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CHITTOOR FRUIT PROCESSING CLUSTER – A HOLISTIC PERSPECTIVE

MFP-C project is proposed to be set up in the already existing Chittoor Fruit Processing

Cluster with a view to leveraging its strengths, exploiting the opportunities emerging and

to plug critical infrastructure gaps which impede the cluster growth.

Chittoor Fruit Processing Cluster - A Snapshot It is the largest cluster of its kind in India, naturally evolved and developed over the last

35 years. The genesis of the cluster traces to the initiative of a visionary farmer-

entrepreneur who invested in mango processing primarily to offset the problems of un-

remunerative prices offered for fresh mangoes in the district during the peak season.

The growth of the cluster till the mid 90’s was only moderate as many an enterprise was

struggling for survival. However, with the initiation of a cluster development project jointly

by the Government of India, DC-MSME and Government of Andhra Pradesh the growth

of the cluster gained acceleration. Subsequently, further initiatives by the Government,

especially under the Agri Export Zone (AEZ) and National Horticulture Mission

programmers coupled with expanding domestic and export markets for natural fruit

products have contributed to a more planned and sustained growth of the cluster.

The salient features of the Chittoor Fruit Processing Cluster are:

Currently, 67 firms exist in the cluster – 60 of them concentrated around chittoor town within 50 km. radius

76% of the firms could be catagorised as small enterprises; 20% as medium

enterprises and 4 % as large enterprises.

The cluster firms predominantly process mango, the peak season of operation extending form April – July.

Other tropical fruits like papaya and guava are also processed though in

relatively small quantities.

Some ten firms have facilities for processing tomato.

The product-mix comprises predominantly of single strength mango pulp with 160

brix.

There exists a high degree of homogeneity of processing technologies employed, especially among small scale firms.

Contract manufacturing for exporters and retail majors by cluster firms is quite

predominant.

Canning of finished product is still predominant, among a large number of small scale processors notwithstanding the growing market requirement of aseptic packing.

There is a strong presence of support providers viz., exporters, food retailing

majors, input suppliers, technology providers, financial institutions, skilled workers etc., complementing cluster operations.

The entire chittoor district is declared as an AEZ under Government of India’s

Agri Export Zones scheme. The growth dimensions of the cluster across the years as revealed by some lead

indicators are presented in the table.

Growth of Chittoor Fruit Processing Cluster

Status S.No Indicator

1998-99 2004-05 2007-08 1 Fruit Processing Firms[Nos]

33 50 67

2 Firms having aseptic packing facility [Nos] 02 06 07

3 Installed Capacity [Tonnes/day] 1618 2570 3632 4 Investment Channelised

[Rs.Crores] 45 77 250

5 Employment [Nos] 9000 15000 20000 6 Exports [Rs.Crores] 51 170 330 7 Domestic Sales [Rs.Crores] 17 45 125 8 Firms implementing HACCP (Nos) 02 36 42 9 Firms having ETPs ( Nos) 01 38 45

Proximity to a large catchment area of raw materials, availability of skilled labour and

vantageous location within the reach of major markets for the end products are the

major locational advantages enjoyed by the cluster.

Low value addition, lack of adequate facilities for aseptic packing and excessive

dependence on contract production are the major pressure points impacting the

cluster growth.

Accessibility to Raw Material Sources

The growth of the cluster, over the years, is driven inter alia by its easy access to a

variety of tropical fruits and vegetables throughout the year not only from Chittoor

district but from the contiguous districts - Kadapa, Nellore, Anantapur (Andhra

Pradesh), North Arcot, Krishngiri, Dharmapuri (Tamilnadu) and Kolar (Karnataka). A

concise account of these districts with respect to raw materials available and

conditions influencing their procurement is presented below to facilitate better

understanding of the possible catchment area for MFP-C project.

Chittoor District

Chittoor district, extending over 15,152 sq.km is bound on the north by Anantapur and

Kadapa districts, on the east by Nellore District and Chengalpattu district of Tamilnadu,

on the south by North Arcot district of Tamilnadu and on the west by Dharmapuri district

of Tamilnadu and Kolar district of Karnataka. Chittoor town is the district headquarters.

Administrative set up of the district comprises:

Administrative Setup of Chittoor District

The district has a population of 37.46 lakhs - 78.35 % rural and 21.65 % urban [2001

Census]

S.No Administrative Units No 1 Revenue Divisions 32 Revenue Mandals 663 Revenue Villages 14984 Gram Panchayats 13815 Municipalities 76 Municipal Corporations 1

a) Agri- resources Chittoor is an agrarian economy. Paddy is the major food crop grown, followed by jowar

and bajra. Sugarcane, groundnut and sunflower are the major commercial crops raised.

b) Horticultural Resources

The soil and climate of the district are most suitable for growing horticultural crops.

Mango, Tamarind and vegetables like Tomato, Brinjal, Onion and Chillies are grown

extensively, over large tracts of land. The district despite having low rainfall has proved

to be quite congenial for Mango and Tomato cultivation. Mango is considered as one of

the most remunerative crops and has gained popularity among farmers and is fast

replacing other crops. The important vegetables raised are Tomato, Brinjal, Potato,

Chillies, Onion, Okra etc. Details of production of various fruits and vegetables in the

district are presented in table. Production of Major Fruits & Vegetables in Chittoor District - 2007- 08

Fruits & Vegetables Area (Ha) Production

(tonnes) Yield

(tonnes / Ha) Mango 53200 568161 10.60Guava 93 2046 22Acid lime 72 1080 15Tomato 15184 182208 12Tamarind 2523 20184 8Chillies 2835 14175 5Turmeric 80 720 9Potato 1277 19155 15Brinjal 1733 24262 14Okra 451 5412 12Onion 401 3609 9

(Source: Field survey and State Horticulture Department data) c) Dairy Resources The district has a population of 9.75 lakh cows and buffaloes. It is one of the leading milk

producing districts of the state with well established milk procurement and processing

network. Around 9 lakh liters of milk is produced daily and handled by 24 processing

centres with an aggregate installed capacity of 11.60 lakh ltrs. The surplus milk is

marketed in Tamilnadu.

d) Poultry Resources Poultry is a lucrative economic activity in the district. The climate is known to be

conducive for poultry farming and huge demand for poultry eggs from Chennai,

Bengaluru and Vellore offers good scope for more farms, as also facilities for egg

washing, grading, packing and storage.

e) Supply Chain Analysis of Major Fruits and Vegetables i) Mango Leading varieties of mango cultivated in the district are Totapuri (58%), Neelum (29%),

Beneshan (7%) and others (6%). Major market yards for mango trading are located at

Bangarupalyam and Damalcheruvu. During the peak season (April – June), these two

markets transact a total 1.05 lakh tonnes of mango in a normal crop year, the main

customers being the fruit processing units in the district. The traders in the market yards

sell mangoes procured from both the local farmers and farmers situated in the

neighboring districts of AP, Tamilnadu and Karnataka. The table varieties are transacted

to cater to leading fruit markets in Delhi, Mumbai, Chennai, Bengaluru, Hyderabad etc.

