"Study of Value Chain On Vegetables": Entre For Micro Inance

CENTRE FOR MICRO FINANCE
“Study of value chain on

vegetables”
(Summer Internship Report)
By: Manoj Kumar Rolan

PGDABM (2008-10)
NIAM, Jaipur
2009
CENTRE FOR MICRO FINANCE,30-JAIJAWAN COLONY-II,TONK ROAD, JAIPUR-302018

Project Report
On
Study of Value Chain on Vegetables
Submitted to:
Centre for micro Finance
Submitted by:
Manoj Kumar Rolan
National Institute of Agricultural Marketing, Jaipur
Email: manojrolan.niam08@gmail.com
Mob: 9001686787
2|Page National Institute of Agricultural Marketing (NIAM), Jaipur

DECLARATION
I, Manoj Kumar Rolan, a student of Post-Graduate Diploma in Agri-Business Management (PGDABM) at
C.C.S. National Institute of Agricultural Marketing (NIAM), Jaipur hereby declare that the entire report of
this project titled as “Study of Value Chain on Vegetables” is true and has been completed by me
individually under the guidance of my project guide Mr. Sourav Roy.
I, further declare that no part of this report is a copy from any other source, the original source of
information has been given due credit wherever it is required. The project has been completed in duration
of eight weeks as per the requirements of the policies of the institute.
MANOJ KUMAR ROLAN

PGDABM
NIAM, Jaipur

CERTIFICATE
This is to certify that Mr. Manoj Kumar Rolan is a bonafide student of Post-Graduate Diploma in Agri-
Business Management (2008-10), NIAM, Jaipur and participated as summer trainee in our organization
for the period 15th April-09 to 15th June-09. He has successfully completed his summer project titled “Study
of Value Chain on Vegetables”, towards the partial fulfillment of his requirements for the course.
Dated:
Mr. Jaipal Singh Mr. Sourav Roy

(Executive Director) (Programme Officer)
Centre for micro Finance Project Guide
Centre for micro Finance

ACKNOWLEDGEMENT
I wish to take this valuable opportunity to express my sincere thanks to Centre for micro Finance for
providing me a chance of learning. The project has not only helped me understand the vegetables value
chain in depth, but widened my vision in general management too, by virtue of being associated with an
excellent and professional organization.
I would like to thank Mr. Jaipal Singh and Mr. Sourav Roy (Project Guide) for giving me an opportunity to
work as a summer trainee for Centre for micro Finance.
This project neither could have been started nor completed without the encouragement and support of
many people, most notably Mr. M S Jairath sir (Director NIAM) and Mr. Tapi Bhusan for providing an
overall guidance, encouragement and extending all the necessary help to the project assigned to me as a
summer trainee in Centre for micro Finance .
I would like to extend my deep sense of gratitude to all staff of Cmf and NIAM, Jaipur for their support
during the project.
I also want to take this opportunity to show my sincere thanks to my entire batch mates and friends who
were there when I needed them the most.
Thanks goes to Dr. Hema Yadav, Deputy Director, PGPABM, NIAM for his guidance and moral support,
which has always been there with all the students.
Thanks to Almighty. Words cannot express my gratitude towards my parents and my family throughout my
project and supporting me all through.
The financial support from Centre for micro Finance for this project is gratefully acknowledged.
Regards,
Manoj Kumar Rolan

Dated: 30 /06 /2009

Table of Contents
S.No. Content Page No
1. Introduction 7
2. Executive Summary 13
3. Vegetable scenario in India 14
4. Vegetable scenario in Rajasthan 15
5. Vegetables Value Chain Analysis 18
6. Chomu Mandi Value Chain 32
7. Mohana Mandi Value Chain 36
8. Kisan (Lalkothi) Mandi Value Chain 40
9. VKI No. 14 Mandi Value Chain 42
10. Janta Market Mandi Value Chain 44
11. Ambabari Mandi Value Chain 46
12. Chandpole Mandi Value Chain 48
13. Transactional methods of vegetables 50
14. Middleman (commission agent) 51
15. Vegetable Trader 52
16. Vegetable Wholesaler 53
17. Vegetable Vendor 53
18. Vendor‟s problem 62
19. Recommendations 63
20. Retail Shops 64
21. Case study 68
22. References 71

Study of value chain on vegetable
INTRODUCTION: -
The efficiency of marketing for fruits and vegetables in India has been of significant concern in the recent
years. Poor efficiency in the marketing channels and inadequate marketing infrastructure are believed to be
the cause of not only high and fluctuating consumer prices, but also too little of the consumer rupee reaching
the farmer (Kaul 1997, Ashturker and Deole 1985).
Agricultural marketing is a process, which starts with a decision to produce a sellable farm commodity, and
it involves all aspects of market structure or system, both functional and institutional, based on technical and
academic considerations and includes pre and post harvest operations, assembly, grading, storage,
transportation and distribution.
There are various channels for vegetables selling or disposal, through which growers can sell their
vegetables. However his choice is based on comparative cost, price received, and readiness to sell. No
significant differences are obtained among the channels, but they are full in existence and followed in the
marketing of various vegetables, though some of these may be location specific.
Marketing problems can better be understood through in-depth study of commodity marketing at farm level.
Marketing pattern differ from place to place and commodity to commodity. Its dimension also varies from
rural to urban areas.
Highly perishable nature of vegetables made their marketing system more costly and complex. Timely
procurement of vegetables in bulk is of immense importance for the traders. Transportation plays an
important role in vegetable marketing. Spatial equilibrium can be attained through effective transportation.
CHANNELS OF VEGETABLE MARKETING:-

Selling Vegetables to Retailers: - This involves small quantity of vegetables that are sold to various buyers.
It is done at following places:
 Mandi
 Selling at the farm
 Auction market
 Road Side
 Door to Door

 Selling vegetables to wholesalers
 Selling vegetables to cooperatives
 Selling of vegetables to consumers
 Selling vegetables to small markets
 Selling vegetables in weekly bazaars
 Selling in marketing yards
 Export and import market
 Processing markets
There are various channels for vegetables selling or disposal through which growers can sell their produce or
products. However his choice is based on comparative cost, price received, and readiness to sell. No
significant differences are obtained among the channels, but they are full in existence and followed in the
marketing of various vegetables, though some of these may be location specific.
The study of existing scenario of the following crops was done in the Jaipur Districts‟ mandi:
1. Onion
2. Tomato
3. Green Chilli
4. Potato
5. Kakdi
The survey of following Mandi was done to study the existing situation of marketing of the above-
mentioned vegetables:
1. Terminal Market(Mohana Mandi)
2. Chomu Mandi
3. Kisan Mandi
4. Janta Market Mandi
5. VKI No-14
6. Subhas Nagar Mandi
7. Sodala Mandi

8. Ambabari Mandi
9. Mansarovar
10. Chandpole Mandi
11. Johari Bazar
RESEARCH OBJECTIVES:-
 To study different vegetables market channels for understand and identify the existing practices and
gap at different level of chain from vegetable producer to consumer
 To identify the value addition at each level of the chain and its affect on the income of the vegetable
producers and vendors.
 To identify the financial needs of vegetable vendors and how to increase the income level of
vegetable vendors.
 To study the vegetable vender‟s to know his business and what problems they facing and how CmF
recommend that problem would be solved.
 To find out the ways by which CmF can do work for betterment and development of small and
marginal traders.
RESEARCH DESIGN: -
 Mapping vegetable market of Jaipur city and vicinity of Jaipur.
 Select five main vegetables.
 Track out back ward and forward linkages from potential mandis.
 Map out the source of these vegetables.
 Prepare a questioner for vegetable grower, vegetable vendors (Road side vendors, Thelewala, and
small vendor), commission agents, whole seller, and retailer.
 Visit to vegetable producing district/areas to get the data regarding acreage, production, preferred
varieties in different districts for knowing the scenario of vegetables.

 Meeting with vegetable growers, commission agents, vegetable traders and vegetable vendors and fill
up the questioner.
 Collection of primary and secondary data for different vegetables regarding area, production, and
productivity.
 Collection of Export oriented data of vegetables from Rajasthan.
 Collecting month wise arrivals figures of the different districts in Rajasthan for vegetables. Finding
out the model of trade, cost of transportation and other costs involved when trade of vegetables
happens.
 Analyse price trends of vegetables in mandis.
 Develop a model of value chain of vegetable.
 Describe vegetable vendors business.
Research Methodology: - The study proposed involves decision making and is based on
understanding the behaviour of the entire chain from the farmer to the vegetable vendors. The survey
included informal in-depth personal interview aligned with the objective of the research.
Primary data collection: Market Research in Jaipur; to know the status of vegetables production, price
trends, value chain, and market potential. Survey will be done in vegetable associations, various vegetable
grower, traders, middle man and suppliers.
Secondary data collection: Survey also included web browsing, Institution, Magazine for collection of
data.
Sources of Information: - The information collected was based on both primary data as well as
secondary data sources. The secondary data sources were the background study made through the Agri
economic literatures, Internet, Newspapers, Books and magazines, Agricultural offices and Mandi boards.
Primary data are collected from following sources;
 Vegetable Growers
 Commission Agents
10 | P a g e National Institute of Agricultural Marketing (NIAM), Jaipur

 Vegetables Traders
 Vegetables Wholesaler
 Vegetables Vendors
 Government Agencies
 Procurement Agencies
 Retail Stores
 Agricultural Offices
 Mandi Boards
ORGANISING AND EXECUTING THE SURVEY: -

As planned, the project lasted 60 days with 45 days of actual data collection and the rest in analysis, report
writing. Although the data collection was through structured questionnaires, an open discussion in a guided,
depth interview, undisguised manner was followed to elicit better responses.
PROCESSING AND DATA ANALYSIS: -
The tools used to analyze the data were Excel using averages and simple percentages.
Areas covered during survey: - Jaipur District, Rajasthan
 Terminal market (Mohana fruit & vegetable Mandi).

