Supply Chain Management

Project Report
on
Supply Chain Study of Orange in Jaipur

Submitted to

Prof. Rakesh Jain

Submitted by

Narinder Gautam

2013UME1774

Shubham Mahna

2013UME1417

At
DEPARTMENT OF MECHANICAL ENGINEERING
MALAVIYA NATIONAL INSTITUTE OF TECHNOLOGY
JAIPUR
SESSION 2016-17

Page | 1

DECLARATION

We hereby declare that the Report entitled Supply Chain Study of Orange in Jaipur that
is being submitted is our original work and the report has not formed the basis for the award of
any degree, associate ship, fellowship or any other similar titles. In case any type of plagiarism
is found out, we will be solely and completely responsible for it.

Date: 18 November, 2016

Place: MNIT Jaipur

Narinder Gautam
Shubham Mahna

Page | 2

ACKNOWLEDGEMENT

The satiation and euphoria that accompany the successful completion of the report would be
incomplete without the mention of the people who made it possible.
We offer respectful obeisance unto the lotus feet of Prof. Rakesh Jain for all his valuable
guidance, excellent direction, encouragement and inspiration given to us without which the
present work would not have been possible. It was indeed our privilege to work under his
supervision. We feel indebted to him for teaching us each and every aspect of the art of
management.
I am grateful to administration of Reliance Fresh, Malviya Nagar Jaipur, for allowing us to
pursue this work. Without their support the dream of undertaking a substantial training would
not have come true.
Last but not the least; we are grateful to Almighty God; without whom blessings we could not
have achieved so much.

(Narinder Gautam
Shubham Mahna)

Page | 3

ABSTRACT

The present study was conducted in Jaipur district in Rajasthan on orange supply chain.
Majority of these oranges were being disposed off through commission agent/wholesaler
followed by retailer and directly to the consumer.
Orange is one of the important fruit crops grown in India. In terms of area, India ranks second
with an area of 5.54 lakh hectares (2008-09) accounting for around 22.4 per cent of the world
orange area. In terms of production, the country occupies third position after Brazil and USA
constituting 8 per cent of the global orange production. It is produced for both domestic
consumption as well as exports. In the wake of galloping price rise in orange, it is imperative
to understand the supply chain, pricing and effect on consumer. Hence, an attempt has been
made through this study to bring out the features of supply chain of orange.
Findings of the study revealed that, the pricing of orange is a result of production and demand
of orange in the market. More the production, lesser is the price and more the demand, higher
is the price; and vice versa. The report also includes some aspects of Reliance Fresh store.
Reliance Fresh is the convenience store format which forms part of the retail business of
Reliance Industries of India. These stores sell fresh fruits and vegetables, staples, groceries,
fresh juice, bars and dairy products orange too. The supply chain of orange described in this
report also includes the supply of orange to these convenient stores other than retail outlets and
ferry-owners.
I hope that the study will be extremely useful for policy makers, researchers and corporate
agencies interested in meaningful linkages with smallholders in general, and in Jaipur, in
particular.

Page | 4

Table of Contents
1 INTRODUCTION ................................................................. 5
............................................................................................................................................... 5

3
4

6
7

1.1

ORIGIN OF ORANGES ................................................................................................ 6

1.2

Availability of Oranges in India ................................................................................. 6

1.3

Types of Oranges in India ......................................................................................... 7

1.4

Indian scanerio of orange market ............................................................................ 7

1.5

CULTIVATION .............................................................................................................. 7

1.6

GEOGRAPHICAL INDICATION .................................................................................... 8

DATA COLLECTION .......................................................... 8

2.1

Objectives .................................................................................................................. 9

2.2

Procedure followed ................................................................................................... 9

2.3

Reliance Fresh Store ............................................................................................... 10

2.4

Fruit Street Vendors ................................................................................................ 12

2.5

Muhana Mandi ........................................................................................................ 14

Flow Chart of Different Supply chains ............................... 15

SUPPLY CHAIN ................................................................ 16
4.1

Supply Chain of Orange .......................................................................................... 16

