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CONTENT

CHAPTERS PAGE. NO.

CHAPTER-1..(03-27) An over view of Agriculture Industry. Introduction to the industry.

World scenario. Indian scenario. Recent trend. Problem/scope. Industry scenario in East, West, North, South. Industrial scenario in Kanpur. About the organization. Government policies relation to the farming industry. Environmental study. CHAPTER 2...(28-40) About the company History & Evolution Company profile. Development/CSR. About competitors. Major competitors. SWOT analysis. CHAPTER 3(41-52) Product and Technology Product philosophy. Product profile & product variance. Product features. Target customers. Technology using by company.

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CHAPTER 4...(53-58) Research design & methodology Objective of the study. Present strategy use by company. Methodology. Sources of Data (primary and secondary). Limitation of study. CHAPTER 5...(59-65) Data analysis & interpretation CHAPTER- 6.....(66-67) Findings CHAPTER 7...(68-69) Suggestion & recommendation CHAPTER-8..(70-71) Conclusion CHAPTER 9...(72-76) Bibliography CHAPTER 10.(77-80) Appendix

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CHAPTER-1
An over view of Agriculture Industry(POTATO)

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INTRODUTION TO THE POTATO MARKET

Potato (Solanum tuberosum L.) popularly known as The king of vegetables, has emerged as
fourth most important food crop in India after rice, wheat and maize. Indian vegetable basket is incomplete without Potato. Because, the dry matter, edible energy and edible protein content of potato makes it nutritionally superior vegetable as well as staple food not only in our country but also throughout the world. Now, it becomes as an essential part of breakfast, lunch and dinner worldwide. Being a short duration crop, it produces more quantity of dry matter, edible energy and edible protein in lesser duration of time than cereals like rice and wheat. Hence, potato may prove to be a useful tool to achieve the nutritional security of the nation. It has been observed that during present trend of diversification from cereals to horticultural crops, shifting from wheat / barley cultivation to potato cultivation returns more to the farmers. Potato is a major food crop, grown more than 100 countries in world. The native South Americans brought Potato under cultivation possibly 2000 years before the Spanish conquest. In 1537, the Spaniards first came into contact with potato in one of the villages of Andes. In Europe, it was introduced of between 1580 .A.D. to 1585 A.D. in Spain, Portugal, Italy, France, Belgium and Germany. At present, China, Russia, India, Poland and U.S.A. contribute a major share of total world production. It was introduced in India by the Portuguese sailors during early 17th century and its cultivation was spread to North India by the British. Potato is one of main commercial crop grown in the country. It is cultivated in 23 states in India. Uttar Pradesh, West Bengal, Bihar, Punjab and Gujarat account a lions share in total production. Country has achieved a tremendous growth in potato production during last four to five decades. The annual compound growth rate of potato is higher than other major food crops in respect of area, production and productivity. In the year 2002-2003, the production was 25 million tones while it was 5 million tones during 1970. Hence, owing its significant growth in production, bumper yields have been observed almost in every year. Due to the bumper crop, and lack of post harvest management, glut situations raised in the market for the surplus yield every year which ultimately results in decline the prices drastically. Varieties like Kufri, Chipsona-1, Kufri Chipsona-2, Kufri Jyoti, Kufri Luvkar, Kufri Chandramukhi have been released recently by different research organizations for processing purposes. In India, there is a great scope for cultivation of potato suitable for processing. Further, there is a rising demand for quality processed potato products from the country particularly in Middle East. The countries like Japan, Singapore, Korea,

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Malaysia, China also has a great demand for processed potato products as well as fresh potato for processing purpose. Thus, the potato processing has opened a new dimension for development of agro based industries in the country. Indian potato preferred world wise for its taste and meets the international quality standards in terms of disease freeness, shape, size, skin color, flesh and dry matter content. The Government of India has set up four Agri Export Zones (AEZs) in Punjab, West Bengal, Uttar Pradesh and Madhya Pradesh for significant development in this direction. These AEZs are making effort in strengthening and creating infrastructure for export of fresh and processed potato products, with the mandate for tackling the export of potato and its products. The main objectives of the Agri Export Zones set up is to provide emphasis on partnership, convergence of different organizations, stakeholders with a focus on providing a package of facilities for export of potato.

ORIGIN It is believed that potato was a native of Andes in South America and gradually spread throughout the world.

Importance:
Billion people the world over. It is a high quality vegetable cum food crop and used in preparing more than 100 types of recipes in India. The popular Indian recipes like Samosas and Alu Paranthas are prepared from potato. The protein of potato has high biological value than proteins of cereals and even better than that of milk. The biological value of mixture of egg and potato is higher than the egg alone. Hence, potato can be supplement of meat and milk products for improving their taste, lowering energy intake and reducing food cost. Nutritional point of view, potato is a wholesome food and deserves to be promoted as a potential high quality vegetable cum food crop in the country.

Nutritive Value:
The constituents of potato per 100 gms.

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Sl.No.

Constituents

Weight (grams)

1. 2. 3. 4. 5. 6.

Water Carbohydrates (Starch and Sugar) Proteins Fibre Fat Minerals

74.70 22.60 1.60 0.40 0.10 0.60

Source: Potato in India, Central Potato Research Institute (CPRI), Shimla

The Minerals and Vitamins as available in Potato is given below:


Sl.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Minerals / Vitamins Calcium Copper Iron Magnesium Phosphorus Potassium Sodium Vitamin C Thiamin Riboflavin Niacin Total Folate Pyridoxine Content (mg/100 gm of fresh weight) 7.7 0.15 0.75 24.2 40.3 568.0 6.5 14.0 25.0. 0.18 0.01-0.07 0.4 3.1 5.0-35.0 0.13-0.25

Source: Potato in India, Central Potato Research Institute (CPRI), Shimla It is utilized in variety of ways, such as preparation of chips, wafers, flakes, granules, flour, starch, potato-custard powder, soup or gravy thickener, pan cakes as a process food. As being one of the principal cash crop, it gives handsome returns to the growers/farmers due to its wide market demand nationally and internationally for different kinds of utilization. Further it has been reported by the International Food Policy Research Institute (IFPRI) and International Potato Centre (CIP), India is likely to have highest growth rate of potato production and productivity during 1993 to 2020. During the same period, demand for potato is expected to rise by 40 per cent world wide. This indicates that a picture about a clear opportunity to capture the huge domestic and international market of potato by producing quality potato and its products.

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WORLD SCENARIO Major producing countries in the world:


Potato is grown in more than 100 countries in the world with a production of around 321 thousand tones during the year 2004 China ranks first while Russia and India ranks second and third respectively. China, India, USA, Ukraine, Germany and Poland shared more than 62 per cent of total global production as can be seen from

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The country wise production during 2002-04 is furnished as underPRODUCTION COUNTRIES (DURING 2002-04) Production : 000 tonnes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. China Russia India USA Ukraine Germany Poland Others All World COUNTRY YEAR / PRODUCTION 2002 75,268 32,871 24,450 20,857 16,620 11,492 15,524 131,784 328,866 2003 72,067 36,746 25,000 20,767 18,453 10,232 13,731 121,291 318,287 2004 75,048 37,000 25,000 20,149 19,450 12,992 15,000 117,046 321,685 OF MAJOR POTATO PRODUCING

Source: FAOSTAT

EXPORT AND IMPORT: Export:


Indian potatoes have immense export potential. It has a price advantage over European counterpart because of lower production cost and due to short crop duration and cheap labor. The king of vegetables, Indian potato has the quality for its savory taste with exuberant varieties. The country is also blessed with natural abode of some of the best varieties of

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potatoes in the world. Besides, it has the potential to emerge as one of the largest supplier of seed potato. The Indian table potatoes dominate the export by about 50 per cent of total potato export followed by frozen potatoes about 28 per cent, seed potatoes about 10 per cent, chip fried about 8 per cent and other frozen preparation nearly 3 per cent.

Import:
India also imports potato from neighboring countries e.g. Bhutan, Myanmar, etc. to some extent. The details are furnished below.
Commodity Year Quantity in Kgs Value in Rs lakh

Potatoes fresh or chilled

2004-2005

4813220

276.08774

INDIAN SENARIO
Major producing states in India: In India, potato is cultivated in almost all states and under very diverse agro climate conditions. About 85 per cent of potatoes are cultivated in Indo-gangetic plains of North India. The states of Uttar Pradesh, West Bengal, Punjab, Bihar and Gujarat accounted for more than 80 per cent share in total production. The state wise production is furnished as under.

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PRODUCTION OF MAJOR POTATO PRODUCING STATES (DURING 2003-04 & 2004-05) Production : 000 tonne YEAR / PRODUCTION 2003-04 6825.60 7591.70 5656.70 1439.70 780.00 5632.10 27925.80 2004-05 9821.70 7106.60 5656.70 1470.20 978.20 4155.20 29188.60

Sl.No. STATE

1. 2. 3. 4. 5. 6. 7.

Uttar Pradesh West Bengal Bihar Punjab Gujarat Others All India

Source: National Horticulture Board (NHB).

