193


TECHNICAL SPECIFICATIONS FOR BELT CONVEYORS 

Scope: Design, manufacturing & supply of, 

1) Conveyor Name: Belt Conveyor Ref.: BC-01 Qty.: 6 Nos. 

40 

Material To Be Assorted 

Wt-Kg: Kg Size: ~ 

Conveyed: 

Packages 

Max 

Maximum Capacity: 10000 Kgs./Hour 250 Nos./Hour 

Conveyor Length: 120.00 Meters (Divided in 4 modules of 30 meters each) 

Belt Width: 800 Mm, 

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: 6.0 Meters/min. 

Belt: PVC 3 Ply 

Color 

: 

Gree 

n 

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: 30 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: M12. 

Drive Unit: 

Gear Box 

Make: Bonfiglioli 

Width 

mm: 800 

Length 

mm: 850 

Length 

mm: 850 

Length 

mm: ~ 

Length 

mm: 850 

Motor 


194


2) 

Material To Be 

Conveyed: 

Conveyor 

Name: 

Belt Conveyor Ref.: BC-02 Qty.: 2 Nos. 

Assorted 

Packages 

Wt- 

Kg: 

40 

Kg 

Ma 

x 

Size: ~ 

Maximum Capacity: 10000 Kgs./Hour 250 Nos./Hour 

Conveyor Length: 160.00 Meters (Divided in 5 modules of 32 meters each) 

Belt Width: 1000 Mm, 

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: 8.0 Meters/min. 

Belt: PVC 3 Ply 

Color 

: Green Width 

mm: 1000 

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: 34 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: M12. 

Drive Unit: 

Gear Box 


Length 

mm: 1050 

Length 

mm: 1050 

Length 

mm: ~ 

Length 

mm: 1050 

Motor 


195


COMMERCIAL CONSIDERATION 

Drawings: 

Price: 

1) 

On receiving P.O., submission of 3 copies of our General 

Arrangement Drawing covering Bill of Material, for approval. One 

copy of the drawing, duly approved will be returned back for 

records. 

Ex-Pune Works. 

Description of Equipment Qty. Price: Rs. Each 

Horizontal Belt Conveyor- 800mm width x 6 Nos. 37,06,520.00 

120 Meters length. PVC Green Belt with 

K10 center guide on the underside of the 

belt.(Module Length will be 30 meters) 

2) 

3) 

Horizontal & Reversible Belt Conveyor- 

1000mm width x 160 Meters length. PVC 

Green Belt with K10 center guide on the 

underside of the belt.(Module Length will 

be 32 meters) 

Horizontal & Reversible Belt Conveyor- 

1000mm width x 50 Meters length. PVC 

Green Belt with K10 center guide on the 

underside of the belt.(Module Length will 

be 25 meters) 

2 No. 

2 Nos. 

58,82,500.00 

19,13,400.00 

Taxes: 

Turn Over Tax: 

Excise Duty: 

Sales Tax: 

Surcharge on 

S.T.: 

Pkg./Forwarding: At actual 

10 Nos. 1.15,02,420.00 

Electrical Control Panel for each of the conveyors has been included 

in the price & the scope of supply. Local Cabling is not included in 

the price schedule given above. 

As applicable at the time of Delivery. Presently the Taxes are, 

1% 

NIL 

13% 

10% 

Delivery: 

Inspection: 

Within 24 from the date of receiving your Techno-commercially clear 

& confirmed Purchase Order along with our drawing duly approved. 

At our Pune works, at your cost. 

196


Payment Terms: 100% against Irrevocable Inland Letter Of Credit. 

Installation: 

Validity: 

We will depute our team for installation & commissioning of the 

system to your site and our charges will be 5% of the conveyor 

price. Service Tax to be paid extra @ 10.2% on these charges. 

This offer is valid for 30 days from the date of this letter. 

197


Section – V 

IT-Applications and Networking 

198


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 

said market would be first of its kind and pioneering in integration of banking, 

auctioning, payments, receipts, etc in an integrated manner. 

199


Section – VI 

Online Spot Commodity Trading on NCDEX 

Platform 

200


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, Nasik. 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. 

201


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, Nasik Terminal Market 

Authority (State Agriculture Marketing Board), 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. 

from collection centre within 24 hours. 

payment will be attractive and simple. 

Seller would receive payment directly 

They system of spot trading and 

It would be in accordance with the 

prevailing system (in Mandi). 

202


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. 

203


Role of Market Authority (Terminal Market Company, 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. 

204


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. 

205


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. 

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. 

206


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. 

207


Section – VII 

Establishment of Testing and Certification 

Laboratory for Food Safety 

208


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) 

209


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. 

210


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. 

211


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 

Rules as laid down for each item covered under the said Act and amended from 

time to time. 

212


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, 

chemist-to-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. 

213


LIST OF APPARATUS FOR PESTICIDE RESIDUL ANALYSIS 

A 

Quantity Approx. 

Glassware and Apparatus 

cost (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 

214


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’-TDE;p, packing of 

p’-TDE; α-BHC; β-BHC; γ-BHC; δ-BHC; aldrin, each 

dieldrin, endosulphan, heptachlor etc. 

(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 

215


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 

216


LIST OF CHEMICALS FOR AFLATOXIN ANALYSIS 

B. 

Chemicals 

Approx. 

QUANTITY 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 

217


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 

range of 250 o C with variations of ±10 o C One No 10000.00 

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 

218


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 

350.00 

(100 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 

219


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 

220


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 

221


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 ( P H 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. 

222


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. 

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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. 

224


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 sector-specific 

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 are using 

225


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 well- 

226


trained individual with access to such guidance is able to implement HACCP inhouse. 

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 

manufactured using similar processing steps. When applying HACCP to a given 

227


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: 

• The likely occurrence of hazards and severity of their adverse health effects; 

228


• The qualitative and/or quantitative evaluation of the presence of hazards; 


• 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. 

229


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 should be made when 

230


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. 

231


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 


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. 

232


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. 

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. sectorspecific 

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; 


233


Critical limit determination 

Record examples are: 

• CCP monitoring activities; 

• Deviations and associated corrective actions; 

• Verification procedures performed; 

• 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. 

234


LOGIC SEQUENCE FOR APPLICATION OF HACCP 

Assemble HACCP 

Describe Product 

Identify Intended Use 

Construct Flow 

On-site Confirmation 

fFl Di 

List all Potential Hazards Conduct a Hazard Analysis Consider Control Measures 

Determine CCPs 

Establish Critical Limits for each 

Establish a Monitoring System for each 

Establish Corrective Actions 

Establish Verification Procedures 

Establish Documentation and Record 

235


CHAPTER – IX 

DESCRIPTION OF VARIOUS SECTIONS IN THE 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. Layout 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 

stakeholders 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. 

236


What the markets 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 cannot 

ensure optimal returns on investment. Therefore, in order to raise the maximum 

benefits of the system and bringing efficiency in an organized manner, it is 

essential that a holistic and integrated approach is adopted. In this project, key 

237


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 Center. 

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 machinery 

and equipments. To run the business of the market in a systematic and un- 

238


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 centers and sufficient training would be 

given to farmers and supervisors, managing collection centers. 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 centers, which automatically will display it on electronic 

display board manned for the purpose. Details of total auction system have been 

explained in separate chapter. 

239


CHAPTER – X 

PROPOSED MARKET SITE AND LOCATIONAL 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, layouts and design. After having 

detailed discussion with the District Collector, Managing Director, Marketing 

Board; Local MLA; Chairman APMC; MD NAFED; Local Architect & Engineers; 

Traders; Farmers and other Service Providers, in the first round of the 

discussion/visit, (following sites were identified). A well-structured primary 

survey was organized and conducted seeking the order of reference of all 

concerned. 

1. NAFED site at Pimpalgaon 

2. HAL – Ojhar 

3. Mundagon – Igatpuri 

4. NAFED Complex – Lasalgaon 

5. Pimpalgaon Baswant 

A criterion for selection of sites was left to the stakeholders and users. Since, 

the final selection of site has not yet been done; it was found that HAL Ojhar site 

should be treated on first priority. 

Second priority can be attached to 

Pimpalgaon Baswant. On the basis of notional place model design was 

240


attempted to. The architect and the consultant visited various sites and 

developed layouts and plans accordingly. 

Second Round Field Observation for Site Selection 

Second Round of site selection exercise was carried out in consultation with local 

MLAs, Vice-Chairman NAFED, Additional Managing Director NAFED, Director 

General NIAM, <strong>Project</strong> Consultant Dr. J.S. Yadav, Regional Manager NAFED, 

General Manager (Horti.) NAFED, Director, NHRDF, <strong>Project</strong> Director Maharashtra 

State Agricultural Marketing Board (Mr. Mohite), Executive Engineer of MSAMB 

and other associated members. 

The team visited various sites and examined 

pros and cons of different locations. 

Based on discussion common consensus 

emerged on the issue is as under: - 

The proposed project management authority should give preference to outright 

purchase of land identified by the team members in order of preference. 

In 

case Govt. land is easily available the first preference should go for but limited to 

site of first preference. In both the cases order of preference for sites should be 

followed as given below: - 

241


Govt. Land 

Outright Purchase 

Order 

of 

Merit 

Site Name 

Order 


Merit 

Site Name 

1 Ojhar (HAL site) 1 Ojhar – Opp. Truck Terminus 

2 Sayyad Pimper 2 Ojhar – Behind Medical 

College 

3 Igat Puri 3 Railway Crossing on 

(Aurangabad Highway) 

4 Lasalgaon 

5 NAFED site at Pimpalgaon 

In case the land is selected out of Govt. proposed sites it is suggested that at 

least 100 acre is essential as except for one site all others are undulated and 

only 30-40% of it can be utilized. 

This would be at the cost of Rs.2 lakh per 

acre. 

If outsight purchase of land is considered approximately 40-50 acre of 

land will be sufficient which will cost about Rs.4.00 crore (@ Rs.7-8 lakh per 

acre). Budgetary provision of Rs. 4 crore has been considered in the report. 

However, the proposed options of the site has been recommended based on the 

following criteria:- 

1. Approachability and Accessibility 

242


2. Closeness to the Hinterland/distance from harvesting field 

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 

9. The link road condition to the market 

10. Proximity to the National or State Highway 

11. The mode of transportation possible to use to rapidly 

transport of harvested fruits to the market. 

12. Distance from the port and the mode of transportation 

available for speedy movement 

13. Proximity to the near by town to get regular skilled and 

unskilled labor as the horticultural produces are seasonal 

14. The water availability in terms of quantity and quality 

15. The water disposal system and other possibilities 

16. The availability and status of power supply 

17. The environmental scenario around the site 

18. The communication facilities 

1. Approachability and Accessibility 

243


The survey results indicate that small farmers (up to 5 acre) of land can travel to 

a maximum distance of 40 Kms. Keeping this factor in mind identification of site 

has been made. 100% farmers gave their consent for Pimpalgaon Baswant site. 

80% officials have given Ojhar as their second order of preference. The 

proposed location is on National Highway (Nasik - Orangabad Road) 13 Kms and 

25 Km respectively from Nasik. The suggested site is just tentative and 

indicative. The designs proposed can be adjusted accordingly with to the final 

decision of the site. At both the proposed places approximately an area of 100 

acres is available. As per base minimum needs for initial state and designs 

proposed by the architect, an area of 30 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 be 

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 

100 acres. 

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%) cannot travel more than 30- 

40 Kms to sell their produce in the market. Therefore, this point has been 

specifically considered. Igatpur (Mundagaon) has not been preferred because of 

this reason, though; the site is advantageously situated on the main highway 

244


and close to Mumbai. Lasalgaon site has also been preferred by the farmers but 

this area is more pre-dominantly cultivated with single commodity crop i.e., 

Onion. 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. Therefore, 

as compare to Lasalgaon, Pimplegaon Baswant and HAL-Ojhar has been found to 

be the best option. 