The farm gate price of process able variety (Totapuri) is Rs. 3000 per tonnes and table

variety (Neelum/ Beneshan) is Rs. 10000 per tonne.

Typical Supply Chain for Mango in Chittoor District (Nos.)

ii) Tomato Tomato is the single largest vegetable crop in the district. The varieties grown are 618,

9005, 5005, 918, mahyco, sukarna etc. The crop is grown almost throughout the year.

Farmers (50,000)

Commission Agents (70)

Traders (110)

Processing Units (67)

End Users

Distributors (90)

Exporter

Retailers (300)

RTS Units

Importer

Wholesalers (60)

The major tomato producing mandals are Peddatippasamudram, Mulkala Cheruvu,

Madanapalle, Gurramkonda, Kurabalakota, Shanthipuram, Nimmanapalle, Punganur,

Baireddipalle, Palmaner and Tamballapalle.

The main market for tomato trading is located at Madanapalle. Fresh tomatoes are

supplied to Coastal Andhra districts, Chennai, Bengaluru, and Hyderabad. 20% of the

total production is consumed by fruit processors in the district for the production of

tomato puree. The farm gate prices of tomato fluctuate widely, normal price hovering

around Rs. 3000 per tonne.

Typical Supply Chain for Tomato in Chittoor District

(Nos.)

iii) Tamarind Tamarind is abundantly available in the district, during the peak season, April - June.

The major tamarind producing mandals are Punganur, Ramasamudram, Mulkala

Cheruvu, Pedathippasamudram B.Kothakota, Gurramkonda, Madanapalle,

Nimmanapalle, Kalakada, Pedapanjani and Ramakuppam.

The main market for tamarind trading is located at Madanapalle. The major consumption

centres are Chennai, Bengaluru, and Hyderabad. The farm gate price of tamarind is Rs.

25000 per tonne.

Typical Supply Chain for Tamarind in Chittoor District (Nos.)

Farmer (2500)

Trader (35) End Users Wholesalers (40)

Retailers (70)

Farmers (15,000)

Commission Agent/ Trader (40)

End Users Wholesalers (300)

Retailers (90)


f) Infrastructure Facilities The physical infrastructure in the district which facilitates transportation of raw materials

and finished products is reasonable well develop and comprises market yards, road and

rail network, access to seaport and air cargo facilities and cold storages.

f(i) Market Yards Chittoor district has 17 market yards in different locations as detailed below:

Market yards in Chittoor District

Sl. No

Market yard Location

Major Commodities Traded

Godown facilities

Nearest Railway Station

1 Bangarupalyam Mangoes, Jaggery, Coconut

Yes Chittoor– 22 km.

2 Chittoor Mango & Jaggery Yes Chittoor - 0.5km.

3 Kuppam Mangoes, Vegetables, Coconut

No Kuppam – 2 km.

4 Madanapalle Tomato ,Tamarind Yes Madanapalle Road – 12 km.

5 Mulkalacheruvu Tomato, Groundnut, Jaggery

Yes Mulkala Cheruvu - 0.5 km.

6 Nagalapuram Tamarind, Bajra, Groundnut

No Puttur – 35 km.

7 Nagari Mangoes, Groundnut, Coconut

Yes Nagari – 5 km.

8 Pakala Mangoes, Groundnut, Jaggery, Coconut

Yes Pakala – 1 km.

9 Palamaner Tomato Yes Chittoor–42 km. 10 Piler Tomato Yes Piler – 3 km. 11 Punganur Tomato, Tamarind,

Pulses Yes Madanapalle Road

– 37 km. 12 Puttur Mangoes, Paddy,

Jaggery, Groundnut Yes Puttur – 15 km.

13 Somala Mango, Tomato, Jaggery No Kalikiri – 15 km. 14 Srikalahasti Paddy, Bajra, Groundnut No Srikalahasti – 1.5

km. 15 Thottambedu Paddy, Bajra, Groundnut .Yes Srikalaber – 22

km. 16 Tirupati Paddy, Jaggery,

Groundnut Yes Tirupati – 3 km.

17 Vayalpadu Tomato Yes Vayalpadu–2 km. (Source: Field survey and Horticulture Department data)

f(ii) Road and Rail Network The district possesses a reliable road and rail network consisting of:

Road and Rail Network in Chittoor District

S.NO Category Length (km) 1 National Highways 352 2 State Highways 295 3 Z.P.Roads and District Roads 2648 4 Railway Line 280.82

f(iii) Seaport Facilities The major seaport utilized for importation and exportation by entrepreneurs in the district

is Chennai seaport.

f(iv) Air Cargo Facilities Air cargo facilities accessible to entrepreneurs in the district are available at Chennai

and Bengaluru.

f(v) Cold Storages 8 cold storages are operating in the district, of which 2 are in Madanapalle (each with a

capacity of 4000 tonnes), 4 in Punganur( 2with a capacity of 4000 tonnes each and 2

with a capacity of 2000 tonnes each) and 2 in Kuppam ( with a capacity of 2000 tonnes

and 1500 tonnes).

The major fruits and vegetables stored in these facilities are Chillies, Mango, Potato and

Tamarind. The charges are fixed on yearly basis and vary from commodity to

commodity. The average changes work out to Rs. 850 per tonne. (based on field survey

analysis)

f(vi) R & D Centers There are four Research and Development centers in the district following on agri and

horticulture research:

a. Livestock Research Station, ANGRAU – Palamaner

b. Regional Agricultural Research Station – Tirupathi

c. Agri Research Station – Perumallapalle

d. District Agri Advisory Centre - Perumallapalle

Nellore District Nellore district is the southern most coastal district of Andhra Pradesh. The district

extends over an area of 13076 sq. km accounting for 4.75% of the total area of the state.

It is bounded on the north by Prakasam district, on the east by Bay of Bengal, on the

south by Chittoor district and Chengalpattu district of Tamilnadu and on the west by

Veligonda Hills separating it from Kadapa district. Nellore town is the district

headquarters.

Administrative setup of the district comprises:

Administrative Setup of Nellore District

(Source: apind.gov.in) The district has a population of 26.50 lakhs - 79 % rural 21 % urban. [2001 Census]

a) Agri-resources: Agriculture is the main occupation of the people of the district. Paddy is the principal

food crop cultivated, followed by bajra, jowar and ragi. Tobacco, Groundnut, Chillies,

Sesamum, Sugarcane are the major commercial crops cultivated. The net area irrigated

forms 69.4 % of the area sown and the rest is rain-fed. Based on the available

agricultural produce, a variety of agro based industries such as rice mills, rice bran oil

extraction plants, sugar mills etc. have come up in the district.

b) Horticultural Resources: Among horticultural crops, citrus occupies important place. Other important fruits raised

in the district are mango, sweet lime, banana guava and sapota. Details of production of

major fruits and vegetables in Nellore district are presented in table.