4.2

At Farmers level ...................................................................................................... 16

4.3

Local Collection Center ........................................................................................... 16

4.4

At Distribution Center .............................................................................................. 17

4.5

At Retailers Level .................................................................................................... 17

SCOPE OF IMPROVEMENT ............................................ 18

5.1

Present Fruit and Vegetable Supply Chain Model in India ................................... 18

5.2

Proposed Supply Chain Model ............................................................................... 19

CONCLUSION ................................................................... 20
REFERENCES .................................................................... 21
1 INTRODUCTION

SCM is the coordination of material flows, information flows and financial flows among all
the participating organizations so as to ensure that the right product in the right place, at the
right price, at the right time, and in the right condition. Supply Chain Management plays an
Page | 5

important role in marketing of goods and services. It is the supply that compete, and not
individual businesses is an accepted saying. Every business plans to cut costs, which do
not adds to maintain and improve the quality of goods and services delivered. In this direction,
supply chain has played major role across the world in varied sectors. SCM not only helps to
cut costs, but also adds to maintain and improve the quality of goods and services delivered. In
this direction, Supply chain has played a major role across the world in varied sectors. In
marketing fruits and vegetables, which are perishable in nature, SC plays a crucial role. The
very nature of land holding by the farmers, varied climate conditions, production spread over
worldwide geographical area, mainly in remote villages, diversified consumption patterns and
poor SC infrastructure make SCM for fruits and vegetables more complicated. Efficient SCM
in marketing, not only increases the profitability and efficiency of retailers, but also adds value
to different stakeholders like farmers, consolidators and consumers.

1.1 ORIGIN OF ORANGES

Orange has a long, convoluted history, in part because it is not a wild fruit. Rather, it is a
carefully refined hybrid of mandarin and pomelo. Contenders for the countries that first
cultivated the orange are north eastern India, southern China, and possibly Indochina. While
pummelos originate in India, mandarins came from China.
All of these groups often tradedor forcibly acquired, in the event of warcitrus seeds,
cultivation techniques and technology. One of the greatest periods for oranges was the
Andalusian period, occurring from the 13th century onward: Improvements in irrigation
created a veritable citrus belt throughout Spain, many of which created the orange cultivars
best recognized today: Seville, Valencia, Zaragoza, and Granada, to name a few.
In the mid 1400s, Italian traders brought oranges fruit to Europe, and the Spaniards introduced
them throughout South America and Central America. The United States owes Spanish
voyager, Ponce de Leon, for bringing citrus to Florida in 1513. Today, oranges are one of the
most widely cultivated fruits in the world.

1.2 Availability of Oranges in India

Oranges are a major crop for India, ranking only after bananas and mangos in volume. 2010
figures published by the UNs Food and Agriculture Organization ranks India third in the world
for oranges, behind only Brazil and the United States. Combined, these three countries account
for almost half of the worlds production of 68 million tons. India exports sweet oranges to
countries including Sri Lanka, France, the UK, Belgium, and Bangladesh.
Page | 6

The countrys orange season varies by region. In the north, orange season is from December
to February; in the South, the season is notably longer from October through March. Central
and western Indias season is November through January, as well as March through May.
Orange production is concentrated in Andhra Pradesh, Maharashtra, Karnataka, Punjab,
Haryana and Rajasthan. The areas producing mandarins are Coorg, Vidharba, Darjeeling,
Meghalaya, Assam, Nagpur, Akola and Punjab. These regions have the ideal mandarin growing
conditions of high rainfall in summer and humidity. Areas producing sweet oranges are
Haryana, Punjab, Rajasthan, Maharashtra, Andhra Pradesh, Nagpur, and Akola.