3. Proximity to Consuming Place 

Material arrived in the market has to be either consumed locally 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 Nasik 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 HAL Ojhar and Pimpalgaon Baswant has been 

proposed for the said terminal market. 

4. Convenient Accessibility to Buyer and Sellers 

245


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 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 HAL-Ojhar 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. HAL, Ojhar site has been considered most advantageous for the 

said terminal market in terms of aforesaid amenities. 

246


7. Sourcing of Commodities and Areas From 

While examining and analyzing the commodity coverage and sourcing thereof it 

was found that Lasalgaon is single commodity area (onion) while Ighatpuri has 

no commodity of its own and depend on arrival from surrounding areas. Ojhar 

Pimpalgaon Baswant has good potential for wide range of commodities; 

therefore, these locations have been given preference. 

8. Area Coverage 

The sourcing area would cover districts of Nasik, Ahmednagar, Aurangabad, 

Pune & Jalgaon. The collection centres have been proposed in districts of Nasik 

(12), Ahmednagar (4), Jalgaon (2), Pune (2). Aurangabad sweet oranges will be 

clubbed with Ahmednagar and other collections centres. 

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, Kathmandu, Bhutan etc. have been proposed 

where excess material will be sold and raw cheap material will be sourced from 

247


there. This will develop contacts with retail Chain, Super stores, Malls and 

metros in different cities. 

Export Opportunity 

Nasik is one of the biggest hub of horticulture having tremendous potential for 

exports of commodities like grapes, onions, pomegranate, sapota and other 

vegetables. Being close to the major international airport and seaport large 

quantities of fruits and vegetables can be exported from Nasik. This can be done 

either through the terminal market or directly from the collection centers. As 

most of the exporters are presently operating from the hinterland. The collection 

centers 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 overcome. 

248


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. 

• Nasik Region – the key horticulture produce supply hub 

Nasik is the hub for horticulture – major center for production of fruits and 

vegetables. 

There is no organized market for selling of fruits such as Grapes, 

Pomegranates, Mango and vegetables produced in plenty in the District or the 

region. Hence the Terminal Market is proposed at or near Nasik - a major town 

in the State of Maharashtra which is also well connected to key consumption 

centers such as Mumbai, Pune and so on. Main produce from Nasik District 

include: 

1. Grapes: Nasik, Niphad, Dindori, Chandwad Tahasils 

2. Pomegranate: Nasik, Satana, Malegaon, Deola, Kalwan, Sinner & Yeola 

3. Strawberry: Dindori, Nasik & Niphad 

249


4. Onion: Entire Nasik district 

5. Tomatoes: Nasik, Niphad, Dindori, Chandwad, Nandgaon, 

Trimbakeshwar, Satana & Malegaon. 

6. Cauliflower: Nasik, Niphad, Dindori & Chandwad 

7. Flower: Nasik, Niphad, Dindori & Chandwad 

8. Okra: Nasik, Niphad, Dindori & Chandwad 

9. Green Chillies: Stana, Malegaon, Kalwan & Deola 

10. Shimla Mirch (Capsicum) : Satana, Malegaon, Klawan & Deola 

11. Radish: Nasik, Niphad, Dindori, Satana, Malegaon & Chandwad 

12. Carrot: Nasik, Niphad, Dindori, Satana, Malegaon & Chandwad 

13. Pumpkin: Niphad, Dindori, Malegaon, Satana & Sinner 

14. Brinjal: Niphad, Dindori, Malegaon, Satana & Sinner 

15. Karela: Niphad, Dindori, Malegaon, Satana & Sinner 

16. Cucumber: Niphad, Dindori, Trymbakeshwar, dgatpuri & Sinner 

17. Green Vegetables: Niphad, Dindori, Satana, Malegaon, Chandwad 

Besides key production centers from Nasik District few more production areas 

from neighboring Districts of Pune, Ahmednagar and Jalgaon are included as 

part of the Backward linkages plan. The production volume of key fruits and 

vegetables of Nasik and adjoining Districts is given below. It shows that 

these Districts account for a major share of production in the State, between 

25 to 30 % of State’s production. 

250


PRODUCTION OF KEY FRUITS AND VEGETABLES IN NASIK AND 

ADJOINING DISTRICTS 

Sl. No. Fruit / Vegetable Nasik Jalgaon Pune A’Nagar 

1. Mango 9102 3415 4100 13167 

2. Pomegranate 237089 14116 10526 45564 

3. Sweet Orange 41 19915 3058 15010 

4. Kagzi Lime 369 14685 3988 31494 

5. Grapes 325051 139 16850 15822 

6. Banana -- 2251700 126816 14080 

6. Tomato 173185 644 77847 36561 

7. Brinjal 31473 743 28647 17376 

8. Okra 825 993 -- 6657 

9. Onion 476431 6883 353468 59665 

10. Cabbage 51582 139 26738 5552 

11. Cauliflower 37494 156 2480 4956 

Total 770990 2313528 382686 265904 

Besides a functional issue the Backward Linkages is also a business process of 

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 

Collection center acts as a consolidation center and it is set up in key production 

areas in the area of operation – a District/s or State/s. The functionaries 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 

251


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. 

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 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. 

252


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 driven 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. 

• Activities of the Backward Linkages 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. 

253


Terminal Market: 

Backward Linkage 

Department 

Collection 

Center1 


Center2 


Center3 


Center4 

Farmer 

Association 1 

Farmer 

Association 2 

Member Farmers from 

identified villages 

Member Farmers from 

identified villages 

Fig: Structure of Backward Linkages Department 

Responsibility of each in the above chain: 

i) Backward Linkage Department in Terminal Market: 

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 

254


in the Backward Linkages, and for providing proper training in the areas of 

produce cultivation, harvesting, Grades, logistics, Quality standards etc. 

ii) Collection Centers: 

These centers are fully owned or jointly owned by the Terminal Market with the 

farmers. The Collection Center is run by a professional Manager with the help of 

an Assistant. 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. 

The facilities at a Collection Center will include: 

255


S.No. Particulars Amount 

1. Ordinary Mechanical Grading Line for Round Fruits- 

60000 

Quantity-01 

2. Vegetable Trimming Machine with Washing & Grading 

100000 

Facilities - Quantity-01 

3. Grading Tables 10000 

4. Grading Building measuring a total of 2500 sq.ft. area 

10000 

(Rental) 

5. Plastic Crates - 4000/- @ Rs.220 880000 

6. Storage space for at least 4000 crates(Rental) for 2000 sq. 

4000 

ft open space @ Rs.2/- 

7. Place to clean and wash produce 10000 

8. One Desktop Computer 40000 

9. Electronic Display Board 250000 

10. Full Fledged Information Kiosk 100000 

11. Networking – on-line monitoring 200000 

12. Printer 4000 

13. UPS for Computers 10000 

14. Table and chairs to sit 10000 

256


15. Telephone line 2000 

16. Possibly CDMA/ GSM internet connectivity 2000 

17. Toilet and bathroom provision (contn.) 

18. Electricity and Water supply (Actual) 5000 

19. Parking space for at least three trucks-5000 sq. ft. @ 2/- 10000 

Total 1707000 

*Fixed Cost - 788000 

*Plastic Crates - 880000 

*Rentals Per month 34000 

*Electricity and Water Supply per month 5000 

Besides sending produce to Terminal market, depending on the demand placed 

by the proposed sale centers (formed by the management of Terminal Market all 

over the country) the CC will send produce to these centers. 

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. 

iii) Farmers Association: 

257


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. 

iv) 

Farmers: 

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. 

258


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 (Nasik District and neighbouring Districts). 

2. The collection centers are easily approachable from the Terminal market. 

3. Collection centers are set up along a regular supply route. 

4. Collection center is always set up in rural area. 

5. Collection center will have the capability to handle more than one 

commodity. 

Structure of Collection Center System proposed for the Nasik Terminal 

Market 

For practical purposes 25 villages in a block /taluka are identified for service by 

one Collection center. There would be 20 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 8 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). 

From three villages there are 300 farmers and assuming that a third of all 

259


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 16000 – 20000 farmers, representing 

500 villages from 4 Districts as identified under the Terminal market project. 

Under the proposed structure there are 20 Collection centers with each center 

served by 8 farmers association. 

Produce handled in Collection Center: 

Each Collection center is geared to handle an average of 50 MT per day. The 

center will supply an average of 50 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). The assumption that 

approximately 1.25 quintals of produce is 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 1 quintal, a farmer with 3-5 

acre land holding supplies 2 quintals, a farmer with 5-10 acre holding supplies 5 

quintals and a farmer with 10 acre and supplies above 10 quintals per day. 

260


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 25 

2 Number of Farmer Associations under each 

8 

Collection Center 

3 Number Farmer members in each Association 100 

4 Registered farmers with one Collection center 800 

5 Registered farmers per village (three to four villages 25 – 35 

per Association 

6 Approximate qty per Collection Center per day 50 MT (500 Quintals) 

7 Approximate Qty per village per day 2 MT (20 Quintals) 

8 Approximate Qty per Farmer per day 125 Kg (1.25 Quintal) 

9 Total number of Villages covered under the project 500 

10 Total number of farmers covered under the project 16000 – 20000 

11 Number of Farmer Associations set up under the 

project 

160 

In the above project the farmers from Nasik and other key production centers 

just across the District border form a part of supply chain. A basis for the 

selection of 20 Collection centers under the Nasik Terminal market project and 

the flow of key fruit /vegetables from these Collection centers are shown in the 

table below. 

261


Possible locations for Collection Centers and the key fruit / Vegetable to be 

supplied to the Terminal market 

No Fruit /Vegetable Proposed 

Taluka/location 

1 Banana 1.Raver 

2. Yaval 

3. Chalisgaon 

Remarks 

2 Collection 

centers in 

Jalgaon 

(Bhadgaon) 

4. Jalgaon 

5. Pachora 

6. Chopda 

1. Patharde 

/Sheogaon 


center in Pune 

/Nagar 

2 Mango 1. Yeola 

2. Nasik 


center for Nasik/ 

Aurangabad 

3 Grapes 1. Pimpalgaon 

2. Niphad 


Centers 

3. Dindori 

1. A’Nagar 

2. Srirampur 

3. Rahata 

4 Pomegranate 1. Deola 

2. Satana 


center in A’Nagar 

/Pune 


center in Nasik 

3. Kalvan 

262


1. A’Nagar 

2. Rahata 

5 Lime /Lemon 1. Sangamner 

2. A’Nagar 



/Pune 

To combine with 

one of the above 

C.C. 

6 Sweet Orange 1. Aurangabad To combine with 

one of the above 

C.C. 

7 Onion 1. Lasalgaon 


3. Manmad 

4. Yeola 

1. Shirur 

2. Lonand 

1. Rahuri 

2. Sangamner 

3. Srirampur 

8 Tomato 1. Pimpalgaon 

2. Dindori 

3. Nasik 

4. Kalvan 

1. A’Nagar 

1. Pune 


centers in Nasik 


center in Pune 



2 - 3 Collection 

Centers in Nasik 

1 Collection center in 

A’Nagar 

1-2 Collection center 

in Pune 

263


9 Cabbage To combine with one 

of the above 

C.C. 

10 Cauliflower To combine with one 

of the above C.C. 