Production of Major Fruits & Vegetables in Nellore District - 2007- 08 S. No Fruits/Vegetables Area (Ha) Production

( tonnes) Yield

tonnes/ Ha 1 Mango 12313 123130 102 Acid Lime 27409 328908 123 Sweet Lime 3858 57870 154 Banana 1343 33575 255 Guava 652 7824 126 Sapota (Chiku) 560 11200 207 Okra 750 9375 12.58 Brinjal 355 3300 9.5

S.No Administrative Units No 1 Revenue Villages 12002 Revenue Mandals 463 Gram Panchayats 9684 Mandal Parishads 465 Municipalities 3

9 French Beans 310 3100 1010 Green Chillies 575 4600 811 Bitter Gourd 160 1600 12 Ridebed Gourd 180 2800 13 Leafy Vegetables 230 1320 14 Colacasia 350 2100 15 Leafy Vegetables 100 1000

(Source: Based on Dept. of Horticulture data and field survey analysis) c) Dairy The total milk production in the district is 5 to 6 lakh ltrs per day. Three milk processing

units in operation with processing capacities are as follows:

Milk processing facility in Nellore District

S.No Processor Location Capacity (LLD)

1 Vijaya Dairy Venkateswarapuram 75000 2 Dodla Dairy Potepalem 150000 3 Tirumala Dairy Kadivedu, Chillakur 150000

Details of bulk milk cooling and chilling facilities existing in the district are as follows:

Milk Collection Centers in Nellore District S.No Unit Name Collection Centres Capacity

(LLD) 1 Vijaya BMCU Adurupally, Duttalur, Kavali,

Venkatagiri, DV Satram 62000

2 PD DRDA Podalakur, Dakkili, Venkatagiri 150003 Reliance Atmakur, Buchi, Vinjamur,

Jaladanki, Kavali 25000

4 Heritage Atmakur, Kaligiri, Naidupet 150005 Ramya Chintareddypalem 50006 Indira Kavali 50007 Vaishnavi Kavali 100008 Sai Balaji Kaligiri 50009 Mother Dairy Kota 5000

10 Cream Rich Sullurpet 5000(Source: Data from District Industries Centre, GoAP and Field Survey analysis) Collection pattern: While Vijaya Dairy collects through local societies, private processors

collect through milk collection agents.

The purchase price for milk is fixed based on SNF and fat content. Generally the price

range is Rs. 15 – 20 per liter.

d) Poultry A total 11 layer farms with an aggregate 2.75 lakh birds and 85 broiler farms with 5.55

lakh birds are in operation spread across the district. Most of these farms have their own

feed mixing facility. The total egg production is an estimated 15 lakh per day.

About 25% of the produce from the layer farms and 50% of the produce from broiler

farms is consumed within the district and the remaining is supplied to markets in

Prakasam district and Chennai.

e) Supply Chain Analysis of Major Fruits & Vegetables

i) Acid Lime Venkatagiri, Bylalapalli, Dakkili, Sydapuram, Manubolu, Gudur, Chilakur, Kota, Kaliogiri,

Rapur, Chejerla, Kaluvoy, Podalakur, Pellakuru, Ozili, Atmakur, Anath, Asagram are the

major acid lime cultivating mandals accounting together for 80 percent of the total

production. The major market yards for lime exist in Gudur, Venkatagiri, Podalakuru and

Rapur. Gudur lime market yard is the largest, transacting an average 60 truck loads per

day in peak season (March to April) and 30 truck loads per day in lean season. The

produce is supplied through commission agents and traders to markets in West Bengal,

Bihar, Jharkhand and Tamilnadu.

The major lime varieties grown are Petluru Selection – 1 and Balaji. A citrus research

station is established at Pellakuru, Venkatagiri Mandal to develop new varieties and to

run a commercial nursery for citrus seedlings.

Two lime processing units are in operation near Gudur, viz. M/s Southern Citrus

Products and M/s Sree Laxmi Ganesh Agro Farms Ltd. producing lime oil and calcium

citrate. Besides, there are ten small pickle manufacturing units spread in 10 km. radius

around Gudur.

The average farm gate price of the produce is Rs. 15000 per tonne.

Typical Supply Chain for Acid Lime in Nellore District

(Nos) ii) Mango

Mango is cultivated largely in Vinjamur, Duttalur, Kaligiri, Kavali, Jaladanki, Rapur,

Naidupeta, AS Peta, Atmakur, Chillakur and Gudur mandals. Table varieties

Banginapally (60%), Neelum (25%) predominate. The share of proccesable Totapuri

variety is small. The major Mango market yards are at Atmakur and Nellore. About 30%

of the production is used for local consumption and 70% is sold in the markets located

elsewhere in the state as also other states. Small quantities of Totapuri variety is

supplied to fruit processing units in Chittoor district. Only one Mango pulping unit (M/s

Bindu Foods) near Gudur is in operation in the district. The pickle making units near

Gudur also consume small quantities (20 tonnes per month) of Neealum variety. The

average farmegate price of a Banganpalli variety is Rs. 12000 per tones.

Typical Supply Chain for Mango in Nellore District

(Nos) . iii) Banana Indukurpeta, Vidavalur, Buchireddypalem and Kovur are the major banana cultivating

mandals in the district. Rasthali and Dwarf Cavendish are the main varieties cultivated.

More than 30 percent of the produce is used for domestic consumption and the

remaining is sold in the neighboring districts of Prakasam and Chittoor besides Chennai

Farmers (27000)

Commission Agent (20)

Traders (90)


End Users

Exportes-4

Retailers (60)

Farmers (12000)


Traders (45)

Processing Units (1+20)

End Users

Exporters (2)

Retailers (70)

market. The major banana cultivating belt (Indukupeta – Kovur) is more than 60 km

away from Gudur. As such only a small portion (one to half truck load per day) is coming

to local market yards of Gudur region for local consumption. No banana processing or

ripening facilities exist in the district. The average farm gate price is Rs. 14 per dozen.

Typical Supply Chain for Banana in Nellore District

(Nos) iv) Sapota (Chiku)

Indukurpet, Kavali, Kaligiri and Jaladanki are the major sapota cultivating mandals.

‘Guthi’ and ‘Pala’ are the main varieties. The main sapota producing belt (Kaligiri –

Jaladanki belt) is more than 80 km from Gudur and the local market yards in Gudur

region receive only 300 to 400 kg per day for local consumption. No sapota processing

units are observed in the region. More than 40 percent of the production is used for local

consumption and the remaining is sent to markets in Chittoor and Prakasam districts.

The average farm gate price is Rs. 10 per kg.

Typical Supply Chain for Sapota (Chiku) in Nellore District

(Nos) v) Sweet Lime ( Batavia)

Atmakur, AS Peta, Marripadu, Varikuntapadu, Sitharampuram, Vinjamur, Duttalur,

Udayagiri and Kaligiri are the major sweet lime cultivating mandals in the district. Nearly

30 percent of the produce is used for local consumption and the remaining is sent to

various markets in Andhra Pradesh and Chennai. The major sweet lime cultivating belt

(Varikuntapadu – Atmakur) is in the northern part of the district and is more than 90 km

Farmers (500)


End Users Traders (35) Retailers (60)

Farmers (250)


End Users Trader (35) Retailers (50)

away from Gudur. On an average 3 tonnes per day is transacted in local market yards of

Gudur region to cater to local market requirements. No value addition is carried out

currently in the district. The average farm gate price in the district is Rs.10 per kg.