RESCENT TREND Harvesting: The following harvesting care should be taken: a) Follow the practice of Dehaulming [cutting of haulms / aerial parts by sickle or killing by chemicals (e.g. Gramoxone) or destroying by machines] when the crop attains 80-90 days and when the aerial part of the plant turns yellow. b) Always harvest in dry weather.

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c) Stop irrigation about two weeks before dehaulming. d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases. e) Harvest the crop after 10-15 days of haulm cutting.

Drying and Curing:


The following care should be taken during drying: (a) Always dry the harvested tuber quickly to remove excess moisture from the surface of tubers for improving their keeping quality. (b) Always dry the harvested tuber in storage shed, expose to sun causes the greening of potatoes. (c) Do not store the tubers immediately if they are exposed to rain after harvest. The following care should be taken during curing: (a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative humidity, (b) For optimum subrogation, curing is essential for healing the wounds of tubers resulted from cutting and bruising during harvesting. The following care should be taken during sorting: (a) All the damaged and diseased tubers should be removed during sorting.

SOME PROBLEMS ABOUT POTATO INDUSTRY


Types of Qualitative Losses Physiological losses [Caused by the effect of environmental conditions] Reasons i) Due to exposure to extreme temperatures, (high and low temperatures), both before and during storage. ii) Overheating of tubers Remedies 1. Do not expose tubers to direct sunlight or high temperatures temperatures. 2. Do not harvest the crop or freezing

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due to direct expose to sunlight or during and temperature

before maturity. high 3. Store potatoes at 2-40C in non cold storage. 4. In case of processing and 10-120C by using sprout

refrigerated storage. during harvesting. Pathological losses [Caused by the attack of pathogens e.g. fungi, bacteria, insects etc.] i) Rotate and decay accounts for major losses caused due to attack of Pests and diseases. It depend primarily on the condition of tubers stored and is linked with pre harvest factors and aggravated by storage conditions. Such type of losses are low in hills and negligible or small in cold Storage.

iii) Rough handling of tubers ware potatoes, store at inhibitors. 1. Careful attention to pre harvest harvesting, essential. 2. Sorting and removal of rotted and damaged tubers before and after storage. management grading etc., like is

Source: Post Harvest Manual For Exports Of Potatoes, Agricultural and Processed Food Export Development Authority (APEDA), New Delhi.

Quality Control
Innovative Quality Control Measures Masser Potato Farms integrates innovative quality control technology into virtually every aspect of our production process: Center Pivot Irrigation systems conserve water and effectively irrigate potatoes and corn. Potatoes are washed, cooled, and dried before packaging (versus washing, packaging, and then cooling) to improve shelf life. Potatoes are farmed on a three-year rotation of potatoes, cover-crop rye, no-till corn, no-till wheat, and cover crop sorghum sudan grass to reduce soil erosion and disease. Potatoes are grown several miles from land that is out of rotation to help control disease. A computer-

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controlled potato planter is used to accurately control seed potato placement. Three computercontrolled ground sprayers are used for the placement of soil insecticide to control costs and pressure to the environment. Air separation is used by our potato harvesters to provide more bruise-free potatoes. information. Fuel mileage and driving techniques are carefully monitored to ensure on-time delivery. Potatoes are graded three times prior to packaging. A preventative equipment maintenance program prevents downtime during peak usage. DTN produce satellite marketing provides instant market and weather

INDUSTRIAL SCENARIO IN DIFFERENT ZONES


Area Name Variety of Yield (metric tonne / hectare) Dry matter Consumer Processing Quality I) Zone North Western Hills 20 Medium and

Hills Himachal Pradesh and

of Kufri Jyoti

Easy to cook, texture is waxy, mild flavour, occasional discolouration cooking. Suitable for instant flakes and chips. after

southern Jammu & Kashmir

II) Zone Hills of Uttaranchal Nainital Almora, Dehradoon, Uttarkashi, Garhwal and Chamoti districts. Kufri jyoti 20 medium Easy mild to cook, flavour,

texture is waxy, occasional, discolouration after cooking. Suitable for instant flakes and

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chips.

Hills of Meghalaya, Manipur, Tripura, Nagaland, Arunachal Pradesh, and Mizoram

III) Zone - North Eastern Hills Kufri Jyoti 10 Medium Kufri Giriraj 20 Medium

Easy

to

cook,

waxy texture, mild flavor, free from discoloration after cooking. Not suitable for processing.

Nilgiri Palani

IV) Zone - Southern Hills and Kufri Jyoti 20-21 Kufri Swarna 25

Medium Medium

Easy

to

cook,

floury texture, mild flavor, free from discoloration after cooking. Not suitable for processing.

Hills of Tamil Nadu

V ) Zone North Central Plains

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Madhya Pradesh (Indore, Gwalior, Sarguja, Ujjain, Chindwara,Sidhi, Tikamgarh, Shajapur,Dewas districts), Western U.P. and Gujarat

Kufri Badsah Kufri Jyoti Kufri Lavkar Kufri Bahar Kufri Chandramukhi Kufri Chipsona

40-50 20-21 30 45

Medium Medium Medium

Easy to cook, texture is waxy, mild occasional discoloration after cooking. Suitable for flakes flavor,

25 25

Medium Medium

instant and chips.

Easy to cook, texture is waxy, mild flavor, free from discoloration after cooking. Suitable instant and Chips. VI) Zone Plateau Region Kufri Jyoti 25 Kufri Lavkar Chandramukhi 30 25 for flakes

Maharashtra, Karnataka and Orissa

Medium Medium Medium

Easy

to

cook,

floury texture, mild flavor, free from discoloration after cooking. Due to high dry matter content, variety is suitable processing. for the

parts of M.P. and Kufri

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VII) Zone North Eastern Plains Bihar & Jharkhand Kufri Jyoti 20- 21 Medium (Samastipur, Madhubani,Siwan, Champaran, Hazaribagh, Purnea,Nalanda, Ranchi districts) Kufri Lalima Kufri Sindhuri 40 40 Medium Medium

Cooks floury free after boiling

on texture, from

prolong boiling, mild flavour, discoloration

INDUSTRY SCENARIO IN KANPUR AND NEAR AREAS

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India basically imports starch from other countries. Starch is used in noodles and other value added food items. Since 2004-05 the starch import has come down because some Indian industries have also started manufacturing potato starch. The government is also planning to set up a potato starch unit in Faizabad (UP). Over the years price has remain at the top during October -November. This is because of lean season with limited availability of supplies from cold storages during these months. The only source is produce from Karnataka which is not able to meet the high demand. Most of the harvest starts November onwards. As more and more produce start arriving in the market prices start coming down. This is evident from December to April when price has remained lower. By April harvesting stops and Potato from cold storage is utilized and by October cold storage is almost empty. This trend is almost similar in all the major potato markets in India.

Market Influencing Factors


hange in acreage depending on yield and price realization C

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Weather condition during tuber formation Demand of potato from food processing industries Comparative price with other vegetables in the domestic market Transportation charges have also great impact on prices Hoarding of potatoes by growers and traders before selling in expectation of better prices Generally production of potatoes is about 25 million tones which is the normal requirement also for the consumption including requirement for seed bulbs, processing industries, export, waste and storage losses etc. Present estimated production is about 24.51 million tones which is little less to meet the demand, which could be compensated by the restrictions on export and also by increasing area under kharif potato production. Presently, In Agra region almost 45-50% of the stocks are already used and only 30% is there for seed purpose. Altogether, taking into account Agra and near by area, stocks remained for coming months for consumption purpose is only 30-35%.

ABOUT THE POTATO STORAGE SYSTEM Dynamics of Potato StorageStorage Structures:

i) Traditional Storage: a) In situ storage:


In this system, farmers do not harvest the tubers and allow it to remain in soil. This method is used for short term storage of 2-3 months only in upland and lowland areas of North eastern states.

b) Heap storage:
In this method, potatoes are heaped under the shade of trees, where 6-30 tonnes of potatoes can be stored. The heaps are covered with a layer of available straw material

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(About 30cm thick). This is a popular storage method practiced in U.P, Maharashtra and Karnataka.

c) Pit storage:
This is a traditional method of storage. In this storage system, two types of pits are prepared i.e. katchha and pucca pits. Katchha pit is rectangular in shape measures 4.5 mt. (length) x 3.6 mt. (width) x 14 mt.(depth)* whereas pucca pit is normally circular in shape with a diameter of about 4.2 mt. All the pits are covered with 0.3 mt. thick available straw material (wheat, paddy). It is a popular storage method in Madhya Pradesh.

d) Wooden storage structure:


In this system, small wooden rooms like stores about 10 ft. heights are built in the field or near residential area. The walls of the store are built by horizontally fixed overlapping wooden planks which help in preventing seepage in store and running off the rain water. The roof of the store is covered with tin sheet and a gap is left between roof and wall for aeration purpose.

e) Storage in rooms:
In this method, farmers used to store potatoes in small rooms built of brick / stones / cement at the ground floor of their residence. The potatoes are stored in this storage either in heaps, gunny bags or in bamboo baskets.

f) Storage in basket:
In North Eastern states, potatoes are stored in bamboo baskets known as polo which provides better aeration to the tubers. The baskets are made of different sizes. The smallest size holds 10 -12 kgs and the largest size one quintal potatoes. Smaller baskets are suitable for use as they are convenient to carry to the fields.

g) Storage in layers:
The method is not very common but popular where platforms of bamboo or wooden planks are constructed by the support of the store wall on one side and bamboo on the other side. It provides better space utilization and helps to minimize rotting of potato.

