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Innovative Initiatives for Agricultural Marketing in
India
Dr. J.S YadavC.O.O.
Premium Farm Fresh Produce Ltd.
Flow of Presentation
Organic Waste Management
Electronic Auction
Online Inspection System
Market Information Dissemination
Networking and Interdependency Grid Formation between Markets
Carbon Construction
Organic Waste Management
Global ScenarioAccording to WUWM study, wholesale markets are managing only 1.5 – 2% of the marketed quantities of fruit and vegetables.
43% of collected quantities of waste is recycled
Un-recycled waste is basically dumped (land-filled) or incinerated (burnt).
Annually 230 million tons of solid waste produced in the US. Recycling succeeds in preventing about 30 percent of these wastes from being dumped in a landfill or incinerated
Cont…
Food waste comprise the third largest solid waste category (more than 25 million tons per year)Less than two percent of food wastes in the US are managed through composting.Cost of composting works out more and marketability of the product may be a problemComposting best suited where vegetable and fruit clusters are located
Waste Stream Diversions/Advancements
Organic Recycling Regional Food Waste- to- Energy FacilityGreen Energy and nutrient rich fertilizerEarth Power Technology (anaerobic digestion technology)Bio-MethanationRefused Derived Fuel (RDF)Gas +Compost
Methods of Solid Waste Management
Methods Products
Land filling Land fill gas
Incineration Electricity
Composting Low value compost
Converted organics
High value biostimulants
Cost Norms for Organic Waste Plant
1 MT capacity – Rs 5 Lakh (without mechanical segregation)Anaerobic Process 500MT / day = Rs 2 crore (minimum 500 MT capacity)100 – 200 MT (with segregation Plant)= 1 crore and above)Average 100MT /day capacity plant requires 15 acre of land
Possible viable options for Markets
There are equipments available to manage SWM on-siteOn-site unit lessen the burden on city plants
1. On-site Unit
Cont..
Eg. Terra Farma, B’lore purchased land and set up 1000 MT capacity plant – not even single truck arrives till dateMunicipal Authorities say that they are sending the trucks but it never reaches thereOn-site organic waste management is not an alien concept
Few builders in India have installed in here premises (eg Nirman Shelters, B’lore)On-site unit is cost effective and viable as it saves pay for disposing chargesGovt. of Karnataka has made on-site unit mandatory for housing units
2. Bangalore Golf Club
Commencement : Apr 2009Cost : 6 LakhNo PPP but run by club (management)Machinery Site : 6ft x 4ftCapacity : 30 kg input/hrSolid waste+Dried grass+ Sawdust (purchasedProduct : Organic Manure
Manure being used for Turf and LawnPrice : Rs5/kg for general purpose300 – 400kg/stockOutput : 30-40 kg/dayCapacity : 80 days in three months (90%)Cycle for manuring : 15 daysSpace : 15x15ft room
Organic Waste ConvertorSpecifications:
Input: Segregated Organic Waste
Model: OWC 60, OWC 130, OWC 300
Capacity: 25kg.,50kg.,125kg per batch
Batch Time: 15 to 20 minPower: 4HP/8HP/13.5HPArea: 3Mx4M for Composting
Machine
Excel India Ltd Website: http://www.excelind.co.in/
• Koyambedu Market Complex being one of the largest in Asia, generates significant quantity of organic wastes.
• About 30 tons of Vegetable wastes are generated per day. Such organic wastes dumps are a potential threat to the environment and the public health.
• This leads to emission of obnoxious odours and gases like methane, carbon dioxide which are potential greenhouse gases.
3. Bio-methanation Plant at Coimbatore
As a result of this, it was proposed to set up a waste treatment plant through High rate biomethanation and produce electricity Biogas expected - 1500–2500m3/day Power Gross - 3000-5000 Kwh/day
E-auction
e-Auction versus e-Trading
e Auction• All buyers are
aware of quality and quantity of produce on sale
• The buyer must compete or bid to buy
• Price discovered is market driven
e Trading• VSAT based• Internet based• Intranet based• Platform based1.Spot exchange2.Futures
Overview
Electronic Auction Systems are sophisticated solutions to address the growing need for an efficient trading methodEAS help networking of domestic and global markets
Auction Process
There are 3 independent Auction process that are offered by the EAS system globally.
1.Dutch Auction2.English Auction3.Combi-Auction
Dutch Auction or Reverse auction
An auction in which an item is initially offered at a high price that is progressively lowered until a bid is made and the item sold Auction clock aids the auction master in the auctioningThe current price is displayed in figures and on a giant circular dial Price falls at a steady speed determined by the auction masterBuyers in the hall observe it on the clock dial
Bidding Process
Interested buyer pushes the bid button on his bidding terminal at the desirable priceThe buyer may talk to the auction master via telephone hand set on his table Once the quantity desired is allotted the auction begins againIn this new round, clock speed is increased by a fixed amount and prices fall again
2404/21/23 [email protected] 24
Benefits of Dutch auction
quick and efficient for price discovery and multiple auctions
Dutch auctions currently deployed in Holland are able to operate at speeds of up to 1500 auctions per hour
The English Auction
Ideally suited for auctioning of non-perishable commodities
Generally generate higher prices but take longer time
Usually used to auction larger lot sizes
Bidding Process
Begins with the floor price being displayed on the clock
The buyers are given a fixed time 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.