Typical Supply Chain for Sweet Lime (Batavia) in Nellore District

(Nos)

vi) Okra (Bhendi) Okra is cultivated mainly in Gudur and Venkatagiri mandals. Contract farming of Bhendi

and Brinjal in about 200 acres is carried out in and around Chamatapalem village of

Venkatagiri mandal. BVS, Sanali and shankara are the major varieties grown. The

wholesalers from Chennai supply the seed and buy back the crop. The total area under

okra cultivation in the district is 750 hectares with an estimated production of 9375

tonnes. No vegetable processing units exist in the district. The average farm gate price

is Rs. 5 per kg.

Typical Supply Chain for Okra (Bhendi) in Nellore District

(Nos) f) Infrastructure Facilities The physical infrastructure in the district which facilitates transportation of raw materials

and finished products is reasonably well developed and comprises market yards, road

and rail network, access to seaport and air cargo facilities and cold storages.

Farmers (300)

Trader (30)

End Users Wholesalers (65)

Retailers (80)

Farmers (1500)

Traders (20) End Users Retailers (50)

f(i) Market Yards Nellore district has 11market yards in different location as detailed below:

Market Yards in Nellore District Sl. No



Godown facilities


1 Atmakur Paddy, Bajra, Lime Yes Nellore – 52 km 2 Gudur Paddy, Gingili, Lime No Gudur – 1 km 3 Kavali Paddy, Cotton , Lime Yes Kavali – 1km 4 Kovur Paddy Yes Nellore – 2 km 5 Naidupet Paddy Yes Naidupet – 1 km 6 Nellore Paddy, Pulses Yes Nellore – 1 km 7 Rapur Paddy Yes Venkatagiri – 35 km 8 Sullurpet Paddy, Bajra Yes Sullurpet – 4 km 9 Udayagiri Paddy, Bajra Yes Venkatagiri – 100 km 10 Vakadu Paddy No Guduru – 35 km 11 Venkatagiri Paddy No Venkatagiri – 1km

(Source: Field survey and Horticulture Department data)

f(ii) Road and Rail Network The district has reliable road and rail network comprising:

Road and Rail Network in Nellore District

S.NO Category Length (km)

1 Road Length 5016 2 National Highways 184.203 Railway Line 221.23

(Source: apind.gov.in) f(iii) Seaport facilities: At present Chennai (160km away) is meeting the exporting and importing needs of the

industrial units in Nellore district. However Nellore district is expected to have a full-

fledged port at Krishnapatnam which is expected not only to meet the existing demand

but also create demand for setting up of export-oriented industries in future.

f(iv)Air cargo Facilities: Air cargo facilities are available nearest at Chennai.

f(v) Cold Storages Five cold storages are operating in the district, three near Nellore and two near Gudur as

detailed below:

Cold Storages in Nellore District S.NO Unit Name Capacity

( tonnes) 1 Sri Saibaba Cold Storage, Nellore 60002 Vasavi Cold Storage, Nellore 50003 Siri Cold Storage, Nellore 100004 Shirdi Sai Cold Storage, Manubolu 60005 TSR Cold Storage, Chillakur 5000

Total 32000 (Source: Filed Survey) All the cold storages in the district are conventional ones with facilities to maintain

temperatures from 20 to 200c.

The major fruits and vegetables stored in these facilities are Chillies, Mango and

Tamarind besides Groundnut brought from the Prakasam district mainly from Kanigiri.

The charges are fixed on yearly basis, averaging Rs. 1000 per tonne. (based on field

survey analysis)

There are no modular cold storages with varied temperature ranges to facilitate storage

of agri and allied products such as okra, eggs, acid lime etc. During the field survey a

strongly felt need was observed to store fresh lime in cold storage for a period of two

months (from April to May) mainly as a means to stabilizing prices of the produce.

f(vi) R & D Centers Four Research and Development centers exist in the district:

a. Agriculture Research Station, ANGRAU-Podalakur

b. Agriculture Technology Management Agency (ATMA) - Nellore

c. Citrus Research Station, State Horticultural University, Petluru

d. Krishi Vignan Kendra- Nellore

Anantapur District The geographical area of Anantapur district is 19,134 sq.kms accounting for 6.9 percent

of the state. The district is bounded by Kurnool district on the north, Kadapa district on

the east and on the south by Chittoor district. The district also is flanked by the state of

Karnataka on the west and south. Anantapur town is the district headquarters.

Administrative setup of the district comprises:

Administrative setup of Anantapur District:

(Source: apind.gov.in) The district has a population of 36.40 lakhs - 75 % rural and 25 % urban [2001 Census]

a) Agri-resources: Agriculture is the main occupation of the people of the district. The major food crops are

Rice, Jowar, Bajra, Maize and Millets. Groundnut is the principal commercial crop

cultivated, followed by mulberry, pulses and sunflower. The net area irrigated is 23% of

the area sown and rest is rain fed. Based on the agricultural produce, agro based

industries such as rice mills, oil extraction plants etc. have come up in the district.

b) Horticultural Resources : Among horticultural crops, sweet lime occupies an important place. Other important

fruits produced in the district are pomegranate, papaya, sapota (chiku), chillies, onion

and tamarind.

Details of the production of major fruits and vegetables in the district are presented in table.

S.No Administrative Units No 1 Revenue Divisions 32 Revenue Villages 9643 Revenue Mandals 634 Gram Panchayats 10055 Mandal Parishads 636 Municipalities 77 Municipal Corporations 1

Production of Major Fruits and Vegetables in Anantapur District - 2007-08 Fruits/Vegetables Area (Ha) Production

(tonnes) Yield

(MT/Ha) Sweet Orange 111159 2223180 50Pomegranate 1040 72835 16Papaya 15681 188172 30Sapota (Chiku) 9645 192900 50Banana 13157 328925 70Tamarind 4060 24360 15Acid Lime 1558 18696 30Tomato 5413 76902 35Chillis 5557 77798 35Onion 4813 67382 35Total 235066 3646476 Source: (Field Survey and of Horticulture Department data) c) Dairy Resources The total milk production in the district is one lakh liters per day. There are two

processing units with the capacities of 25000 ltrs and 30000 ltrs respectively. 10 bulk

cooling units with a capacity of 2000 LLD each and 4 mini bulk cooling units with a

capacity of 5000 LLD each are operating in the district.

d) Poultry Resources 5 layer farms with an aggregate 1.85 lakh birds and 15 broiler farms with 1.2 lakh birds

are in operation, spread across the district. Most of the firms are having their own feed

mixing facility. The total egg production is 2.35 lakh per day. About 22% of the produce

from the layer farms and 40% of the produce from the broiler farms is consumed within

the district and the remaining is supplied to Chittoor, Bellary and Chennai markets.

e) Supply Chain Analysis of Major Fruits and Vegetables

i) Pomegranate:

The major mandals producing pomegranate in the district are Bommenahal, D.Hirehal,

L.B.Nagar, Kanekal, Gummagatta, Battalapalli,Mudigubba, Pedda Pappur and Putlur.

December-April is the peak season for the crop. The major varieties grown are Baguva

and Ganesh.