11 Brinjal To combine with one 


12 Okra To combine with one 


On the above basis 20 Collection centers were finalized. The selection was 

based mainly on production volumes in the block or taluka and the logistic 

advantages. And final list of Collection centers include 12 in Nasik District, 4 in 

Ahmednagar District and 2 each in Jalgaon and Pune Districts. The locations are 

as under: 1) Nasik 2) Dindori 3) Kalwan, 4) Deola, 5) Satana 6) Malegaon, 7) 

Niphad, 8) Yeola, 9) Manmad, 10) Chalisgaon 11) Bhadgaon 12) Sinnar, 13) 

Sangamner, 14) Rahata, 15) Shrirampur 16) Rahuri 17) Pimpalgao-B, 18) 

Igatpuri, 19) Junnar 20) Shirur 

264


CONSOLIDATED TABLE SHOWING SHARE OF THE BLOCK /TALUKA IN TOTAL 

PRODUCTION FROM THE DISTRICT 

N 

o 

Name of the 


Center 

Commodity 

covered* 

Approx 

Produc 

tion in 

% 

Approx. 

Production 

in MT 

1 Nasik, Nasik Dist. Mango 

Tomato 

Pomegranate 

5 

21 

0.2 

455 

34637 

474 

2 Dindori, Nasik 

Dist. 


Grape 

Tomato 

15 

35 

38 

71464 

113767 

51955 

3 Pimpalgaon-B, 

Nasik Dist. (Mega 


Tomato 

13 

0.1 

61936 

173 

Collection Center) 

4 Malegaon, Nasik 

Dist. 

Pomegranate 


Mango 

50 

4 

0.4 

118544 

19057 

36 

5 Sinnar, Nasik Dist. Onion 

12 57171 

Grape/ Tomato/ 

Pomegranate 

6 Kalvan, Nasik 

Dist. 


Tomato 

18 

4 

85757 

6927 

7 Satana, Nasik Onion 6 28585 

Dist. 

8 Niphad, Nasik Grape 17 55258 

Dist. 

9 Yeola, Nasik Dist. Mango 2 182 

10 Manmad, Nasik 

Dist. 

Onion 10 47643 

265


11 Deola, Nasik Dist. Onion 7 33350 

12 Igatpuri, Nasik Onion 

2 9529 

Dist. 

vegetables and 

other produce 

from Thane 

District 

13 Rahata, A’Nagar, 

Dist. 


Pomegranate 

19 

10 

11336 

4556 

14 Rahuri, A’Nagar, 

Dist. 


Tomato 

13 

20 

7756 

7312 

15 Srirampur, 

A’Nagar, Dist. 


Tomato 

Grape 

14 

25 

10 

8353 

9140 

1582 

16 Sangamner, 

A’Nagar, Dist. 


Tomato 

20 

12 

11933 

4387 

17 Shirur, Pune Dist. Onion 30 106040 

18 Junnar, Pune Dist. Tomato 20 15569 

19 Chalisgaon, 

Banana 3 67551 

Jalgaon Dist. 

20 Bhadgaon, 

Banana 6 135102 

Jalgaon Dist. 

*Other fruits and vegetables available from nearby areas besides the major items as 

listed. 

As the District is a major producer and supplier of Onion, Grape and Tomato the 

list of Collection centers reflect the same (table above). 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 

266


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. 

Close to Nasik is a major block in Pimpalgaon (B) 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 Collection center. 

A transportation /supply route connecting key production areas /identified 

Collection centers to facilitate efficient collection of produce has been drawn up 

for the Nasik Terminal market. The supply routes are broadly drawn up as 

under. 

Route-01 

Route -02 

Route -03 

Route -04 

Route -05 

Nasik, Dindori and Kalwan 

Deola, Satana and Malegaon 

Niphad, Yeola, Manmad, Yeola, Chalisgaon and Bhadgaon 

Sinnar, Sangamner, Rahata, Shrirampur and Rahuri 

Igatpuri, Junnar and Shirur. 

The above routes are suggestive at this time and may undergo changes 

depending on ground realities and future developments. 

The location of Collection centers and the supply or transport routes are shown 

illustrated in a map format in the following page (Fig 1). 

The investment needs for setting up of a Collection Center 

267


The capital expenditure and the recurring expenditure of setting up of a typical 

Collection center is 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 lakhs for 7300 numbers of 15 Kg crates. This will suffice for handling and 

transport of all of the 50 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 

268


centers is worked out as below. As expected the largest volume of arrivals at 

the Collection center would be of Onion followed by Tomato, Banana and Grapes 

(table and pie chart). Assuming an average price of Rs 5 per Kg the value of 

produce handled at the Collection centers in the 20 centers is estimated at Rs 

127 Crore. 

Sn Commodity 

Commodity wise Total Arrival in Collection Centres 

Daily 

Arrival Yearly Arrival Average Daily Value Yearly Value 

(in M.T.) (in M.T.) Price (Rs. In Lacs)(Rs. In Lacs) 

1 Banana 95.24 20000.00 5000 4.76 1000.00 

2 Grapes 159.43 15943.09 12000 19.13 1913.17 

3 Mango 105.80 8463.88 20000 21.16 1692.78 

4 Pomegranate 150.62 16061.72 15000 22.59 2409.26 

5 Onion 495.22 89139.23 3000 14.86 2674.18 

6 Tomato 234.46 35169.19 3000 7.03 1055.08 

7 Other F & V 260.89 115222.90 3000 7.83 1956.69 

Average Price 

per Kg. 5.00 

1501.66 300000.0061000.00 97.36 1500.00 

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17% 

6% 

11% 

7% 

16% 

10% 

33% 

Banana Grapes Mango Promogranet Onion Tomato Other F & V 

It is assumed that the Collection centers will operate at 100 % capacity by the 

end of 4 th year of operation. Accordingly the volumes of produce handled by 

Collection centers over a period of 5 years are shown below. The table shows 

assumed capacity utilization of Collection centers of 20 %, 50 %, 80 % and 100 

% with an estimated arrival of approximately 0.52, 1.27, 2.02 and 2.52 lakh MT 

in years 1, 2, 3 and 4 respectively. 

The volume of individual commodity arrivals is also shown in the table. 

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Commodity wise Total Arrival in Collection Centres 

and Year wise Capacity Utilization 

(in M.Tonnes) 

2007 2008 2009 2010 2011 

20% 50% 80% 100% 100% 

1 

2 

3 

Banana 4000.00 10000.00 16000.00 20000.00 20000.00 

Grapes 3188.62 7971.54 12754.47 15943.09 15943.09 

Mango 1692.78 4231.94 6771.10 8463.88 8463.88 

4 

5 

6 

7 

Pomegranate 3212.34 

Onion 17827.85 

Tomato 7033.84 

Other F & V 13044.58 

8030.86 12849.38 16061.72 16061.72 

44569.61 71311.38 89139.23 89139.23 

17584.59 28135.35 35169.19 35169.19 

32611.45 52178.32 115222.90 115222.90 

Total 52007.20 127008.50 202009.80 300000.00 300000.00 

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 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 

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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 tie-ups with Banks/s. 

Already two leading Banks have shown considerable interest in extending term 

loan. It is proposed in the project that buyers create a revolving fund to 

facilitate immediate payment to farmers. Banks can manage this on behalf of 

market authorities. Up to an extent of Rs 5 crores of funds is likely requirement 

from these Bank/s. The need for revolving fund would be much less during year 

1 of operations, at 20 % capacity utilization, estimated at Rs 1.5 crores. The 

details of calculation are given in table below. 

Requirement of Revolving Fund for Collection Center 

Average turnover / day - 50 MT 

50MT X Price - Rs, 5000/ MT 

Capacity utilization - @ 20% 

Per CC daily turnover – 10 MT 

Amount required /day 10 X 5000 = Rs. 50,000 

For one fortnight requirement 

(15 X 50,000) = Rs. 7.5 Lakhs 

Total Number of CC - 20 

For all 20 collection (7.5 X 20) = Rs. 1.5 Crore 

First Year (i.e. 2007) (20 % cap. utilisation) - Rs 1.5 Crore 

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For second year (50 % cap. utilisation) - Rs 3.5 crore 

Products and Services offered by the Terminal Market for Farmers 

directly participating in the market 

1. Insurance 

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. 

2. 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 centre level. 

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3. 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 Agri-clinic 

set up at each of the 20 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. 

4. 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 

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. 

5. Commodity Exchange Price (Node afterwards) 

The Terminal market would be linked to receive futures price information from 

Commodity Exchanges. This information would be freely disseminated among 

farmers and traders in the initial years. In subsequent years a node /hub would 

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be set up at the Terminal market to facilitate participation in futures trade by 

farmers and traders. 

6. 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. 

7. 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. 

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8. Investment Advice 

The farmers need for sound investment advise is another area that the 

management will try to address through appropriate programmes and seminars. 

10. Grading Facilities 

All collection centers would be provided with need based grading facilities so that 

farmers can grade their material at collection centres and only sorted material is 

dispatched for terminal market. 

11. 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 

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3. ITC e-choupal 

4. Godrej Agrovet Aadhar 

5. Cargill Kissan Seva Sangh 

6. Mahindra & Mahindra Subh Labh 

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 Nasik <strong>Project</strong> <strong>Report</strong> and in the 

process of reports for other places. I am enclosing herewith a brief profile of Nasik <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 Nasik, Bhopal, Patna, 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 centres falling under the 

jurisdiction of Nasik 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. 

seeds. 

ITC through its e-choupal malls is procuring food-grain pulses and oil 

Godrej Agrovet is equally involved in procurement of fruits and 

vegetables over and above input supply. 

Therefore, it was found that godrej 

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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. 

11. Mechanized Harvester cum Pruner 

In order to inculcate a culture of mechanization in harvesting and pruning, it has 

been proposed to provide 1 pruner cum harvester has been proposed. 

This 

harvest would be made available at collection centre 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 has been reflected in financial section. 

12. 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 Nasik region the production of fruits and vegetables is in huge quantities 

especially that of Onion, Grapes and Pomegranates. 

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. 

Grapes, Onion and Pomegranate and other fruits and vegetables are seasonal in 

production but are in greater demand out side Maharashtra. 

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 Nasik Terminal 

Market. This professional team will find out the daily rates prevailing in allimportant 

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 centers / outlets / out side the State 

Based on the demand for a particular commodity sale centers / outlets will be 

opened in all the important markets of India. This will enable the sale of excess 

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production at a very competitive rate out side the state. This 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 Co-operative 

Arecanut marketing and processing society (A Joint venture of Kerala and 

Karnataka) in 1984. This co-op society opened sale centers in almost allimportant 

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 Pomegranate are in 

greater demand Nasik 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 Nasik market. 

280


Similarly instead of engaging a commission agent at the outside the market it is 

better if the Nasik terminal market management opens their own sale center / 

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 Maharashtra State. Apart from this extensive price data 

was analyzed to identify the markets outside Maharashtra State to find out the 

demand for onion, grapes and pomegranate. 

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. Kanpur Utter Pradesh 

7. Jaipur Rajasthan 

8. Chennai Tamil Nadu 

9. Ludhiana Punjab 

10. Khatmandu Nepal 

Performance of Sale Center: 

The Nasik Terminal Fruits and Vegetable Market would establish 10 sale centers 

throughout the length and breadth 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 3 truck loads of fruits and vegetables 

i.e. 27 MTs will be received by each sale center to sale centers. 

On an average 

it is presumed that the markets will operate for 300 days in a year. 

Thus, the 

total quantity handled each sale center would be 8100 MTs. 

All the 10 sale 

centers will handled 8100 MTs of Fruits and Vegetables annually. 

The Annual 

turnover of the sale center would be worth Rs.6.48 crores considering the 

average rate of Rs.8,000/- per MT. 

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Income: It could be seen that all the 10 sale centers together will handle an 

annual turnover of 81,000 MTs worth Rs.6.48 crores. A service charge @ 5 

percent will be collected from the buyers. Hence, the income of each sale 

center works out to Rs. 32.40 lacs. The annual income from all the 10 sale 

counters is estimated worth Rs.3.24 crores. 

Expenditure: The particulars of expenditure of sale centers are as under. 