1.3 Types of Oranges in India

India grows several varieties of oranges, differentiated by their sweetness and exterior. In fact,
The National Research Centre for Citrus in Nagpur, India cites that the country houses a
staggering 1,505 types of citrus. Though limes, Seville oranges, sweet limes, lemons and
mosambis are technically Citrus sinensis, the focus will be on the countrys sweet citruses and
mandarins. Varieties include:
Mandarin (loose-sleeved, easily peeled oranges): Coorg, Nagpur, Darjeeling, Khasi,
Sumthira, Kinnow.
Sweet orange (peel adheres firmly to flesh): Blood red, Satgudi, Jaffa, Hamlin, Pineapple,
Haryana, and Valencia.

1.4 Indian scanerio of orange market

Orange is grown across the world in 41.96 lakh hectares with 684.75 lakh tonnes production
which translates into 16.32 tonnes a hectare productivity according to FAO, 2009. It is the most
commonly grown tree fruit in the world. Brazil is the world leader in orange production (176.18
lakh tonnes) contributing to 25.73 per cent of world tonnage followed by the US at 12.09 per
cent (82.81 lakh tonnes), India at 7.60 per cent (52.01 lakh tonnes) and China at 7.10 per cent
(48.65 lakh tonnes).
India is the third largest producer of orange in the world.
Although, India is second in area and third in production of orange in the world, the
productivity/hectare is very low as compared to the US, Indonesia, Turkey and other countries
where the crop is grown commercially.
In terms of productivity, India ranks 64th with only 9.23 tonnes a hectare.
Total export of orange from India during 2009-10 was 25.06 thousand tonnes (Rs 25.39 crore
in value).
In terms of value, Bangladesh is a major importer contributing 84 per cent followed by Nepal
contributing 12.08 per cent of total exports from India.
Other major importing countries include Kuwait, Oman, Singapore and the UK.

1.5 CULTIVATION
Oranges are mostly grown in Maharashtra, Madhya Pradesh, Assam, Rajasthan, Mizoram,
Meghalaya, Nagaland and Karnataka.
Page | 7

The area under orange cultivation in India has increased by 125.77 per cent from 2.49 lakh
hectares in 2001 to 5.63 lakh hectares in 2009 with 101.98 per cent increase in the production
from 25.75 to 52.01 lakh tonnes during the same period.
Maharashtra is the leading orange (Mandarin) producing State with 8.27 lakh tonnes (2009-10)
accounting for 40 per cent of total production and yield of 6 tonnes a hectare. Madhya Pradesh
ranks second with production of 6.78 lakh tonnes followed by Assam (1.42 lakh tonnes).
Karnataka is with the highest yield at 19.20 tonnes a hectare.
In India, specific cultivars of oranges are cultivated in different regions. For example, Coorg
orange is typical to Coorg and Wayanad regions of Karnataka, whereas Nagpur orange is
ideally suited for Vidarbha region.
Similarly, Darjeeling, Khasi and Sumithra oranges are basically adapted to Darjeeling, Khasi
hills and Assam respectively.
Monsoon blossom which matures in February-March has great potential for export since
arrivals of orangein international market are very less during this period.

1.6 GEOGRAPHICAL INDICATION

Coorg orange grown in the Kodagu, Hassan and Chikmagalur districts of Karnataka is awarded
Geographical Indication owing to its characteristics such as medium sized, fairly tight skinned
orange yellow fruits having dark orange pulp, being tender, juicy with a rich flavour and
excellent blend of acid and sugar.
Hilly terrains with well-drained soil having high rainfall in Coorg (Kodagu) and surrounding
regions gives the specific taste, aroma and keeping quality to this particular cultivar.
It is unique to this particular regionand if it is grown in places other than Coorg, it loses that
specific taste, aroma and keeping quality.
Nagpur orange is also under consideration for Geographical Indication.
Orange is rich in vitamin C, A, B and minerals.
It is consumed fresh or in the form of juice, jam, squash, gelatin and syrup and thus, has a high
processing potential. It is also used as a flavouring agent/spice and is the main source of peel
oil, citric acid and cosmetics which have international market value.
Oranges exported to Bangladesh and Nepal by trucks following traditional way of handling
and packing without pre-harvest treatments or cooling.
For distant markets of Europe, the Gulf and South East Asia, export by refrigerated container
ships is imperative.
According to specific market demand and careful post-harvest handling to retain most of
natural qualities and freshness, play a key role in expanding exports.