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.
Interested buyers place their bids by pressing the bid button on the bidding terminal Each bid 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.
The Combination Auction (Combi-Auction)
It harnesses the strengths of the Dutch and English auction processesThe quick price discovery technique of the Dutch auction along with the higher price realization of English Auction is combinedcompetitive nature of the English auction pushes the price up marginally from the discovered price.
Some Overseas Examples
Belgian fruit and vegetable circuit The Belgian fruit and vegetable circuit includes the following
markets
1. Belgische Fruitveiling, Sint-Truiden
2. Limburgse Tuinbouwveiling, Herk-de-Stad
3. Mechelse Veilingen, Sint-Katelijne-Waver
4. Profruco, Sint-Niklaas
5. Veiling Borgloon, Borgloon
6. Veiling Brava, Kampenhout
7. Veiling Brava, Zellik
8. Veiling Haspengouw, Sint-Truiden
9. Veiling Hoogstraten, Hoogstraten
10. Veiling Reo, Roeselare
Technology : electronic auction hall equipped with remote bidding (participation of bidders in the auction real time from their offices, homes etc through their computers connected to the auction network)
Turnover : (€)611261381(INR 4277 crores) annually
ZON, the Dutch fruit and vegetable market
The market's sales of horticultural foodstuffs was about 229 million Euros.(2002)Technology : electronic auction clock in auction hall with remote bidding which allows buyers to bid from their homes or offices over an Intranet
Quimper Chamber of Commerce-France
The chamber runs the following interconnected markets : Audierne, Concarneau, Douarnenez, Loctudy, Le Guilvinec, Saint-Guénolé and Lesconil, combined sales comprising 63,150 tons of fishTechnology = The Moby-Clock is a mobile auction system that is driven amongst the boxes of fish during the sale. Buyers bid using individual hand held transmitters. All required functions, input PC, ticket printer and display panel are built-into the Moby-Clock.This technology has also been adopted by the Looe Fish Market (England)
Mobile Auction- Moby Clock
3636
Mobile Auction-Indian Model
Alsmeer in Holland
The biggest flower auction in the world The whole complex covers 135 Approx, 4 billion flowers and 400 million plants are sold annually, coming from 8.000 nurseries.The annually turnover amount to more than 2 billion Dutch Guilders.This auction has 13 clocks, divided over 5 auction rooms, each room has 300/400 buyers every day
Landgard, Germany
Covering a total area of 200,000 m² with over 300 docking stationsMarketing cut flowers and pot plants in GermanyMode of sales-electronic auctions in auction halls and direct salesTechnology at auction hall- auction clock with bidding facility for bidders in the hall. No remote bidding
Sydney fish market
About 58 tonnes of seafood auctioned daily.Technology includes three auction clocks, a buyers' gallery and a remote buying program. The gallery houses 90 desks with seating for 180 buyers
Limitations of the electronic auction process
Electronic communication does not capture non price information like the other bidders reaction in response to bidsReduces social interaction opportunityImage quality determines the perception of the bidders for the quality of the produce.No provision of visual inspection and inspection of quality is a major deterrent
Online Inspection system
A concept to take inspection services in to the electronic age.This system will also aid the electronic auctionsCan prove to be a very potent aid in assuring the bidders of the quality of the lot.Fresh inspection results will be reported electronicallyThe commodity will be inspected as per the requirements and real time documentation will be done to make the results instantly available
Benefits
Instant inspection resultsUniform certificatesElectronic distributionPermanent paperless record of inspection resultsDigital images of the product can be attached to certificateCertificates can be maintained electronically, so any involved party can have instant access to the certificatesThe transmission of certificates can occur within seconds
Market Information Dissemination
-A Case of Thompson Reuters
Cont…
Dissemination of information identified as a critical issue by PFFRegistered farmers with PFF - 7500 detailed profile availableMobile Information Services to Farmers- Identified Service Provider Reuters Market Light (Thompson Reuters)
RML-PFF Subscribers Receive
Daily weather updates for the next 24 hoursFarmers can subscribe for two commodities and receive market data from three markets of his choice (one being PFF and two other regulated markets). This helps farmers decide where and when to sell their producePrice updates and arrival information of select commodities
Presently, RML is covering over 60,000 farmers in Maharashtra state aloneCrop advisory Tips are sourced from the Indian Council for Agriculture Research &/or State Agricultural University.Service also provides news related to agriculture, state government schemes, price trends and commodity movements etc three times a day.
Purchase RML-PFF membership cardService being provided in chosen local language (Marathi in Nashik)Offer with validity for 3/6/12 monthsCost effective service
3 months- Rs. 175 6 months- Rs. 350 12 months- Rs. 650
Networking and Interdependency Grid
Formation Between Markets
Carbon Construction
Enzyme based Technology for Road Construction for Premium Market, Nashik
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