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ii) Improved Storage:

a) Storage at low temperature:


The low temperature (at 2-4oC and 8-10oC) is the most common method for potato storage. The following recommendations are adopted in this type of storage: Store seed potatoes at 2-4oC as no sprouting takes place at this temperature and metabolic process goes down. Besides, low temperature, sweetening is of little importance in case of seed potatoes. Store potatoes for export and processing purposes at 8-10oC, will not only save a lot of energy but also make the potatoes more suitable for consumption, processing and export. b) Storage at 10-12oC : This storage method is suitable for potatoes for processing and export. Storage Facilities:

a) Farmers storage:
Farmers generally use indigenous in-situ storage system of without harvesting the tubers and to allow them remaining in the soil and also the ex-situ system where the farmers used to store potatoes in pits, baskets, wooden structures or in heaps or layers in room.

b) Private / Co-operative / Public Storage:


In Private / Co-operative / Public Storage sectors, potatoes are stored in cold storages at low temperature situated throughout the country. The state-wise distributions of Potato cold storage in above sectors are furnished on the next page-

INDIAN GOVERNMENT POLICES RELATING TO THE FARMING


The mere mention of the name of Dan Glickman is sure to raise eyebrows. And, rightly so. After all, how can one expect an average Indian citizen and more so a farmer to know about the

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Agriculture Secretary of the United States? But sitting far away in the sprawling office of the US Department of Agriculture in Washington DC, Dan Glickman must be relaxed and "satisfied" after reading the draft of the National Agriculture Policy of India. The National Agriculture Policy, tabled in the monsoon session of Parliament by the Indian Agriculture Minister, Nitish Kumar, is certainly a dream come true for the American Agriculture Secretary. For over a decade now, the American government, either through its deft manipulation of the World Trade Organization (WTO) or simply through its arm-twisting diplomacy, had wanted the world's second biggest agriculture economy to forgo its unwritten but inherently applicable policy of self-reliance in agriculture. It had all along wanted the Indian government to shift the emphasis from food self-sufficiency to food dependency, from sustainable agriculture to corporate agriculture, from the famine-avoidance strategy so assiduously built over the ages to head towards a market-oriented agriculture thereby acerbating the process of marginalisation of the farming community. For Dan Glickman, a steady and fast-track opening of the Indian market for its agricultural commodities and products was absolutely essential. With the phasing out of the quantitative restrictions and trade barriers in agriculture, which restricted the flow of cheap and subsidized food grains, set to be completed by April 2001, all eyes were fixed on bringing in certain structural changes in Indian farming that protected the economic interest of the American farmers. What happens in the process to the very survival of the 550 million Indian farmers, 80 per cent falling in the category of small and marginal, is certainly of no interest to the American government, and for some strange reasons to the successive Indian governments as well. The National Agriculture Policy, the first after Independence, comes at a time when there exist clear and disturbing signs of a declining trend in food grain productivity, fast emerging barriers to sustainability of agriculture, depleting underground water resources, and the ever-growing indebtedness in farming. In the recent past, hundreds of farmers have committed suicide in various parts of the country, including the frontline agricultural states of Punjab and Haryana. The alarm bells have been ringing for quite some time. For nearly a decade, agricultural production had stagnated. The spectacular yield growth recorded in the post-Green Revolution years in Punjab and Haryana have receded into history. Among the multiplicity of problems

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confronting agriculture, rapid fragmentation of land holdings is keeping pace with increasing population. In 1976-77, the average size of the holdings was estimated at two hectares, and in 1980-81, it came down to 1.8 hectares. Today, it stands at a mere 0.2 hectares. The total number of land holdings in 1981 was around 89 million; today these have crossed 100 million. Basking in the afterglow of the Green Revolution, farming and agriculture have ceased to attract serious attention. In 1995-96, food grain production slumped to minus 3.60 per cent, in 1997-98 to minus 3.70 per cent, the worst-ever since the heady days of Green Revolution. The downward spiral in food production continues through the southern regions of the country. Tamil nadu, another Green Revolution area, is under tremendous strain from intensive cultivation. In Karnataka, the negative trend in yield levels of all food crops, barring cotton and sugarcane, are all too apparent. Farming in Karnataka can be clearly separated in two distinct classes, the "creamy layer" of corporate agriculture occupying the fertile and irrigated areas and the remaining low productive tracts at the mercy of rains, constituting the tiny and small land holdings. For millions of farmers languishing in the dry lands, constituting more than 70 per cent of the cultivable lands, it continues to be a futile struggle. Despite emphasis on dry land farming during the past several decades, the scenario still remains grim. The undulating topography and the irregular rainfall pattern have combined to aggravate the situation. That the dry lands produce about 42 per cent of the country's food shows that the future of farming lies in these areas. Nearly 83 per cent of sorghum, 81 per cent of pulses and 90 per cent of oilseeds grown in the country come from these areas. With every passing year the gap between the farmer's yields in irrigated areas and in the dry farming region is widening. One year of drought is enough to push a farmer into a deep well of poverty for another 2 to 3 years. Fifty years after Independence, life for millions of people somehow surviving in the dry lands continues to be worse than before. As if this is not enough, the number of landless in the rural areas too is multiplying over the past few decades, at an estimated rate of 2 million a year. The negative terms of trade for agriculture and the declining public sector investments in farming are indices of the sluggishness in this sector. Still worse, the compound growth rate in food grain production at 1.7 per cent between 1991 and 1996, is lower than the annual population growth of 1.9 per

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cent, thereby indicating that the country has once again slipped into the Malthusian trap of hunger and famine. At a time when food production struggles to barely keep pace with the burgeoning population growth, farmers are being asked to diversify, produce crops that are suitable for export and to compete in the international market. With promise of cheap food available off the shelf in the global market, the focus has shifted from agriculture to industry, trade and commerce, from the small and marginal farmers to the agri-processing companies, which alone can bring in investments and add value to produce. We have been told, time and again, by the Confederation of the Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI), the principal authors of the new agriculture policy, that the agri-business industry aims to reduce the huge losses in fruits and vegetable crops. Studies (sponsored by the FICCI and CII) have shown that nearly 40 per cent of our fruits and vegetable production is lost in post-harvest handling. Obviously, you will think that the industry is planning to come to the rescue of Indian farmers. But in reality, it is keen to seek all kinds of financial and infrastructure support from the government and that too in the interest of the American farmers. To give you an example, it is a known fact more than 30 per cent of India's orange crop rots for want of a suitable market. In India, three private companies have recently entered the Rs 1000-million orange juice market, supplying "fresh" orange juice in tatra-packs. Ironically, these units do not use the Indian oranges. The juice concentrate is imported from California in America !! And still, cultivation of staple food is being replaced by cash crops, tomatoes in place of wheat, durum wheat (for bakery purposes) replaces wheat as a staple diet in Punjab and Haryana, flowers in place of rice, and so on. In the coastal areas, private enterprise is taking away the fish catch depriving the local communities of a livelihood and the only nutrition source. In Kerala, vast tracts of forests and paddy fields have been converted into rubber, coffee and coconut plantations. The structural transformation is not only peculiar to Kerala. It is happening in almost all the states. Commercial crops are eating into the fertile land tracts meant for growing essential food grains. The diversion of good agricultural land, which in any case is limited, to commercial farming and even industries, is further restricting the ability to grow

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enough food grains. As if this is not enough, "contract farming" will now be encouraged thereby facilitating the process of industrial exploitation of agriculture.

Export Procedure:
The exporter may follow the following points during the export of seeds of potato: Export procedure has been simplified under Open General License (OGL), and there is no license or restrictions are imposed. Generally, the buyers have to mention the quality in the contract. Accordingly, the exporter has to approach the recognized laboratories with samples to carry out the formalities of sample analysis for export. Product is then to be shifted to ports. Marine insurance cover is to be obtained from any insurance agency. Contact clearing and forwarding (C&F) agent for sorting of goods in godowns. They collect the shipping bill for allowing shipment by custom authority. Shipping bill is to be submitted by C&F agent to custom houses for verification. Verified shipping bill is given to Shed Superintendent by C&F agent and carting order is to be obtained. The C&F agent presents shipping bill to the Preventive Officer for loading in to the ship. After loading, a mate receipt is to be issued by the Captain of the ship to the Superintendent of the port who calculates the port charges and collects the same from C&F agent. After that payment is made, the mate receipt is obtained from the port authority to prepare bill of loading for the respective exporter. Then the C&F agent sends the bill of loading to the respective exporter. After receiving the documents, the exporter obtains a certificate of origin from chamber of commerce i e the goods are of Indian origin. Exporter informs the importer regarding the date of shipment, name of vessel, bill of loading, customers invoice, packing list etc.