2 DATA COLLECTION
Page | 8

2.1

Objectives

The study has been made with the following set of objectives in order to completely get hold
of the entire supply chain of oranges:
To identify the players at various levels and to know the role played by the various
intermediaries in Supply Chain.
Identify the Organized Retailing of oranges in the market and to study the flow of
oranges from suppliers to the retailers.
To know the market segments of oranges.
Identifying the significant role of Supply Chain in marketing and pricing of oranges.
Identify the New possibilities in the Supply Chain Management for oranges.

2.2

Procedure followed

The study covers the pricing and distribution of oranges in Indian markets from Supply chain
perspective and to elaborate this study secondary data has been collected and analysed. The
present study is based on information collected from the following sources:
the market officials of the oranges

Retailers and Wholesalers from Jhalana Area and Malviya Nagar

Commission agents/Distributers from Muhana Mandi

The market officials were consulted for gathering the information on the overall activities of
these markets, marketing infrastructure and other related information.
The secondary information was collected from the report of National Horticultural Department
of India (NHDI), Standard books, International Journals, articles, etc. and certain websites were
also referred.
To get the desired result the following information was required for further analysis of the study.
S No.
Q.1

Q.2
Q.3
Q.4

Q.5

Questions
From where do oranges arrive at each level?
(The aim of this question was to identify the overall supply chain of the
oranges in the market. This question was asked at each level of retailer,
wholeseller and distributor.)
What is the lot size?
(The primary concern was to identify the cost per unit of the product at each
level.)
What are the Cost Price and the Selling Price?
Do you have any Inventory?
(The type of facility, the procedure of storing and the money basically
blocked was desired to be identified. Also, chances of stock out can be
identified.)
What is Average Sales per day?
Page | 9

Q.6

Q.7
Q.8
Q.9

Q.10
Q.11

What is the Lead time for each process?

(The lead time will give a clear picture when the oranges were stored and for
how much time and do they have enough amount of time to sustain the lives
of oranges or the quality is degraded.)
Do you incur any waste?
How do you transport to the lower level and how do you receive your
purchase order?
Do you get any Promotional offers from the Superior level?
(It happens that sometimes to capture market or to increase the sales the
higher authorities may present some promotional schemes and that would
affect the demand and supply of the oranges.)
How is the fund transaction occurring in each stage?
When do you suffer a peak rise or decline in the demand or supply?
(Peak rise or decline will increase/decrease the inventory and affect the
supply at lower levels. Thus it was intended to know the details.)

.
For obtaining the above information the study was to be carried out at following lowest
perceived retail levels:
1. Reliance Fresh outlet at Malviya Nagar
2. Vegetable Street Vendor at Jhalana Area

2.3

Reliance Fresh Store

Reliance Fresh is the convenience store format which forms part of the retail business of
Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest in
excess of 250 billion in the next 4 years in their retail division. The company already has 1691
Reliance Fresh outlets across the country. These stores sell fresh fruits and vegetables, staples,
groceries, fresh juice, bars and dairy products.
A typical Reliance Fresh store is approximately 30004000 square feet and caters to a
catchment area of 23 km.