90% of Baguva variety is supplied to Delhi, Kolkata, Chennai, Bengaluru, Coimbattore,

Pune and Bombay markets. Ganesh variety is used for local consumption. The average

wholesale price for the pomegranate is Rs. 7000 per tonne.

Due to lack of grading, sorting and seed processing facilities, farmers do not get a

remunerative price for their produce. M/s Kisan Rallis Seed Processing Private Limited

has established a facility for processing pomegranate arils at Kanekal cross in 1997.

However the facility is not in operation due to power crisis and technical problems.

Typical Supply Chain for Pomegranate in Anantapur District (Nos)

ii) Papaya:

Anantapur, Rapthadu, Beluguppa, Kalyanadurg, Kambadur, Settur, B.K Samudram,

Narpala, Dharmavaram, Battalapalli and Mudigubba are the major papaya producing

mandals in the district. Papaya is grown throughout the year in the district. 786-Taiwan

and East-West varieties are most common. The average wholesale price for papaya is

Rs. 5000 per tonne.

60% of papaya production is supplied to Delhi, Chennai, Bengaluru, Pune and

Hyderabad markets and remaining 40% to local markets.

Due to lack of sorting, grading and packing facilities, farmers do not get remunerative

prices for their produce. No facilities exist in the district for papaya processing.

Farmer (1000)


Traders (35)

End Users

Wholesalers (20)

Exporter

Retailers (35)

Typical Supply Chain for Papaya in Anantapur District (Nos)

iii) Sapota(Chiku)

Anantapur, Tadipatri, Pedda Pappur, Yallanur, Putlur, Yadiki, Narpala and Gooty are

major sapota growing mandals in the district. ‘Pala’ and ‘PKM-1’ varieties are produced

in the district. 70% of the production is used in local markets and remaining 30%

supplied to Bengaluru and Hyderabad markets. The average wholesale price for sapota

is Rs. 6000 per tonne. Due to lack of sorting and grading facilities, farmers get less

remunerative price for their produce.

Typical Supply Chain for Sapota in Anantapur District (Nos) iv) Sweet Lime

Garladinne, Pamidi, B.K. Samudram, Singanamala, Anantapur,Narpala, Dharamavaram,

Battalapalli, Mudigubba,Tadimarri, Tadipatri, P.Vaduguru, Yellanur, Putluru and Gooty

are the major sweet lime cultivating mandals in the district. . Mogapubba, Season and

Gairanguva are the major varieties produced .No value addition is carried out currently in

the district. 70% of the production is sold in markets within the state and remaining 30%

in Nagpur, Erode, Bengaluru and Chennai markets. The wholesale price is Rs. Rs.4000

per tonne.

Due to lack of sorting, grading and cold storage facilities, farmers often lose out in

recovering a remunerative price for the produce:

Farmer (7500)


Traders (30)

End Users

Wholesalers (30)

Exporter s (2)

Retailers (50)

Farmer (4500)

Commission Agent/ Trader (30)

End Users

Wholesalers (40)

Retailers (45)

Typical Supply Chain for Sweet Lime in Anantapur District

: (Nos)

v) Tamarind

Madakasira, Kalyanadurg, Lepakshi, Parigi, Amadagur, Amarapuram, Gorantla, O.D.

Cheruvu, Hindupur and Battalapalli are the major tamarind growing mandals in the

district.

Tamarind is one of the remunerative cash crops for farmers in the drought prone

Anantapur. Due to lack of regular rainfall most of the farmers planted tamarind trees with

the support of District Horticulture Department. February to April is peak season for the

crop. The wholesale price of the product is Rs. 3500 per tonne. 30% of the production is

consumed in the local markets, 70% in markets such as Vijayawada, Guntur, Bengaluru

etc.,

Typical Supply Chain for Tamarind in Anantapur District (Nos)

Farmer (50000)

Traders (120)

End Users

Wholesalers (90)

Retailers (110)

Exporters (8)

Farmer (2000)

Trader (40)

End Users

Wholesalers (45)

Retailers (55)

Exporters (2)

f) Infrastructure Facilities f(i) Market Yards

12 market yards are in operation in different locations of the district as detailed below:

Market Yards in Anantapur District Sl. No



Godown facilities


1 Anantapur Ground nut kennel Yes Anantapur – 2 km 2 Dharmavaram Ground nut, Sunflower

seeds , pulses Yes Dharmavaram–

1km 3 Gooty Jowar , Cotton ,

Groundnut Yes Gooty – 2 km

4 Guntakal Coriander, Paddy, sunflower

No Guntakal – 2 km

5 Hindupur Chillies, Tamarind Yes Hindupur – 1km

6 Kadiri Ground nut, Tamarind, Sunflower

Yes Kadiri – 0.5 km

7 Kalayandurgam Ground nut, Tamarind, Onion

Yes Rayadurgam – 32 km

8 Madakasira Ground nut, Tamarind, onion

Yes Hindurpur - 32 km

9 Penukonda Ground nut, Sunflower Yes Penukonda – 1 km

10 Rayadurgam Maize, Tamarind , onion , Groundnut

Yes Rayadurgam -2 km

11 Tadipatri Ground nut Yes Tadipatri – 1km

12 Urvakonda Ground nut pods, Jowar, Bajra

Yes Guntakal – 34 km

f(ii) Road and Rail Network The district has a good rail and road network comprising:

Road and Rail network in Anantapur District

S.NO Category Length (km) 1 National Highways 3502 State highways 12613 Z P Roads and District Roads 7464 Railway Line (Broad gauge)

Railway Line ( Meter gauge) 338

189 (Source: apind.gov.in)

f(iii) Sea port facilities The nearest seaport facilities, for importation and exportation are available at Chennai

445 km away.

f(iv) Air Cargo Facilities Air Cargo Facilities are available nearest, for importation and exportation, at Bengaluru

195 km away.

f(v) Cold Storages Two private cold storages are in operation at Madakasira and Hindupur with a capacity

of 2000 tonnes each. Currently, only tamarind is stored in these cold storages.

No modular cold storages are in operation in the district. The charges are fixed on yearly

basis and the average price per is Rs. 10000. (based on field survey analysis)

f(vi) R & D Centers Four Research and Development centers exist in the district: [[

a. Agriculture Research Station, Anantapur

b. Agriculture Research Station, Kadiri

c. Agriculture Research Station, Reddypally

d. District Agricultural Advisory and Transfer of Technology Centre(DAATTC) Anantapur

Kadapa District

Kadapa district is bounded by the districts of Kurnool on the north, Chittoor on the south,

Nellore in the east and Anantapur on the west. The district has a geographical area of

15,379 sq.km . Kadapa town is the district headquarters.

Administrative setup of the district comprises: Administrative setup of Kadapa district:

The district has a population of 26.18 lakhs - 77 % rural and 23 % urban [2001 Census]

a) Agri-resources :

Paddy is the principal food crop cultivated in the district followed by jowar and maize.

Sunflower and groundnut are the major commercial crops grown.

b) Horticultural Resources: Kadapa district is one of the major horticultural districts of the state. The soil and climate

conditions of the district are most suitable for growing these crops. Despite low rainfall,

the district proved to be congenial for Mango orchards and Citrus plantations. Mango, is

considered as one of the best crops and has gained popularity among the farmers and is

fast replacing the other crops in a large way due to its high return. The other important

fruits grown in the district are Papaya, Sweet lime, Lime, Banana, Guava and Sapota.