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The exporter for verification of documents submits all papers to the concerned bank. Bank sends documents to the foreign importer to enable him to take delivery of goods. After receiving papers, importer makes payment through bank and also sends documents called GR Form to RBI. Then exporter applies for various benefits from duty drawback schemes.

Agri. Export Zones:


The policy for setting up of Agri Export Zones was announced by the Ministry of Commerce, Govt. of India on the 31st March, 2001 with the primary objective of boosting agri exports from the country. The Agricultural and Processed Food Export Development Authority (APEDA) under Ministry of Commerce, Govt. of India was appointed as the nodal agency to promote the setting up of such zones. The zones are a block / group of blocks or a district / group of districts. Agri. export zones are specific geographical areas that have their own competitive advantages in production, processing or marketing of a specific agricultural produce including potato. In an AEZ (Agri Export Zone), there is no physical demarcation of boundaries and it provides a focused approach on agricultural export completely. It is primarily based on the principles of 'convergence', 'partnership' and 'focus'. The following agri-export zones (AEZ) have been identified for potato: Source: www.Commodityindia.com

Benefits:
strengthening of backward linkages with a market oriented approach. Product acceptability and its competitiveness abroad as well as in the domestic markets. Value addition to basic agricultural produce. Reduction of the cost of production through economy of scale. Better price for agricultural produce. Improvement of product quality and it's packaging.

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Promotion of trade related research and development. Increase of employment opportunities.

ENVIRONMENTAL STUDY Potatoes and the environment


The worlds population is growing by one billion people each decade. Nearly all of this increase will take place in the developing world, where the number of people living in absolute poverty is also rising rapidly. As land and water resources dwindle, agriculture threatens the environment with the risk of deforestation, soil erosion and water pollution. Initially agricultural research was concerned only with raising productivity. Today, however, the priority is sustainable management of natural resources. As populations rise and climates change, the worlds need for water will become a priority concern. Scientists are trying to develop crops that require less water, and in many ways, the potato is ideal, producing more food per unit of water than any other major crop. Modern varieties need frequent, shallow irrigation. However, scientists are developing plants with drought-resistant properties, longer root systems, that need less water, and will also help to bind soil. Many diseases afflict potato, caused by fungus, viruses, bacteria and insects. New strains of diseases such as late blight, the most devastating potato disease worldwide, are developing all the time. The traditional response is to use chemical pesticides. The use of large quantities of such damaging chemicals is a major concern among scientists, environmentalists and even consumers. In the Andes in particular, health problems from the misuse of pesticides is a serious threat to farm workers and their families. The dense highland soils can also absorb great quantities of insecticides, which penetrate subsequent crops and run off to contaminate water supplies. Efforts to meet this challenge include developing late blight resistant varieties as well as systems of integrated disease management. In addition to protecting the health of producers, consumers and the environment, integrated pest and disease management practices aim to increase farmers income and foster economic growth and food security by reducing pest and disease losses. These practices work to maintain pest populations at acceptable levels using

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combinations of control techniques and practices. The idea is to manipulate pest populations before they can cause any significant economic losses. Overall, developing disease-free seed potatoes, pest- and virus-resistant potato varieties, and integrated pest management programs will have valuable benefits for the environment by drastically reducing the need for chemicals.

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CHAPTER 2
About the Company

COMPANY PROFILE SMJ Agro ProductsSMJ Agro Products was formed in 1996 with the purpose of providing Cold Storage facility for the potato farmers of the region. The company is also engaged in Potato farming on its own and contract farming of potatoes. The company has a cold storage at kannauj (Uttar Pradesh) with a storage capacity of 20000 metric tones.

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Modus Operandi- Post Harvest, the farmers bring their potato produce to the cold storage for storing intending to sell it at higher rates in the off season. Farmers are given loans against the potato they store in the cold storage. During off season, as the prices go north, the farmers pay the loan with interest and also the storage costs per packet (50 kgs) and get their produce unloaded for selling it off in the nearby Markets (mandis). The company is also engaged in trading Potato whereby the farmers sell off their produce to the cold storage and the company sells the potatoes in whole sale markets of UP and Bihar (through commission agents). The earnings of the company are dependent on the prices of potato in the market and there is a substantial risk involved which results in high variability in the earnings.

DEVELOPMENT/ C.S.R
It has been noticed that over the years, production of potato has increased manifold which led to glut situation in the market. The practice of storage helps to stabilize the prices in the market. Storing potatoes for longer period in normal temperature is not possible as it is a living material and through respiration, the changes occurs due to heat, resulting in loss of dry matter and ultimate deterioration of quality of tubers. At optimum condition, the quality of potatoes remains good in storage for 3-5 weeks. The best temperature and humidity condition for storage of potatoes are as follows:

Sprouting in stored potato is always a serious problem. To avoid sprout inhibition, suppressant like Isopropyl N-Chlorophenyl Carbamate (CPIC), TNCB, MH are used. The irradiation process has also been found effective for sprout inhibition. The condition and health of the tuber while in storage is important coupled with good management during storage also plays an important role. Benefits: i) Minimum losses occurred due to tuber rotting disease. ii) Preserve appearance by inhibiting development of surface blemishes. iii) Minimize moisture loss and softening.

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iv) Minimize losses during sprouting. v) Prevent damages. vi) Color Loss.

Pledge Finance System:


The Indian farming community mostly consists of small and marginal farmers. They do not have the economic strength to retain the surplus produce till favorable market price and often compelled to sell their produce immediately after harvest when the prices are low. The solution to this problem lies in providing safe and scientific storage of their produce and availing easy marketing credit against the stored produce. Hence, the systems of pledge finance have emerged as a unique avenue of finance to farmer.

Facilities of Loan
Loan system Eligibility Rate of interest Types of participating banks

As guidelines of India,

per Persons can of pledge loan by storing their

It is determined by respective Bank.

Commercial Banks / Cooperative Banks / Regional Rural Banks.

Reserve Bank of avail this facility loan/advances

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can

be

given produce in cold storage. of

against hypothecation/ pledge agricultural produce including Potato.

MARKETING INFORMATION AND EXTENSION:


Marketing information: Agricultural Marketing Information comprises of collection, analysis and compilation of agricultural marketing related information as well as dissemination of right information to the people in need, at right place, at right time and in right form. In a marketing system, market information is an important function which facilitates the marketing decisions and regulates the competitive market processes and mechanisms. It is helpful to the farmers for planning, production and marketing of their commodities. It is also the key to achieve operational and pricing efficiency in a marketing system. In the present context of global agricultural scenario, the small and marginal potato farmers should change the habit of traditional farming to modern market / export oriented farming by improving the quality and productivity of the produce. Farmers / traders/ processors should reorient their potato enterprises by using facilities of market information and information technology (I.T) for the following

Purposes:
planning for market oriented production. Preparation of produce for marketing. Adoption of modern storage techniques. Availing suitable transport facilities. Availing market intelligence for remunerative prices.

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For effective dissemination of market-led information, almost all the state / U.P. Govt. organizations have some activities for the benefit of the producers, traders, Processor, exporters and consumers, which are of conventional nature. Hence, to improve this entire system, Govt. of India started Market Research and Information Net work (MRIN) Scheme through the Directorate of Marketing and Inspection (DMI) and its website i.e., AGMARKNET. Besides, there are also other organizations involved in the dissemination of market information of agricultural commodities. Marketing extension: Marketing extension is a tool to educate the farmers, traders, consumers and other beneficiaries regarding the latest knowledge on post harvest management, marketing, value addition, and exploring new market opportunities. It aims to bring desired changes in their skill, attitude and behavior towards post harvest management and marketing practices of agricultural produce. In the present context of globalization of agricultural trade, it is essential to grow awareness among the producers and other beneficiaries regarding proper harvesting, grading, packaging, transportation, storage, maintaining proper quality standards and Sanitary-Phytosanitary requirements, etc.

Benefits:
To provide up-to-date information on the prices and arrivals. To orient producers/traders about price trends, demand and supply position, etc. To guide the producers/farmers about when, where and how to market the produce. To educate farmers about different aspects of post harvest management operations. To guide the farmers about benefits of direct / contract marketing and future trading. Government and Semi Govt. Organizations Providing the Services on Marketing Information and Extension

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Sl.No Organization 1.

&

its Services provided It is at present implementing a plan scheme i.e. Market Research and Information Network(MRIN) through NIC for establishing a network for speedy collection and dissemination of market information for its effective utilization. Under the scheme, important agricultural markets, state agricultural marketing boards/departments are being linked through computerized internet services. Under this scheme, DMI has also created a website namely, AGMARKNET. By this website, the user or beneficiary may collect the detailed information on various aspects of agricultural commodities including potato. Publishes journal, bulletin on Agricultural Marketing. Marketing extension. Compilation of statistical data on agricultural commodities for planning and development. Dissemination of data/information on agriculture through publication and internet.

website Directorate of Marketing & Inspection (DMI) , C.G.O Complex, Faridabad. website: www.agmarknet.nic.in.

