COLD STORAGE, PACK HOUSE,

E-TRADING, KISAN CALL CENTRE

Presented by: Dr. Yogesh Singh
Agri-Business Manager
Agricultural Scene in India
W
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Fruits & Vegetables, Livestock, Chicken meat, Fish, Dairy
1st
Milk
2nd
Fruits & Vegs.
3rd
Fish
5th
Livestock
6th
Meat
Why We Need Cold Storage & Pack Houses ?
Opportunities

Fruit production of 11% of global output.
Vegetable production of 14% of global output
The worlds leading producer of bananas (29%),


mango (54%),

Cauliflower (33%).

Paradox
We are among the top few
producers of many
agricultural commodities in
the world

The post-harvest losses of
fruits and vegetables are
estimated to be 25 to 40 %

We have a middle class of
250-300 million people
with adequate purchasing
power to buy
manufactured goods

Yet our share in the world food
trade is only 1.6 %

Yet less than 2 % is processed

Yet value addition to agricultural
products is less than 7%


Gap
Supply driven, rather than demand led.
Wastage levels are High - estimates put this at 25% of
production.
Innumerable intermediaries in the system.
Lack of pre & post harvest facilities.
Absence of a cold chain.
Inadequate grading & sorting infrastructure.
No transparency in pricing.


Cold Storage
A Cold Store is a Refrigerated Ware House for preservation of perishables.

Cold storages are meant to preserve the perishable commodities

cold storages are used for high value items

or when prices crash down due to bumper crop or for such items
which are grown during the season but there is a demand round the year
Key Target Markets for cold storages facilities:
The envisaged facility would especially cater
to the following industries:
Milk and Milk Products
Fruits and Vegetables
Meat and Meat Products
Packed Foods
Beverages
Biologicals

Cold storage facilities
India has 5101 Cold Storage units with
a total expected capacity of 22 L MT
5101 units
22 L MT
Second highest fruit and vegetable producer in the world with a cold
storage facility available only for 10 per cent of produce
5101 units
22 L MT
Current Scenario
80% of this is used for potatoes
Current Scenario
Huge wastage occurs due to
inadequacies in technology
Poor energy efficiency
Jammed packing restricting air circulation
Ineffective refrigeration systems
Current Storage conditions
Improvised bunker coils inadequate heat transfer area
Ceiling fans for air circulation in bunker coil systems
Industrial humidifiers make the cold store and produce wet
Typical interconnecting stairway between mezzanines
Repacking in bags crude methods employed
Typical machine room arrangement
design and safety issues not considered
Electrical control and automation exhibiting ignorance
and lackadaisical approach
Typical drying, grading and sorting process
Poor sorting, grading, material handling
No focus on energy-efficiency
Non-compliance to international standards
Lack of operational practice
Huge gaps in processes:
Necessity for Perfect Cold chain & Technology

Storage losses
- Weight loss 5-8 %
- Rotting exceeds 5%
- 10% off-graded in local markets
Processing and export losses
- Unpredictable variation in quality
- Does not follow international standards
- Just 20% passes quality for processing

Consequences
Higher utilization
Design based on - Current & Future Needs

Maximum Space Utilization
Usage of Racks
Technology Status and Application Rack
System
Lower Power Consumption
Provides accurate temperatures
Greater plant flexibility through multiple
compressors
Racks are favoured to integrate multiple product
rooms with variable temp conditions
Demaraction Despatch & receiving
- To avoid Congestion
Usage of Pallets

Air circulation
Air circulation Over Product , not the room.

Cooling the centre of the boxes, not only the side walls.

Efficient cooling with proper air Circulation.

Flexibility to select the blocks (rows) that need to be
cooled.