The important vegetables are Chillies, Onion, Tomato etc.

Turmeric is also grown in the district. Watermelon and musk melon are famous fruit

crops in the district. Musk Melon of this district is very popular throughout the state. It is

grown in river beds of the district during the months of November to February.

Details of major fruits and vegetables provided in the district are given in table.

S.No Administrative Units No 1 Revenue Villages 9652 Revenue Mandals 513 Gram Panchayats 8314 Mandal Parishads 505 Municipalities 66 Municipal Corporations 1

Production of Major Fruits & Vegetables in Kadapa District - 2006-07

Fruits / Vegetables Area (Ha) Production

(tonnes) Yield

(tonnes / per Ha) Mango 17000 170000 10 Sweet Lime 630 12600 20 Acid lime 3753 26295 15 Sapota ( Chiku) 54 1080 20 Guava 33 660 20 Papaya 2026 151950 75 Banana 2893 144650 50 Tomato 1764 44100 25 Brinjal 703 17575 25 Okra 650 6500 10 Onion 931 13965 15

(source: Field Survey & data from Horticulture Department) c) Dairy The milk production in the district is 3.44 lakh liters a day. DRDA is operating 18 BMCs

through SHGs and proposes to set up another 4 BMCs with a total capacity of 1.04 lakh

liters per day. The details of milk chilling centres are given below:

Milk Chilling Centres in Kadapa

S.No. Location Agency Capacity (in liters)

1 Proddatur DRDA & APDDCF 200002 Rayachoty DRDA & APDDCF 20000

3 Rajampet DRDA & APDDCF 20000

4 Pulivendula DRDA & APDDCF 20000

5 Mydukur Nandyal Dairy 30000

6 Mydukur Amrutha Dairy 30000

7 Mydukur Mukunda Dairy 20000

8 Chapadu Raghavendra Dairy 20000

9 Badvel Dodla Dairy 25000

10 Kodur Tirumala Dairy 15000

(Source : Field Survey and data from DRDA)

In addition, 12 agencies located in Chittoor are procuring 50000 liters of milk per day

from Kadapa District. DRDA proposes to set up 100000 ltrs milk processing and

products manufacturing unit in the district.

d) Poultry No major poultry unit exists in the district, through three small poultry farms are in

operation. Most of the poultry products like chicken and eggs are sourced from

neighboring districts, Chittoor and Nellore.

e) Supply Chain Analysis of major Fruits and Vegetables i) Mango: Leading varieties cultivated in the district are Totapuri (25%), Beneshan (45%), Neelum

(20%) and others (10%). The major producing mandals are Rly Kodur, Chitvel,

Obulavaripalli, Pullampet, Penagalur Siddhavatam, Rayachoti, Chinnamandem,

T.Sundupalli, Veeravalli, Galiveedu, Ramapuram and L R Palli. Major market yard for

Mango is located in Railway Kodur. In the season (April – June), daily 50-70 trucks with

an average capacity of 10 tonnes / each carry mangoes to neighboring districts and

other states. The local consumption of mango is 15% and remaining is sent to

processing units located in Chittoor district and major markets located in the country.

Processable varieties viz., Totapuri, and some portion of Alphonso are sent to the

processing units located in Chittoor district. Table varieties viz., Banganpalli, Neelum,

Rasalu etc are sent to markets in Delhi, Punjab, Mumbai, Chennai, Bengaluru etc. There

are 2 mango pulp processors at T.Sundupalli and Settigunta with a capacity of

4 tonnes/hour each. At present both the units are not functioning due to irregular power

supply and other operational problems.

The farm level price of the produce in the peak season is Rs. 4000 per tonne of Totapuri

variety and around Rs.10000/- per tonne of table varieties like Beneshan, Akbar, Rasalu

etc.,

Typical Supply Chain for Mango in Kadapa District (Nos)

Farmers (2500)

Commission Agent (2 0)

Traders (60)


End Users

Exporters 10

Retailers

ii) Papaya: Only one variety, Taiwan – 786 is cultivated in the district. 80% of the total production

comes from Rly Kodur, Chitvel, Obulavaripalli, Rajampet and Pullampet mandals.

Papaya is packed and dispatched from the field/ farms only. Local consumption of

papaya is around 10%. The remaining is sent to markets in Delhi, Punjab, Uttar

Pradesh, Tamilnadu etc., There is high fluctuations in the prices of papaya. The sale

price of papaya at farm level is around Rs.2000 per tonne in peak season. There are 7

papaya primary processing units in and around Kodur. The units process unripe papaya

and send the slices for further processing into Tutty Fruity by units located in Tamilnadu

and Karnataka.

Typical Supply Chain for Papaya in Kadapa District (Nos) iii) Banana: The banana varieties cultivated in the district are G-9 (90%), Amrutapani (5%) and

others (5%). Banana is mainly cultivated in the mandals of Rly Kodur, Chitvel,

Obulavaripalli, Rajampet, Pullampet, Duvvur, C.K.Dinne and Siddhavatam. The local

consumption of Banana is 30% only. The remaining is sent to Tirupati, Chennai and

Bengaluru markets. One Banana ripening unit has started operations recently in Kadapa

town with an installed capacity of 65 tonnes/Batch. The wholesale price for unripe

banana is Rs. 5000 per tonne.

Typical Supply Chain for Banana in Kadapa District (Nos)

Farmers 1000

Commission Agent (2 0)

Traders (40)


End Users

Retailers 160

Farmers 1400


Traders (20)


End Users

Retailers 40

iv) Sweet Lime: Majority of the farmers are cultivating sathgudi variety. Sweet Lime is largely cultivated

in the mandals of Muddanur, Vontimitta, Vempalle, Pendlimarry and Kondapuram. The

local consumption of sweet lime is 10 - 20 %. The remaining is supplied to markets in

Hyderabad, Bengaluru, Chennai, Mumbai and Delhi. There are no sweet lime

processing units in the district. The farm gate price for sweet lime in the district is Rs. 10

per kg.

Typical Supply Chain for Sweet Lime in Kadapa District (Nos) v) Acid Lime: The major mandals growing acid lime are Rajampet, Penagalur, Pendlimarri and

Chakrayapet. The local consumption of acid lime is approximately 15% and the

remaining is sold in Chennai, Mumbai and Bengaluru markets. No processing unit exists

for Acid lime in the district. The wholesale price for acid lime in the district is Rs. 15000

per tonne.

Typical Supply Chain for Acid Lime in Kadapa District (Nos) vi) Tomato: The tomato varieties cultivated in the district are 9005, 5005, 618, 918 , sankranthi,

mahyco sukarna etc., It is grown throughout the year in the district. The major cultivating

mandals are Chinnamandem, Sambapalli, Mydukur and Rayachoti.