2.

Directorate of Economics and Statistics, Ministry of Agriculture, Shastri Bhawan, New Delhi Website: www.agricoop.nic.in National Horticulture Board, Plot No-85, Sector18, Institutional Area, Gurgaon-122015 Central Potato Research Institute (CPRI), Shimla, (Himachal Pradesh) Website: www.cpri. ernet.in

3.

Collection, compilation and dissemination of market intelligence, market related information / data on horticultural commodities including potato.

4.

Acting as a centre for training methodologies and technology for upgrading scientific manpower in modern technologies for post harvest technologies of potato. To provide consultancy in post harvest technologies of potato. Providing market information on arrivals, prevailing

5.

Agricultural Produce

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Market Committees (APMCs)

prices at different markets through display boards, public address system, etc. Providing information of other markets. Organizing training programmers, tours, exhibitions for farmers and other beneficiaries. Provide agricultural marketing related information. Arranging publicity programmed through demonstration, farmers meetings etc. Dissemination of information through literature, Radio and T.V. Programs Providing market

6.

State Agricultural Marketing Departments/Directorates

7.

State Agricultural Marketing Boards

related

information

by

co-

coordinating all market committees in the state. Arranging training facilities to farmers and other beneficiaries. Organizing seminars, workshops and exhibitions on agricultural marketing. Broadcast programs to disseminate the marketing

8.

Akashvani Kendras of other cities Doordarshan Kendras of New Delhi/ / State capitals/ other cities

New Delhi/ State capitals/ information on agriculture. 9. Telecast programs to disseminate marketing

information on agriculture.

Kisan call centre:


The Deptt. of Agriculture and Co-operation (DAC), Ministry of Agriculture, Govt.of India launched Kisan Call Centers on January 21st,2004 throughout the country. It has the objective of affording instant solution to the problems faced by the farmers during crop cultivation under diverse challenging situations and facilitating their full comprehension by the use of local language. The call centers are acting as composite help centers which consist of a complex telecommunication infrastructure, computer support and human resources organized to manage effectively and efficiently the queries raised by farmers instantly in local languages. The subject matter specialists using telephone & computer are used to interact with farmers to understand their problems and answer their queries as soon as possible. This is a new dimension in agriculture extension management which makes the full use of on-going

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information and communication revolution by connecting the farming community in the remotest areas of the country with the experts of agricultural field. By tackling the difficulties of the farmers, a close linkage is established among the key stakeholders in extension system agricultural scientist, extension functionaries, farmers and marketing agencies. Potato farmers are availing this facility through a Nationwide toll free number - 1551.

ABOUT COMPETATORS
In that particular area 72 cold storages are situated and they are close competitors of each other but broadly we can find the huge number of competitors at national level as follows.-

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MAJOR MARKETS Assembling:


Assembling is the first step in marketing of farm produce. It involves collection of small surpluses from number of small farms scattered over large areas and bulking the same for subsequent distribution in volume. The agencies engaged in the assembling of potato are as below : a) Producers b) Village Merchants c) Itinerant Merchants d) Wholesale Merchants e) Commission Agent f) Producers Co-operative Societies Major- Assembling Markets: The major assembling markets are located in Uttar Pradesh, Punjab, West Bengal in which the assembling of potato is done along with other commodities. Some major assembling markets in major producing states in the country are listed below:

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Marketing Channels:

I) Private: The different private agencies such as Producers, Commission agent, Wholesaler, Retailer and consumers are involved in the route of marketing channels of potato. These are: 1) Producer Cold storage Commission agent Wholesaler Retailer Consumer 2) Producer Commission agent Wholesaler Retailer Consumer 3) Producer Wholesaler Retailer Consumer

Institutional:
Due to price fluctuations and glut situation in the market, some institutions like National Agricultural Co-operative marketing Federation (NAFED), different state govt. agencies, co-operative societies are intervening in the domestic market and Agricultural and Processed Food Export Development Authority (APEDA) for export purpose to stabilize the prices.

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PRODUCER
COLD STORAGE COMMISSION AGENT WHOLESALER RETAILER CONSUMER The institutions involve in the marketing channels of potato as follows: 1) Producer State Marketing Agencies Retailer Consumer 2) Producer Co-operative Societies Retailer Consumer 3) Producer NAFED Retailer Consumer 4) Producer Marketing Federation (MARKFED) Retailer Consumer Export

SWOT ANALYSIS OF COMPAY


STRENGHT Thirteen year old company. Government gives high amount of subsidies. Company has strong faith and relation with farmers. Company plan to go backward integration system. Company plan keep surplus for acquiring land for potato cultivation. WEAKNESS Situated In rural area difficult to reach market or mandi. Cut throat competition (72 cold storages are present in small area). Direct government control. Company must word under the union of cold storages Unsystematic systematic way of working of company OPPORTUNITIES Company enjoys lots of benefits and it must continue in future.

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Company gets lots of subsidies from government. Less transportation charges. Future price may increase. company gets human labor at less price with comparison of urban sectors THREATS Regularly change in government policies. Irregular supply of electricity. Income tax raid and government departments enter fearing regularly. Fluctuating nature of farmers. Unstable price of potato in market. Workers are not so efficient.

CHAPTER 3
Product and Technology
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PRODUCT PHILOSOPHY
Potato is the world's fourth important food crop after wheat, rice and maize because of its great yield potential and high nutritive value. It constitutes nearly half of the worlds annual output of all root and tuber crops. With an annual global production of about 300 million tones, potato is an economically important staple crop in both developed and developing countries.

Season
In India, more than 80% of the potato crop is raised in the winter season (Rabi) under assured irrigation during short winter days from October to March. About 8% area lies in the hills during long summer days from April to October. Rainy season (Kharif) potato production is taken in Karnataka, Maharashtra, HP, J&K and Uttranchal. In major parts of China (which is one of the leading producers) potato is harvested in the month of October to December and in few regions it is harvested in month of May July. Summer crop- March- April---------------------August-September Autumn crop- August-September---------------December- January Spring crop- January - February-------------- May-June

PRODUCT PROFILE AND PRODUCT VARIANCE


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Potato is grown almost in all states of India. Major potato growing states are Himachal Pradesh, Punjab,Uttar,Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, West Bengal, Bihar and Assam. UP, West Bengal, Bihar and Punjab together account for about 86% of Indias production. However, potato consumption per capita in India (14.8 kg/head/year) is one of the lowest in the world and hardly 1% of the potato is processed. 90% of the potato crop in India is cultivated on Indo-Genetic plain from October until February-March.

Grade Specifications:

I) AGMARK SPECIFICATIONS
Under the Agricultural Produce (Grading and Marking) Act,1937, the Table Potato Grading and Marking rules 1950 was formulated and notified by the Govt. of India. The quality factors like size of tubers, conformity to the variety, tolerance limits for under sized and over sized tubers, percentage of diseased and damaged tubers, and dust and extraneous matters, etc. are taken into consideration. The Agmark grade standards of Potato are furnished below. Grade Designations and Definition of Quality of Table Potatoes * The word Oval or Long: shall be marked following the grade name on the AGMARK label by means of a rubber stamp. ** When the potatoes have been passed over a riddle of greater mesh than 41 mm. the minimum size may at the sellers discretion be appended to the grade name, e.g. Extra Special (51 mm., 57 mm, 64 mm etc.) but potatoes which exceed 89 mm in their smallest diameter shall be excluded from grading. 1. Any disease or defect the presence of which may be established by cutting open the potato shall be taken into account, and potatoes having cuts worm and slug holes penetrating into the flesh shall be regarded as damaged. 2. Potatoes affected by greenness superficial disease or damage shall not be regarded as diseased or damaged unless more than 1/10 of the surface is so affected. 3. A potato shall only regarded as being obviously affected with the soft rot, if at the time of inspection, it is squashy or the surface is at some part distinctly broken or wet owing to disease.

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* Potatoes of round varieties shall be packed separately the word Oval or Long: shall be marked following the grade name on the AGMARK label by means of a rubber stamp. ** When the potatoes have been passed over a riddle of greater mesh than 45 mm. the minimum size may at the sellers discretion be appended to the grade name, e.g. Extra Special (51 mm., 57 mm, 64 mm etc.) but potatoes which exceed 83 mm in their smallest diameter shall be excluded from grading. 1. Any disease or defect the presence of which may be established by cutting open the potato shall be taken into account, and potatoes having cuts worm and slug holes penetrating into the flesh shall be regarded as damaged. 2. Potatoes affected by greenness superficial disease or damage shall not be regarded as diseased or damaged unless more than 1/10 of the surface is so affected. 3. A potato shall only regarded as being obviously affected with the soft rot, if at the time of inspection, it is squashy or the surface is at some part distinctly broken or wet owing to disease.

