Nagpur – Amaravati Region

Nagpur – Amaravati region is in the eastern most region of the state of Maharashtra.
Administratively, the region is divided into two divisions namely, Nagpur Division and
Amaravati Division. Nagpur and Amaravati divisions makeup the region of Vidarbha.
Nagpur division consists of five districts namely Bhandara, Chandrapur, Gadchiroli,
Gondia, Nagpur and Wardha. Amaravati division consists of five districts namely Akola,
Amravati, Buldhana, Washim and Yavatmal.

These two divisions together account for 31.6% of total area and hold 21.3% of total
population of Maharashtra. Vidarbha's economy is primarily agricultural. The region is
rich in forest and mineral wealth. The main cash crops of the region are cotton, oranges
pulses and soya beans. Traditional crops are sorghum (jowar), pearl millet (bajra) and
rice.

Based on the discussions with the Maharashtra State Agricultural Marketing Board
(MSAMB), and other stakeholders, out the ten districts stated above two districts -
Nagpur and Wardha- from Nagpur region and three districts - Akola, Amravati and
Yavatmal- from Amaravati region were selected for the purpose of detailed value chain
study. The table below summarizes the focus districts, selected production clusters in the
identified districts and focus crops in the each of the selected production cluster. The
production clusters were identified based on the inputs provided by MSAMB and state
agriculture department.

District Focus Crop Taluka/Block

Akola (3) Soyabean Akola
Jowar Balapur
Pulses Murtizapur
Amravati (3) Orange Warud, Morshi
Jowar Morshi
Pulses Daryapur
Yavatmal (3) Pulses Yavatmal
Soyabean, Jowar Pusad
Pulses Babhulgaon
Nagpur (2) Orange Katol, Kalmeshwar
Soyabean Saoner
Wardha (1) Orange Karanja
12 clusters as listed above have been studied in detail to assess the availability of existing
infrastructure, map the value chain for the selected focus crops and to identify the critical
gaps in infrastructure.

Apart from studying the focus production clusters, assessment of Agriculture related
infrastructure in Nagpur was carried out. Nagpur is the largest city and a major
aggregation and distribution location in the region.

Assessment of Infrastructure in the selected production clusters:

1. Saoner:
General Particulars Details Remarks
Block Saoner
One Main Market and One sub Main APMC market at Saoner
Main Market and Sub markets market yard and One sub market at Khapa
Major crops Soya bean : Grams : Pulses
This is a large mandi for Soya
Arrivals in 2007-08 (in mt) 20918 : 1709 : 5474 bean followed by Pulses and
Cotton. There are no arrivals of
Orange in this mandi and
farmers and Aggregators prefer
Arrivals in 2008-09 (in mt) 17013 to take the produce to Nagpur
which is only at 30 km
Assessment of Infrastructure in APMC mandi in Saoner
Total acreage 6.12 ha
Area under use 4 ha
Compound wall with gate Yes
5 auction platforms with well
covered roof and cement
Auction Platforms Yes platforms
2 numbers. One with 750 mt
capacity leased out to private
trader who stores fertilizers and
one with 500 mt capacity used
by commission agents mostly
Ware house Yes during the peak arrivals season
Quality testing equipment No
Administrative building Yes In good condition
Farmer Guest house Yes In good condition
Canteen Yes In good condition
Water Facilities - drinking Yes In good condition
Weigh Bridge No
Number of registered
commission agents 21 Only 4-5 active and large
Number of registered traders 40 Only 10-15 active and large
Cold storage No Not required
Internal Roads Good
Assessment of Infrastructure in the Block
Other Warehouse No
Other Cold storage No
Any Processing Unit Yes One Oil processing Unit
Private Investment - Collection,
aggregation, extension, retailing No
Any other infrastructure related
to food in the Block No
Connectivity Related Issues
Nearest Large city Nagpur Saoner is 30km from Nagpur
Connectivity by Road Good All season motor able road
Connectivity by rail No
Connectivity by air Nearest airport at Nagpur
Assessment of Practices in the Mandi
Elected marketing Committee
Managed by body
Commission charges 1.25 % on grains from farmers
Price discovery Mechanism Open Auction
Assessment of quality Visual
Price display Good and prominent
 2. Katol
General Particulars Katol Remarks
Block Katol
One Main Market and two sub One main market at Katol.
Main Market and Sub markets markets Submarkets in Katol and Kondhali
Major crops Soyabean : Grams : Oranges
This mandi is a large mandi for
Arrivals in 2007-08 (in mt) 25899 : 5638 : 701 Soyabean and Pulses. This market
was a large market for Oranges a
few years back. However, the
Arrivals in 2008-09 (in mt) arrivals have come down to a large
extent in the last few years.
Annual Revenue in 2008-09 Rs. 102.39 Lakhs
Net Profit in 2008-09 Rs. 82.11 lakhs
Assessment of Infrastructure in APMC mandi at Katol main market
Total acreage 2 ha
Area under use 0.5 ha
Compound wall with gate No
 One plat form in dilapidated
condition. This mandi is used in
orange season only. Temporary
thatched sheds are constructed
Auction Platforms Yes during the season.
No warehouse in this market. There
are two warehouses in the Katol
submarket, with a capacity of 500
Ware house No mt
Quality testing equipment No
In bad condition and not in use. The
administrative building in Katol
Administrative building Yes submarket is used.
One farmer guest house at Katol
Farmer Guest house No sub market
Canteen No
Water Facilities - drinking No
Weigh Bridge No
Number of registered
commission agents 36 Only 4-5 active and large
Number of registered traders 69 Only 10-15 active and large
Cold storage No
Internal Roads Bad
Assessment of Infrastructure in the Block
There are some private
warehouses. Details not available at
Other Warehouse Yes present.
Other Cold storage No
There is one multi fruit processing
unit in MIDC area established
under Nagpur Orange Growers
Association(NOGA) and given out
on lease basis to Alliance Agro Pvt
ltd. The facility reportedly has 3
processing lines, aseptic packing
line, cold storage. However, there is
a dispute between NOGA and
Alliance agro and the issue is
presently in the court of law and
Any Processing Unit Yes hence not under use.
For Orange, there is a Katol Taluka
Santra Utpadan Co-operative
society. The society is a member of
Private Investment - Collection, Mahaorange. However, they do not
aggregation, extension, retailing Yes have infrastructure at present.
Any other infrastructure related
to food in the Block No Information not available.
Connectivity Related Issues
Nearest Large city
Connectivity by Road
Connectivity by rail
Connectivity by air
Assessment of Practices in the Mandi
Managed by
Commission charges
Price discovery Mechanism
Assessment of quality
Price display
Settlement of the receivables
Warehouse receipt finance
Nagpur Katol is approximately 30 km from
Nagpur
Good All season motorable road
Yes Railway station at a distance of 1
km
Nearest airport at Nagpur
Administrator Marketing committee has not been
elected for the last five years. There
is a dispute between marketing
committee and MSAMB pending in
court and hence the mandi is
managed by Government appointed
administrator
1.25 % on grains from farmers,
3 % on oranges from farmer
Open Auction
Visual
Poor
Same day
Pledge financing scheme of
MSAMB was introduced last year
with good response from the
Practiced in Katol sub market farmers for Soyabean and Pulses
 3. Kalmeshwar

Particulars KALMESHWAR Remarks

Block
One Main Market and two sub
Main Market and Sub markets
Major crops
Arrivals in 2007-08 (in mt)
Arrivals in 2008-09 (in mt)
Annual Revenue in 2008-09
Net Profit in 2008-09
Assessment of Infrastructure in APMC mandi Kalmeshwar
Total hectares
Area under use
Compound wall with gate
Auction Platforms
Ware house
Kalmeshwar
One main market at Kalmeshwar and
markets submarkets at Brahmani and Kolhi
The main market - Kalmeshwar is
used used during orange season only.
Brahmi sub market is for all the crops.
Kohli submarket is a seasonal market
for oranges and during the season,
temporary thatched sheds are
Orange: Soyabean constructed
1662: 12903 Kalmeshwar is a major market for
Orange, however, arrivals to the
market have been coming down in the
last few years. Year wise arrivals
from 2001 to 2008 have come down
12855: 12889 from 3.2 lakh mt to 1.28 lakh mt.
Rs. 43.66 Lakhs
Rs. 25.49 Lakhs
3.33 hectares
The mandi has only a weigh bridge
and no other permanent structures.
During orange season temporary
thatched sheds are constructed by the
0.1 hectares commission agents
No
No auction platforms are present in
Kalmeshwar, however, in the
submarket at Brahmani there are 3
No auction platforms.
No warehouse in the Kalmeshwar, but
there 2 warehouse of 200 mt and 100
No mt capacity in Brahmani sub market.
Quality testing equipment No
Administrative building cum
weighbridge present. Full fledged
admin building is at Brahamani Sub
Administrative building Yes market.
Farmer Guest house No
Canteen No
Water Facilities - drinking Yes
Weigh Bridge Yes 50 mt capacity
Number of registered
commission agents 67 Nos Only 20-25 are active
Number of registered traders 127 Nos Only 15-20 are active
Cold storage No
Internal Roads Yes In poor condition
Assessment of Infrastructure in the Block
Private godowns present, but
Other Warehouse Yes information not available
Other Cold storage No
Any Processing Unit No