The local consumption of tomato is 30% and the remaining 70% is sold in Coastal

Andhra districts, Chennai, Bengaluru markets. The local markets / mandies are located

Farmers 350


Traders (20)

End Users Retailers 45

Farmers 1700


Traders (20)


End Users

Retailers 40

at Sambapalli, Rayachoti and Chinnamandem. No tomato processing units exist in the

district. The wholesale price for tomato in the district is Rs. 5000 per tonne.

Typical Supply Chain for Tomato in Kadapa District

(Nos) f) Infrastructure facilities: The physical infrastructure in the district which facilitates transportation of raw materials

and finished products is reasonably develop and comprises market yards, road and rail

network, access to seaport and air cargo facilities and cold storages.

f(i)Market yards Kadapa has 12 market yards in different locations as detailed below:

Market yards in Kadapa District Sl. No



Godown facilities


1 Badvel Groundnut, Bajra, Sunflower

Yes Kadapa – 60 km

2 Kadapa Groundnut, Turmeric, Paddy Sunflower

Yes Kadapa – 5 km

3 Jammalamadugu Vegetables Yes Muddanur – 20km

4 Kamalapuram Ground nut Yes Kamalapuram – 2 km

5 Kodur Banana, Sun flower Yes Kodur – 4 km 6 L R Palli Groundnut, Sunflower No Kadapa – 35 km 7 Mydukuru Onion Yes Kadapa – 36 km 8 Proddutur Paddy, Ground nut Yes Yerragantala – 20 9 Pulivendula

Fruits , Ground nut Yes Muddanur – 40 km

10 Rajampet Paddy Yes Rajampet – 5 km 11 Rayachoty Groundnut, Sunflower Yes Kadapa – 55 km 12 Siddavattam Paddy, Sunflower No Kadapa – 30 km

Farmers 850


Traders (40)

End Users Retailers 50

f(ii)Road and Rail network: The district has a reasonably developed road and rail network comprising:

Details of Road and Rail network

S.NO Details Km 1 National Highways 1372 State Highways 4913 Z.P.Roads and District Roads 59064 Railway Line 190.81

f(iii) Sea port facilities The nearest seaport facilities, for importation and exportation are available at Chennai

250 km away.

f(iv) Air Cargo Facilities Air cargo facilities are available nearest, for importation and exportation, at Chennai.

f(v) Cold Storages There is only one cold storage existing at Proddatur in the district which is not working.

Earlier the cold storage was used for storing Tamarind and Chillies.

f(vi) R & D Centers There are four Research and Development centers and one Horticulture College in the district:

a) Agriculture Research Station, ANGRAU-Utukur

b) Fruit Research Station/Regional Agriculture Research Station- Anantarajupet c) Krushi Vignan Kendra- Utukur

d) National Horticulture Research Development Foundation, Mydukur

e) Indira Gandhi Centre for Advanced Research on Livestock (IGCARL), Pulivendula

f) Horticulture College – Anantarajupet

Aggregate Raw materials Availability

Aggregate production of major fruits and vegetables, which form the major raw materials

for the proposed MFP-C project, from the four catchment districts of Chittoor, Nellore,

Anantapur and Kadapa is estimated as follows:

Aggregate availability of raw materials in the cluster

(Area in Hectares, Production in tonnes) Nellore Chittoor Kadapa Anantapur Total Area Pro Area Pro Area Pro Area Pro Area Pro Mango 12313 123130 53200 568161 17000 170000 0 0 82513 861291Papaya 2026 151950 15681 188172 17707 340122Banana 1343 33575 2893 144650 13157 328925 17393 507150Pome granite

0 0 0 0 0 0 10485 209700 10485 209700

Sweet Orange

3858 57870 0 0 630 12600 111159 2223180 115647 2293650

Sapota 0 0 0 0 0 0 9645 192900 9645 192900Acid Lime

27409 328908 0 0 3753 26295 0 0 31162 355203

Okra 750 9375 451 5412 650 6500 0 0 1851 21287Leafy Vegetables

100 1000 0 0 0 0 0 0 100 1000

Tomato 0 0 15184 182208 1764 4400 0 0 16948 186608Tamarind 2523 20184 4060 24360 6583 44544

Seasonality of Raw materials Almost all the horticultural crops are seasonal and available only for a few months in a

year. The seasonality of major horticultural crops in the cluster is given below:

Seasonality of major Fruits and Vegetables available in the cluster

Fruit Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Mango

Papaya

Banana

Guava

Tomato

Sapota

Orange

Sweet Lime

Pomegranate

Okra

Tamarind

Existing Marketing system: Fruits Majority of the farmers sell their produce to the commission agents operating in nearby

market yards, mandis. Majority of processing firms purchase the produce either from the

commission agents or from the local mandis. After processing, pulp,/ concentrate/

purees are supplied to end users like juice, squash, jam& jelly, confectionery and ice

cream making units for value addition. The table varieties are supplied by traders/

commission agents to major markets at Bengaluru, Chennai, Kolkatta and Hyderabad.

Except a very few processing units, direct exports do not take place from the cluster.

Typical existing marketing system for fruits is given in the following diagram. Typical Marketing System for Fruits in Chittoor Fruit Processing Cluster

Farmer/ Grower

Commission Agent ( Local Mandis)

Processing Units

Packing Units

Further value

End Users/ Exporters

Traders

Wholesalers

Retailers

Fresh Fruits Processed

Vegetables Vegetables like okra, tomato, cucumber and leafy vegetables are sold in the local

markets by farmers. Very limited contract farming for okra in Chittoor and Nellore

districts was observed. Very few vegetable processing units are operating in the cluster

who procures raw materials from the local markets/ mandis. The processing units are

directly exporting the vegetables to Germany, Gulf and European countries while the

domestic market for the same is very limited. However with the changing food habits of

the customers the demand for processed and value added vegetables is increasing

steadily.

Typical existing marketing system for vegetables is given in the following diagram.

Typical Marketing System for Vegetables in Chittoor Fruit Processing Cluster

General Farming

Commission Agent ( Local

Processing Units/ Wholesale Markets

Traders

End Users/ Exporters

Packing Units

Traders

Wholesalers

Retailers

Contract Farming

Value chain analysis Major constraints observed in the present value chain for most of the fruits and

vegetables in the cluster are given below:

Primary grading/ collection centers - non existent Warehousing and cold storage - inadequate Cold chain – Non existent Quality certification system - non existent Transportation for perishables - non existent Rural markets - complete lack of infrastructure Wholesale markets - in government control, lack of modern facilities Post harvest losses - 20 to 30%

The existing value chains for some of the major fruits and vegetables in the cluster have been drawn with the help of information gathered during the field survey, and are presented below:

Value chain of Mango Pulp (1 ton of mango Pulp (out put) with Carton Packing)

Farm level price – Mango (2 tons @ Rs.12000 per ton) - Rs.24000 /-

Labour charges : 800 /-

Utilities :1200/-

Sale Price to Exporter / Value added firms Rs. 40940/-

Packing material cost : 9600/-

Rs. 26000/-

Profit to Manufacturer (15%) - Rs.5340 /-

Rs. 35600 /-

Value chain of Papaya

(Input 1 tonne of raw material)