Grade Specifications for Export:


*The word Oval Long or Round or Mixed shall be marked, following the trade description, on the AGMARK label, by means of rubber stamp, **Column 4 relating to conformation to variety will not apply to mixed lots. In case when the potatoes have been passed over a riddle of greater mesh than 46 mm. the minimum size may, at the sellers discretion, be appended to the grade name e.g., Extra Special (51 mm., 57 mm., 64 mm, etc.) but potatoes which exceed 89 mm., in their smallest diameter shall be excluded from grading. 1. Any disease or defect, the presence of which maybe established by cutting open the potato, shall be taken into account and potatoes having cuts, worm or slug holes penetrating into the flesh shall be regarded as damaged. 2. Potatoes affected by greenness, superficial disease or damage shall not be regarded as diseased or damaged unless more than 1/5 of the surface is so affected.

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3. A potato shall only be regarded as being obviously affected with the soft rot, if at the time of inspection, it is squashy or the surface is at some part distinctly broken or wet owing to disease.

Uses of Potato
otato flour P Potato chips French Fries Frozen potato Potato starch Tapioca of potato In India, processed potatoes currently constitute less than 0.5% of annual production. While the consumption of processed potato products is anticipated to increase, at present, the processing sector is largely comprised of various kinds of dehydrated potato products, starch Etc.

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Major Storage Pests and Diseases and its Control Measures:


Name of Disease Tuber moth Causal organisms Phthorimaea spp. Nature of damage The larvae enter the and bore larval damage direct weight loss and its infection reduced the market value of Charcol rot Disease Macrophomina phaseol tubers Formed patches which soaked and black. Late Blight Phytopthera infestans Brown colouration of infected tubers, wet rot in storage causes huge loss. on darkened Require tubers harvesting, seed treatment with or Agallol. Seed treatment with fungicides and proper pre harvest cares should be taken. early results tunnels. Remedial measures i) Keep the tubers with earth in the field. The ii) Fumigate the godown in with Methyl Bromide at 4.8 Kg/100 cubic meter hrs. greatly for 3

tuber through eyes covered

later become water fungicides like Aretan

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Wart

Synchytrium endobioticum

Tubers become undersized Erwina spp.

Apply heat treatment for tubers. Wash tubers with chlorinated before storage. water

Soft rot

HARVESTING CARE:

Harvesting:
The following harvesting care should be taken: a) Follow the practice of Dehaulming [cutting of haulms / aerial parts by sickle or killing by chemicals (e.g. Gramoxone) or destroying by machines] when the crop attains 80-90 days and when the aerial part of the plant turns yellow. b) Always harvest in dry weather. c) Stop irrigation about two weeks before dehaulming. d) Avoid bruising and skinning of tubers otherwise tubers become susceptible to rot diseases. e) Harvest the crop after 10-15 days of haulm cutting. Drying and Curing: A) The following care should be taken during drying: (a) Always dry the harvested tuber quickly to remove excess moisture from the surface of tubers for improving their keeping quality. (b) Always dry the harvested tuber in storage shed, expose to sun causes the greening of potatoes. (c) Do not store the tubers immediately if they are exposed to rain after harvest. B) The following care should be taken during curing: (a) Always follow the curing process at 25 degree centigrade with a 95 per cent relative humidity, (b) For optimum suberization, curing is essential for healing the wounds of tubers resulted from cutting and bruising during harvesting.

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C) The following care should be taken during sorting: (a) All the damaged and diseased tubers should be removed during sorting.

TARGET CUSTOMERS
Marketing costs: Marketing costs are the actual expenses required for bringing potato from farm gate to the consumers. It includes the following: andling charges at local points H Assembling charges Transportation and storage costs Handling charges by wholesalers and retailer to consumers Expenses on secondary services like financing, risk taking and market intelligence Profit margins taken out by different agencies.
RETAILER

CONSUMER PRODUCER
STATE MARKETING AGENCIES NAFED

MARKFED EXPORT
CO-OPERATIVE SOCIETIES

i) Market fee: It is collected from buyers and not from sellers. The rates of market fees are determined by respective Agricultural Produce Market Committees in some states like Gujarat, Maharashtra, and while in most of the states these are fixed for the entire state under the respective State Marketing Regulation Acts. ii) Commission charges: In some regulated markets, the commission agents exist and they collect the charges.

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iii) Market charges: These are the charges, which are incurred towards loading, unloading, weighing, brokerage, cleaning, etc. These charges are fixed by the market committee and vary from market to market. The operational charges starting from unloading, cleaning, preparation lot for sale and sometimes weigh mends are borne by farmers /sellers. From weighing, the subsequent operational charges are borne by the buyers/ traders. In case of some regulated markets, entry fee is charged for the vehicle. MARKETING MARGINS: The marketing margins of potato are the difference between the actual price paid by the consumer and the price received by farmer for an equivalent quantity and quality of potato. It may be explained in terms of price spread applied for a particular situation. Studies on marketing margins or price spread reveals that as the number of market functionaries increases, they add cost to the commodity in the marketing channel which results in the fall of producers show in consumers rupee. MARKETING INFORMATION AND EXTENSION: Marketing information: Agricultural Marketing Information comprises of collection, analysis and compilation of agricultural marketing related information as well as dissemination of right information to the people in need, at right place, at right time and in right form. In a marketing system, market information is an important function which facilitates the marketing decisions and regulates the competitive market processes and mechanisms. It is helpful to the farmers for planning, production and marketing of their commodities. It is also the key to achieve operational and pricing efficiency in a marketing system. In the present context of global agricultural scenario, the small and marginal potato farmers should change the habit of traditional farming to modern market / export oriented farming by improving the quality and productivity of the produce. Farmers / traders/ processors should reorient their potato enterprises by using facilities of market information and information technology (I.T) for the following purposes: Planning for market oriented production. Preparation of produce for marketing.

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Adoption of modern storage techniques. Availing suitable transport facilities. Availing market intelligence for remunerative prices. For effective dissemination of market-led information, almost all the state / U.T. Govt. organizations have some activities for the benefit of the producers, traders, processor, exporters and consumers, which are of conventional nature. Hence, to improve this entire system, Govt. of India started Market Research and Information Net work (MRIN) Scheme through the Directorate of Marketing and Inspection (DMI) and its website i.e., AGMARKNET. Besides, there are also other organizations involved in the dissemination of market information of agricultural commodities. Marketing extension: Marketing extension is a tool to educate the farmers, traders, consumers and other beneficiaries regarding the latest knowledge on post harvest management, marketing, value addition, and exploring new market opportunities. It aims to bring desired changes in their skill, attitude and behavior towards post harvest management and marketing practices of agricultural produce. In the present context of globalization of agricultural trade, it is essential to grow awareness among the producers and other beneficiaries regarding proper harvesting, grading, packaging, transportation, storage, maintaining proper quality standards and Sanitary-Phytosanitary requirements, etc. Benefits: To provide up-to-date information on the prices and arrivals. To orient producers/traders about price trends, demand and supply position, etc. To guide the producers/farmers about when, where and how to market the produce. To educate farmers about different aspects of post harvest management / operations. To guide the farmers about benefits of direct / contract marketing and future trading.

TECHNOLOGY USING BY COMPANY


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POST HARVEST EQUIPMENTS:


ANIMAL DRAWN POTATO DIGGER It is animal drawn single row equipment for digging potato. It consists of multipurpose tool frame, V shape blade and extension rods on the blade wings to separate soil and dirt from the potato. It eliminates 11 per cent tuber damage resulting in conventional digging. GRADING: Grading is an important factor in the marketing process of potato. Benefits: i) Grading helps the potato producer and seller to determine the price. ii) It reduces the cost of marketing and helps the consumers to get standard potato at fair price. iii) It facilitates the scope to widen the avenue for potato export. iv) It has a direct influence on utilization point of view, as the small to medium sized tubers are prepared for seed tubers and large sized tubers are preferred for processing purpose. Methods of Grading: Grading of tubers is done both by hand as well as by graders. The different practices of grading of potato are as follows: i) Grading of potatoes with a set of rectangular sieves having round holes of varying diameters, where a pair of such sieves placed one above the other are shaken to and fro by two persons and the third person continuously feds the upper sieve. ii) Grading of potatoes through sieves hung on chains or ropes and move back and fore. iii) Grading of potatoes by the mechanical grader, where the sieves are mounted on the oscillation of frame as operated mechanically by power. This grader can be operated with 1H.P. electric motor, engine or tractor. iv) Grading of potato with power operated potato grader with conveyer attachment gives better grading efficiency (90 per cent) .The power requirement is 1.5 H.P .It can grade four categories viz less than 10 gms,10-25 gms, 25-60 gms, and more than 60 gms.