Market fee 1% (to be paid to APMC) 

Unloading Charges 

Transit Insurance (1%) 

Miscellaneous (1%) 

Rs.6,48,000=00 

Rs.1,94,400=00 

Rs.6,48,000=00 

Rs.6,48,000=00 

Total 

Rs.21,38,400=00 

The expenditure of 1 sale center works out to Rs.21.38 lacs per annum and for 

10 sale centers it would be Rs.2.14 crores. 

Each service center will have a profit margin of Rs.11.016 thousand, thus from 

10 sale centers the total profit per annum would be Rs.110.16. th. 

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. 

The details of the performance of sale centers are summarized in the following 

table. 

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Summary of Performance of Sale Centers 

Onion 4 Months in 2 

Seasons, 

Promgranet 3 months in 2 

Despatch F & V for Sales 

Seasons, 

1 (M.T.) 27 250 8100 

Grapes 2 months in 1 

Seasons 

2 Value of F & V Rs 8000 / MT 8000 64800000 

3 Marketing Cost (1% of Value) 648000 

4 Unloading/Loading 194400 

Transit Insurance (Rs. 1000 per 

5 Lakhs) 648000 

3 Misc Charges 648000 

Total Expenditure 2138400 

Income (Service Charges 

5%) 10% 3240000 

Other Income* 0 

Expenditure 2138400 

Net Profit 1101600 

Profit from 10 sale centers 11016000 

* 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 as well as 

to Nasik during lean periods. This will help to enhance the annual turnover and 

thereby net income of each sale center/outlets. 

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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 

Nasik Terminal Market Management will develop contacts with retail chain outlets 

like 

1. Super Bazars 

2. Mals 

3. Food World, Rajtech chains etc., 

4. Metros 

Grapes, Pomegranate and Onion 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. 

Supply to Super Stores 

In this direction team comprising of the Director General NIAM, Additional 

Managing Director NAFED, Director NIAM, General Manager (Hort.) NAFED etc. 

visited various macro malls dealing in fruits and vegetables at Mumbai Bangalore 

and Jaipur & Most of the firms have expressed their keen interest in procuring 

285


material from proposed terminal market provided flexibility is maintained by 

management in auction participation. M/s Foodland and M/s Rajetch Agro have 

keenly agreed to buy bulk material as presently they are facing lot of problems in 

procuring material from Nasik, though the quality of Nasik produce is said to be 

the best. 

M/s Food world Bangalore has opined that there has to be total 

flexibility from buyers point in view in participation of auction. 

Accordingly 

flexibility provisions have been made in the project. 

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 Nasik 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 Maharashtra especially in Nasik region individual progressive farmers 

themselves are undertaking export of horticultural produce very successfully. 

286


Private partner of the TMC shall extend its full support at this region for export 

activities to all the farmers and institutions engaged in export activities. 

Branding 

Branding of F&V in the terminal market of Nasik will create opportunities for the 

profitable niche markets that could operate in conjunction with the bulk 

marketing system of terminal market. 

Consumers have also expectation that fruits and vegetable, which they will 

purchase through the terminal market, should be different from the commodity 

standard and they might be willing to pay premium for that. 

In a commodity system there is an overall effort to minimize the cost, but there 

is limitation on the cost front also. In these aspects branding of the Nasik market 

produce will give an opportunity to effect the cost of produce with quality, for 

which consumers are ultimately going for. 

But branding of Nasik market will not a cakewalk, there will be many supply 

control issues and pricing issues. So for this branding of Nasik market produce 

will be based on certain attributes like, a particular brand of fruits and vegetable 

of the Nasik terminal market might specify that the branding product can only 

come from selected area and justify this restriction based on the specific 

attributes of the region (e.g. Alphorns mango from Ratnagiri, Jalgaon Banana, 

Nasik Grape, Onion, Nagpur Orange etc. 

287


Another way to control supply would be to limit membership of producers, which 

are supplying their produce to the collection center or directly to the terminal 

market, to a relatively small number of high quality producers or to a particular 

farmers group of the village and the selection of producers will be done on some 

quality criterion or location for restriction on supply control. Another way is 

through IPR or through trade sectors for some ingredients or process. 

Problems with branding:- 

1. Producers or any chain members will not receive the price incentive. 

2. Even the whole sellers or the end consumers provide the producer with price 

incentives to produce higher quality products, competition from other 

farmers quickly eliminate the profitability and eventually leading to disguise 

to the small scale producers. 

3. Small-scale production leads to unprofitably of the branded products. 

Branding will be successful step for Nasik terminal market because, 

1. Price signal will be transmitted from the producers to the consumer. For 

producer- offering better price for better quality produce and eventually 

encouraging producer to build professionalism in them. In this way to all 

the channel members (since the P. Premium be distributed) 

288


2. Since there will be a large-scale transaction through the Nasik terminal 

market, and it will justify the cost of creating and maintaining the 

differentiated image among the consumers. 

3. The cash & carry format in the Nasik terminal market will be the major 

source through which the branded fruits and vegetables will be sold. It is 

a B-to-B way business so most of the multinational as well as the 

supermarkets and the retailer format supply will be met through the cash 

& carry. But the key success of branded F & V depends ultimately on the 

producers, because brand image can be maintained only by supplying the 

expected quality produces to the consumers, which requires monitoring 

and inspection committee for production. This will strengthen our 

backward linkage by disseminating adequate and updated cultural 

practices through the agri clinics present in the terminal market. 

Producers 

Regulator, Agriclinics 

of T.M 

Certification 

Cost of 

Certification & 

inspection 

Accredit ion 

Controls on 

inspection and 

suggestions 

& inspection 

Inspection body 

289


The proposed brand names for the terminal market produce are as follows, of 

which one can be selected by the market authority 

Maha Fresco, 

Nasik fresco 

Terminal fresco 

Termana fresco 

Nasik Frescura 

Soul fresh 

Fresh day 

Fresh morning 

Maha fresh 

Nasik fresh 

Nasik ever fresh 

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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 Vishya Bank 

and Robo 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- 

Vishya 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 for away in India. 

291


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 

• Backward Linkage 

• Terminal Market Operation 

• Forward 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 at-least three 

292


associations under them and further every association will have minimum of 

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 

Collection Center 

Produce received 

at Terminal 

Produce 

unloading 

Produce for 

Storage 

Quality Check 

Terminal Market 

Operation 

Pallet 

Stacking 

Storage Hall 

Produce 

Palletization 

Bank Access 


Dispatch 

stored Produce 

Buyer with 

payment 

information 

Cold Storage 

Ripening Chamber 

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Fig 1.2: General representation of Terminal Market Operation 

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. 

294


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. 

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. 

295


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 

The Forward Linkage part is shown in following figure 

Forward Linkage 

Sales and 

Marketing 

Retails 

shops in 

Terminal 

Market Owned 

Buyers 

Customer for 

booking in 

storage 

Buyers 

Exporters 

Processors 

Forwarders/ 

Transit 

Traders 

296


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. 

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: 

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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. 

3. Quality Assurance: 

a. Defining quality norms for all produce i.e. Fruits and 

Vegetables, flowers. 

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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. 

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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 

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h. Bonus 

i. Taxes 

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 

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f. Transporter payment 

9. Sales and marketing 

a. Preparatory activity for buyer registration, retail shops etc. 

b. Buyer registration 

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. 

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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 

Hardware should be procured from two different companies. The cost estimates 

of Hardware are shown in the financial estimates. 

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CHAPTER – XIV 

MANAGEMENT OWNERSHIP AND PROFILE OF AUTHORITY 

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. 

The Govt. of Maharashtra 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 section ‘A’ and sub section (1). This amendment 

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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 Nasik 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 NAFED (National 

Agricultural Cooperative Marketing Federation – Govt. of India Organization) in 

mind and propose suitable structure of management for the said market. 

NAFED 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 

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governing day to day activities of the said terminal market which is proposed and 

subsequent paragraphs. Following is a brief description of activities of NAFED 

and its technical profile highlighting brief account of operations and future 

agenda. 

Profile 

NAFED with its long, vast and rich experience / expertise and infrastructure but it 

up during more than four decades is promoting the co-operative marketing of 

agricultural produce for the benefit of Farmers through its Head Quarter at New 

Delhi and four Regional offices situated at Delhi, Mumbai, Chennai & Kolkatta, 

with back up of its several branches situated in State / Capitals and other 

important centers and also through the network of state level Marketing 

Federations, Commodity Federations and other Member Co-operative Marketing 

Societies. 

Business strength of Nafed are Categorized as under:- 

1) Domestic Operations:- Outright / Joint Venture / Consignment / 

Mis / PSS operations of Govt. of India 

2) International Trade:- Export of Agricultural Commodities Enlisted 

both in canalized and Open General License (OGL) categories. 

Canalizing agency for export of Onion. 

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3) Industrial Activities: NAFED has created infrastructure for 

warehousing, Grading & Packing of important agricultural commodities 

in the largest interest of Farmers. Also set up various Industrial Units 

for production of agricultural inputs for motivating the farmers to 

increase their produce. 

Details of some of the <strong>Project</strong>s set up by Nafed are given under:- 

a) Modern Onion godowns at Pimpalgaon (13 acre plot) & Lasalgaon 

(23 acre plot) in Maharashtra. 

b) Modern godowns of small capacities for storage of Onion at Beldari 

Chak and Shiekhpura in Bihar & Indore in Madhya Pradesh. 

c) Bio-fertilizer manufacturing units at Bharatpur (Rajasthan) Indore 

(Madhya Pradesh) 

d) A Cold Storage and a Warehouse at Lawrence Road, Delhi. This 

Cold Storage of 25000 MTs capacity is located in the proximity of 

Azadpur mandi to facilitate farmers and traders to keep their stock 

of perishables. 

e) A Warehousing and processing unit at Vashi, Mumbai, Apart from 

providing storage facility, the processing facility is utilized for 

cleaning and processing of Niger seed, Pulses & Food grains. 

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f) A grading, waxing and pre-cooling unit at Maujgarh in Punjab. 

The grading, washing & pre-cooling helps in prolonging the shelflife 

of perishables. 

A list showing location and capacity-wise details of the existing Warehouses / 

General Warehouses and in pipeline is enclosed as Annexure “A”. 

New Initiatives 

Nafed with its all the above available necessary infrastructure is capable and has 

the capacity to handle the proposed Mega-<strong>Project</strong> of Modern Terminal Market of 

Horticulture produce in Nasik district. 