Cold Air Circulation
Air mixing
chamber
IDU
Air
circulation
fan
Potatoes
stored in
wooden
Boxes
Dampers
With Hood
Air
Flows
through
Boxes
Highest Leakage Point.
The Door glides up under
the roof when opened,
allowing free space around
the door opening and leaving
the door opening completely
free

Pictures of Automatic Sliding Doors

Air Tight Doors
Material Handling
Storage & Material Handling System
Palletized Stacking facilitates not only better air circulation around the
products, but also better handling and more storage in lesser area
with increased height

Automation
Min therm Ext block Ext Fail Hatch closed
Outside temp Fan High
Outisde AH
Outside RH Fan Low
Duct temp Hatches
Product temp Refrigeration
Product AH
Product RH Defrost
Duct RH Heater
Room temp Circul vent
Product CO2 Dose pump
CIPC treat Door outlet
Timers Alarm
Heater mod Fan mod Refrig mod
Sensor position
Automation
Better controls can lead to substantial energy savings
Controls can play an important role :
- avoid overcooling
- monitor the temperature and humidity levels
- Reduce large fluctuations in temperature
Controls can help reduce energy consumption in the
tune of up to 15 20%


Latest designs
Potato cold storage in the USA
Pre-engineered Cold Store facility
Modern technology
Bulk Storage Systems in Europe
Global trends
Civil Structural
Civil Structural
Electricals
Refrigeration
Cold storage
Seeds Storage
Flower Storage
Vapur Heat Treatment plant Cooling
Pack house
Other
treatments
Pre-cooling
Drying
Selection,
cleaning and
disinfection
Reception

Grading
Packing and
packaging
Storage

Transport

Harvesting

Typical Cold Chain
Collection
Centre
Integrated
Pack House
Terminal
Market
Multi Commodity
Cold Storage
Exports
Retail
Food Processing
Components of a Cold Chain
Collection Centre
Located close to farmhouses
Place of source for farmers
Facilities available Pre cooling, F&V sorting
Integrated Pack House (IPH)
Cold Chain facility at farm end to maintain
temperature, humidity and atmospheric
conditions as suited for various produce
Facilities available Short term & long term
cold storages, ripening,


Components of Cold Chain
Terminal Markets
Forward linkages
Export houses
Food processing units
Backward linkages
Farmers / Growers / Associations
Trader community
- Electronic Trading facility

Multi Commodity Storage
- Wide variety of climatic conditions for various products


Integrated Pack House
What is an IPH?

Cold Chain facility at the farm end
for storage of agricultural produce
to maintain temperature, humidity
and atmospheric conditions as
suited for various produce
Components of an IPH
Pre Cooling Chamber
Short term / long term
cold storages
Ripening rooms
Grading & sorting Lines
Other components
-Weighing Machines
-Conveyers
-Pallets, Crates
-Dock Levelers, Dock Seals
-Pallet Trucks, Trolleys.
-Stores - Packing material
-Facilities - Employees.
-Offices

Pre-cooling chamber
What is Pre-cooling?

A process of rapid removal of
heat from freshly harvest
produce to minimise enzymatic
and other process which cause
deterioration

Because 1 hour lost in pre-
cooling may result in 8 to 24
hour loss in shelf life

Pre-Cooling Chamber

Movement of the caloric
energy from the product to the
cooling substance.
Objective: to remove the field heat.
Vacuum Cooling
Pre Cooling
Pallet pre-cooling and transition to CA rooms
Packing, Grading
Simple on-Farm Washing of Fruit
Washing
Potato Washing
Grading
Grading of Onions
Waxing and Grading of fruits
Conveyor System
Air in the internal
Cavity
Wax layer restricts
the gases interchange.
Packaging
Packaging
Short / Long term
Cold Storages
What are Cold Storages?

Cubic rooms made with pre-fab.
PUF insulated panels with
Refrigeration Units to maintain
desired temperature and humidity
conditions
Controlled Atmosphere
Altering, Controlling
and Maintaining the
atmospheric
composition in a air
tight cell to extend
the storage life of
perishable produce.

Benefits
Longer storage life
Improved product quality
Less chemical input
Results
Extended marketing season
Better prices
Greater volume
More distant markets
Cold storage
T = +1C
Life = 18 weeks
N
2
= 79%
O
2
= 16%
CO
2
= 5%
Air
C.A. Store
T = +1C
Life = 40 weeks
N
2
= 97%
O
2
= 2%
CO
2
= 1%
Air
CO
2

Scrub
Ripening Rooms
What are Ripening Rooms?