HAND OPERATED POTATO GRADER


Function: Sorting of potatoes into different size grades Specifications:

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Type: Manually Operated, Oscillating sieves. Dimension: 2880mm(L) X 2940mm(w) X 1950mm(h) Weight : 300 kgs. No. of sieves: Two oscillating and one fixed. Sieve inclination: 11%. Sieve perforation: 45 mm and 30 mm diameter (oscillating sieves), 20 mm diameter (fixed sieve) Power transmission: Through belt and pulley arrangement. Performance: Output capacity: 20q/hr. Grade size: i) Upto 50 gms, ii) 50-75 gms., iii) Above 75 gms. Grading efficiency: 85%. Tuber brushing: Less than 2%. Labour requirement : 8-9 persons. Cost ( Approx) : Rs: 8000/POWER OPERATED POTATO GRADER Function: Sorting of potatoes into different size grades. Specifications: Type: Power Operated, Oscillating sieves. Dimension: 2880mm(l) X 2940mm (w) X 1950mm(h) Weight : 350 kgs. No. of sieves: Three oscillating and one fixed. Sieve inclination: 11%. Sieve perforation: 45.30 and 20 mm diameter(oscillating sieves), 12 mm diameter (fixed sieve) Oscillation frequency: 460 490 strikes/min Power transmission: Through belt and pulley arrangement. Performance: Output capacity: 25q/hr. Grade size: i) less than 10 gms, ii) 10-25 gms, iii) 25-60gms. iv) Above 60gms. Grading efficiency: 88%. Tuber brushing: Less than 2%. Labor requirement : 9-10 persons. Cost( Approx) : Rs: 10,000/-

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CHAPTER 4
Research Design & Methodology

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OBJECTIVE OF THE STUDY


To understand the psychology of farmers. Environment, organizational system and strategy use by the farming industry. Factors- consider by the farmers before selecting the cold storage. Promotional activity and communication media selected by a cold storage to attract potato farmers. To strengthen my knowledge about the agriculture and rural market.

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PRESENT STRATEGY USE BY COMPANY


Company gives loan against their deposit of potato in cold storage. company provides free sack to the farmers(each cost is rs. 12/-) Company regularly visits the village to village and interacts with to farmers. Company provides better seeds and knowledge of farming to the farmers. To reduce the cost and risk company started back ward integration production system. Company tries to convey to farmers and their Sarpanch to motivate farmers to keep potato in the company cold storage. Company educate to the farmers about potato cultivation. Company plays role as bride between farmers and market. Company provides and updates the knowledge of farmers about the recent trend in technology and methodology of potato farming. Company bind to follow the price band fix by the cold storages union.

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METHODOLOGY
Methodology used by me is that I and our team regularly vested the villages and asked different questions Try to know the criteria on which a farmer chooses a cold storage to put the potatoes. We plan campaigns with the help of Gram Panchaya to interact and motivate to the farmers to put their potatoes in this company. We used the local language and try interacting with each farmer. With its own effort company established farmers support help line number. This is based on customer research design is the arrangement of connection and analysis of data in manner that aim to combine relevance to the research purpose with economy in procedure The research design specifies the method of data collection & data analysis. The design of research happens to be in respect of: 1) What is the study about? 2) Where will the study is carried out? 3) What will be the sample size? The study is planned carefully with respect to source of information be consult anted & collected. The entire question is related to the topic. Size of sample is 100.So it cluster sampling followed by random sampling. Several steps of the research procedure are described under following headings.

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SAMPLING PROCESS
FACE TO FACE INTERVIEW SAMPLING Sampling as an essential part of the business research process. It is the part of the total population. Although it is a subset, and representative of the total population we have. INTERVIEW PRCEDURE To take interview of 100 respondents we had to take interview by two kinds of sampling i.e. RANDOM SAMPLING PURPOSIVE SAMPLING The sample came under purposive sampling in order to save time, cost and ultimately to meet the quota. For the interview a sophisticated. Simple questionnaire was prepared. It was asked to respondents very carefully and cordially. All the response were very important for this study and every response was noted down

SOURCES OF DATA
PRIMARY DATA Taken the views of farmers. Directly interact with the local government authority. Interact with the seed shops and experienced people. From Gram Panchayat Sabha. Interact with the farmers supporting organizations.

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SECONDARY DATA Company old records. Government records, generals and articles. Survey and research conducted by Ministry of Agriculture Department of India. Generals and articles of F.A.O. Research and survey reports of N.G.O.

LIMITATION OF STUDY
Bias nature of farmers. Lack of professionalism of company representatives. Time consuming process because it takes so much time to interact with farmers individually. Lack of desired data. Uneducated or illiterate farmers, it was difficult to peruse them. It was difficult to penetrate the extreme rural sectors. The unsystematic and unorganized manner of agriculture companies.

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CHAPTER 5
Data Analysis & Interpretation

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N0. 1- Number of cold storages

are there in your district- Kanauj.

No. of cold storages Less than 10 11 to 25 26 to 50 More than 50

No. respondents 21 17 29 33

of

Farmers opinion about number of cold storages in their district

33%

21% less than 10 10 - 25 25 - 50 More than 50

17% 29%

INTERPRETATION

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From the above table it is interpreted that 33% of farmers are predicting that the number of cold storages in the district is more than 50. 29% of farmers are predicting that the number of cold storages is Between 25 to 50. 21% farmers are predicting that the number of cold storages is less than 10. 17% farmers are predicting that the numbers of cold storages are Between 10 to 25. The real number of cold storages in the district is 72. Most of farmers are not aware about the numbers of cold storages in their district due to the weal strategy of promotion. No. 2- The factors do you consider most while deciding the cold storage to store your Potatoes?

Parameters for selection of cold storages Rent per potato bag Image of the cold storage, owner etc Past track record Upfront loan amount received

No. of respondents 21 27 13 39

most important parameter for selecting the cold storages

21% 39%

Rent per potato bag Image of the cold storage, owner etc Past track record 27%

13%

Upfront loan amount received

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INTERPRETATION
From the above table it is interpreted that 39% of farmers prefer the upfront loan amount received by them from cold storages because in future if the market price of potato will fall down then the farmers left their potatoes in cold storage and it became benefit for them. Other prefer as follow- 27% gives importance to image of the cold storage or owner, 21% gives important to rent per potato bag and 13% gives importance to past track record of cold storage. No. 3- Farmers view-cold storages are farmer friendly or not.
Cold storages are farmer friendly Yes No Do not know No. of respondent 87 9 04

Importance of cold storages for farmers

9%

4%

Yes No Do not know

87%

INTERPRETATION
From the above table it is interpreted that in this modern technological era our agriculture sector and farmers are well aware and give importance to the use of cold storages because 87% farmers prefer the importance of cold storages. 9% said NO and rest 4% can not decide.

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No. 4- While consider choosing a cold storage focussing more on forging long term customer relationship over the one with a little less rent and no long term relationship. Consider choosing a cold storage focussing No. of respondent. more on forging long term customer relationship over the one with a little less rent. Yes No 43 57

Rent or longterm relationship with cold storages

43% yes no 57%

INTERPRETATION

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Form the above table it is interpreted that 57% of farmers are want to keep their potatoes in the cold storage where they think that they can create long-term relationship the owner of cold storage and 43% of farmers have given preference to the rent rate charge by cold storages.

No. 5- Farmers perception about the role of cold storage as a middleman in getting the Potato sold to Traders?
Role of middleman in getting the potato sold to traders. Farmers are duped and robbed of the real worth of 07 their Produce. Cold storages provide valuable support in selling the Produce through the Traders. Cold storages role as a Trader (middlemen) is 34 unwanted and uncalled for. Difficult to explain. 20 39 No. of respondent.

Role of cold storages as a middleman

Farmers are duped and robbed of the real worth of their Produce. Cold storages provide valuable support in selling the Produce through the Traders. 39% Cold storages role as a Trader (middlemen) is unwanted and uncalled for. Difficult to explain.

20%

7%

34%

INTERPRETATION

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From the above table it is interpreted that the cold storages which provides better valuable support in selling the potatoes though the traders across the county, farmers give precedence to them. 39% of farmers give importance to the middlemen set by cold storages but 34% of farmers also think that cold storages role as a middleman is unwanted and uncalled for. 20% farmers think that they are duped and robbed of real worth of their produce if they hire cold storages as middlemen to sell their potatoes and 7% face difficulty to explain.

No. 6- There are must be any kind of Loyalty Program for Regular clients (Farmers) who
return year on year to the cold storage. Importance of loyalty program for regular No. of respondent. farmers Cash Discount More Upfront Loan at lower interest rate Lenient credit Terms. All of the above 17 08 13 62

Importance of loyalty program for regular farmers

17% 8%

Cash Discount More Upfront Loan at lower interest rate Lenient credit Terms.

62%

13% All of the abov e

INTERPRETATION From the above table it is clear that 62% farmers want to some incentives for loyal customer who come every year in a same cold storage like cash discount,
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more upfront loan at lower interest rate and lenient credit terms but individually some farmers given preference as follow- 17% to cash discount, 13% to lenient credit terms and only 8% given preference to more upfront loan at lower interest rate.

CHAPTER- 6
FINDINGS

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FINDINGS
Farmers are Switchers by nature -they switch from one cold storage to other cold storage. Due to unprofessional attitude of company and Workers Company fail to create long term relationship with farmers. Government interference is so much that company can not easily chalk out plan and formulate it. Unsystematic and unorganized manner of working of farming company. It is so difficult to select the media to communicate to the farmers. Environmental and climate plays vital role in the success of these companies. Over price of potato and under price of potato both are harmful for the company. Due to high involvement of government it needs to maintain paper work. To reduce the risk company started back ward integration production system. Some times farmers do not come to take their potatoes due to fewer prices in market or fear of return of loan to the company.

