POTATO

COOPERATIVE
Aman Jyoti 29004
Nitesh Kumar 29023
Priyang Bhatt 29024
Suhail Pratap Singh 29032
Swati Nayak 29035
Joseph Kalassery F072
 Features of potato
• Fourth most important crop of India.
• Total production -29188.60 thousand tons.
• Productivity of Gujarat at 21 tons/ha.
which is very high from the national
average.
• Sowing in October and harvesting in
February- March.
• The main varieties in this part are Kufri
Badshah and Lauvkar.
Production Breakup
 Production Issues
• Seeds quality and price is a major issue.
• Vulnerable to pests and diseases.
• The Badshah quality especially is more
sensitive to weather fluctuations and other
contingencies.
• Crisis of plenty (Year 2008).
 Cost of Cultivation
Cost per
Quantity requirement Bigha
Seeds & seed treatment 100 1800
Irrigations 5 times 550
Fertilizers 1351
DAP 50 450
Potash 50 222
Urea 50 250
NPK 50 429
Pesticides 450
Mancozeb 150 250
Tricyclazole 120 200
Weedicides 100
Sancor 50 100
Hired Labour 2-3 times,10-12 labour-day 1000
Machinery 2-3 times 800
6051
Cost Breakup
Supply Chain & Margins At Each Stage
 Why cooperative?
• We can arrest the margins of wholesaler
and commission agent.
• We can reduce the input costs for farmers.
• We can have a better bargaining power.
• We can take advantage of price increase
in later months by storing.
Why cooperative? (contd.)
Inputs at
low rate
 Grading Process
• Grading is an important factor in the
marketing process of potato
Criteria for grading-
• Size of the tuber
• Conformity to the variety
• Tolerance limit ( for under sized &over
sized tubers)
• Percentage of diseased and damaged
tubers
• Presence of dust & extraneous material
 Grading Process (contd.)
Method of grading-
• The grading will be done by mechanical
grader for accuracy and efficiency.
• The output capacity of the grader is 2
tons/hr.
• The grading efficiency is 85 %.
 Vadod Specific Factors
• Number of farmers – 1022
• Area under potato cultivation – 548 hectares
– As a percentage of total area cultivated in a year in
the village is 42.6%
– Out of this 50% area would contribute to our
cooperative
• Productivity of Badshah potato in the village
– 6000 kg per acre
• Volume of potato trading through cooperative
– 6000 * 0.5 * 548 * 2.5 = 4110 tons
– Patronage refund
– Input Saving
– Breakeven
Spread out of location

25km

Nationa
l
Highwa
y

15km
 Functioning
• Potato bought at existing market rates.
Only 70% advance paid to share the risk.
• Potato is then graded according to quality.
Specifications for different variety. The
farmer is paid more according to the
quality at the time of procurement only.
• Cost of working capital is divided
according to the potato deposited.
 Functioning (contd.)
• Trading done on receipts if in middle of
season.
• To minimize the working capital, we
should only hold those grades which fetch
more later in the market.
– Price trend
• Loans for working capital will be generated
through pledge/ hypothecation schemes of
Government.
 200
300
400
500
600
700
800
900
1000
1100
1200
April

May

June

2004
July

August

2005
September

2006
October

November
Price Trend

2007 December

January
2008

February

March
 Raising Equity
• The equity should be raised based on
potential patronage. Large farmers should
be encouraged to invest more.
• The equity shares should be made
tradable to make the dry members
disinvest.
• A part of the surplus should also be
apportioned to total equity.
• This type of arrangement would take care
of free rider and horizon problem.
 Diversification/Expansion
Banana/
Vadod Tobacco
Diversification
Cooperative
Credits

Institutiona Fertilizers/
Expansion l Supply/ Insecticides
Exports

Other Product Retail

villages market Shop
THANK YOU !!!