Page | 10

Responses obtained from the store were as the following for the information required as stated
above:
S No.
Questions
Answers
From where do oranges Oranges come from Muhana Mandi, Chomu and
Q.1
arrive at each level?
Pillia villages. Then are sent to Reliance Fresh DC
for further supply.
What is the lot size?
Generally, 20-25 kg. We daily check the deficit and
Q.2
order accordingly to maintain a stock of 20-25 kgs.
What are the Cost Price and Selling price of oranges is Rs. 65-70/kg
Q.3
the Selling Price?
Do you have any Inventory? Nil
Q.4
What is Average Sales per Same,15-20kg. Generally all the stock is emptied.
Q.5
day?
What is the Lead time for 1 day
Q.6
each process?
Do you incur any waste?
Not as such. Even if we get, then we send it to the
Q.7
nearest cowshed.
How do you transport to the Reliance trucks are used for transporting from
Q.8
lower level and how do you Mandis to the DC and from DC to the outlets.
receive your purchase order?
Do you get any Promotional Every day any one of the vegetable is sold at a lower
Q.9
offers from the Superior price than the market. This promotion is called the
level?
HERO VEGETABLE OF THE DAY
Q.10 How is the fund transaction Cash and cards from customers.
occurring in each stage?
Online Transaction to the DC.
Cash and Cheque payment to the suppliers.
Q.11 When do you suffer a peak On Festivals, the demand is 1.5 times the usual.
rise or decline in the demand Around 50kg oranges is sold on each of these days.
or supply?
And thus orders are made accordingly.
Page | 11

Supply chain model of Reliance Fresh

2.4

Fruit Street Vendors

Street vendors are an integral part of urban economies around the world, offering easy access
to a wide range of goods and services in public spaces. They sell everything from fresh
vegetables to prepared foods, from building materials to garments and crafts, from consumer
electronics to auto repairs to haircuts.
Street vending is an important activity related to informal sector in urban areas. Majority of
street vendors are illiterate or educated at primary level. They have low skill and poor economic
condition. Street vending provides job opportunity and means of livelihood to the urban poor
but Urban Local Bodies consider it as illegal activity so far. In 2004, first time, Government of
India recognizes vendors role in local economy after so many litigations and Supreme Court
verdict in favour of vendors. National Policy on Urban Street Vendor, 2004 and 2009, Model
Street Vendors (Protection of Livelihood and Regulation of Street Vending) Bill, 2009 are some
of the initiatives taken by the Government. Other agencies like NASVI and SEWA have played
major role to push vendors issue and formulation of policies in favour of street vendors.
The following responses were recorded from the street vendor at Jhalana Area, Jaipur for the
study of orange supply chain.

Page | 12

S No.
Q.1
Q.2
Q.3

Q.4

Q.5
Q.6
Q.7
Q.8
Q.9
Q.10
Q.11

Questions
Answers
From where do oranges arrive Oranges come from Agra, Delhi and Nasik (best
at each level?
quality) and are sent to Muhana Mandi. We then
buy from the Mandi.
What is the lot size?
Around 25-30 kg
What are the Cost Price and the We buy at Rs. 40-50/kg from the Mandi, then pay
Selling Price?
7.6% tax, then we incur a Rs. 20/ 50kg of
transportation cost. Thus, overall we get a cost
price of Rs. 50-55/kg and then we sell at Rs. 6570/kg
Do you have any Inventory?
The stock that we buy is usually sufficient for 12 days. Then new stock has to be bought. And we
did never saw any stock out, hence no need of
any extra stock.
What is Average Sales per day? Around 25-30 kg.
What is the Lead time for each N/A
process?
Do you incur any waste?
Not much
How do you transport to the We buy the orange bags from the Mandi and then
lower level and how do you get to our shops through Auto Rickshaws.
receive your purchase order?
Do you get any Promotional No.
offers from the Superior level?
How is the fund transaction Cash payment.
occurring in each stage?
When do you suffer a peak rise During festival season or during pujas..
or decline in the demand or
supply?

A Fruit vendor in Jaipur region

Page | 13

2.5 Muhana Mandi

A common supplier to these two retail levels was the Muhana Mandi. It is located at Hajiwala,
Jaipur. The place where the commission agents/distributers are located is called Mandi. The
Mandi of Jaipur region is commonly known with the name of Muhana Mandi. The street
vendors visit the Mandi almost daily to buy vegetables.
A similar set of questions was put up at the orange distributer in the Mandi and the following
responses were obtained.
S No.
Q.1