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CHAPTER 7

Suggestion & Recommendation

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Suggestion & recommendation


Company should start campaign with the government to provide the farmers. Company should maintain professionalism in their work. Company must create a computerized data base of farmers. Company must provide free transportation system to the farmers from their field to cold storages or may charge minimum cost from farmers to reduce competition. Company must establish proper, reliable and strong media of communication media with the farmers. Weakly or monthly awareness campaign and classes should be organized to literate to the farmers. Company must focus of the creation of long term relationship with the farmers. Company should establish its own solar panel to generate electricity to reduce of the cost of electricity. Company can collaborate with government and insurance companies to provide KISHAN FASAL SURAKSHA YOJNA to reduce the damage and risk of cultivation. Company should starts KISHAN CLUB so that farmers can come and interact with each other in the separate place in the company. Company can organize farming fare with the help of government or local authority or N.G.OS or cold storage association. information to

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CHAPTER-8
Conclusion

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Conclusion
Potatoes are an important agricultural commodity of India- in many parts of country the crop can grows rapidly; it is adaptable, high yielding, responsive to low inputs. So the company should make proper plane and strategy for farmers include livestock rising, water management and organic waste management, proper utilization of resource, systematic ways of creation long term relationship with farmers and government, try to provide better services to the farmers company can achieve the target and chalk out the new way of success. Aside from traditional methods company also can offer an additional source of services like sell seed tubers and processed products instead of just provide cold storages facility.

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CHAPTER 9
Bibliography

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Bibliography

Text Books: 1. Post harvest Manual for Export of Potatoes (Jan2003) by Agricultural & Processed Food Products Export Development Authority (APEDA). Page. No. 05-48 2. Handbook of Agricultural Sciences-by Dr. Singh, S,S(1998). Page no. 35-40 3. Marketing of Vegetables in India by Vigneshwara Varamudy .Published by Daya Publishing House., Delhi. Page no. 15-19 4. Handbook of Agricultural Science- Published by Indian Council of Agricultural Research(ICAR), New Delhi. page no. 112-120 Annual Reports: 1. Annual Report, 2003-04 Department of Agriculture and Co-operation, Ministry of Agriculture, Govt. of India. New Delhi. 2. Annual Report, 2002-03 National Agricultural Co-operative Marketing Federation of India Ltd. (NAFED), New Delhi. 3. Annual Report, 2002-03, Agricultural & Processed Food Products Export Development Authority (APEDA), New Delhi. Research Papers: 1. Ezekiel, R., Brajesh Singh, N.R.Kumar and S.M.Paul Khurana 2003. Storing potato scientifically. Indian Horticulture,Issue-April-June2003 2. Paul,Vijay, R.Ezekiel, and G.S. Shekhawat 2002. Traditional methods of potato storage in changing scenario, Indian Farming,Issue-August2002 3. Pandit,A., Rejesh K. Rana, N.K. Pandey and N.R.Kumar 2003. Potato marketing in India. Indian Horticulture, Issue- April-June2003.

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4. Dahiya, P. S., 2001. Potato Scenario-2001.Agriculture Today, Issue-June2001. 5. Ezekiel,R., and P.S. Khurana 2003. Market Potential for Potatoes and Processed Potato Products. www.commodityindia.com. Issue-Aug2003. 6. Sanganaria,S. 2003. Need of the hour-export orientation for Potatoes. Agriculture Today, Issue- June2003. 7. Marwaha,R.S. and S.K.Sandhu 2003. Enjoy finger linking potato products. Indian Horticulture, Issue-April-June2003. 8. Khurana, Rana 2004. Need for initiatives, The Hindu Survey Of Indian Agriculture,2004. 9. Shekhawat,G.S. and P.S. Dahiya 2000. A neglected major food crop, The Hindu Survey of Indian Agriculture,2000. 10. Shekhawat, Ezekiel 1999. Potential as a food. The Hindu Survey Of Indian Agriculture,1999. 11. Pandey ,S.K., S.M.Paul Khurana and S.V.Singh2002,New Potato varieties for processing .Agro India, Issue-November 2002. 12. Marwaha,R.S. and S.K. Sandhu2003, Potato flour processing, Agribusiness & Horticulture, Issue- Feb-March 2003. 13. Sudhozae.N.2003,Export potential for Indian Potato, Agribusiness & Horticulture, IssueApril-May 2003. 14. Pandit, Arora and Sharma 2003, Problems of Potato Marketing in India. Indian Journal of Agricultural Marketing , Issue-17(2), 2003. 15. Dahiya P.S. and, Sharma 1994. Potato marketing in India. Status: Issues and Outlook. Working paper no.1994-2, Social Science Department. International Potato Centre(CIP), Lima, Peru. 16. Dey,A. and A. Bhukta1994. Marketing of Potato in West Bengal. Indian Journal of Agricultural Marketing , Issue-Jan-March1994.

Other related documents: 1. Product Catalogue2006,Tech Bulletin no-CIAE/2005/119, Central Institute of Agricultural Engineering, Bhopal. 2. Potato in India1992, Tech Bulletin no-1, Central Potato Research Institute, Shimla. 3. Indian Potato Varieties for Processing, Tech Bulletin no-50, Central Potato Research Institute, Shimla.

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4. Potato Processing In India, Tech Bulletin no-34, Central Potato Research Institute, Shimla. 5. Potato Equipments Developed at Central Potato Research Institute, Tech Bulletin no-25, Central Potato Research Institute, Shimla. 6. Economics and Marketing of Potato in India, Tech Bulletin no-44, Central Potato Research Institute, Shimla. 7. Indian Potato Varieties, Tech Bulletin no-51, Central Potato Research Institute, Shimla. 8. World Potato Statistics, Tech Bulletin no-52, Central Potato Research Institute, Shimla. 9. Quality Seed Potato Product in NEH Region of India. Tech Bulletin no-62, Central Potato Research Institute, Shimla. 10. Major Potato Pests in North-eastern India and their management. Extension Bulletin No-40, Central Potato Research Institute, Shimla. 11. Traditional Potato Cultivation Practices In Meghalaya, Tech Bulletin no-72, Central Potato Research Institute, Shimla. 12. Packages of Practices for Potato Cultivation in Meghalaya, Leaflet, Central Potato Research Institute, Shimla. 13. Potato in India, e-book, website of Central Potato Research Institute(CPRI), Shimla. 14. Marketing of Potato In India, Published by Directorate of Marketing and Inspection, Ministry of Agriculture, Govt. of India. 15. Post Harvest Technology and Utilization of Potato by Mukhtar Singh and S.C.Verma , Published at 'International symposium on Post-Harvest Technology and Utilisation of Potato',1979. 16. Agri- Export zones in West Bengal. Food Processing Industries & Horticulture Department, Govt. of West Bengal 17. Potato Crop in Punjab: Production, Marketing and Export by J.Singh,R.S.Sandhu, A.S. Dhat, S.Singh, J.S.Kamboj, D.K.Grover. Punjab Agricultural University, Ludhina and Punjab AgriExport Corporation Ltd. Monograph no.5, 2001.

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Websites: www.agmarknet.nic.in www.apeda.com www.cpri.ernet.in www.fao.org www.nafed-india.com www. mofpi.nic.in www. ncdex.com www.agricooop.nic.in www.cipotato.org www.ficciagroindia.com/aic/post-harvest-mgmt/vegetables/potato.htm www.mcx.com www.codexalimentarius.net

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CHAPTER-10
Appendix

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Questionnaire1.How many cold storages are there in your district- Kanauj? 1. <10 2. 11-25 3. 26-50 4. > 50 2.Which factors do you consider most while deciding the cold storage to store your Potato? 1. Rent per potato bag. 2. Image of the cold storage, owner etc. 3. Past track record 4. Upfront loan amount received. 3.Do you think the cold storages are farmer friendly? 1. Yes. 2. No. 3. Do no know.

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4. Will you consider choosing a cold storage focussing more on forging long term customer relationship over the one with a little less rent and no long term relationship? 1. Yes. 2. No. 5.What do you perceive of the role of cold storage as a middleman in getting the Potato sold to Traders? 1. Farmers are duped and robbed of the real worth of their Produce. 2. Cold storages provide valuable support in selling the Produce through the Traders. 3. Cold storages role as a Trader (middlemen) is unwanted and uncalled for. 4. Difficult to explain 6.Is there any kind of Loyalty Programme for Regular clients (Farmers) who return year on year to the cold storage? 1. Cash Discount. 2. More Upfront Loan at lower interest rate. 3. Lenient credit Terms. 4. All of the above.

N.B-Sample size- 100 farmers.

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ORGANISATIONAL STRUCTURE AND OTHER CHANNELS

Chief executive officer (1 member)

Board of directors (3 members)

Finance/accou nt department

Human resource department

Marketing/sales department

Technical department

Work force

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