 Jaipur city(Mansarovar Mandi, Sodala Mandi, Janta Market Mandi, Johari Bazar mandi, Chandapol
Mandi, Ambabari Mandi, Jhotwara Mandi, VKI 14no Mandi).
 Nearer mandis, Retail shops.
 Chomu mandi area
 Bagru area
 Basi area
 Kala dera

Calendar:-
S.No Place Date Days

1. To know about value chain and understand 18/04/09 to 24/04/09 7
the value chain of vegetables frequently
visit to Terminal Market
2. Chomu area (Chomu, udaipuria, piliya, Hadota, 27/04/09 to 29/04/08 3
shahpura)s
3. Bassi area (Kanota, Damodarpura, Devgaon 30/05/09 to 02/05/08 3
4. Bagru area( Mohana, mohanpura, Bagru) 04/05/09 1
5. Chandpole Mandi 05/05/09 to 06/05/09 2
6. Janta Market Mandi 10/05/09 to 13/05/09 4
7. Johari Bazar mandi 10/05/09 to 13/05/09 4
8. Kisan Mandi 14/05/09 to 15/05/09 2
9. Mansrover Mandis 16/05/09 to 23/05/09 8
10. Sodala Mandi 16/05/09 to 18/05/09 3
11. Ambawadi Mandi 19/05/09 to 21/05/09 3
12. Jhotwara Mandi 22/05/09 to 23/05/09 2

13. VKI No.14 Mandi 22/05/09 to 23/05/09 2
14. Dundy river belt 23/05/09 to 24/05/09 2
15. Retail shops (Reliance Fresh, Safely, More 25/05/09 to 27/05/09 3

& 6 to Ten)
16. Nearer Mandis 28/05/09 to 02/06/09 6
17. Secondary data collection 04/06/09 to 06/06/09 3
18. Analysis and Report Preparation 08/06/09 to 22/06/09 15
19. Draft Report submission 23/06/09
20. 04/07/09
Presentation
21. Final report submission 20/07/09

Executive Summary: -
Value chain analysis of vegetables is an important task as it focuses on end to end movement of vegetable
starting from farmer, trader, middle man, wholesaler (Masakhor), retailer, and vendor and at last reaches to
consumer.
During the project, emphasis was given to study the present value chain of vegetables and giving importance
to the vegetable vendors. First of all five vegetables were selected based on the volume traded and its
importance in human consumption. The selected vegetables are Tomato, Potato, Onion, Green Chilli and
Kakdi.
The survey area for this project was Jaipur. Visit was made to all the mandis in Jaipur and adjoining areas
from where vegetables arrive to the mandi and playing a major role in vegetable value chain. Discussions
were made with people involved in value chain.
Farmer, trader, middle man, wholesaler (Masakhor), retailer, vendor, and retail stores also visited to get a
clear cut view of vegetable value chain in Jaipur region. This report speaks comprehensively about the:
 Problems faced by vendors in selling of vegetables.

 Price spread of different vegetables when it moves from farmers end to consumers. Special focus was
given for small petty vendors.
 Value additions by different players in vegetable value chain.
Fresh vegetables are highly perishable commodities, which makes the marketing of such commodities quite
difficult. It is an expensive affair to get these commodities transported by refrigerated vans always
everywhere. The transportation and logistics cost to the extent of 40-50% is included in the price paid by the
end consumers.
As the production and marketing of agricultural produce depends on many factors as Rainfall, Export
demand, Domestic demand, Government policies, the market for vegetables are still more unpredictable.
CmF has taken a great initiative to analyze value analysis of vegetables to know this vegetable marketing
business and take initiative to work for development of vegetable vendors.
The detailed study of different players in the distribution network was done to know the existing scenario of
movement of fresh vegetables in Jaipur. Farmers grow the vegetables in Chomu, Bassi, Sanganer, and
Viratnagar tehshil region at large scale.

Vegetable scenario in India: -
India is the second largest producer of vegetables in the world (ranks next to China) and accounts for about
15% of the world‟s production of vegetables. The current production level is over 71 million MT and the
total area under vegetable cultivation is around area under cultivation in the country. It is estimated that
around 20 poor post harvesting practices. Less than 2% of the total vegetables produced the country are
commercially processed as compared to 70% in Brazil and 65% in USA. Around 1.5 lacs MT of vegetables
is sold as processed products. In case of vegetables, potato, tomato, onion, cabbage and cauliflower account
for around 60% of the total vegetable production in the country.
Fruits and Vegetables Production in India: -
India now ranks first in the world in the combined production of fruits and vegetables. Out of 370 million
tons of fruit production in the world, India accounts for 30 million tons. Of the 450 million tons of
vegetables produced in the world, India produces as much as 59 million tons and so India's share in the
world's vegetable market is 17 per cent. The horticultural crop in the country presently covers 13.6 million
hectares of land, i.e. 7 per cent of the gross cropped area and contributes 18-20 per cent of the gross value of
India's agricultural output. India is the largest producer of mango and banana in the world and has fifth
position in the production of pineapple and sixth in the production of orange, tenth in the production of
apple. Among major vegetables, India occupies the first position in cauliflower and brinjal production,
second in onion, third in cabbage, and sixth in potato in the world. The diverse soil and climatic conditions
in the country makes it possible to cultivate a wide variety of fruits and vegetables in various parts of the
country.
Production of Major Vegetables & India's Position in the World
S.No Vegetables Production (000 MT) India‟s Share India‟s Rank

India World
1 Tomato 4800 84873 5.7 6
2 Onion 4058 36544 11.1 2
3 Brinjal 8026 11981 67.0 1
4 Potato 17942 294834 6.1 6
5 Green Peas 270 5214 5.2 5
6 Cabbage 3300 46656 7.1 3
7 Cauliflower 4800 12725 37.7 1
8 Garlic 350 10401 3.4 3
Source: Horticultural Statistics, Department of Horticulture, Jaipur and
http://www. Postharvestindia.com/indhrvst/fruits.htm

Vegetable scenario in Rajasthan: -
Area and production of vegetables:-
Area and Production (Area Lac ha, prod. Lac MT)

Year 2004-05 2005-06 2006-07 2007-08
Area Production Area Production Area Production Area Production
0.94 3.54 1.25 5.07 1.23 6.23 1.23 7.55
Source: Horticulture Department
Jaipur Terminal Market Total Arrivals in 2007-08 and 2008-09:-
Jaipur Terminal Market Arrivals Qty in qtl

2000000
1800000
1600000
ARRIVALS IN QUINTAL
1400000
1200000
1000000
800000
600000 2007-08
400000 2008-09
200000
0
Brinjal
Fenugreek
Tomato
kakdi
pea
cauliflower
Onion
spinech
Tinda
Simla Mirch
cabbage
pointed guard
ridge guard
Green Gram
Lady finger
Potato
green chilly
bottle guard
Jack Fruit
bitter guard
VEGETABLE
Sources: - Terminal market, Jaipur

Jaipur Terminal Market Total Sales in 2007-08 and 2008-09:-
Jaipur Terminal Market Total sale in Rs Lac

10000
9000
8000
7000
(Total Sale in Rs Lac)
6000
5000
4000
2007-08
3000 2008-09
2000
1000
Vegetavbles
Sources: - Terminal market, Jaipur

Vegetables availability in Rajasthan market:-
Market: Rajasthan, Jan-Dec
Seasonality
Vegetables JAN FEB MARCH APRIL MAY JUNE JULY AUG SET OCT NOV DEC
Potato Y Y H H H Y Y Y Y H H H
Tomato Y Y Y Y Y Y Y Y Y Y Y Y
Onion Y Y Y Y Y Y Y Y Y Y Y Y
Snake Guard H H H Y Y Y Y Y Y H H H
Green Chilli Y Y Y Y Y Y Y Y Y Y Y Y
Arbi (colocasia) H H H Y Y Y Y Y Y H H H
Bhindi (Lady H H H H Y Y Y Y Y Y H H
Finger)
Bitter Guard H H H Y Y Y Y Y Y H H H
Bottle Guard H H H Y Y Y Y Y Y H H H
Brinjal Y Y Y Y Y Y Y Y Y Y Y Y
Cabbage Y Y Y H H H H H H H Y Y
Capsicum H H H Y Y Y Y Y Y H H H
Carrot Y Y H H H H H H H H Y Y
Cauliflower Y Y Y H H H H H H H Y Y
Coriander Y Y Y Y Y Y Y Y Y Y Y Y
Cucumber H H H Y Y Y Y Y Y H H H
French Bean H H H Y Y Y Y Y Y Y H H
Methi Y Y Y N N N N N N N Y Y
(Fenugreek)
Palak (Spinach) Y Y Y N N N N N N N Y Y
Pumpkin Y Y Y Y Y Y Y Y Y Y Y Y
Radish Y Y Y H H H H H H Y Y Y
Ridge Guard H H H Y Y Y Y Y Y H H H
Sponge Guard H H H Y Y Y Y Y H H H H
Tinda (Round N N N N Y Y Y Y Y N N N
Guard)
H-Hybrid Available
N-Not Available
Y-Available

Vegetables Value Chain Analysis: -
Value chain: - The value chain, also known as value chain analysis, is a concept from business management
that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage:
Creating and Sustaining Superior Performance.
A value chain is a chain of activities. Products pass through all activities of the chain in order and at each
activity the product gains some value. The chain of activities gives the products more added value than the
sum of added values of all activities. It is important not to mix the concept of the value chain with the costs
occurring throughout the activities. A graded vegetable can be used as an example of the difference. The
grading activity may have a low cost, but the activity adds much of the value to the vegetable, since a rough
ungraded vegetables is significantly less valuable than a graded vegetable.
Examine of the value chain of an enterprise to ascertain how much and at which stage value is added to its
goods and or services, and hot it can be increase to enhance the product the product differentiation
(competitive advantage).
Onion: -
India produces around 80 lakh tonnes of onion. The national onion production was 80.56 lakh tones in 2007-
08. This production was increased by 10 lakh tones from last year, as it is clear from the graph below.
National Production of onion from 2004-2007

Production (in '000 tonnes)
9000 8056
8000 7082
7000 6434.6
6000
5000
4000
3000
2000
1000
0
2004-2005 2005-2006 2006-2007
years
Production