Rooms with regulated ingress
of ethylene to promote
ripening, with controlled gas
levels and safety mechanisms to
prevent accidents
Ripening Chamber
Ripening is a process in fruits that causes them to become
more edible
It is a bio-chemical process of converting starch into sugar
Fruit Ripening Process
When fruits approach maturity they
release ethylene
Ethylene promotes ripening process
Ethylene gas is odourless,
colourless and normally exists in nature

CALCIUM CARBIDE RIPENING IS
HARMFUL CAN CAUSE CANCER

Equipment layout of Ripening Room
The design & selection of equipments
should ensure a smooth operation and
uninterrupted product flow from
arrivals to Cold room or Ripening
room with in least possible time
Important Feature-IPH
Necessity of Modernization

Multi Commodity Storages
Controlled Atmosphere Storages
Value added Services by Cold storage Companies.
Packing ,
Distribution
Control of Stocks
Transportation .
Divergent Needs More Efficiency
Material Handling
Dock Leveler
Dock leveler is intended to bridge the gap between
dispatch area and transport vehicle
Material Handling - Dock Leveler
Bridging the Gap for quicker loading & unloading
movements

Handling - Dock Shelter

Seals between
Vehicle & Building - reducing the
Ambient temp ingression
in the Cold Storage Area.

Receiving,
inspection
Initial cooling
Cold storage
Bin dump presize
Wash / scrub
Special
operations
Dry
Wax
fungicide
Hand sort
Cull and byproduct
Automatic
Sorting & sizing
labeling
Hand sort
Hand sort
Box
Fill
Box
Fill
palletize
Cooling &
storage
Schematic of the typical unit operations in a mechanized packinghouse
PACKINGHOUSE OPERATIONS
HSAMB Cold Storage & Pack House
E-Trading
Electronic trading, sometimes called e-trading,

Which are also known as electronic communications networks or ECNs

Information technology is used to bring together buyers and sellers
through electronic trading platform and networks to create a virtual
market places
Commodity Markets: Commodity Futures
Why Commodity Futures Markets ?
Economic Liberalization
WTO led Open Market Access
Quality Standardization & Food Safety Issues
Information Flow of Market Forces
Farmers Concerns- demand supply mismatch led price
fluctuations
Deciding about the future- Planning in advance with
known information
Commodity Markets
Commodity Markets
Spot
Forwards
Futures
In a spot transaction, trading, clearing and settlement happens instantaneously.

Forwards: Agreement between two parties to buy or sell the underlying asset at a
future date at a todays negotiated price
Future Contract :
Agreement between two parties to buy or sell at a future date at todays futures
price
Standardized and exchange traded

Futures Contract
A futures contract is essentially an exchange-traded version of a forward
contract

It is an agreement to buy or sell a specified quantity in a designated future
month at a price agreed upon by the buyer and the seller

Terms of each contract are standardized in a legal document called the
contract specification

Types of futures contracts:
Commodity futures
Financial futures
Index futures
Characteristics of Spot, Forward and Futures markets
Market
Characteristics Spot Forward Futures
Trade Platform

OTC

OTC

Exchange Platform

Price Determination

Negotiated and
determined privately
Negotiated and
determined privately
Prices are market
determined and are
publicly available
Goods Delivery

On the spot or up to the
11 days of price fixation
On a fixed date as
agreed by buyer and
seller
At the specified contract
maturity date
Sales specification

Customised
specifications

Customised
specifications

Standardized
Payment

Immediate payment or
up to 11 days

On a specified date, i. e.
on the date of maturity
Required initial deposits
(margin), remaining
payment at the end of
maturity period
Default Risk

Liable to default by
either party
Risk depends on the
reliability of the other
party
Defaults are prevented
by clearing house
through initial margin
and margin calls /
penalties
Major Indian Commodity Exchanges
National Exchanges (5)
National Commodity & Derivative Exchange (NCDEX)
Multi Commodity Exchange (MCX)
National Multi Commodity Exchange of India Ltd. (NMCE)
Indian Commodity Exchange (ICEX)
Ace Commodity & Derivatives Exchange