Nafed has taken a new initiative for its 

sustenance and growth. Some of the initiatives taken by Nafed are in the areas 

of: 

a) Public Private Partnership 

b) Futures Trading 

c) Contract Farming 

d) Seeds & Fertilizers 

e) Secured advance to farmers against stock 

f) Recruitment of professionals 

g) Information Technology 

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WAREHOUSE / COLDSTORAGE / BIO-FERTILIZER UNIT & VACANT 

LAND WITH NAFED 

A. Existing Warehouse 

Onion Warehouses 

S.No. Location Capacity 

1 Pimpalgaon, Maharashtra 1050 MTS 

2. Lasalgaon, Maharashtra 1600 MTS 

3. Ujwa, Delhi 1000 MTS 

4. Indore, Madhya Pradesh 100 MTS 

5. Nagapattanam, Tamilnadu 500 MTS 

6. Beldari / Shekhpura / Bihar Sharif 150 MTS 

Total 

440 MTS 

General Warehouses 


7. Vashi, Maharashtra 4000 MTS 

8. Mattancherry, Kochi 100 MTS 

9. Gandhi Nagar, Kochi 800 MTS 

10. Madhavaram, Chennai 5500 MTS 

11. Lawrence Road, Delhi 4300 MTS 

12. Bharatpur, Rajasthan 2000 MTS 

13. Bhiwadi, Rjasthan 1750 MTS 

14. Raichur, Karnataka 3000 MTS 

15. Lucknow, Utter Pradesh 3250 MTS 

16. Morbi, Gujarat 3200 MTS 

Total 

27900 MTS 

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Capacity of Warehouses in Pipeline 


1. Ganjbasoda, Madhya Pradesh 4000 MTS 

2. Dewas, Madhya Pradesh 10000 MTS 

3. Sriganganagar, Rajasthan 10000 MTS 

Grand Total (Warehouses) 

56300 MTS 

B) Existing Cold Storages 



2. Pimpalgaon, Maharashtra 30 MTS 

3. Vashi, Maharashtra 3000 MTS 

Total 

5530 MTS 

CAPACITY OF COLD STORAGES IN PIPELINE 



2. Pimpalgaon, Maharashtra 35 MTS 

Total 

4035 MTS 

Grand Total (Cold Storages) 9565 MTS 

C. Existing Bio-Fertilizer Units 


1. Indore, Madhya Pradesh 450 MTS p.a 

2. Bharatpur, Rajasthan 300 MTS p.a 

Total 

750 MTS p.a 

D. Open Container Yard, Dronagiri 

Area 

2000.16 Sq. Mtrs. 

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E. Vacant Land 


1. Bharatpur, Rajasthan 22750 Sq. Mtrs. 

2. Bhiwadi, Rajasthan 750 Sq. Mtrs. 

3. Chakan, Pune 2550 Sq. Mtrs. 

4. Lasalgaon, Nasik 73100 Sq. Mtrs. 

5. Pimpalgaon, Nasik 46610 Sq. Mtrs. 

6. Raichur 36015 Sq. Mtrs. 

7. Kuddapah, Andhra Pradesh 7915 Sq. Mtrs. 

8. Nagapattnam, Tamilnadu 4674 Sq. Mtrs. 

9. Chakkan, Mahrashtra 2550 Sq. Mtrs. 

Based on aforesaid analysis it is suggested that NAFED should invest, developed, 

own, manage and operate the said terminal market at Nasik with any of the 

model suggested below. 

Proposed Options 

Option – I - Owned by Govt. Organization and Managed by Private 

Entrepreneur 

Option - II - Fully Owned and Managed by Govt. Organization – 

subsidized by Govt. at initial stages 

Option - III - Joint Venture Company 

(Two partners – Govt. Owned Organization and Private 

Entrepreneur 

Option – IV - Joint Venture Company 

(Three partners – Govt. Owned Organization, Private 

Entrepreneur and Financial Institution 

Option – V - Fully Owned and Managed by Private Entrepreneur 

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Proposed structure of management is in order of priority. 

Various aforesaid 

options have been examined and proposed. The best fit option in this case has 

been found to be option-I. 

NAFED as principal borrower and sole owner of 

assets will develop the market in consultation with a privately owned consortium 

of professional companies like, ITC, Foodland, Rajtech, Food World, Godrej etc. 

Two or three members consortium can take up entire operations of market 

either on lease of fixed amount or net profit sharing basis. 

These private 

companies can also act as equity holders among themselves based on their 

capacity of investment. 

Being a Govt. organisation, NAFED may not fit in 

existing professional environment. 

Therefore, all infrastructure should be 

outsourced / leased out for operational purpose. 

This PPP model in such 

projects at beginning stage is most appropriate. 

Second alternate option of management of market is that NAFED should run it 

with newly inducted and professionally trained, hand picked staff as a potential 

challenge and future scope. 

It will run into losses in the beginning and even 

pay back period may further extended. In this situation, losses in the beginning 

and even pay back period may further extended. In this situation, losses in the 

beginning should be borne by the Ministry of Agriculture. 

This model of 

subsidizing operations and running of infrastructure is more common in China. 

Third 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 

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structure more particularly in this case as NAFED 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 Nasik being adjacent to Mumbai 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 center. It would be appropriate to form a 

separate company, which can undertake the operations and management while 

ownership remains with the NAFED. The company will equally share the powers 

and responsibilities and become proportionate shareholders of the company. 

Loan from the bank can be raised by NAFED availing due subsidy and through a 

MOU both partners can share the equity. For this purpose NAFED can invest 49 

percent while 51 percent by private sector, day-to-day management being with 

private sector. 

NAFED can have option to divert its share in favor of private 

sector partner or in favor 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. 

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Management of Market: 

The managing authority will appoint a team of regular personal drawn from 

professionals 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 wholehearted involvement. 

The promoters will also appoint the Board of Directors for managing the affairs 

of the company. Besides the nominee of the promoter’s, representatives of 

Farmer association, Institutional buyers, Traders, Financial institutions, 

Transporters and Service providers may be included in the board of directors. 

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. 

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4. PERSONNEL /ORGANISATIONAL STRUCTURE 

BOARD OF DIRECTORS 

MANAGING DIRECTOR 

(CEO) 1 

GENERAL MANAGER 

(WHOLESALE) 

GENERAL MANAGER 

(AUCTION) 

Manager 

Manager 

HRD 

& 

Admn. 

FINANCE 

Operations & 

IT 

Marketing 

Logistics 

Fruit 

hall 

Vegetable Hall 

Procurement and 

Quality Control 

Fig: Organogram of organizational structure 

Manpower set-up for the 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 Chief Executive Officer should have wide experience 

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in the field with zeal to drive and convert vision into action. He should motivate 

the staff and depute them according to their capabilities. One senior level officer 

would look after administration, finance and human resource development 

preferably, designated as general manager (Wholesale Market) who will also take 

care of administrative requirement of collection centers and sales outlets. 

The 

details of lower level management are enclosed with the financial statement. 

As proposed 50 percent of staff would be drawn from NAFED 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. 

316


Central Auction 

Central Auction will function as an independent profit center. The management 

of Auction covers receiving material, maintaining quality in house, technical 

supervision of auction system, upgrading the hardware from time to time, 

managing auction halls and collects all revenues relating to auctions. 

This 

department would be separate from the general management and would be 

headed by a senior level of officer called general manager (Auctions). Details of 

auction system have been given in separate chapter. 

Management of auctions 

will include Cargo handling, mechanized handling and material movement, 

auction time and management, coordination with instruction quality and 

standardization, real time auctions, registration of buyers and dissemination of 

information through electronic display boards at collection centers, coordination 

with collection centers, training for stakeholders, managing un registered 

suppliers and buyers etc. 

On line Commodity Trading Platform 

In order to bring new dimension in trading of Agricultural Commodity, it has 

been suggested that NCDEX will provide, maintained and operate online 

commodity trading platform in the Terminal market. 

The management of this 

platform would be the responsibility of commodity exchange out of their own 

cost. Operational details have been given foregoing chapters. 

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Logistic Team 

In order to ensure proper logistic support to the material and maintaining regular 

flow of produce this section will the responsible for providing all logistic support 

including transportation, electronic grading, containers, plastic carets, packaging, 

where housing, processing, ripening chambers, cold storages, quality stations 

and other logistic required from time to time by different stakeholders. 

Sales Outlet Team 

This team would undertake to way functions. 

The team will ensure disposal 

material received directly from collection centers or through central auction 

system and dispose it off in distinct market, collect commissions, receive 

payment from buyers, maintain records and transparency, online monitoring of 

sales and procurement as well as supplying material from distinct markets to 

other sales outlets across the country. 

The members will ensure sale of 

material on remunerative prices and arrange all logistics what so ever required 

there. 

Agri Clinics and Extension 

Every collection center will have at least one agri-clinic managed by market 

authority. 

The extension agent/ manager of the clinic will be responsible for all 

kids of requirement of extension for the farmers. 

He would not only provide 

input for technology of transfer but also offer advisory services and provide 

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access to market information including status on Govt. programmes and 

schemes. 

This team would also advice farmers on production planning, 

maintaining quality through pre harvest practices. 

Details of Business process including systems and approach have well been 

explained in a separate chapter. 

Separate division of marketing, procurement, 

quality control, technical services, operations, quality assurance, training to 

buyers and sellers etc., has been properly explained. 

Issues related to general 

training, semi skilled workers and maintenance of services is an integral part of 

management. 

With regard to the handling of market related issues pertaining to traders, 

wholesalers, retailers, service providers towards allotment of shops, lease rents, 

maintenance, fees, service charge, registration fees, parking charges, handling 

charges, service charges, income from forward linkages (sales outlets) rentals for 

carrots, deposit from shops and Godowns, rentals from shops and commercial 

building, weighbridge charges, cold storages, harvest and pruning machines, 

general finance division will take care of. 

Issues pertaining to growers towards auction commission, sale commission 

would be subjected to reviewed to time to time and would be made former 

friendly.. 

Procedure for registration and payment remittance will be on line 

319


connected with central auction and the bank records. The farmers would be paid 

cash on the same day just after auction is over and the entries would be 

automatically transferred to the farmers account. 

The management of this 

section would remain with the finance division. 

Start up 

In order to gain out of experience and placing things in advance it is desirable 

that a core team is constituted and they should start at least 6 months advance, 

get them trained in professional institute like NIAM, give them international 

exposure, arrange work experience with supermarkets and large supply chain 

companies. Foreign ex-poser visit of employees is equally important for better 

understanding of state of art of handling techniques and manage infrastructure 

efficiently. 

Based on experience experimental auction should be organized to 

identify problem areas, exact requirement of manpower, job placement and 

suitability and total system automation. The market should be well publicized 

with high lighting special features and facilities to create interest among 

stakeholders. 

An expert from renowned institution can be taken on deputation 

at initial stages. 

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CHAPTER – XV 

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 of 

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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. 

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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. 

323


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 

management in strategic decision making and setting up of systems with regard 

to the following issues: 

324


• 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 

collection centres have to take place alongside other developments in the 

market. 

Before inauguration of the market, the staff will have to carry out 

325


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> 

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CHAPTER - XVI 

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. 

ii) 

Gestation Period 

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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: 


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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. 5645.77 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. 1764.93 lacs being 29.43 % of total cost of 

project. 

(c) The debt equity ratio is 1: 1.60 

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 5000 crates for one collection centres 

and for 20 collection centres it works out to be 1,00,000 crates 

2. The solar system is street lighting in 30 acre area. The No. of lights have 

been estimated 100. 

329


330


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 7th year of operation when the 

capacity utilization is advised at 100% 

1. Salary, Rent, Repair and Maintenance, Security Services Electricity and 

Water have been taken on basis of working in schedule of cost of 

operation and have been increase @ 5% every year. 

2. Vehicle Hiring and Traveling expenses have been presumed @ Rs 1.00 

Lacs per months with increase @ 2% every year. 

3. Printing and Stationery and Postages Courier have been taken on basis 

of working in schedule of cost of operation and have been increased @ 

10% every year. 

4. Communication cost have been taken @ Rs 50,000 per month and 

have been increased @ 1% every year 

5. 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. 

6. The Advertisement and Publicity, Rates and Taxes and Miscellaneous 

expenses have been taken on fix amount every year as per working in 

schedule of cost of operation. 

7. Insurance as per Schedule "D". 

8. Power & Fuel taken on basis of capacity utilization as per schedule C. 

331


Income Estimates 

1. The Registration fee from Farmers, Entrance fee from Growers, and 

Entrance fee for despatch vehicles taken NIL 

2. It is presumed that 7500 trucks will arrive with produce and the same 

number of trucks will leave for despatch of material. The parking 

charge for vehicle have been presumed Rs 10/- per vehicle. 

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 

Rs. 0.75 per crate per day. 

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. 

and Rentals @ Rs.20/- per sq ft with 3% increase every year 

7. Other income includes income from cold storage, Ripening Chambers, 

Harvesters and pruning Machines, Grading, Waxing Machines, Colour 

Vision System and Laboratory is as per Schedule of details of other 

income and have been increased @ 5% per year upto 6th year and 

freezing the same thereafter. 