District-wise Area, Production and Yield of Onion (Final Forecast) in
Rajasthan
(2001-2002 and 2002-2003)
2001-2002 2002-2003
District Area Production Yield Area Production Yield
(Hectare) (Tonnes) (Kg./Hectare) (Hectare) (Tonnes) (Kg./Hectare)
Ajmer 2107 3964 1881 449 604 1345
Jaipur 2803 21523 7679 3137 16050 5116
Dausa 21 26 1238 18 36 2000
Sikar 3480 25589 7353 3217 21120 6565
Jhunjhuna 1389 27294 19650 1158 22944 19813
Jaipur Region 9800 78396 8000 7979 60754 7614
Alwar 6044 55921 9252 5735 14121 2462
Bharatpur 193 636 3295 234 358 1530
Dholpur 9 24 2667 16 80 5000
S.Madhopur 103 280 2718 79 343 4342
Karoli 34 142 4176 29 188 6483
Bharatpur
6383 57003 8930 6093 15090 2477
Region
Bikarner 57 29 509 79 43 544
Churu 68 123 1809 57 74 1298
Ganganagar 117 234 2000 180 3600 20000
Hanumangarh 59 236 4000 64 10 156
G.Nagar
301 622 2066 380 3727 9808
Region
Jodhpur 5417 51189 9450 6239 58370 9356
Jaisalmer 12 6 500 2 0 0
Jalore 197 518 2629 156 624 4000
Barmer 100 91 910 89 83 933
Nagaur 4175 11631 2786 4074 12706 3119
Pali 363 726 2000 69 70 1014
Sirohi 90 135 1500 46 69 1500
Jodhpur Region 10354 64296 6210 10675 71922 6737
Kota 65 510 7846 39 749 19205

Baran 28 116 4143 21 114 5429
Bundi 98 196 2000 52 92 1769
Jhalawar 248 821 3310 243 490 2016
Tonk 71 502 7070 24 186 7750
Kota Region 510 2145 4206 379 1631 4303
Banswara 56 53 946 79 74 937
Dungarpur 53 265 5000 12 60 5000
Udaipur 40 82 2050 13 50 3846
Udaipur Region 149 400 2685 104 184 1769
Bhilwara 150 586 3907 60 264 4400

Chittore 697 2613 3749 815 2070 2540
Rajsamand 55 220 4000 16 38 2375
Bhilwara
902 3419 3790 891 2372 2662
Region
Rajasthan 28399 206281 7264 26501 155680 5874
Source: Directorate of Horticulture, Govt. of Rajasthan & Fertilizer Association of India.

Share of Rajasthan in this production is 5.17% and it is the 6th highest onion producing state in the whole
country. Other major onion producing states are Maharashtra, Gujarat and Karnataka. Jaipur and Jodhpur is
the largest producer of onion in Rajasthan.
Arrival pattern: Arrival to the mandi is from the villages near Jaipur. Arrival in those months is high which
coincides with harvesting period of onion. Month wise arrival for last 12 months is been given below.
Months May- June- July- Aug- Sept- Oct- Nov- Dec- Jan- Feb- March- April-
08
08 08 08 08 08 08 08 09 09 09 09
Arrivals 4080 3950 3200 2544 1841 2228 2463 2065 1750 1599 1604 1884
(in qt)
Sources: - Horticulture information magazine
A graph showing this pattern is been given below:
Arrival of onion in Jaipur

4500
4000
3500
Quantity (quintals)
3000
2500
arrival (in quintals)
2000
1500
1000
500
0
Months(2008-2009)

Catchment area: village around the Jaipur and other district and states.
Lot size of the produce:
 25 quintals in simple tempo (mini size)
 6 tonnes in the tractor trolleys
Criteria of the grading: 1.Number of dry leaves
2. Shelf life
3. Colour of the onion
4. Size of the onion
Grading standard followed by the traders:
Grades Colour Shape Weight of individual bulb Additional features
Red Round 175-200 gm Number of flakes -2
A
B Red or pink Round to oval 125-175 gm Number of flakes-1
C Pink or white Oval 50-100 gm Number of flakes-1
Number of leaves is the most important factor as the onion with the 2 flakes can withstand the transportation
of 30 – 45 days whereas the onion with 1 flake can generally survive for the 15-20 days. It is the most
important criteria as it decides the price of super quality produce.
Price Decided by the traders: Generally price is totally decided by the demand and supply pattern. There
are many factors which influence the mandi price.
 The mandi is highly linked with the price pattern of Chomu, Nasik, Delhi, Indore, Bhopal, Vashi,
Ahmedabad, Surat, Nadiad, Bangalore, Raipur, and Kolkatta. Prices in these mandi do have an effect
on the price of onion in Jaipur.
 Second factor which influence which affect the price is the requirement by the exporter. If their
requirement is very high then the prices are generally high. One thing which is very contrasting in
nature is that all these factors have an effect on the price of A-grade quality onion and not on the
medium and low grade onion. These grades prices are generally decided by their arrival in the mandi
and the production in that area. Generally the arrival pattern in the mandi is:

Grade A – 20% of the total arrival in mandi
Grade B – 50% of the total arrival in mandi
Grade C – 30% of the total arrival in mandi
Months Jun- July- Aug- Sept- Oct- Nov- Dec- Jan- Feb- Mar- Apr-
08 08 08 08 08 08 08 09 09 09 09
Prices 417 385 535 666 672 780 1016 1121 1196 1017 1002
(Rs per
qt)
prices of onion at Jaipur

1400
1200
price in Rs per quintals
1000
800
600
Series1
400
200
0
Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09
Months

Tomato:-
The total annual production of tomato in India is 9064600 MT in 2005-06. About 16% of the total national
production is in Andhra Pradesh State. The other major producers of tomato are Andhra Pradesh, Orissa,
Karnataka and Maharashtra, which together contribute about 54% of national production. Table showing the
production in major growing state are given below.
State-wise Production of Tomato in India

(2005-2006)
(000 Tonnes)
State/UTs Tomato
Andaman and Nicobar 0
Andhra Pradesh 1453.5
Arunachal Pradesh 0
Assam 330.2
Bihar 727.2
Chandigarh 0
Chhattisgarh 217.6
Dadra & Nagar Haveli 0
Daman & Diu 0
Delhi 33.6
Goa 0
Gujarat 421.9
Haryana 219.7
Himachal Pradesh 301
Jammu & Kashmir 60.3
Jharkhand NA
Karnataka 1106.9
Kerala 0
Lakshadweep 0
Madhya Pradesh 306.7
Maharashtra 987
Manipur 9.7
Meghalaya 22.3
Mizoram 0.5
Nagaland NA
Orissa 1330.8
Pondicherry 2.7
Punjab 187.3
Rajasthan 54.5
Sikkim 0
Tamil Nadu 321.5
Tripura NA
Uttar Pradesh 194.4
Uttaranchal 95
West Bengal 679.8
India 9064
Compiled from the statistics released by Lok Sabha Unstarred Question No. 46, dated 24.07.2006.
NA: Not Available. Note: Provisional Data.

Pie chart showing the percentage share of production of different states:
Tomato producing states with proportionate

production of 2005-06
11%
30% 12%
8%
16% 15%
1%
8%
Maharashtra Karnataka Bihar Orissa Andhra Pradesh west Bengal Rajasthan Others
In Rajasthan total annual production production of tomato is 55177 MT in 2006-07. About 41% of total
annual production is in Jaipur district. The major tomato producing districts of Rajasthan are Jaipur, Kota,
Bundi, Jalore and Tonk, which together contribute about 67% of total production in Rajasthan.

Table showing the production in major growing district of Rajasthan are given below:
District-wise Area and Production of Tomato in Rajasthan

(1999-2000 to 2001-2002 and 2006-2007)
(Area in Ha. ; Production in M.T.)
1999-00 2000-01 2001-02 2006-07*
District
Area Production Area Production Area Production Area Production
Ajmer 1194 882 1139 1383 1313 1542 997 1114
Alwar 1046 5658 970 4468 985 3619 869 5391
Banswara 69 16 64 57 69 185 56 13
Baran 118 470 179 471 186 550 276 1356
Barmer 11 20 12 20 5 5 27 46
Bharatpur 283 1713 240 1083 290 1126 246 1501
Bhilwara 301 471 283 423 353 564 230 462
Bikaner 0 0 0 0 3 2 13 13
Bundi 295 278 312 505 286 669 285 2519
Chittor 126 334 167 247 211 609 227 596
Churu 1 2 0 0 0 0 1 1
Dausa 273 560 265 425 324 483 342 358
Dholpur 2119 8404 1205 1614 829 2101 29 23
Dungarpur 34 174 17 59 55 276 41 172
Sriganganagar 150 606 21 56 76 197 53 636
Hanumangarh 52 208 141 525 66 158 46 724
Jaipur 3092 12212 3680 21559 3156 23952 5058 22716
Jaisalmer 16 35 3 3 1 1 6 51
Jalore 578 1454 635 2802 1517 4330 536 2009
Jhalawar 91 284 174 253 120 284 188 329
Jhunjhunu 88 98 72 20 93 1650 133 278
Jodhpur 210 337 220 279 253 303 86 63
Karuali 249 576 383 589 858 1822 492 1386
Kota 322 1379 258 1355 260 1343 393 7770
Nagaur 152 234 218 764 154 391 223 337
Pali 369 1101 368 626 417 1103 348 1005
Rajsamand 39 69 60 73 58 378 35 91
S. Modhpur 209 759 199 670 261 674 189 744
Sikar 134 154 108 274 88 172 180 716
Sirohi 1198 1299 1467 1531 1682 2041 879 962
Tonk 564 2361 488 2189 459 2153 338 1662
Udaipur 114 294 98 96 132 280 78 133
Rajasthan 13497 42442 13446 44419 14560 52963 12900 55177
Note: Data are Provisional. Source: Directorate of Horticulture, Govt. of Rajasthan.