Farm level price Rs.2000 /-

Transportation & Handling Charges : Rs. 2000/-

Final price to consumer (Rs.7/- per Kg)- Rs. 6019

Sale price to Retailer : Rs.5280/-

Packing ; Rs.400 /-

Rs. 2400 /-

Rs. 4400 /- Profit to trader 20% - Rs.880 /-

Profit to Retailer 14% - Rs.739 /-

Value Chain of Banana (Input 1 tonne of raw material)


Ripening & Handling charges Rs. 300/-

Final price to consumer (Rs.7.50/- per Kg)- Rs. 6900

Sale price to Retailer : Rs.6000/-



Value Chain of Tomato (Input 1 ton of raw material)


Packing material, Packing & Handling charges Rs. 800/-

Sale Price to Retailer Rs. 5160/-

Transportation Charges : Rs.1000/-

Rs. 3300 /-

Profit to trader 20% - Rs.860 /-

Rs. 4300 /-

Final price to consumer (Rs.7.50/- kg) – Rs.6450/-

Profit to Retailer 25%- Rs.1290/-

Value Chain of Tamarind (Input 100 kgs raw material)


Grading charges : 100 /- Cleaning & De-seeding charges : 200

Storage charges :1000/- Transport charges: 200/-


Packing material cost : 100/-

Rs. 4000/-

Profit to trader 20% - Rs.800 /-

Rs. 4100 /-

Final price to consumer (Rs.60/- kg) – Rs.6100/-

Profit to Retailer 25%- Rs.1200/-

Value Chain of Acid Lime (Input 85 kgs raw material)


Transport charges: Rs. 150/-


Rs. 900/-

Profit to retailer 30% - Rs.324 /-

Final price to consumer (Rs.17/- kg) – Rs.1404/-

Profit to Trader 20%- Rs.180/-

Value Chain of Okra (for 100 kgs of raw material)

Farm Level Price Rs. 1205/-

Grading Charges Rs.100 /- Packing&weighing charges 50/-

Transport cost Rs.200/-

Packing material Rs.60 /-

IQF Charges Rs.720 /-

Price to exporter Rs.2802 /-

Rs. 1555 /-

Rs. 1615 /-

Rs. 2335 /-Profit to Manufacturer 20% - Rs.467/-

Value Chain of Pomegranate

(Input 1 tonne of raw material) Tomato :


Transport & Handling Charges : Rs. 2000/-

Final price to consumer (Rs.40 /- per Kg)- Rs. 40110/-

Sale price to Retailer: Rs.33425/-

Packing Material Cost ; Rs.1000 /- Packing Charges : 875

Rs. 21875 /-



Value Chain of Sweet Lime

(Input 1 tonne of raw material)


Transport Charges Rs. 1000/-

Final price to consumer (Rs.10 /- per Kg)- Rs. 10192/-

Sale price to Retailer Rs.7280/-

Handling & packing Charges Rs. 600/-

Rs. 4600/-


Profit to Retailer 40% Rs.2912 /-

Cluster SWOT analysis

Strengths Weaknesses

Abundant availability of fruits and vegetables

Availability of water, both for irrigation and processing

Availability of other agri-products, e.g., chillies, Tamarind in large quantities

Presence of more than 70 fruit and vegetable processing units

Proximity to major Indian cities like Chennai, Tirupati and Bangalore

Good Rail and road link Established local marketing

channels Presence of various BDS providers

relating to technology, marketing and finance within the cluster

Exposure to export markets

Inadequate product quality and standards

Limited facilities for testing and research

Poor effort on value addition and better shelf life

Inadequate technical knowledge of local manpower

Weak information channels Poor linkages with developmental

institutions Limited geographical reach Weak linkage between farmers and

processing units High handling losses of 15% High post-harvest losses of 20%

Opportunities Threats/ Challenges

Availability of abundant quantity of Mango, Banana and Guava in neighboring states of Tamilnadu and Karnataka

Growing export and domestic demand for processed foods

Encouraging state and Central Government Policies on food related industries

Growing competition from related clusters like Pune and Bangalore

Increasing incidence of bacterial and viral diseases in papaya, lime and pomegranate and difficulty in control

Global economic recession affecting export market

Stringent food safety norms of developed countries like USA, Japan and other European Countries

Analysis of critical gaps identified

• Poor quality Inadequate product quality and standards prevented firms from reaching out to

distant markets outside the state and limited their ability to export those products

• Primitive Processing Technologies Majority of the processing units are confined to routine grading, pulping and general

packing practices but are not adopting ascetic packaging, ripening through

controlled atmosphere or eliminating bacteria through vapor heat treatment and

irradiation due to lack of knowledge and insufficient capital.

• Lack of facilities for testing

Facilities in the cluster are unable to match increasing demand for testing. No state

of the art laboratory exists in the cluster and the entrepreneurs have to test the

samples either at Chennai or Bengaluru leading to higher costs.

• Lack of adequate common facilities

At present the clusters has seven aseptic packing units, two IQF plants and one

Vapor Heat Treatment plant, but are not able to cater to growing demand for the

facilities. Even the cold storage facilities are very limited and scattered.

• Poor processing facilities at district Level

Lack of adequate primary processing centres for washing, sorting and grading in

Kadapa, Chittoor, Nellore and Anantapur districts leading to low price realization by

farmers

• Inadequate technical knowledge of local manpower

Formal technical (production & legal) knowledge of the farmers and small

entrepreneurs was limited. Most of the entrepreneurs in the cluster were from the

small scale sector, who had acquired business skills and technical knowledge

through experience rather than through formal training. Lack of technical knowledge

crowded out any developmental agenda.

• Weak information channels

Information is a critical necessity, particularly in a high price and quality sensitive

industries like processed foods. However, information on issues like rights and

obligation of the industry, food standards, sources, price and availability of raw

material, new markets, etc. are not available.

Thus the absence of trained manpower, information channels, testing facilities,

infrastructural facilities is becoming critical hindrances to the growth of the cluster.

Suggested interventions In order to meet the challenges of quality norms, particularly for exports and niche

domestic markets, backward linkages with producers (farmers) need to be strengthened

with farmers networks and contract farming.

Quality up gradation to meet international food safety standards needs further deepening

to culminate in the emergence of specialized production units. Moreover these units will

be in great need of support of specialized marketing firms.

Establishment of common facilities relating to aseptic packaging, Multiple Cold Storage,

Vapor Heat Treatment and IQF in a centralized location and common grading, washing

and sorting facilities in suitable areas at district level assure significance.

Establishment of a common information cum display centre to provide information

relevant to all the players in the value chain, including farmers, intermediaries, technical

agencies, processors, markets and their channels etc. in also critical. There is a need to

coordinate this effort with local BDS providers in information technology.

The food sector is still highly regulated. Though several efforts were made in the past to

help the Government streamline food laws and regulations, It is important to establish a

centralized body (like a central processing centre) which is to join hands with local

product level bodies (like primary processing centres) to enhance the effectiveness of

such efforts. Capacity-building of farmers, local organizations, entrepreneurs is essential

for quality up gradation and strengthening of backward linkages.

sapotto

Documents

cluster firms

cluster growth

cluster traces

largest cluster

cluster operations

entire chittoor district

nellore district

cluster development