Q.2
Q.3

Q.4
Q.5
Q.6
Q.7
Q.8

Q.9

Q.10
Q.11

Questions
Answers
From where do oranges arrive Imported oranges arrive from Mumbai which it
at each level?
itself receives via Mumbai sea port .
Local oranges come from Nagpur region
mainly .
What is the lot size?
Daily a truck full of 300 crates of oranges rrive .
Each crate is of 20-25 kgs oranges.
What are the Cost Price and the Either the farmers arrive in these trucks or they
Selling Price?
sell to our middlemen at a cost of Rs. 35-45/kg
and then we sell them to the retailers at Rs. 4050/kg. This includes 1.5% of Mandi tax and 6%
commission for us to keep.
Do you have any Inventory?
Yes during festivals we rent cold stoage located
in muhana mandi.
What is Average Sales per day? Almost the entire lot.
What is the Lead time for each 1 day
process?
Do you incur any waste?
No. and even if there is, the amount is very small
2-4 bags. That is a loss to bear.
How do you transport to the We buy the orange bags from the farmers and
lower level and how do you then sell these to retailers via fully loaded trucks.
receive your purchase order?
The vendors come to us directly and buy their
desired number of bags.
Do you have any Promotional We try to get the money as soon as possible and
offers?
for that we give 1% discount to those retailers
who pay the money within 7 days of time. They
are also bound to pay within 15 days else 1%
interest will start.
How is the fund transaction Cash payment for vendors and restaurants.
occurring in each stage?
Cheque payment for retailers and regular
customers.
When do you suffer a peak rise During festival season , pujas and navratras.
or decline in the demand or
supply?

Page | 14

3 Flow Chart of Different Supply chains

Page | 15

4 SUPPLY CHAIN

4.1 Supply Chain of Orange

The orange vendors buy the orange directly from the distributors. The place where these
distributors are located is called Mandi. The Mandi of Jaipur region is known with the name
of Muhana Mandi. The orange vendors visit the mandi daily to buy oranges and choose their
demand size which is normally the same every day except on some occasions like orders on
some functions.

4.2 At Farmers level

Farmers reside at the top of the supply chain of orange.
Farmers cultivate oranges every year. But we know oranges are the vegetables which has
constant demand throughout the year. So supply of orange demand is met through cyclic
change of source throughout the year.
Farmers produce oranges and then they have following four options:
i. Take it to the local collection dock. From here oranges are sent to Distribution Centers
ii. Sell it to the local collection facility of Reliance Fresh
iii. Take it to the Distribution Centers by their on logistics
iv.
Sell it by themselves in local market

4.3 Local Collection Center

Local collection Center accumulate oranges directly into the trucks and once lot size is reached
trucks are sent to the DCs.
Many times farmers himself take their oranges to the Distribution Centers.
Reliance Fresh has a different line for their supply, which takes oranges form farmers as per
their standards and send it to their own distribution centers.

Farmers Docking their oranges to the trucks

Page | 16

4.4 At Distribution Center

As the oranges leave their producers it reaches to Distribution Centres.
Our distribution center was Muhana Mandi, largest of its kind in all over India. It receives
oranges from different regions throughout the year. The following table shows the regions from
where Muhana Madi receives their orange.
Distributions Centers of Reliance fresh receive orange from their local collection centers.
At the distribution centers retailers reach on daily basis to purchase oranges. Most of the time
distributors have their fixed customers. In most of the cases payments are made hand to hand
by cheque but in case of old customers payments can be delayed.

At Muhana Mandi

4.5 At Retailers Level

Retailers receives oranges at the Distribution Center (Muhana Mandi). They have their own
logistic facility to bring it to their point of sale. Retailers normally has a fixed requirements
and so normally fixed purchases.
Retailers normally make purchases through the same distributors. So these retailers are able
to bargain with the distributors as per market demand.
Along with the actual cost retailers has to incur loading, unloading, transportation and
customer satisfaction (customer usually want more than what is exactly balanced weight)
costs. Our retailer at Jhalana mostly bring oranges every two days, around 100 to 150 kgs
with a margin of around 5-6 rs per kg.
Retail outlets of reliance fresh receives oranges from normal Distribution Centers and also
from their own Reliance Distribution Centers.