Pie chart showing the percentage share of production of different districts:
Tomato producing states with proportionate

production of 2005-06
30% 11%
12%
8%
16% 15%
1%
8%
Maharashtra Karnataka Bihar Orissa Andhra Pradesh west Bengal Rajasthan Others
Tomato producing districts in Rajasthan (2006-07)
33%
41%
14%
3%
5%
4%
Jaipur kota jalore Bundi Tonk other

Jaipur is one of the important tomato growing region in whole of Rajasthan. It has mainly three regions of
tomato production i.e. Chomu, Bassi, Bagru. Jaipur with its two market yard (Chomu mandi & Terminal
market) plays a very important role in tomato trade.
Arrival pattern:
Table showing arrival of tomato at Jaipur Market:
Months May- Jun- July- Aug- Sept- Oct- Nov- Dec- Jan- Feb- Mar- Apr-09
08 08 08 08 08 08 08 08 09 09 09
Arrivals 2264 1006 1586 2101 1623 1591 1506 1704 2033 1954 1895 1941
( In qt)
Horticulture information magazine
The arrival of tomato is peak during the month of Jan-may. In the month of May nearly 2264 quintals of
tomato comes to Jaipur vegetable market. Later on arrivals decreases and reaches low in the month of June.
Graph shows this trend very clearly.
Tomato arrival pattern at Jaipur in 2008-09

2500
2000
Quantity (quintals)
1500
1000
500
0
May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09
Months

Lot size of the produce: Tomato in this market comes in the plastic crates. Producer harvest their produce
in morning and keep them in plastic crates and start their journey to mandi. These plastic crates are brought
through tempo or Mahindra jeep. Auction starts early in the morning. Prices are quoted for 25 kg but mandi
people keep the record in terms of quintal. One plastic crates contains 22-25 kg of produce. Tomato coming
from outside are either packed in Bangalore box or in plastic crates.
Criteria of Grading: Tomato arrives in plastic crates of 25 Kg capacity. The grading is based on color and
size. Usually medium sized, red colored firm fruits are preferred by North Indian traders.
Grading is done on the following criteria:
1. Colour of tomato
2. Size of tomato
3. Smoothness of skin
4. Shelf Life
5. Shape of tomato
6. Firmness of Flesh
The traders do grading manually and they are so experienced, that they do very effective grading just by
touching and holding the tomatoes in their hands.
There are mainly four grades of tomato being traded in the market.
Color Shape Longitudin Horizontal Weight of Additional

Grade al Axis
Axis (mm) Fruits (in gm) Features
(mm)
A Red Round 55-60 54-58 85-100 Firm flesh, free
from green back
B Red Round 50-55 48-54 65-85 Firm flesh,
C Red/ Orange Round or Oval 45-50 44-48 50-65 Blossom scar in
elongated form
D Red/Orange Round or Oval 40-45 40-44 35-50 Tinge of green
back, healed
cracks

General arrival pattern of different grade has been given below.
 Grade A-10% of the total arrivals

 Grade B-15% of the total arrivals
 Grade C-40% of the total arrivals
 Grade D – 35% of total arrivals
For local market red tomato is liked and when it is to be sent to distant market then green color tomato is
liked.
Sorting: Sorting, Filling in bags, & Stitching is done in the markets from where the produce comes to this
mandi. For local tomato sorting and grading is done based on the market requirement it is being sent. Sorting
is very time consuming process. Generally the sorting comes out to 15 to 20 paise per kg.
Storage: Tomato is not stored in this mandi; the produce is sold on the same day it arrives to the market.
Loss in Handling and transport:
There are three major types of losses in case of tomato during handling and transportation.
 Weight Losses, due to moisture loss (4-5%)
 Rupturing of tomato (5-10%)
 Rottening (4-5%)
Generally if the produce is fresh and it has been brought from the farm then these losses are very low.
Traders are ready to give more prices to this type or fresh produce because they can transport it to distant
location. Loss in the rainy season is much higher than the normal season. Rottening is much higher in the
rainy season. Rupturing losses can be reduced by handling the produce carefully and packing them in
corrugated cartons or plastic trays, arranging in such a way that the weight of the upper tomatoes do not
rupture the bottom ones. Rottening losses can be reduced carefully by sorting the lot. Even a single rotten
tomato in the lot will spread the infection and many tomatoes in the lot will be rottened.

Packing cost: Tomato is generally packed in the two types of packing material. The two types of packing
material are:
Wooden Boxes:
There are two types of wooden boxes. banglore box or local box. Banglore box contain 20 kg of produce
where as local box contain 22 kg of produce. One wooden box generally contains 30 kg of produce and cost
calculation for 30 kg is as follows:
Cost of one wooden box – Rs 15
Cost of labour for sorting- Rs 5
Cost of labour for making boxes- Rs1.50
Cost for labour for loading and unloading- Rs 4
This all calculation brings the cost of packing for wooden box to Rs24 to 28 per box having tomato of 20 kg.
Generally wooden slabs are supplied by the saw mills near the market area and these slabs are arranged to
form the boxes by the local labour. After that produce is filled in the box.
Plastic Crates:
Plastic crates are quickly replacing the wooden boxes in the market. These plastic crates are generally liked
by the traders because of easy handling and to have a good idea of quality of produce. One plastic crate
contains 25-26 kg of tomato. Cost of one plastic crate is Rs145. These plastic crates are also available in
second hand. Second hand cost of these crates is Rs125. Generally the packing cost of crates comes around
Rs26 per crate for 26 kg.
Distribution Pattern- Jaipur market produce goes to distant market in India. Some destinations are served
round the year by this market. Delhi is one of the market which is served round the year. Produce goes to
market of Jodhpur, Ajmer, Agra, Pune Punjab and Haryana. Produce also goes Pakistan from chomu mandi.

Period of price fluctuation: Generally the price of tomato depends on the production, harvesting period and
demands in markets of other part of India.
Average price of tomato at Jaipur market for last 11 month are given below:
Jun-08 July- Aug-08 Sept- Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar- Apr-09
08 08 09
794 769 631 933 1089 1710 1497 766 522 526 446
Prices of Tomato at Jaipur

1800
1600
1400
price Rs per quintals
1200
1000
800
600 Series1
400
200
0
Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09
Months

Chomu Mandi Value Chain
Vetetables Grower Retail Shops
Local Market
Middle man
commission
Middle Man
7.85% (Adatiya) Trader Export
Middle man
Wholsaler Commission
(Masakhor) 7.85%
Middle man
commission
7.85%
Other Out Side
Market
Middleman pays 2 % Extra

Commission
Other Local
1.60% tax to
Market Mandi Samiti.
Other Local 0.15% to weight

Mandis charge.
Retailer Food Processing
(Vendors) Industry
Consumer

Chomu mandi is the second largest mandi of Jaipur this is the regulated market, in this mandi all vegetables
available throughout the year, vegetables comes from vicinity villages nearer districts and states. Vicinity
village‟s farmer comes in this mandi and sale his vegetables through middleman, this mandi very much
affected by middleman. Every selling and buying process middleman role is there. Framers not give any
commission to middle man but middle get 7.85% commission buyer (trader, wholesaler, vendors). Traders
buy vegetables from farmers through middleman and they sale these vegetables in other market or other
district and stats mandi some traders export too.
Middleman get 7.85% commission in this commission they give 1.6% tax to mandi Samiti and 0.15%
weighing, they get 6.10%. This commission based on farmer how much Rs vegetables sale. For example
farmer sale total 100Rs vegetables in mandi to vendor then middleman get commission 7.85Rs from vendor.
In Chomu most of vegetables come from nearby villages which are at the distance of 8, 5 and 12 Km
respectively from Chomu mandi. All kind of operations starts in mandi in early morning. Farmer brings their
vegetables to the mandi and kept for selling in front of the shop of middleman or Adatiya. After that trader,
retailers, vendor and wholesalers auctions for vegetables in terms of Rs per Mann (Rs per 40 Kg). The
highest price offering person gets vegetables and pay to the Adatiya.
Vegetable comes from:
Nagal Hathnoda Amarpura

Kaladera, Itawa Nirana
Tigaria Manpura Udaipuria
Randal Jahota Jalsa
Hadota Piliya Dher ka balaji
Agra Banaras Sikar
Terminal Market Delhi Ahamdabd

Farmer: -
- They come in mandi early in the morning to sale vegetables.
- Vegetables sale by auction method
- Farmer not pay any tax or commission to mandi Samiti and middle man
- They can sale his vegetables to any buddy.
- Most of the farmers sale vegetables through particular middleman because he already get credit from
middleman for production of vegetables. Middleman will charge interest on that credit it depends on
relationship. Most of the case middleman 2-3 Rs/100Rs interest charged.
- Farmer get money from middleman and middleman will get later from trader, retailer, vendor,
wholesaler.
Middleman: -
Middleman highly involve in this business all vegetables pass through middleman in this mandi. He get
7.85% commission from trader, wholesaler, retailer, vendors whatever farmer sale in mandi through
middleman. Middleman pays 1.6% tax to mandi.
Middleman also provides credit facility to the farmers and vendors so they become loyal to sale and buy
vegetables through middleman.
Mandi is totally under control of middlemen and prices are of their choices.
Trader:-
In this mandi traders procure vegetables from farmers through middlemen. They can not purchase vegetables
directly from farmers because farmer always tend to sell his produce through middlemen in mandi.
Method of procurement: - open auction
Selling vegetable:- Terminal market, Azadpur mandi(Delhi), Ajmer, Udaipur, Jodhpur, Sikar, Kota, Bundi,
Bharatpur, Agra and some other parts of UP.