Regional Exchanges
Some of the regional exchanges are:
National Board of Trade (NBOT), Indore
The East India Jute & Hessian Exchange, Kolkata
The Bombay Commodity Exchange Ltd., Mumbai
The Chamber of Commerce, Hapur
First Commodity Exchange of India Ltd., Kochi

Structure of Indian Commodity
Exchanges
Other Regional
Exchanges
NMCE
Commodity Exchanges
ICEX
National
Exchanges
Regional
Exchanges
FMC (Forward Markets
Commission)
NBOT
NCDEX MCX ACE
Major Commodities Traded
90
Exchange Commodities traded
NCDEX Chilli, chana, guar gum, guar seeds, gur, jeera, mustard seed,
pepper, soyabean, refined soya oil, crude oil, gold, silver, long
steel, etc.
MCX Gold, silver, copper, lead, nickel, zinc, crude oil, natural gas,
furnace oil, mentha oil, kapas, raw jute, cashew kernels,
maize, cardamom, jeera, pepper, etc.
NMCE Gur, crude palm oil, mustard seed, soybean, copra, pepper,
guarseed, gram, nickel, copper, zinc, lead, etc.
ICEX Gold, Silver, Crude oil, Copper, Guar seed and Refined Soy
oil.
ACE Chana, Soybean, Refined soy oil, Castor seed, Mustard seed
NBOT Refined Soy Oil, Soybean
Commodity Markets
World over commodity markets are larger than stock
markets.
In India too, commodity futures markets are growing
despite the prohibitions that had been imposed on
them.
In the commodity futures market, the period after the
set up of national level exchanges witnessed
exponential growth in trading. The turnover increased
from 5.71 lakh crores in 2004-05 to 119.48 lakh crores
in 2010-11.
Commodities of different segments traded on
commodity exchanges- Agri, metals, energy etc.

Futures Trade in Commodities
Rs. Crore 2009-10 2010-11 Growth (%)
Total Value of Trade 77,64,754.05 119,48,942.35 53.89
Trade in Agri Commodities 12,17,949.04 14,56,389.62 19.58
Trade in Bullion 31,64,152.24 54,93,892.12 73.63
Trade in Metals other than
Bullion
18,01,636.31 26,87,672.99 49.18
Trade in Energy 15,77,882.06 23,10,958.58 46.46
Trade in other commodities 3,134.40 29.04 -99.07
NCDEX - Products
Guar Seed &
Guar Gum
Other s
Bullion
Metal
Energy
Oil
& Oil Seed
Pulses
Spices
NCDEX
Role of Futures Market
Risk mitigation
Risk transfer platform from actual users to
traders/ speculators
Helps hedger concentrate on core activity i.e.
production
Price discovery
Long term price signals helps farmers to decide
cropping pattern based on future prices
Role of an Exchange
Anonymous auction platform
Confluence of demand and supply: Price Discovery
Transparent real time, Pan geographic price Dissemination
Benchmark reference price
Liquidity to participants
Risk Management in a volatile market
Robust Clearing & Settlement systems - counter party
credit risk absorbed
Fair, Safe, orderly market - rigorous financial standards
and surveillance procedures
Trading on Exchange Platforms
Standardized specifications - contract structure
Standard delivery lots or multiples
Standard settlement dates
Standard margining system
- Eliminates credit rating
Guarantees financial aspects of all trades
Trading Structure
EXCHANGE
MEMBER
CUSTOMER
Types of Members
Membership:
Membership of is open to any persons, association of persons, partnership,
cooperative societies, companies etc that fulfills the eligibility criteria set by the
exchange. (FIs. NRIs, Banks, MFs etc are not allowed to participate in Commodity
exchanges at the moment).
1.Trading cum Clearing Member (TCM) :
Members can carry out the transactions.(Trading , settling , and clearing) on their
own account and also on their clients accounts
2.Professional clearing members (PCM):
Members can carry out the settlement and clearing for their clients who have traded
through TCMs or traded as TMs.
3.Trading member ( TM ):
Member who can only trade through their account or on account of their clients and
will however clear their trade through PCMs/STCMs.
4.Strategic Trading cum Clearing Member (STCM):
This is up gradation from the TCM to STCM. Such member can trade on their own
account, also on account of their clients. They can clear and settle these trades and
also clear and settle trades of other trading members who are only allowed to trade
and are not allowed to settle and clear.
Electronic Trading
The driving factors are speed, efficiency and reduced cost of
transactions
Electronic trading systems enable remote investors to make
transactions in real time
Electronic trading is an automated trade execution system with
three key components.
Computer terminals, where customer orders are keyed in
and trade confirmations received
A host computer that processes trade
A network that links the terminals to the host computer
Electronic Trading Process Flow