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. 

332


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 have 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. 

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. 

333


334


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. 17.25% which for an 

infrastructure project with funding at 6.75% rate of interest would be considered 

very good. 

Financial Parameters 

The project fulfills all financial parameters as per following details 

Financial Parameters of the <strong>Project</strong> 

Sn Particulars Value 

1 Debt Equity Ratio 1: 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 

335


336


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 

5%. The result of both the sensitivity analysis on IRR is as follows : 

IRR 

Service charges decrease by 5% 11.19% 

Cost of operations are increased by 5% 7.81% 

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: 

‣ 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. 

337


‣ 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 agriclinic 

for agricultural graduates. 

‣ In a state like Maharashtra where cooperative sector play important role, 

such models 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 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 

338


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. 

Pre and post terminal market scenerio and acceptance level of the new 

concept by stakeholders 

Pre and post scenario of terminal market establishment at Nasik 

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 

3 Market does not play a proactive role 

in attracting produce or in facilitating 

the farmers to organise the logistics 

4 Lack of perfect marketing conditions, 

an environment of regulation and 

monopoly of existing traders. 

5 The land use pattern in side the 

market is de-faulty 

Solutions 

Only graded material will be accepted in 

the terminal market and no any other 

criterion for trading of the produce by 

registered trader with no limitation of 

notified area and no involvement of 

commission agent. 

No any market fee to be paid for 

trading and transaction in the modern 

terminal market. 

Sound backward and forward linkages 

and modern value added facilities in the 

terminal market 

No monopoly of any single authority 

and provision of alternate authority to 

operate in the market 

Land use pattern in the system is totally 

changed and is allocated in such a way 

339


to suit into different stakeholders 

6 Parking in circulation area either 

openly ignored or encroached on 

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. 

8 The scenario of congestion, Chaos 

and unhygienic condition 

Cenrtralised Auction System (CAS) is 

introduced in the modern terminal 

market. 

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, 

cold-store, ripening chambers and 

exports. 

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 

All the facilities are provided at both 

end of the terminal market and at the 

collection centers. 

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. 

340


COMPARISON WITH NDDB (SAFAL) MARKET, BANGALORE 

S.N 

Item Bangalore Nasik 

o. 

1. Daily No. of Vehicle Arriving 600 300 

2. Expected Daily Arrival 2400 MT 

850 MT (2003) 

1000 MT 

200 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 75 in each) 

Plasma Display Clock 

3 Systems 

6. Cold Storage 10 (100 x 50) = 5 (100 x 50) = 5000 MT 

10,000 MT 

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

8. Queuing of Vehicles (Average 4 

meters length) 

2400 meters (600 

vehicles ) 

1200 meters 

(300 vehicles) 

9. Civil Cost 45 crores 23 crores 

10. Shops and Godowns 300 75 

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

Above Rs. 100 crore 

already spent 

Rs.59 crore 

12. (Forward Linkages) 

Registration of Buyers; 

Inadequate Buyers 

14. Backward Linkages 

- Collection Centres 

Rigid- (Advance 

Deposit ) 

45 

225 

Flexible - No Advance 

Bank will Extend 

Credit Limit to Buyers 

20 

100 

341


- Farmers Association 

- Membership 

- Information 

Communication 

- Liquidity Arrangements 

for Buyers and Cash 

Daily Payment to 

Growers 

- Agri-clinic & Extension 

Support 

Registered 

Inadequate and 

incomplete 



Flexible 

Electronic Display Board & Multi 

Purpose Information Kiosks 

Provisions made with Installation 

of ATMs and Revolving Fund 



- One Stop Shopping for 

Input 

- Transparency 




Free Weather Insurance Personal 

Insurance, Animal Health 

Insurance Accidental Insurance, 

Concessional Educational Loans to 

Farmers wards, Concessional 

Health services, etc. 

- Other Additional 

Attraction for Sellers 

NIL 

15. Export Infrastructure NIL Electronic Grading-sorting lines for 

Grapes, pomegranate, mango; 

shrink wrap packaging unit for 

vegetables palletisation, Testing & 

certification laboratory and stateof-art 

Colour Vision System Quality 

Station for Fruits. 

N.B- Annexure of Financial analysis is attached in the forthcoming sections of the <strong>Report</strong>. 

342

Proposals


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

Sn Particulars Amount (Rs. In Lacs) 


1 Land 420.00 

2 Building and Civil Work 2313.96 

3 Machines and Equipments 1519.22 

4 Misc Fixed Assets 877.27 

5 Furniture and Fixture 42.50 

6 Preliminary and Pre-Operative Expenses 288.35 

7 Contingencies and Escalations 184.47 

6 Security Deposits 0.60 

8 Working Capital Margins (on the basis of IInd 

350.00 

year of Operation at 50% capacity Utilization) 

Total 5996.37 

Means of Finance 

1 Share Capital 1764.93 

2 Subsidy 1411.44 

3 Term Loan 2820.00 

Total 5996.37 

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. 5645.77 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. 

1764.93 lacs being 29.43 % of total cost of project. (c) The debt equity 

ratio is 1: 1.60 

Page 1


Financial Parameters of the <strong>Project</strong> 

Sn Particulars Value 

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 

Page 2


PROPOSED TERMINAL MARKET WHOLESALE AT NASIK 

Details of Building and Civil Work 

Sl.No. Description Qty Unit Rate Amount 

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 

(ii) Docks 330.00 m 2 6000.00 1980000.00 

4 (I) Vegetable Halls, Crate, Despatch 2875.00 m 2 6000.00 17250000.00 

(25mx75m, 50mx20m) 

(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 Godown-cum-office (1) including dock 3000.00 m 2 7000.00 21000000.00 

(40m x 75m) 

8 Godown-cum-office (2) including dock 3000.00 m 2 7000.00 21000000.00 

(40m x 75m) 

9 Cold store ( 50m x 25m) 1250.00 m 2 6000.00 7500000.00 

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

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

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

13 Security kiosk, Entrance gates LS 2000000.00 

15 Toilet Blocks - 2 nos. LS 2500000.00 

16 Garbage Collection shed - 2 nos. LS 1000000.00 

17 Under Ground Sump (200 KL) LS 1000000.00 

18 Overhead Tank - 1 no. (100 KL each) LS 1600000.00 

19 Compound Wall etc. LS 10000000.00 

20 Roads, Yards, Drains - RCC-50000 m 2 , BT- LS 57500000.00 

12500 m 2 

21 Sewer Treatment Plant/ Effluent Treatment LS 2000000.00 

Plant 

Tube Well/ Boring LS 200000.00 

22 Gardening and Pathways LS 4000000.00 

23 Internal Electrification LS 15000000.00 

24 Signages etc. LS 1000000.00 

25 External sewerage, recycled water LS 6000000.00 

distribution 

231396000.00 

Page 3


S.No. Name of Specifications of Machine Quantity Size Unit Rate (Rs.) Amount 

A. Material Handling Equipments 

NAME AND SPECIFICATION OF MACHINERY AND 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 

Electronic Grading-Sorting Line for Grapes 1 2.5MT/hr. 20000000 200.00 

Electronic Grading-Sorting Line for Pomegranate, 1 2.5MT/hr 15000000 150.00 

Mango, Citrus and Other round/Oval fruits 

Portable Quality Station (Internal Quality Sansor 

1 2600000 26.00 

Analyser) 

Vegetale Sorting and Shrink Wrap Packaging Unit 1 1 MT/hr 2500000 25.00 

C Chamber Machinery 

Ethylone Gas Gnerator and Banana Ripening 

6 25 MT 2500000 150.00 

Machines 

Pre-cooling Equipments 5 10MT 3600000 180.00 

Cold Store Equipments 1 5000 MT 40000000 400.00 

Centrally Airconditoning Machines 20 2 Tonne. 10000 2.00 

D Mechanized & Conveyor Movement Equipment 

Under ground Horizontal and inclined Conveyors 10 160MT 1000000 100.00 

with Drive Pully, Slider Plates, Gear Box etc. 

E Ancillary Equipments 

Water Treatment Plant 1 30000 ltr. 30 30.00 

Water Lifting Motors 5 1.00 

F 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 

Total 1321.06 

Add @ 15% of total Cost for Excise Duty, Sales Tax, Service Tax, Freight, Erection and 

198.159 

Commissioning 

G. Total 1519.22 

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 2313.96 1% 23.14 0.23 

2 Machinery and Equipment 1519.22 2% 30.38 7.60 

3 Misc Fixed Assets 877.27 2% 17.55 8.77 

4 Furniture and Fixture 42.50 2% 0.85 0.21 

5 Farmers insurance (200 per Collection 0 0% 0 4.00 

Centre @ Rs 100 per Annuam for 20 

Collection Centres ) 

Total 71.92 20.81 

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 

No. of 

Days 

To. No. of 

Units per 

Year 

Unit 

Rate in 

Rs 

Annual 

Amount 

(Rs.) 

Power 

1 Electronic Auction Hall 150 150 8 300 360000 5.50 1980000 

2 Cold Storage 150 150 24 350 1260000 5.50 6930000 

3 Grading and Sorting and 

Cleaning Lines 100 100 10 300 300000 5.50 1650000 

4 Mechenical Handling 

Machine with pre-cooling unit 

100 100 10 300 300000 5.50 1650000 

5 Ripening Chambers 100 100 24 350 840000 5.50 4620000 

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 910 910 114 2800 3984000 21912000 

At 100% Capacity Utilisation Rs in Lacs 219.12 

B 

80% from MSEB @ 3187200 5.5 17529600 

20% from DG Sets @ 796800 5.94 4732992 

Fuel 

H.P.Diesel 

No. of. Liters 167243.5 

Unit Rate 28.3 

Total Amount 4732992 

Year 

Amount Amount Total 

Capacity MSEB in DG Sets Amount 

Utilisation Lacs in Lacs in Lacs 

1st year 20% 35.06 9.47 44.53 

2nd year 50% 87.65 23.66 111.31 

3rd year 80% 140.24 37.86 178.10 

4th year 100% 175.30 47.33 222.63 

Note : The expenses from 4th Year onward have been estimated on the basis of capacity utilisation of 

100% and presuming no changes in MSEB tariff and diesel prices 

C. Electricity & Water 

Administrative Block 100 100 10 210 210000 5.5 1155000 

Tubewell 50 50 5 350 87500 5.5 481250 

Total 150 150 15 560 297500 11 1636250 

Page 6


3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year 11th 

1st YeIInd Y 

Year 

1 Salary & Wages 194.98 204.72 214.96 225.71 236.99 236.99 236.99 236.99 236.99 236.99 

2 Rents 19.20 20.16 21.17 22.23 23.34 23.34 23.34 23.34 23.34 23.34 

3 Power & Fuel 44.53 111.31 178.10 222.63 222.63 222.63 222.63 222.63 222.63 222.63 

4 Electricity & Water 16.36 17.18 18.04 18.94 18.94 18.94 18.94 18.94 18.94 18.94 

5 Cost of Crates Replacement 0.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 

6 Repair & Maintenance as Schedule- 

71.92 75.52 79.29 83.26 87.42 87.42 87.42 87.42 87.42 87.42 

D 

7 Vehicle Hiring & Travelling 12.00 12.24 12.48 12.73 12.99 12.99 12.99 12.99 12.99 12.99 

8 Communication 6.00 6.06 6.12 6.18 6.24 6.24 6.24 6.24 6.24 6.24 

9 Printing and Stationary 3.00 3.30 3.63 3.99 4.39 4.39 4.39 4.39 4.39 4.39 

10 Postage, Couriers 0.60 0.66 0.73 0.80 0.88 0.88 0.88 0.88 0.88 0.88 

11 Security Services 16.20 17.01 17.86 18.75 19.69 19.69 19.69 19.69 19.69 19.69 

12 Advertisement and Publicity 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 

13 Insurance 20.81 18.73 16.86 15.17 13.66 12.29 11.06 9.95 8.96 8.06 

14 Rates and Taxes 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 

15 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 

Year wise Cost of Operation 

Total 411.60 517.90 600.24 661.39 678.17 676.80 675.57 674.47 673.47 672.58 

12th 

Year 

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 ) 50 700000 35000000 

2 Cost of Survey and Priliminary Investigations LS 1000000 

3 Land Registration Cost (10% of Cost) 3500000 

4 Land Development Cost LS 2500000 

Basis 

On basis of 

Market Price 

Assessment 

Total 42000000 

Page 8


Details of Preliminary and Pre-Operating Expenses 

A Priliminary Expenses Amount in Rs Basis 

1 Company Incorporation Expenses 3500000 Prevailing Rates 

B 

Total A 3500000 

Pre Operating Expenses 

2 Consultancy Charges 

Preparation of DPR LS 2500000 

Archetect Fee @ 3% of Building Cost 3% 6941880 

including Cost of Preparation of Tender 

Documents 

3 Loan Processing Fee LS 1300000 

4 Expenses during <strong>Project</strong> Implementation LS 500000 

Salary, Traveling, Communication and 

Misc 

5 Advertisement, Publicity and Awareness 

4100000 

Programmes (Annexure-1) 