Wholesaler (Masakhor):-
Wholesalers are known as Masakhor in mandi. They purchase vegetables from farmers through middlemen
and pay commission (7.86 %) to them. They seats on a mat or gunny bags on mandi ground perform their
business. They do their business up to 12.00 noon only.
Whom to sell: -
 Local and nearby vegetable vendors which they want less quantity (< 10-12 Kg).
 Consumers who want more quantities.
 Some wholesaler sales their vegetables in Jaipur mandis (Mohana mandi, Kisan mandi, Janta market
mandi, Ambabari, Subhash Nagar mandi).
Vendors: -
Vendors purchase vegetables from farmers through middlemen in mandi and pay commission (7.86 %) to
them. If they want less quantity then they go to wholesalers.
Where they sell: -

 Local Chomu market,
 vicinity villages,
 Different mandis, market and colonies of Jaipur.
Prices of vegetable: - (in Rs./kg)
Potato Tomato Onion Green Chilli Kakdi

Trader - 3.5-4 2.5-3.5 4.5-5 3-4
Wholesale 6.5-7 4.5-5 3-4 6 4-4.5
Retailer 7.5-8 5-6 3.5-4 6.5-7 6-7

Mohana Mandi Value Chain
Vetetables Grower Retail Shops
Local Market
Middle man
commission
Middle Man
7.85% (Adatiya) Trader
Middle man
Wholsaler
(Masakhor)
Commission
Middle man 7.85%
commission
7.85%
Other Out Side
Market
Middleman pays 2 % Extra

Commission
Other Local
1.60% tax to
Market Mandi Samiti.
0.15% to weight
Other Local charge.
Mandis
Retailer Food Processing

(Vendors) Industry
Consumer

Mohana mandi is also known as terminal market and this is Rajasthan‟s largest fruit & vegetable market. It
was previously running in Lalkoti Mandi,Jaipur. It is regulated market. This is the biggest terminal market of
its kind in Asia. It is 7.5 Km away from Sanganer in Mohana village.
In this mandi all vegetables available throughout the year, vegetables comes from vicinity villages nearer
districts and states. Vicinity village‟s farmer comes in this mandi and sale his vegetables through
middleman, this mandi very much affected by middleman. Every selling and buying process middleman role
is there. Framers not give any commission to middle man but middle get 7.85% commission buyer (trader,
wholesaler, vendors). Traders buy vegetables from farmers through middleman and they sale these
vegetables in other market or other district and stats mandi. Middleman get 7.85% commission, in this
commission they give 1.6% tax to mandi Samiti and 0.15% weighing, they get 6.10%. This commission
based on farmer how much Rs vegetables sale.
All kind of operations starts in mandi in early morning. Farmer brings their vegetables to the mandi and kept
for selling in front of the shop of middleman or Adatiya. After that trader, retailers, vendor and wholesalers
auctions for vegetables in terms of Rs per Mann (Rs per 40 Kg). The highest price offering person gets
vegetables and pay to the Adatiya.
In this mandi there is two type of auctioning take place:-
A) Open auction
B) Under cover auction
Vegetable comes from: -

Bagru Bassi Sanganer Kanota
Rampura Chaksu Devgaon Dudhu
Kaladera Renwal Kacholia Dhanta
Morijha Jetpura Badagaon Udepuria
Mohana Mansrover Bundi Ajmer
Jodhpur Kota Lalsot Dousa
Sawaimadhopur Sikar Ajitgarh Pithampura
Udaipur Pali Nagore Agra
Nasik Delhi Shimla Manchar

Middleman: -
In this mandi vegetables pass through middleman. Middlemen get 7.85% commission from trader,
wholesaler, retailer, vendors whatever farmer sale in mandi through middleman. Middleman pays 1.6% tax
to mandi.
Middleman also provides credit facility to the farmers and vendors so they become loyal to sale and buy
vegetables through middleman. Also help in providing seeds, fertilizers and agrochemicals.
Trader:-
In this mandi traders procure vegetables from farmers through middlemen. They cannot purchase vegetables
directly from farmers because farmer always tend to sell his produce through middlemen in mandi.
Method of procurement: - open auction & under cover method1.
Selling vegetable:- Chomu mandi, Azadpur mandi(Delhi), Ajmer, Udaipur, Jodhpur, Sikar, Kota, Bundi,
Bharatpur, Pali, Chandigarh, Surat, Ahmdabad, Vadodra, Pune, Agra and some other parts of UP, MP &
MH.
Wholesaler (Masakhor):-
Wholesalers are known as Masakhor in mandi. They purchase vegetables from farmers through middlemen
and pay commission (7.85 %) to them. They seats on a mat or gunny bags on mandi ground perform their
business. They do their business up to 1.00 P.M. only.
Whom to sell: -
 Local and nearby vegetable vendors which they want less quantity (< 10-12 Kg).
 Consumers who want more quantities.
 Some wholesaler sales their vegetables in Jaipur mandis (Chomu mandi, Sodala mandi, Chandpole
Mandi, Johari Baazar mandi, Kisan mandi, Janta market mandi, Ambabari, Subhash Nagar mandi).
1
Under cover methods apply in Potato and Onion purchasing and selling.

Vendors: -
Vendors purchase vegetables from farmers through middlemen in mandi and pay commission (7.85 %) to
them. If they want less quantity then they go to wholesalers.
Where they sell: -

 vicinity villages,
 Different mandis, market and colonies of Jaipur.
Prices of vegetable: - (in Rs/kg)

Trader 5-6 3-4.5 3-3.5 5 3-4
Wholesale 6.5-7 4.5-5 3.5 6 4.5-5
Retailer 7-8 5-6 4-5 6.5-7 6-7

Kisan (Lalkothi) Mandi Value Chain
Other mandis
Vetetables Grower Wholsaler
Local Market
Middle man
commission Middle Man
7.85% (Adatiya) Vendor
Middle man
Wholsaler Commission
(Masakhor) 7.85%
Middle man
commission
7.85%
Other Local
Market
Other Local
Mandis
Retailer
(Vendors)
Consumer

This mandi is in Lalkothi area near to Tonk road. This was too big that space became too short due to
trading of fruit and vegetables on a large scale. So this mandi shifted to Mohana village in the form of new
terminal market. Now in Lalkothi mandi there are only wholesaler and retailers/vendors who purchases from
either Chomu or Mohana mandi or both and it is unregulated market. Some of these sell in their shops, on
ground and on their wheel cart.
In this mandi some Adatiyas come from Chomu mandi and sell their vegetables (Cucumber, Brinjal, Green
Chilli, Tomato, Round gourd, Long gourd, Bitter gourd, Cluster bean pods) to vendors.
Wholesaler (Masakhor): -
These procure fruit and vegetables from Chomu, Mohana and Janta market mandi by auction on a large scale
through middlemen pays commission (7.85 %) and sale whole day to consumers and small vegetable
vendors on fix rate basis.
Transportation cost2: - From Mohana mandi Rs. 15/bag of 50-55 kg
From Chomu mandi Rs.20/bag of 50-55 kg
Vendors: -
Purchase vegetables from here itself from wholesaler and Adatiyas. Sell either in wheel cart or on mat at the
same place. If they purchase from Adatiya then they have to pay commission of 8 %.

Trader - - - - -
Wholesale 8-9 5-6 6.5 - -
Retailer 9-10 8 8 15 10-15
2
In case of onion & potato

VKI No. 14 Mandi Value Chain
Other mandis
Local Market Farmer pays

commission to
middleman 2Rs/ bag
Middle man Middle Man
commission 8% (Adatiya) Vendor
Wholsaler Middle man

(Masakhor) Commission
Middle man 8%
commission
8%
Other Local
Market
Other Local
Mandis
Retailer
(Vendors)
Consumer

This is unregulated market and also under control of middlemen. Vegetables comes from nearby villages
like prem nagar, chomu, todi ,harmada, ajitgarh, dolarpura, machda, kala ka bas, manpur, kcharod, hakeda,
akhepura etc. some wholesaler brings vegetable from chomu and Mohana and sells to here.
Middlemen commission: -
a) From farmer Rs. 2 /palli3.
b) Vendor 8 % on total purchase.
c) From wholesaler 8 % on total purchase.
Wholesaler: -
Wholesaler purchases the vegetables from Chomu and Mohana and Janta market mandi to sale here and
sometimes from VKI mandi itself.
Retailer: -
Purchase from farmer through middlemen and from wholesaler and sells to nearby areas.
Trader - - - - -
Wholesale 8 4-4.5 4.5 7 7
Retailer 10 8 10 10 12
3
Tomato 1 palli = 20 kg, cucumber 1 palli = 10-12 kg, Green chilly 1 palli = 10 kg

Janta Market Mandi Value Chain
Other mandis
Local Market
Middle man
Commission
Middle man 8%
commission 8%
Middle Man Trader
(Adatiya)
Wholsaler
(Masakhor) Vendor
Middle man
commission 8%
Other mandis
Other Local
Market
Other Local
Mandis
Retailer
(Vendors)
Consumer

This is the regulated market and under controlled by middle man all fruit and vegetables sell & purchases
through middleman. Middleman charges 8% commission on total sell and purchases some time he charges
commission on farmer to. Whole sellers and retailer/vendors sale vegetables in this mandi on ground and
wheel cart. From Janta market mandi vegetables supply to various mandis and Jaipur local market: -
 Sodala mandi
 Chandpolee mandi
 Jhotwara mandi
 Kisan Mandi
 Ambabari
 Badi Chopad
 Chhoti Chopad
In this mandi vegetable comes from various villages and other mandis: -
 Tomato: - Bassi, Tung, Raisar, Damodarpura, Devgaon

 Potato: - Mohana Mandi
 Kakdi: - Khor, Amer, Chomu
 Onion: - Mohana mandi, Bhadra
 Green Chilli: - Rampura, Chomu, Delhi

Trader - - - - -
Wholesale 8 3-4 4-5 6-7 7-8
Retailer 10 8-10 10 7-8 12

Ambabari Mandi Value Chain
Other mandis
Middle man
commission 8% Middle Man
(Adatiya)
Wholsaler
(Masakhor) Middle man Vendor
commission 8%
Other Local
Market
Other Local
Mandis
Retailer
(Vendors)
Consumer

This mandi is unregulated market vendors sell vegetable in tin shaded shops and wheel carts. There no
wholesale vegetable market it is only retail vegetable market but early in the morning some middle comes
here and sale and purchase vegetables and some farmer comes from nearer villages and sell their vegetables
here through middleman. Middleman charge 8% commission on total sale and purchase respectively farmer
and vendors.
Wholesaler procures vegetables from other mandi and sale to vegetable vendors in this mandi at fax price.
Procurement of vegetables: -
 Mohana Mandi
 Chomu mandi
 Janta Market mandi
 Ambabari it self
Trader - - - - -
Wholesale - - - - -
Retailer 10 8-10 10 12-15 16-20

Chandpolee Mandi Value Chain
Other Mandis Other mandis
Wholesaler
Middle Man
(Adatiya)
Middle man
commission 8%
Wholsaler Vendor
(Masakhor)
Other Local
Market
Retailer
(Vendors)
Consumer

This is also unregulated market in this mandi only wholesale and retail mandi is there wholesaler and
vendors procures vegetable from other market and sell in this mandi.
In the morning some middleman comes from Chomu mandi and Janta market mandi and sells vegetable to
vendors & wholesalers here in this mandi and they charge commission 8% to vendor on total purchase of
vegetables.
Vegetable Procure from: - (All green vegetable comes from Janta market mandi & Chomu mandi).
 Janta Market
 Chomu Mandi
 Mohana Mandi
 Kisan mandi
Vendor procures onion and potato by open auction and undercover method from Mohana mandi and other
vegetables procure from wholesaler (Masakhor).
Transportation charges:-
 From Mohana mandi: Rs 20/bag4