Customers may directly enter orders into the terminal or
phone or through a broker
Electronic order-matching systems, the host computer
matches bids with offers as per rules that determine an
orders priority
Priority rules on most systems include price and time of
entry
Order and execution flows in electronic futures trade
Source: Sahadevan (2002)
Trade Confirmation
A trade confirmation is sent out by the host
computer to the respective terminals of the
members
Member shall issue contract notes to their
constituents for trades executed in prescribed
format with all relevant details filled in within
24 hours from the close of trading hours when
the trade is executed
103
Clearing
Clearing mechanism essentially involves working out
open positions & obligations of clearing members
Clearing house guarantees the faithful compliance of
trade commitments.
Open position are arrived at by summation of
proprietary open position & clients open position.
TCM and PCM are responsible for clearing and
settlement of futures contract traded on NCDEX

Settlements
Daily Settlement Final Settlement
Types of
Settlement
Handles Daily Price
fluctuation for all
trades (mark to market)
Daily Process at
end of day
On contract
expiry day
Daily
Settlement Price
Handles final
settlement of all
open positions
Final
Settlement Price
Final Settlement
106
Settlement
Cash
Settlement
Delivery
Settlement
All contracts materializing into deliveries are settled in a period as notified by the Exchange separately for
each contract. The exact settlement date for each commodity is specified by the Exchange through circulars
known as Settlement Calendar. As Wheat is a compulsory delivery contract, all open positions on expiry
results into delivery settlement.
Final Settlement
107
Settlement
Cash
Settlement
Delivery
Settlement
All contracts materializing into deliveries are settled in a period as notified by the Exchange separately for
each contract. The exact settlement date for each commodity is specified by the Exchange through circulars
known as Settlement Calendar. As Wheat is a compulsory delivery contract, all open positions on expiry
results into delivery settlement.
Farmers Involvement
Farmer sees exchange spot and futures prices
Approaches mandi of choice
Sells futures on Exchange
Bank finance against WR
Lodges goods
exchange warehouse
Goods assayed
by approved assayers
Warehouse Receipt
in electronic form
More
WAREHOUSES
Working with
all leading
assayers
NCMSL
arranges credit
Benefit to Farmers
Farmers Concerns
& Futures Prices
as an Indicator
Pre-Harvest Concerns
What to grow?
How much to Grow?


Post-Harvest Concerns
When to sale the produce
Whether to sale immediately
or store for sale in future
How to meet cash requirement
KISAN CALL CENTER (KCC)

HSAMB
TOLL FREE NUMBER
18001802060
KISAN CALL CENTER
Kisan Call Centre, Kisan Bhawan, Sector 14,Panchkula
KCC OBJECTIVE

Toll free number for farmers and traders with the following objective:
To provide maximum rate of agriculture produce.
To help farmers for direct sale of their agricultural produce.
To provide information about new technology and training.
To make relation with other agriculture related departments for taking
agriculture related information's.
Making professional help and information available to farmers at their
doorstep, on a toll free telephone number.
Making authentic field data available for Agriculture
To Address the need of the farmer and trader community making use
of Information Technology.




Kisan Knowledge Management System (KKMS)
Consistency and Accuracy in replies to farmers
Agricultural Best Practices online
Knowledge base for ready reference
Quick and easy access to information
Qualitative & Quantitative Analysis of Data

KCC Features
Free of cost Country Wide Help-line for Farmers
Interaction With Farmer in Local Language
Provides Agriculture Related Information to the
farmer by Professional Agriculture Experts
Covers All Fields of Agriculture
Provides Agriculture related Market Information


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And Other Agriculture related information.

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Thank you
for kind attention....