6 Interest on Loan during Construction 9993375 

Total B 25335255 

Tota A + B 28835255 

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 2500000 25.00 As per Quotations 

KVA) 

3 Integrated Pruning-cum-Harvestor 1 1000000 10.00 As per Quotations 

4 Fire Fiting Station System 10 50000 5.00 As per Quotations 

5 Intercome Telephone Exchange (250 Lines) 250 5000 12.50 As per Quotations 

6 Cost of Telephone Cabling LS 10.00 As per Quotations 

7 Electronic Weighbridge 2 275000 5.50 As per Quotations 

8 Computer and Networking (Schedule -A) 68.84 As per Quotations 

9 Electronic Display Boards 20 350000 70.00 As per Quotations 

10 Softwareds Business Process cum Mandi 


Software 

11 Hardware for Electronic Auctioning 

92.00 As per Quotations 

(Schedule B) 

12 Software for Electronic Auctioning 


(Schedule C) 

13 Misc Components for Electronic Auctioning 

24.50 As per Quotations 

House as per schedule D 

14 Plastic Crates (5000 X 20 ) 100000 220 220.00 As per Quotations 

15 Solar System (100 lights) 100 11500 11.50 As per Quotations 

16 State of Art Laboratory 1 6000000 60.00 As per Quotations 

Total 762.84 

Add @ 15% of Total cost for Excise Duty, Sales Tax, Service Tax, 114.43 

Freight Erection and Commissioning 

G. Total 877.27 

Note (i) Plastic crates have been taken as 5000 crates for one collection centres and for 20 collection 

centres it works out to be 1,00,000 crates.(2) The solar system is street lighting in 30 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 

1500000 

H) 

2 Racks and Pallets LS 1000000 

3 Administrative Block Furniture LS 1000000 

4 Collection Centres 20 25000 500000 

5 Sales Centres 10 25000 250000 

Total 4250000 

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 420 0 0 0.00 

2 Building and Civil Work 0 2313.96 5 115.70 

3 Machines and Equipments 1063.45 455.77 5 22.79 

4 Misc Fixed Assets 0 877.27 5 43.86 

5 Furniture & Fixtures 0 42.50 5 2.13 

184.47 

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 882.46 882.46 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 

Subsidy 705.72 705.72 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 2820.00 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 0.00 165.65 448.57 755.72 957.04 945.12 951.50 957.89 964.30 970.77 977.31 

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 1588.19 4558.19 165.65 448.57 755.72 957.04 945.12 951.50 957.89 964.30 970.77 977.31 

Application of Funds 

Increase in Fixed Assets 1146.65 4071.85 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 0.00 183.21 164.18 145.14 126.11 107.07 88.04 69.00 49.97 30.93 11.90 

Repayment of Term 

0.00 0.00 282.00 282.00 282.00 282.00 282.00 282.00 282.00 282.00 282.00 282.00 

Loan 

Payment of Income Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 128.88 217.13 235.72 252.95 269.08 

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 5.69 30.16 46.68 47.22 39.46 34.75 35.26 35.88 36.59 

Dividend Tax 0.00 0.00 0.00 0.57 3.02 4.67 4.72 3.95 3.47 3.53 3.59 3.66 

Preliminary and Pre 

Operative Tax 

288.35 0 0 0 0 0 0 0 0 0 0 0 

Total 1435.60 4071.85 465.21 452.44 460.32 459.46 441.01 542.32 606.35 606.47 605.36 603.23 

Opening Balance 0.00 152.59 638.93 339.37 335.50 630.90 1128.48 1632.59 2041.77 2393.31 2751.14 3116.56 

+/- During the Year 152.59 486.34 -299.56 -3.87 295.41 497.58 504.11 409.18 351.54 357.83 365.42 374.08 

Closing Balance 152.59 638.93 339.37 335.50 630.90 1128.48 1632.59 2041.77 2393.31 2751.14 3116.56 3490.64 

Page 13


Sn 

<strong>Project</strong>ed Balance Sheet 

Rs in Lacs 


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 5th Year of Operation) 

Rs in Lacs 

Sn Expenditure Head Basis Fixed Cost Variable Total 

Cost 

1 Salary & Wages 50% Fixed 112.85 112.85 225.71 

Rents 100% Fixed 22.23 0.00 22.23 

Power & Fuel 20% Fixed 44.53 178.10 222.63 

Electricity & Water 20% Fixed 3.79 15.15 18.94 

Repair & Maintenance as Schedule-D 100% Variable 0.00 83.26 83.26 

Vehicle Hiring & Travelling 100% Variable 0.00 12.73 12.73 

Cost of Crates Replacement 100% Variable 0.00 25.00 25.00 

Communication 100% Variable 0.00 6.18 6.18 

Printing and Stationary 100% Variable 0.00 3.99 3.99 

Postage, Couriers 100% Variable 0.00 0.80 0.80 

Security Services 50% Fixed 9.38 9.38 18.75 

Advertisement and Publicity 100% Vaiable 0.00 5.00 5.00 

Insurance 100% Fixed 15.17 0.00 15.17 

Rates and Taxes 100% Fixed 1.00 0.00 1.00 

Misc. Expenses 50% Fixed 0.50 0.50 1.00 

Depreciation 100% Fixed 204.98 0.00 204.98 

Interest on Term Loan 100% Fixed 126.11 0.00 126.11 

Interest on Woking Loan 100% Variable 0.00 0.00 0.00 

Preliminary Expenses Written Off 100% Fixed 3.50 0.00 3.50 

Total 544.03 452.95 996.97 

Total Income 1618.43 

Less Variable Cost 452.95 

Contribution 1165.48 

Break Even Point (in %age Capacity 

Utilisation)) 

46.68 

Cash Break Even Point (in %age 

28.79 

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 2820.00 

Year Cash Profit Interest on 

Term loan 

1 0.00 0 

2 0.00 99.93 

3 -17.56 183.21 

4 284.40 164.18 

5 610.58 145.14 

6 830.93 126.11 

7 838.05 107.07 

8 734.58 88.04 

9 671.76 69.00 

10 678.62 49.97 

11 686.89 30.93 

12 696.33 11.90 

6014.57 1075.48 

Avg DSCR for Repayment Period 1.82 

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 -226.03 75.92 402.10 622.45 629.58 654.99 680.41 705.86 731.37 756.93 

Add Depeciation on SLM as 

Companies Act 

0 0 204.98 204.98 204.98 204.98 204.98 204.98 204.98 204.98 204.98 204.98 

Total 0.00 0.00 -21.06 280.90 607.08 827.43 834.55 859.96 885.38 910.84 936.34 961.91 

Less Depeciation of WDV as 

per Income Tax Act 

0 0 1033.20 563.45 445.54 371.05 317.46 275.28 240.32 210.55 184.84 162.50 

Total Taxable Profit 0.00 0.00 -1054.26 -282.55 161.54 456.38 517.09 584.68 645.06 700.29 751.50 799.41 

Depreciation Carried Forward 0 0.00 -1054.26 -1336.82 -1175.27 -718.89 -201.80 382.88 0.00 0.00 0.00 0.00 

Income Tax @ 33.66% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 128.88 217.13 235.72 252.95 269.08 

Page 18


Pay back Period of the <strong>Project</strong> 

Cost of <strong>Project</strong> 5996.37 

Cash Flow for 10 Years of Operation 6014.57 

Pay Back Period 10 

Pay Back Period on 100% Govt. Cont. 8.578361 

Page 19

<strong>Project</strong>ed Modern Profitability Terminal Statement Market Nasik 

Rs in Lacs 

 

Particulars 1 2 3 4 5 6 7 8 9 10 11 12 

Income from Operations as Schedule of 0.00 0.00 577.25 966.47 1355.96 1618.43 1623.29 1628.30 1633.46 1638.77 1644.25 1649.88 

Estimate of Income 

Total A 0.00 0.00 577.25 966.47 1355.96 1618.43 1623.29 1628.30 1633.46 1638.77 1644.25 1649.88 

Cost of Operation as per Schedule showing0.00 0.00 411.60 517.90 600.24 661.39 678.17 676.80 675.57 674.47 673.47 672.58 

yearwise cost of Operatio 

Total B 0.00 0.00 411.60 517.90 600.24 661.39 678.17 676.80 675.57 674.47 673.47 672.58 

Profit from Operations (A-B) 0.00 0.00 165.65 448.57 755.72 957.04 945.12 951.50 957.89 964.30 970.77 977.31 

Less Interest on Term Loan 0.00 0.00 183.21 164.18 145.14 126.11 107.07 88.04 69.00 49.97 30.93 11.90 

Less Interest on Working Capital 0.00 0 0 0 0 0 0 0 0 0 0 0 

Total Interest 0.00 0.00 183.21 164.18 145.14 126.11 107.07 88.04 69.00 49.97 30.93 11.90 

Profit after Interest 0.00 0.00 -17.56 284.40 610.58 830.93 838.05 863.46 888.88 914.34 939.84 965.41 

Less Depreciation 0.00 0 204.98 204.98 204.98 204.98 204.98 204.98 204.98 204.98 204.98 204.98 

Net Profit After Depreciation 0.00 0.00 -222.53 79.42 405.60 625.95 633.08 658.49 683.91 709.36 734.87 760.43 

Less Prelimnary Expenses of Written off 0.00 0.00 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 

Net Profit Before Income Tax 0.00 0.00 -226.03 75.92 402.10 622.45 629.58 654.99 680.41 705.86 731.37 756.93 

Less Income Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 128.88 217.13 235.72 252.95 269.08 

Net Profit after Income Tax 0.00 0.00 -226.03 75.92 402.10 622.45 629.58 526.11 463.28 470.15 478.41 487.85 

Cash Profit 0.00 0.00 -17.56 284.40 610.58 830.93 838.05 734.58 671.76 678.62 686.89 696.33 

Less Dividend 0.00 0.00 0.00 5.69 30.16 46.68 47.22 39.46 34.75 35.26 35.88 36.59 

Less Dividend Tax (@ 10%) 0.00 0.00 0.00 0.57 3.02 4.67 4.72 3.95 3.47 3.53 3.59 3.66 

Retained Profit 0.00 0.00 -226.03 69.66 368.93 571.10 577.64 482.70 425.06 431.36 438.94 447.60 

Reserve & Surplus 0.00 0.00 -226.03 -156.38 212.55 783.66 1361.29 1844.00 2269.06 2700.41 3139.36 3586.96 