 From Chomu mandi: Rs 15/palli
 From Janta market: Rs 10/ crate5
 Kisan Mandi: Rs 10/palli

Trader - - - - -
Wholesale - 3-4 - 4 7
Retailer 10 7-10 10 7-8 6-10
Source: Based on Primary data collected in different mandis
4
One potato bag =50-55kg, one onion bag = 50kg
5
One tomato crate = 22-25kg

Transactional methods: -
System of sale:
The sale of Vegetables takes place in three ways:
Under cover: -
This is most common followed method of sale in mandi in spite of the fact that it is banned by the Govt.
Adatiya display samples there outside their shop. When buyers assemble, he auctions the produce under
cover (handkerchief) and sells it those who bids highest. But if lot sizes are big then he sells the same
produce at different rates to different buyers at the same time. In undercover actual rates remain confined to
buyer and seller as the final SP was not disclosed.
The general terminology followed during this type of auction is Dhaka, dhadi and sakda means 5, 10 and
100 respectively.
Open auction: -
In open auction, the basis of physical appearance gives the initial bid. The auctioneer is appointed by APMC
but here also malpractices are observed (Auctioneer is not loyal to APMC) and also not present with every
CA6. Bidding amount is quoted for 5 -10kg. If the farmer or trader has not come along with the produce CA
may cheats by not telling the actual value for the produce. This method of sale is usually followed for good
quality fruits and rarely in potato, onion and garlic.
Mutual negotiation: -
When one or two buyers come then price is determined by mutual negotiations between CA and buyer based
on current mandi rate and earlier auctioned rate. For onion, potato, garlic this method is followed.
Farmer/sellers say on the price: If farmer/collector is present there then CA ask them whether they are
agreeing to sell at the price offered by buyer. If they agree then deal becomes final. Now they ask on phone
also. But the power to sell remains in the CA hand still.
6
CA-commission agent

Middleman (commission agent)
He is playing major role in vegetable value chain. He is providing trading platform between farmer and
trader /vendor / wholesaler. He is just service provider between farmer and trader/wholesaler/vendor. He
didn‟t involve in physical handling of vegetables. For this service he is charging a commission of 7.85% of
total quantity traded. Commission charge covers mandi Samiti tax of 1.6% and weighing charge of 0.15%
and remaining 6.1% is the profit of commission agent. He is maintaining a record which was provided by
mandi Samiti, he is regularly recording transactions done through him and he is paying tax to mandi Samiti
according to records.
Middleman Commission Mandi Tax Weighing Charges Middleman Profit
7.85 % 1.6% 0.15% 6.1%
Source: Primary data collected through in-depth interviews.
There is chance of mismatch between actual traded and record traded through commission agent this activity
may give huge margin to commission agent.
He is also giving vegetables on credit basis to trader, wholesaler and vendor. Trader purchase vegetables
from farmer through commission agent but in real situation commission agent are purchasing vegetables
from farmer on behalf of trader. Then trader will pay money to the commission agent within 15 days without
interest.
In case if trader unable to pay money after 15 days commission agent will charge interest of 5% 7 of the total
value of trade. In case of vendor and wholesaler these have to pay money to the commission agent within 7
days otherwise he will charge a 5% interest.
If wholesaler and vendor pay money within 7 days then they get 1% concession on total commission
charged by commission agent8.
Note: interest rate charged by commission agent to others totally depend upon the relationship between
them, if relationship is good and strong the commission agent will not charge interest.
7
5% interest rate means Rs5 on Rs100 per month.
8
Actual commission charged by commission agent is 7.85%=( 1.6% mandi tax+ 0.15% weighing charge+ 6.1% profit) after
concession got by wholesaler or vendor commission agent charges will be in this composition 6.85%= 1.6% Mandi
tax+0.15%Weighing Charges+5.1% profit.

Table: Commission agent charges in different Mandis.
Mandis Chomu Terminal VKI No- Kisan Janta Subhas Ambabari

mandi Market 14 Mandi Market Nagar
Commission 7.85 7.85 8 8 8 7.6 7.6
Mandi Tax 1.6 1.6 0 0 1.6 0 0
Source: Primary data collected through in-depth interviews.
On other hand these commission agents are providing credit to the farmers for growing crops and make them
loyal to sell vegetables to the commission agent. And also provides seed, fertilizer & pesticide to farmer.
In mandis price decides by middleman he control prices in mandi.
Vegetable Trader
Traders are purchasing vegetables from farmers through commission agent by open auction method. These
traders are arbitraging the vegetables according prices prevailing in different mandis and making profit out
of them, Traders also purchasing from other states. Trader also sells vegetables to the trader in the same
mandi and other mandis. Suppose if they sold vegetables to the traders in the same mandi they will charge a
margin of 2%.
If trader purchases vegetables from farmer through commission agent then he will pay 7.85% commission to
the commission agent. Sometimes traders also purchasing vegetables at field level in this there is no
commission charges.
Traders are doing value addition activities like cleaning and grading of vegetables after purchasing from
farmer through commission agents.
But in villages like Bassi, Devgoan, Kanota, Tigaria, Damodarpura, Jahota and Itawa traders are directly
purchasing vegetables (tomato and Green chilli) from farmers and doing value addition activities like
cleaning, grading and packing then these vegetables (Tomato and Green chilli) and directly sending to Delhi
Azadpur mandi. In this process traders are making good profit by eliminating commission charges and
mandi Tax.

Table: Different Charges incurred by traders in mandi level
S.No. Charges In Rs
1 Packing and grading cost Per bag 5
2 Transportation cost per Kg 1.3
3 Commission In % 7.85
4 Other costs Per Bag 3
Source: Based on Primary data collected in different mandis.
Note: In direct purchasing of vegetables by the trader at field level there is no commission charges (7.85%)
Some traders also procuring vegetable for processed industries on agreement basis and these traders also
purchase vegetables for retail malls and hotels on commission basis. Traders are charging a commission of
2%.
Vegetable Wholesaler
Masakhor: The masakhor is a local term used for a functionary between the wholesaler and the retailer.
This functionary acts in mandi, and usually is a small wholesaler or a big retailer. He buys vegetables from
the market in sufficient quantity and then sells in small units to the retailers, vendors and consumers who
frequent the market.
Ladans: This term is used for transporters who buy from the mandi and sell it to the CA9 of small mandis of
other states. His profit is to take advantage of price differentials and he is thereby responsible for the
addition of time and space utilities.
Vegetable Vendor
Vendors are purchasing vegetables from farmers through middleman and they also purchasing from
wholesaler. There are two Methods of purchasing of vegetables by vendor through Middleman. First one is
open auctioning and second is Under cover Method. Under cover method was followed by the vendors for
9
CA- commission Agent

purchasing Potato and Onion. If vendor want to purchase vegetable through commission agent on credit
basis then commission agent forces to purchase vegetables by undercover method.
First method of purchasing is followed in mandi, when farmer brought vegetables to the mandi.
When vendor want to purchase vegetables in less quantity (5-10kg) then he purchases from wholesaler on
fix rate or mutual negotiation. If vendor want more quantity then he will purchase from farmer through
commission agent.
These vendors are cleaning vegetables before selling it to consumers. Only 2% of vendors are grading
vegetables for selling purpose.
90% of vendors are purchasing vegetables on credit basis. In every week business vendors are making loss
of 3 days business.
Vendors profiling:-
i) Type „A‟ vendor

ii) Type „B‟ vendor
Type „A‟ vendor: - (fixed shed, stall in mandi)
They sell vegetables in mandi at particular place and tin shaded shop. They procure large quantity of
vegetables then type „B‟ vendor.

Quantity 100-200kg 100kg 100-250kg 50kg 60kg
Per day working Capital: - 2200/- to 2700/-
Sales Turnover: - 2500/- to 5000/-day
Profit: - 250-500(~10-12%)/ day
Transportation cost: - 250-300/-day
Other Cost: - 55-80/- day

They procure vegetables from farmer through middleman they have a fix Adatiya and daily purchase
vegetables through Adatiya, Adatiya provides him to credit and sale vegetable on 7 day credit.
Type „B‟ vendors: - (Baskets placed on the ground or carried on the head or body, mats or cloths spread on
the ground pole over shoulder, bicycle, and wheeled push-cart)
These vendors are selling vegetables: -
 Door to door
 Road Side Street
 Open air market
 Central bus stand
 District or residential neighborhoods
 Street corner or side walks
 Railway stations
 Subway stations and
 Bus stop / lorry stations
In the morning these vendors are selling fresh vegetables to higher profile families, when Freshness of the
vegetables looses then they sell their vegetables to lower profile people.
Quantity 20-40kg 15-25kg 25-40kg 6-10kg 10-15kg

This type of vendor procures less quantity of vegetables then Type „A‟ vendors because they do not have
enough space and working capital, they cannot sale that much quantity of vegetables. His perishable % of
vegetable is very high because they sell in open air environment.
They procure vegetables from farmers through middleman and wholesaler. If they want less quantity of
vegetables like 5-10kg then they procure from wholesalers.
Per day working capital: - 800/- to 2000

Sales Turn over: - 1000/- to 1500/- day
Profit: - 100-200(~10-13%)/ day
Transportation cost: - 100-150/-day
Other cost: - 30-45/- day

Vendors Profit & Costs: -

Purchase Price 8 5 5.25 7 7.5
Loss 0.72 0.937 0.38 1.15 1.36
Commission 0.628 0.3925 0.4121 0.5495 0.5887
Transportation 0.29 0.272 0.303 0.277 0.283
Cost
Other Cost 0.047 0.093 0.049 0.104 0.11
Total Cost 9.685 6.6945 6.3941 9.0805 9.8417
Sale Rate 10 10 10 14.5 15
Net Profit 0.315 3.3055 3.6059 5.4195 5.1583
Profit % 3.15 33.06 36.06 37.38 34.39
16
14
12
10
Sale Price
8 Purchase Price
transportation Cost
6
Loss due to perishability
0
Potato Tomato Onion G.Chilly Kakdi

Vendors Loss % Due to perishables of vegetable: -
Loss % of vendors 8.85% 18.34% 7.15% 16% 19%
Loss % of vendors
20
18
16
14
12
10
Loss % of vendors
8
0
Potato Tomato Onion Green Chilly Kakdi