Private Investment -
Collection, aggregation, No
Any other infrastructure
related to food in the Block No
Connectivity Related Issues
Nearest Large city Nagpur Kalmeshwar is 20 km from Nagpur
Connectivity by Road Good
Connectivity by rail Good
Connectivity by air Good from Nagpur
Assessment of Practices in the Mandi
Managed by Elected marketing Committee

6 % for fruits and vegetables and

Commission charges 1 % for grains
Price discovery Mechanism Open auction
Assessment of quality during
auction Visual
Price display Black board
Settlement of the receivables
to farmers Same day
Warehouse receipt finance Not present
Year Wise arrivals of Orange in Kalmeshwar Mandi:
Year Number of trucks of 3.5 mt Qty in mt
2000-01 22643 79251
2001-02 93483 327191
2002-03 62356 218246
2003-04 55647 194765
2004-05 5755 20143
2005-06 30900 108150
2006-07 16626 58191
2007-08 36571 128000
Source: APMC Mandi, Kalmeshwar

While the availability of infrastructure has been assessed for each production cluster, the supply chain of
the identified focus crop remains same irrespective of the production cluster. The value chain for selected
focus crops is presented below:
Value Chain of Orange:

Area, Production and Seasonality:

Maharashtra, the largest orange producing State in the country, has 1.35 lakh hectares of area
under cultivation with a production of 7.15 lakh metric tonnes. In Maharashtra, the major orange
producing districts are Amravati, Nagpur, Yeotmal and Akola, of which Amravati and Nagpur
alone account for about 0.94 lakh hectares with production about 5 lakh metric tonnes.

AREA AND PRODUCTION (2006-2007)

# District Area (ha) Production Lakh MT
1 Amaravati 62117 3.29
2 Wardha 10186 0.54
3 Nagpur 32329 1.71
TOTAL 135028 5.54

The production of orange is spread into two seasons namely Ambia bahar and Mrug bahar. Ambia Bahar
accounts for 20-30 % of the production. Arrivals for this seaons start in the month of October and end in
the month of January. Mrug Bahar accounts for the balance 70-80 % of the production and it starts in the
month of February and ends in the Month of April. The quality of fruit in Mrig Bahar is reportedly
superior and is suitable for long distance transportation.

Production Management:
Some salient features of production management are presented below:

• Orange has been under production for over two centuries in

Nagpur region and has achieved a unique identity and is called
Nagpuri Santra.

• Nagpuri Oranges are propagated by budding. The root

stock of Jumberi or Rampuri is raised in the nursery. The
method of shield budding is the most popular method for
propagation.
• The square system is the most popular system for plantation of oranges.
The distance between plant to plant is generally kept 20 ft. In the square
method, by maintaining the distance of 20 ft. from plant to plant, 277
plants of orange can be planted in one hectare.
• An intensive care has to be taken of planted nursery up to 5 years. The
trees start bearing economic yield from 6th year onwards and the
 economic life of the trees continue for 12-15 years depending on
maintenance. Intercropping with pulses, soya bean, ground nut and
chillies is carried up to 5 years, however, some farmers continue
intercropping even after 5 years
Harvesting:
Fruits are harvested when they attain full size, develop attractive colour (75% fruit surface
colour changes from dark greenish into yellowish) with optimum sugar and acid blend.
Picking of fruits is generally done manually without damaging the fruits either in the
morning or in the evening hours.. Generally harvesting is carried out in either two plucking
or single plucking.

Post Harvest Activities:

After picking fruits kept overnight in open to dry oil exudates from fruit and to avoid black
spots on the fruit surface.
There is no farm level grading for the oranges irrespective of the marketing channel used to
market the product unless the farmers plan to sell their product in distant consumption
markets like Delhi, Mumbai etc by themselves.
There is no farm level packing for the oranges unless the farmers plan to market the produce
themselves in distant markets. The fruits are generally loaded into an open truck or tempo
and sent to mandi for sale.

Marketing Channels/ Supply Chain:

Farmer
There are three marketing channels as detailed below. The various marketing channels also
Channel 1
Channel 3
indicate the supply chain of Oranges produced in the studyChannel
region.2

Pre harvest Contractor

Commission agent

Trader

Commission Agent in Distant market Retailer in Local Market

Trader

Retailer in Distant Market CONSUMER

The various actors involved in the value chain are Farmers, Pre-harvest contractors/aggregators,
commission agents, traders and retailers.