IRR= 17.25 

Page 20


Year 

Quarter 

Schedule of Interest and Loan Repayment 

Loan 

Received 

Opening 

Balance 

Repayme 

nt of Term 

Loan 

Interest @ 

6.75% 

Closing 

Balance 

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 564.00 564.00 0.00 0.00 564.00 0.00 

II 564.00 1128.00 0.00 19.04 1128.00 0.00 

III 846.00 1974.00 0.00 33.31 1974.00 0.00 

IV 846.00 2820.00 0.00 47.59 2820.00 99.93 0.00 

3 I 0.00 2820.00 70.50 47.59 2749.50 

II 0.00 2749.50 70.50 46.40 2679.00 

III 0.00 2679.00 70.50 45.21 2608.50 

IV 0.00 2608.50 70.50 44.02 2538.00 183.21 282.00 

4 I 0.00 2538.00 70.50 42.83 2467.50 

II 0.00 2467.50 70.50 41.64 2397.00 

III 0.00 2397.00 70.50 40.45 2326.50 

IV 0.00 2326.50 70.50 39.26 2256.00 164.18 282.00 

5 I 0.00 2256.00 70.50 38.07 2185.50 

II 0.00 2185.50 70.50 36.88 2115.00 

III 0.00 2115.00 70.50 35.69 2044.50 

IV 0.00 2044.50 70.50 34.50 1974.00 145.14 282.00 

6 I 0.00 1974.00 70.50 33.31 1903.50 

II 0.00 1903.50 70.50 32.12 1833.00 

III 0.00 1833.00 70.50 30.93 1762.50 

IV 0.00 1762.50 70.50 29.74 1692.00 126.11 282.00 

7 I 0.00 1692.00 70.50 28.55 1621.50 

II 0.00 1621.50 70.50 27.36 1551.00 

III 0.00 1551.00 70.50 26.17 1480.50 

IV 0.00 1480.50 70.50 24.98 1410.00 107.07 282.00 

8 I 0.00 1410.00 70.50 23.79 1339.50 

II 0.00 1339.50 70.50 22.60 1269.00 

III 0.00 1269.00 70.50 21.41 1198.50 

IV 0.00 1198.50 70.50 20.22 1128.00 88.04 282.00 

9 I 0.00 1128.00 70.50 19.04 1057.50 

II 0.00 1057.50 70.50 17.85 987.00 

III 0.00 987.00 70.50 16.66 916.50 

IV 0.00 916.50 70.50 15.47 846.00 69.00 282.00 

10 I 0.00 846.00 70.50 14.28 775.50 

II 0.00 775.50 70.50 13.09 705.00 

III 0.00 705.00 70.50 11.90 634.50 

IV 0.00 634.50 70.50 10.71 564.00 49.97 282.00 

11 I 0.00 564.00 70.50 9.52 493.50 

II 0.00 493.50 70.50 8.33 423.00 

III 0.00 423.00 70.50 7.14 352.50 

IV 0.00 352.50 70.50 5.95 282.00 30.93 282.00 

12 I 0.00 282.00 70.50 4.76 211.50 

II 0.00 211.50 70.50 3.57 141.00 

III 0.00 141.00 70.50 2.38 70.50 

IV 0.00 70.50 70.50 1.19 0.00 11.90 282.00 

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 

2533.53 1663.38 140.15 414.79 253.47 46.53 5051.85 


253.35 249.51 21.02 248.87 253.47 6.98 1033.20 

4 WDV 

2280.18 1413.87 119.12 165.92 0.00 39.55 4018.64 


228.02 212.08 17.87 99.55 0.00 5.93 563.45 

5 WDV 

2052.16 1201.79 101.26 66.37 0.00 33.62 3455.19 


205.22 180.27 15.19 39.82 0.00 5.04 445.54 

6 WDV 

1846.95 1021.52 86.07 26.55 0.00 28.58 3009.66 


184.69 153.23 12.91 15.93 0.00 4.29 371.05 

7 WDV 

1662.25 868.29 73.16 10.62 0.00 24.29 2638.61 


166.23 130.24 10.97 6.37 0.00 3.64 317.46 

8 WDV 

1496.03 738.05 62.18 4.25 0.00 20.65 2321.15 


149.60 110.71 9.33 2.55 0.00 3.10 275.28 

9 WDV 

1346.42 627.34 52.86 1.70 0.00 17.55 2045.87 


134.64 94.10 7.93 1.02 0.00 2.63 240.32 

10 WDV 

1211.78 533.24 44.93 0.68 0.00 14.92 1805.55 


121.18 79.99 6.74 0.41 0.00 2.24 210.55 

11 WDV 

1090.60 453.25 38.19 0.27 0.00 12.68 1595.00 


109.06 67.99 5.73 0.16 0.00 1.90 184.84 

12 WDV 

981.54 385.27 32.46 0.11 0.00 10.78 1410.16 


98.15 57.79 4.87 0.07 0.00 1.62 162.50 

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 2313.96 92.52 2406.48 127.06 2533.53 

2 Machines and Equipments 1519.22 60.74 1579.96 83.42 1663.38 

MFA Category -A (15% Depreciation) 128.00 5.12 133.12 7.03 140.15 

MFA Category -B (60% Depreciation) 378.84 15.15 393.99 20.80 414.79 

MFA Category -C (100% Depreciation) 231.50 9.26 240.76 12.71 253.47 

3 Furniture and Fixture 42.50 1.70 44.20 2.33 46.53 

Total 4614.02 184.47 4798.49 253.35 5051.85 

Page 23


A. Cold Store 

Capacity 

(MT) 

Percentag 

e 

Approxim 

ate 

No. of days 

(20% 

Utilization Volume capacity 


5000 20% 1000MT 70 days 

Schedule H 

Rate (Rajasthan Cold Amount 

store Association 

(Rs. In 

Lacs) 

Rs.15MT/day 10.5 

B. Ripening Chambers 

50 MT/ 

3day 

20% 10MT 70days Rs.1/kg/ 

3 days 

23.33 

C. Harvesters & Pruning Machines 

Number of operative Per day charges 

Total Income 

days in a year (20%) 

70 Rs.1000/- daily 0.70 

D. Grading-Waxing-Machines 

No. of Per line Total Aggregate 

Lines approxima Day Volume to be 

3 70 210 50 M.T 

Rate 

Amount 

Rs 1/kg 20.00 

E. Colour Vision System Quality Station 

No. of operative days Approximate No. of 

Rate Amount 

in a year (20%) 

70 

Quality Evaluation Tests 

20 

(Per Test) 

Rs.50/- 

0.70 

F Laboratory Testing & Certification 

No. of operative days 

in a year (20%) 

Approximate No. of 

Quality Evaluation Tests 

per day 

Rate 

(Per Test) 

Amount 

70 20 1000 1.40 

Total 56.63 

Page 24

Rs. In Lacs 

Year 1 3 Modern 4 Terminal 5 6 Market 7 Nasik 8 9 10 11 12 

Basis 

No. of Days in Operation 300 

Arrival per Days (M.T.) 1000 

Capacity in Lacs M.T. at (100%) 3.00 

Utilisation in %age 20% 50% 80% 100% 100% 100% 100% 100% 100% 100% 

1 Total Fruits & Vegetables Arrival (MT) 60000 150000 240000 300000 300000 300000 300000 300000 300000 300000 

2 Total Turnover(@ 8000/ M.T.) 4800 12000 19200 24000 24000 24000 24000 24000 24000 24000 

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 3.75 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 

24.00 60.00 96.00 120.00 120.00 120.00 120.00 120.00 120.00 120.00 

percent 

8 Service Charges from Buyers @ 3.5% 168.00 420.00 672.00 840.00 840.00 840.00 840.00 840.00 840.00 840.00 

9 Income from Forward Linkages from 

110.16 110.16 110.16 110.16 110.16 110.16 110.16 110.16 110.16 110.16 

Schedule-E 

10 Rentals for Crates (Farmers) Rs .75 per 

30.00 75.00 120.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 

Crate 

11 Rentals for Crates (Buyers) Rs. 0.75 per 

30.00 75.00 120.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 

Crate 

13 Rentals from Shops and Godowns (Rs 

135.00 139.05 143.22 147.52 151.94 156.50 161.20 166.03 171.01 176.14 

15,000 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 2.81 4.50 5.63 5.63 5.63 5.63 5.63 5.63 5.63 

15 Interest @ 5% on Deposits against 

7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 

Shops/Godowns @ Rs 2,00,000 each (75 

X 2,00,0000) 

16 Others income from Cold Storages, 

56.63 59.46 62.43 65.56 65.56 65.56 65.56 65.56 65.56 65.56 

Repening Chamber, Harvester/Pruning 

Total Income G / 

577.25 966.47 1355.96 1618.43 1623.29 1628.30 1633.46 1638.77 1644.25 1649.88 

Gestation Period of the <strong>Project</strong> i.e. first 2 years 

Income Estimates 

Page 25


Schedule F 

Publicity & Advertisement and Awareness Programmes 

Sn 

Amount 

Particulars 

(in Rs.) 

1 Organisation of Farmers Associations @ 20 CC X 8 1600000 

Farmers Assocaitions= 160 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 2000000 

Total 4100000 

Page 26


(2) The detailed working for 3rd year to 12th year are as per enclosed sheet 

Yearwise Performance of Sales Centres 

Year 3 4 5 6 7 8 9 10 11 12 

Income 

Total Arrival 8100 8100 8100 8100 8100 8100 8100 8100 8100 8100 

Turn Over (Rs 8000/- per Tonnes) 64800000 64800000 64800000 64800000 64800000 64800000 64800000 64800000 64800000 64800000 

Income (Service Charges 5%) 3240000 3240000 3240000 3240000 3240000 3240000 3240000 3240000 3240000 3240000 

Other Income 0 0 0 0 0 0 0 0 0 0 

Total Income 3240000 3240000 3240000 3240000 3240000 3240000 3240000 3240000 3240000 3240000 

Expenditure 

Marketing Cost (1% of Value) 648000 648000 648000 648000 648000 648000 648000 648000 648000 648000 

Unloading/Loading 194400 194400 194400 194400 194400 194400 194400 194400 194400 194400 

Transit Insurance (1% of Value) 648000 648000 648000 648000 648000 648000 648000 648000 648000 648000 

Misc Charges (1% of Value) 648000 648000 648000 648000 648000 648000 648000 648000 648000 648000 

Total Expenditure 2138400 2138400 2138400 2138400 2138400 2138400 2138400 2138400 2138400 2138400 

Net Profit 1101600 1101600 1101600 1101600 1101600 1101600 1101600 1101600 1101600 1101600 

Note : Onion 4 Months in 2 Seasons, Promgranet 3 months in 2 Seasons, 

Grapes 2 months in 1 Seasons 

Page 27


Cost Estimates for Terminal Market at NasiK 

Computers and Networking 

Schedule - A 

s.No. 

I. HARDWARE ESTIMATE 

Activity Location 

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 4 1 1 

7 Ripening Chamber 1 1 

8 Cold Storage 2 1 

9 Produce Receiving 4 4 

10 Produce Dispatch Section 4 4 

11 Operations 4 1 1 

12 Backward Linkages 6 1 1 

13 IT Division 6 1 2 4 1 1 

14 Electronic Auction (2) 6 2 0 2 

15 Collection Centres 20 20 0 

16 Sales Centres 10 10 

17 Others 12 3 3 

Grand Total 

(Nos) 

Total Nos 92 56 9 6 1 1 

Unit Cost 40000 4000 15000 130000 70000 45000 

Total Amount in Rs 3680000 224000 135000 780000 70000 45000 4,934,000.00 

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 4,934,000.00 

Networking 1,950,000.00 

Total 6,884,000.00 

Page 28


Assessment of Working Capital 

Page 29

Quotations

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

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