Per Kg Total extra Cost of Vendors: -
Per unit of Total cost (In Rs) 0.984 0.767 0.77 0.944 0.96
Per Kg of Total cost (In Rs)

1.2
0.8
0.6
Per Kg of Total cost (In Rs)
0.4
0.2
0

Commission Charges by commission agent (per kg in Rs):-

per unit commission ( In Rs) 0.641 0.401 0.418 0.562 0.57
per Kg commission ( In Rs)

0.7
0.6
0.5
0.4
per Kg commission ( In Rs)

0.3
0.2
0.1
0

Profit % per Kg: -
Profit per Kg (In %) 3.15% 33.06% 36.06% 37.38% 34.39%
per kg profit %
40.00
30.00
20.00
Profit %
10.00
Profit %
0.00

Profit per Kg: -
Profit per unit (In Rs) 0.315 3.035 3.605 5.419 5.158

.
Profit per Kg (In Rs)

6
5
4
3
2 Profit per Kg (In Rs)
1
0

Vendor‟s problem:-
Financial Problem:
Most of the vendors facing financial problem they suffer 3 day loss in a week in this vegetable business due
price fluctuation and perishable nature of vegetables. They want to purchase large quantity of vegetables but
they cannot buy because of unavailability of working capital.
They procure vegetables on 7 or 15 day credit basis and in this process middleman charge high price and
interest. Some time they take credit from relatives, friends and private financer on different interests (3, 4,
4.5, 5, 6 Rs per 100Rs per month).
Private financer charge more interest rate they followed one specific method of financing that is if vendor
want Rs 9000 credit from private financer they give Rs9000 at time and recover every day Rs100 for 100
days from next day of financing, finally they recover Rs10000 in 100 days.
Price fluctuation: - Price fluctuation is the most problem of vegetables vendor they cannot reduce this
problem because they cannot control prices. For example vendor procure 25kg tomato at Rs 5/-kg and he did
not sale whole quantity of tomato at the same day he sale only 15kg tomato and next day tomato prices are
goes down by 2Rs in this situation he cannot sale tomato at last days price due to competition he have to sale
10kg tomato at less price.
Perishabilty: - Perishabilty is one of the problems of vendors. Due to high perishable nature of vegetables
vendors could not able to get good returns.
Commission Agent: - Most of vegetable vendors have financial problems and sometimes middlemen also
charges high (7.85%, 8% on total purchase).
Marketing: - Vendors also faces problems to sell their vegetables. They have to find proper market place
and sometimes they do door to door selling also. To solve this problem they should be provided proper
location to sell vegetables.
High transportation cost: - Due to high transportation charges vendors are unable to get required returns
because both Chomu and Mohana mandis are 20 Km away from Jaipur. If they bring a bag of vegetable then
they have to pay Rs. 20 per bag.
Competition: - Today vendors also face tough competition from Retail store other vendors who brings
vegetables from direct farmers and their own fields and also have fresh vegetables. These stores and vendors
sell on less price then market price, so vendors who purchase from mandis have to bear some kind of losses.

Recommendations: - Recommendations for development of vendors.
Provide micro finance for working capital: -

For development of vendors we can provide micro finance for his daily working capital. Because they don‟t
have enough working capital for purchasing vegetables they want to purchase more vegetables but they
cannot purchase due to lack of money.
For this we can provide one credit card scheme through bank to vendors that they can use money for daily
working capital. Bank can recovers money in installment daily or weekly or fourth nightly.
Provide Micro finance for Thela (wheeled push-cart): -
We can provide micro finance to vendors for his wheel push-cart because this is expensive for the vegetable
vendors to buy this. And many vendors takes thela on rent Rs 300 to 400 per month and doing his business.
If they will have own thela then they can save that money.
Deposit scheme: -
We can provide to vendors one deposit scheme that can help saving money of vendors. In this scheme the
bank people will collect money in the evening from vendors at his place where vendor doing business.
Training: -
We can give training to vegetables vendor for his business that how they reduce his loss % and how they can
reduce perishabilty. Through training vendors can know about various banks and government scheme for
development of poor people.
We can provide knowledge about grading, packaging, labeling, storage, marketing techniques, how they can
compete against retail chain shops. Through training we can give motivation and tell about his strengths.

Retail Shops
Reliance Fresh: -
Reliance retail (Reliance Fresh) is working on the philosophy of „farm to fork‟ whereby produce is
transported directly from the farmer to the consumer, thereby eliminating the middlemen and hence bringing
the prices at affordable levels.
The procurement operation of Reliance fresh works on Hub and Spoke model, where distribution centre
(DC) works a hub and various collection centers behaved like spokes. Each collection center fed by
respective cluster of villages, which grows different kinds of vegetable. These collection centers have the
facility of electronic weighing and simple cleaning and sorting facility. Farmer brings their produce in jeeps
and trolleys. Produce is weighed and instant cash payment is made. Sometime collection centre is unable to
procure required quality and quantity of vegetables (For e.g.: cabbage, cauliflower, Spinach, Broccoli etc.)
from the farmers due to various reasons like non availability of produce at the procurement centers,
seasonality of the produce etc. So such type of produce is generally procured by the CPC 10 from the local
mandis to meet the demand.
10
CPC- City Processing Centre

More retail (Aditya Birla Retail Limited): -
Merchandising flowchart: -
Mohana Mandi Collection center (Grading & Sorting)
Sourcing Strategic Sourcing
Fruit and Vegetable centre (Grading, Sorting, Batch Marking and Fixing price)
Stores
Ambabadi, Barkat Nagar, Chitrakut, Jawahar Nagar, Kalwar, Mahesh Nagar, Mansarovar, Murlipura,
Sultan House

SOURCING: is done mainly from three places:
1>Mohana Mandi -
Sourcing of fruit and vegetables which are not locally available in Jaipur is done from this mandi. It provides
maximum SKU‟s which includes around ten to fifteen vegetables and twenty fruits. Cost of fruit and
vegetables in mandi is based on
Arrival- Low arrival, prices increase. This may be due to low production, crop failure or shifting of
traffic to other area due to better price realization.
Purchasers- The number of purchasers in a day has inverse effect over pricing but it is again largely
dependent on arrivals.
Last day rates- This act as basis for the next day price setting for middlemen.
Season (arrival of new variety): - As the season of fruit & vegetable dawns away so will be its price
and a new variety of the same commodity may fetch higher prices in the market.
Special occasions- festival and marriages tend to increase retail prices of the F&V.
Left over stock: If left over stock is high, then despite low arrivals, prices may not fluctuate.
Farmers bring their produce in mandi on trucks with fruits packed in wooden boxes or cartoon and
vegetables in gunny bags. They sell their produce through authorized commission agents of the mandi. The
bulk purchase is done through auctions in the morning and small quantity purchase is made by rate
negotiation. The current rate of commission is 6% of the total value of products purchased and mandi fee is
1.6% (both of these are charged from the purchaser). The weighing and loading charges are Rs.2/bag and
Rs.3/bag respectively. The produce that is bought are kept in crates and loaded on truck having 1 tone
capacity.
2>Collection centre-
It is located in Morija, 35 km away from Jaipur. Time of operation of CC is from 11:30 a.m. to 10:00 p.m.
The facilities at collection centre are weighing machine, grading and sorting table. The arrival of fruits and
vegetables is more from villages surrounding Jaipur. Contact farming has helped ABG officials to build
good rapport and relationship with farmers. The number of farmers covered through contact farming is 250.

Items supplied by farmers are Tomato, Brinjal, Radish, Sponge gourd, Cauliflower, Bean, Bottle gourd,
Okra, Chilli, Cabbage, Bean, Cucumber, Capsicum, cluster bean, and Carrot. Most of the SKU‟s are sourced
from farmers of Morija and Chomu.
F & V producing areas around the CC are given below:
Onion- Bagru, Mahapura, Rampura
Potato- Mainpuri, Etawah, Khatoli
Tomato-Morija, Belochi, Dholpura
Cabbage-Morija, Chomu, Dholi
Chilli, Carrot, Brinjal, Bottle gourd, Okra, Bitter gourd, Radish, Cucumber - Chomu, Morija.
The farmer brings their produce on trucks to the collection centre .The arrival of fruit and vegetables in CC
occur at different time. E.g. Leafy vegetables in evening and the fruits in afternoon. At CC, the produce is
unloaded and grading and sorting of the produce is done on grading and sorting table and then it is loaded on
trucks in crates and sent to F & V centre at VKI.
Farmers are ready to give their produce to ABRL because of the nearness of the CC from their villages; the
rate of produce is fixed and does not fluctuate with time or number of arrivals etc. There is no loading and
unloading charges and cash payment for their produce is given to farmers.
3>Strategic sourcing -is done for hard SKU‟s like Onion, Potato, Garlic.
F & V Centre: It is located at Vishwakarma industrial area, 8.5 km from Ajmeri Pulia in Jaipur. Total
SKU‟s covered depends on indent of the MORE stores. The facilities present at F & V centre are: weighing
machine-3, grading and sorting table. The trucks after being loaded with the indent from both the mandi and
CC are sent here. After unloading again the fruits and vegetables are weighed and then sorting and grading is
done on sorting and grading table. The quality officer checks the quality of produce and decides whether the
fruit/vegetable is Aditya Birla or non Aditya Birla (AB or non AB). The rejected F & V are left at store and
are sold to local vendors. After the quality is checked and the F &V is approved to be sold at “MORE”
stores, the SKU‟s are kept in crates. Usually for each SKU size or kg that has to be kept in crates is fixed and
if any deviation is there then a label having the amount is stuck to the crate. Inside the F & V centre, nine
places have been allotted to nine stores which are Ambabadi, Barkat Nagar, Chitrakut, Jawahar Nagar,
Kalwar, Mahesh Nagar, Mansarovar, Murlipura, Sultan House. After weighing the crates are kept near the
place according to the indent of a particular store.