At jhalana area
Page | 17

5 SCOPE OF IMPROVEMENT

5.1 Present Fruit and Vegetable Supply Chain Model in India

Fig shows the schematic diagram of fruit supply chain in India shows the number of
intermediates involved in the traditional supply chain of fruit in India. In India the majority of
the trade happens through traditional path. Generally the growers sale fruits to the middleman
who collect fruits from various adjacent areas and sales to the commission agent or traders.
Commission agents are the middleman who find various buyers for the local middleman and
take some commission against the sales made. They generally find out the bigger players or
traders who buy fruits in large quantity. Then trader collects all small quantities and
consolidates of large varieties and sale those to the wholesaler.

Flow of supply chain of Oranges in local areas market.

The main problem in this supply chain is the transaction cost is too high due to more number
of intermediaries in the value chain. Only 30-35% of the end price reaches to the fruit growers
and other part goes to the different intermediaries. Since supply chain is long and scattered,
wastage of fruit and vegetables is around 10-12% of the total quantity which increases the
possibility of cost rise for the consumers.

Page | 18

5.2 Proposed Supply Chain Model

Fig. 2 shows the schematic diagram of fruit supply chain in India shows the number of
intermediates involved in the supply chain of fruit is reduced. Farmers or growers transport
fruits from farming location to the buying centers. Modes of transport are mini truck, bullock
cart, bicycle, tricycle, motorcycle and baskets etc. At the buying centers (APMC) auction for
wholesalers to purchase from growers. Then organization should provide the facility with good
infrastructure, equipment, and new technology for sorting, grading the fruits and vegetables.
After proper sorting and grading fruits will be packaged in crates and boxes. Then it is sold.
Thus by the improved supply chain model, transportation limits up to certain extent. And
reduces inefficiencies in supply chain, proper handling, and minimize the rate of wastage, thus
reducing the overheads of supply chain. Minimization of transportation and wastage during the
supply chain of fruit and vegetables controls prices for end customer with proper food quality.
So the end cost may reduce up to 20-30% and wastage can be reduced up to 10-15%.

Fig. 2: Proposed supply chain model of fruit and vegetables

Page | 19

6 CONCLUSION
Fruits play a vital role for the existence of people and also a very influencing role in the
economy of India. The traditional retailing of fruits are not much organized, about 97% of the
total market is extremely localized and highly fragmented with large number of intermediaries.
The long transport process from the growers to the final consumer occurs the wastage of 1012% of total in addition to the transportation cost. This increases the cost of fruits for the final
customer also hampers the quality. The food supply chain needs the attention of the academics,
the industry and the Government. In the traditional business model; wholesalers are
intermediaries and a predominant link in the retail vegetable logistical chain. In general, all the
retailers are inevitably dependent on the local wholesales market. The major constraints are
poor transport facilities, non availability of large scale cold storage, no clean policy guidelines
from government and fragmented and small farmers.
The inefficiencies discussed in the above study have to be handles more carefully. The factors
which affect the supply chain also have to be monitored and development to improve the supply
chain efficiency has to be carried out in India. Working with suppliers on different issues not
only generates significant environmental benefits, but also opportunities for cost containment
and enhanced quality of product.

Page | 20

REFERENCES

[1.] http://nhb.gov.in/PDFViwer.aspx?enc=3ZOO8K5CzcdC/Yq6HcdIxMfvLt8gOzIYTC
lRQLD+jKU=
[2.] https://smallfarmersjournal.com/category/crops-soil/
[3.] http://www.thehindubusinessline.com/economy/oranges-india-ranks-64th-inproductivity/article2687032.ece
[4.] http://www.agrifarming.in/orange-farming
[5.] http://cargocollective.com/ankitaagrawal/THE-MANDI-PROJECT
[6.] Sunil Chopra, Supply Chain Management- strategy, planning and operation

Page | 21