STORES:
In Jaipur, ABRL has opened 9 MORE stores at Ambabadi, Barkat Nagar, Chitrakut, Jawahar Nagar, Kalwar,
Mahesh Nagar, Mansarovar, Murlipura and Sultan House. To ensure the freshest supply of fruits and
vegetables to customers, the company is building linkages directly with the farmers with the help of
collection centre (located at Chomu) and distribution centre at VKI.
Case
CHOMU (Jaipur), May 13: Scene I: It is shortly after dawn on May 9. Narayan brings six baskets (each
weighing about 40 kg) of tomatoes to a vegetable market at Chomu, some 36 km from Jaipur. He quotes a
price of Rs 650 per basket to commission agent Subhash Saini, who pooh-poohs the quotation. Narayan
haggles for a while and then relents: Rs 350 per basket of 40 kg tomatoes is what he gets.
Scene II: - Narayan, who netted Rs 2,100 for his sale, has to pay four per cent of it to ``Adatiyas'', who
maintain the mandi at Chomu.
Scene III: - Saini, the commission agent who bought the tomatoes from Narayan and other farmers, has them
loaded into a medium-sized truck. The supply heads for Delhi, and not long after it has reached the Capital,
finds its way into domestic and commercial kitchens at the rate of Rs 40 a kg.
Even if reasonable commission, transport and other overheads are factored in, the kilo of tomatoes that were
purchased by the agent for less than Rs 10 could normally not have magically cost the end-user four times
more. And thereby hangs the tale of astronomically-priced vegetables in urban and semi-urban India. Tell
farmer Narayan that the same kilo of tomatoes costs Rs 40 in Delhi and he will laugh at you, incredulously.
The middleman is clearly inflating the price of vegetables in this country. Through a well-networked cartel
that operates in farming India, produce is procured as relatively low prices and hawked to the consumer at
staggering prices by artificially controlling supply. Narayan's sale on the morning of May 9 was clearly in
distress: a day earlier there was a heavy downpour at his village Chetwara, nine km away from Chomu. In
ankle-deep water, Narayan and his family salvaged their tomato crop from his five-bigha. ``Tomato
cultivation get spoiled during rains and thus we have to collect our produce and get it to the mandi as soon as
we could,'' Narayan said.

The crop was not yet ready for harvesting, but Narayan and his family were busy clearing the field at a fast
pace, hoping that even half-ripe tomatoes would fetch them a good price owing to shortage of tomato in big
cities. Just before the sunset, the tired Narayan and his family completed their job and began sifting out
better quality of tomato in separate baskets.
At 5 am the following day, the hastily-harvested tomatoes were loaded into a camel-driven cart that was
headed for Chomu mandi. Unfortunately for Narayan, the mandi was officially closed because of Purnima.
But time, tide and tomatoes wait for none. Narayan did not want to take his produce all the way back to his
village: apart from the effort, there was no telling how his prematurely-picked produce would survive the
journey. Just as he was wringing his hands in despair, along came the commission agent. Since this was
obviously a buyers' market situation, Narayan provided easy pickings for commission agent Saini. For every
one Saini there are at least ten Narayans.
As the morning wore out, commission agent Saini came forward with feigned disinterest to do a deal with
Narayan. Narayan feebly demanded Rs 650 per 40 kg for good quality of tomato and Rs 300 for half ripe
ones.
Saini, however, offered one price of Rs 350 per 40 kg for Narayan's entire produce. Narayan immediately
gave in and settled for Saini's price.
Saini went through the same routine with other farmers who, like Narayan, were desperate to sell their
produce. But Saini's tempo had still space to accommodate more vegetables. He then went for other cash
crops - brinjal and ghiya (gour) and easily pocketed them at rate of 25 paise a kg and 50 paise a kg
respectively.
As there was more space in his tempo, he moved on to the Manoharpur mandi, located 15 km away from
here. Here too, the mandi was closed, but some farmers had shown up to sell tinda. Saini preferred tinda,
which is being sold at Rs 16 a kg in Delhi markets. But he got it for only 75 paise a kg from Jagdish, a local
farmer from Manoharpur. He filled the remaining space of the tempo and sent it to Tilak Nagar mandi in
Delhi and part of the supply to Chandigarh.

Narayan had to pay four per cent of his income to Adatiyas, while Saini claimed that he had also paid five
per cent of the purchase he had made. The Adatiyas get commission from both - the farmers and the
wholesale buyers - because they hire places for holding mandis.
According to Saini, tomato cost him Rs 15 a kg at Delhi after the transportation charges. But, in the same
breath, he also told that he had paid Rs 2,000 for the tempo, which as to go to Delhi and parts of Haryana.
A tempo carries 200 baskets of tomato (each basket of 25 kg). And if Saini pays Rs 2,000 for the tempo, the
transportation charge comes to Rs 1.25 a kg only, thus tomatoes costing him nearly Rs 11 a kg. He auctions
the produce to vegetable merchants in Delhi and Haryana for a profit of about Rs 5-6 a kg. The merchants, in
this chain of middlemen, corner maximum profit, ranging between Rs 9-10 a kg. And local vendors do not
lag behind the merchants, as their profit margin is only one to two rupee less than the vegetable merchants.
Thus, tomatoes get dear by 26 to 30 rupees, which is being shared by the commission agent, vegetable
merchant and vendors.
Some vegetable merchants are at more advantageous position, as they hire their agents and appoint them at
Chomu and nearby mandis, thus eliminating `commission' agents in the link of middlemen. The merchants
pay salaries to these hired agents.
At Chomu, one of the main four centres to supply tomato to Delhi, are commission agents from Delhi,
Haryana, Chandigarh, Ahmadabad and Poona. During the tomato season, they throng the Chomu Mandi
(about 200 km‟s away from Delhi) and corner most of the tomato supply at cheaper rates.
More interestingly, these agents have spread their network in the tomato grower villages around Chomu and
do not even allow the villagers to reach the mandi. On a road to Chomu off the Delhi-Jaipur highway, there
are a number of villages growing tomato.
At Samarpura village, the agents had camped six days ago. They opened a working mandi (in local parlance
called `tal') on a small vacant plot and invited farmers to sell their produce. Farmers were too happy that
they would not have to travel all the way to Chomu.

Girdhari Lal, a wealthy farmer from Samarpura village, sold off 10,000 kg of tomato at the rate of Rs 5 to Rs
10. ``Initially, I got only Rs 200-250 for every 40 kg of tomato during the auction. But on May 5, there was
a competition between the agents from Delhi and Ahmadabad, which fetched me Rs 10 a kg of tomato,''
Girdhari Lal said.
Source: - (http://www.indianexpress.com)
References: -
Horticulture department
Agri. Economic Magazine
Horticulture information magazine
Wikipedia.org
Agricultural produce marketing committee
National Institute of Agricultural Marketing
www.indiastat.com/
www.rajasthankrishi.gov.in/
www.nhm.nic.in/
www.marketingteacher.com/
www.indianexpress.com/
Directorate of Horticulture, Govt. of Rajasthan
Directorate of Horticulture, Govt. of Rajasthan & Fertilizer Association of India
Terminal market, Jaipur

"Study of Value Chain On Vegetables": Entre For Micro Inance

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CENTRE FOR MICRO FINANCE

“Study of value chain on

By: Manoj Kumar Rolan

CENTRE FOR MICRO FINANCE,30-JAIJAWAN COLONY-II,TONK ROAD, JAIPUR-302018

Study of Value Chain on Vegetables

2|Page National Institute of Agricultural Marketing (NIAM), Jaipur

I, Manoj Kumar Rolan, a student of Post-Graduate Diploma in Agri-Business Management (PGDABM) at

individually under the guidance of my project guide Mr. Sourav Roy.

of eight weeks as per the requirements of the policies of the institute.

MANOJ KUMAR ROLAN

3|Page National Institute of Agricultural Marketing (NIAM), Jaipur

Mr. Jaipal Singh Mr. Sourav Roy

4|Page National Institute of Agricultural Marketing (NIAM), Jaipur

Manoj Kumar Rolan

5|Page National Institute of Agricultural Marketing (NIAM), Jaipur

3. Vegetable scenario in India 14

4. Vegetable scenario in Rajasthan 15

5. Vegetables Value Chain Analysis 18

6. Chomu Mandi Value Chain 32

7. Mohana Mandi Value Chain 36

8. Kisan (Lalkothi) Mandi Value Chain 40

9. VKI No. 14 Mandi Value Chain 42

10. Janta Market Mandi Value Chain 44

11. Ambabari Mandi Value Chain 46

12. Chandpole Mandi Value Chain 48

13. Transactional methods of vegetables 50

14. Middleman (commission agent) 51

15. Vegetable Trader 52

16. Vegetable Wholesaler 53

17. Vegetable Vendor 53

18. Vendor‟s problem 62

20. Retail Shops 64

21. Case study 68

6|Page National Institute of Agricultural Marketing (NIAM), Jaipur

CHANNELS OF VEGETABLE MARKETING:-

7|Page National Institute of Agricultural Marketing (NIAM), Jaipur

8|Page National Institute of Agricultural Marketing (NIAM), Jaipur

 Select five main vegetables.

 Map out the source of these vegetables.

9|Page National Institute of Agricultural Marketing (NIAM), Jaipur

 Collection of Export oriented data of vegetables from Rajasthan.

 Analyse price trends of vegetables in mandis.

 Develop a model of value chain of vegetable.

 Describe vegetable vendors business.

10 | P a g e National Institute of Agricultural Marketing (NIAM), Jaipur

ORGANISING AND EXECUTING THE SURVEY: -

depth interview, undisguised manner was followed to elicit better responses.

PROCESSING AND DATA ANALYSIS: -

Areas covered during survey: - Jaipur District, Rajasthan

 Terminal market (Mohana fruit & vegetable Mandi).

11 | P a g e National Institute of Agricultural Marketing (NIAM), Jaipur

S.No Place Date Days

4. Bagru area( Mohana, mohanpura, Bagru) 04/05/09 1

5. Chandpole Mandi 05/05/09 to 06/05/09 2

6. Janta Market Mandi 10/05/09 to 13/05/09 4

7. Johari Bazar mandi 10/05/09 to 13/05/09 4

8. Kisan Mandi 14/05/09 to 15/05/09 2

9. Mansrover Mandis 16/05/09 to 23/05/09 8

10. Sodala Mandi 16/05/09 to 18/05/09 3

11. Ambawadi Mandi 19/05/09 to 21/05/09 3

12. Jhotwara Mandi 22/05/09 to 23/05/09 2

14. Dundy river belt 23/05/09 to 24/05/09 2

15. Retail shops (Reliance Fresh, Safely, More 25/05/09 to 27/05/09 3