Based on the point of sale, the above supply chains can be classified into three types:
1. At farm gate – Channel 1 – Accounts for 60 % of the produce
2. At APMC Mandis within Production Clusters – Channel 2 - Accounts for 35 %
3. At Distant consumption market – Channel 3 – Accounts for 5 % of the trade*
*As per the trade and market functionaries

Both in the case of Channel 1 and Channel 2, Oranges brought from garden by various means
of transport are properly heaped without causing any damages on the auction platforms
covered with paddy straw in the market yards and auctioned for price discovery.

Unit of Trade: Oranges are traded either in Numbers or by weight. Each market has its own unit
of trade. For example, in Kalamna APMC Market yard in Nagpur District, Oranges are traded by
weight while in Warud APMC Market yard in Amaravati district they are traded in Numbers.
The unit of trade in distant consumption markets is generally by boxes or crates.

Price Determination: Price fixation between the farmer and the Pre
harvest Contractor (PHC) is by Negotiation. The PHC offer a price
based on their information of price in their market, their experience and
their projection of supply. Generally, the unit of trade between the
farmer and PHC is in numbers. The PHC visits the orchards and
randomly some trees are selected and the number of fruits are counted
and then extrapolated for the entire garden. Though there is high
 approximation in this method, most of the farmers prefer to sell by this
channels as there are no marketing costs, harvesting is the
responsibility of the PHC and the price risk is with the PHC. Price
discovery in the APMC market yards, is by Open Call Auction method.

Grading: In all the markets grading is done manually. The grading is done based upon the
size of the fruit. However, based on other physical properties like colour, shape, (oblong,
high collared, deformed), maturity, puffiness, blemishes, physical damage (bruised and
diseased) grading and sorting operations are carried out. Once the diseased and bruised fruits
are discarded, based on size, fruits are graded into 7 grades. Traditionally, the seven grades
have been identified on the basis of number of fruits of a particular size that will fill exactly a
standard wooden box. To understand the grades, it is important to understand the packaging
methods and packaging material. The seven grades and their characteristics are summarized
in the next section.

Packaging: After the grading the fruits are packed in either wooden boxes or in plastics
crates.
Wooden boxes made of mango wood or any other wood locally available is used. The
standard size of a wooden box is 18” x 12” x 12”. An empty wooden box weighs 2 to 2.5 kg.
The wooden box is fabricated on the spot by specially appointed box maker. The labour
charges for box making in Kalamna APMC market are Rs. 3.5 per box.

The fruits are stacked in layers in the wooden box. Depending on the size of the fruit the
layers vary from 4-6. To avoid friction between the layers of fruits and to avoid moisture loss
during transit each layer is separated from the other with paddy straw and waste papers. Once
the fruits are filled, the top of the box is closed with the same wooden sheets using iron nails.
They are then tightened using coconut fibre ropes. They are then marked
using non-edible grade water soluble permanent color with the name of the
trader so that it can be identified in the destination market. Packing cost with
wooden boxes works out to be in the range of Rs. 50-55 per box
These wooden boxes are not reusable. After they reach the destination
market, the boxes are either thrown away or used as fuel wood. As per trade,
nearly 40% of the trade at present is happening by wooden boxes. As per
trade because of the use of wooden boxes, many mango orchards have been
cut in the past few decades and at present there is virtually no mango
orchard left.
 In the last few years the use of plastic crates has increased. Mostly, plastic crates of 542 mm
x 360 mm x 300 mm (outer dia) are in use. The weight of empty crate is comparable to a
wooden box at 2.1 to 2.3 kgs.
This standard crate can take 22-25 kg of fruit. Though the
return logistics cost adds to the cost of the product, the ease
of usage, easy availability and acceptance by trade in the
destination markets has increased the usage of plastic crates.
As per trade, 60 % of the volume is transported by plastic
crates. Unlike wooden boxes, in case of the plastic crates, the
fruit is not arranged in layers. The fruits are loosely packed in
the crate and the sides and top are covered with waste paper. Then the paper is tied to the crate
using nylon thread. The traders have their brand name/ trade name stenciled on the sides of the
crates for identification.

Cost of transportation using crates varies from market to market. For example for Nagpur to
Delhi, the cost of transportation including reverse logistics cost works out to be Rs. 65. While
the one way transport cost for wooden boxes is Rs. 55. The traders using plastic crates save
Rs. 45 per trip using crates in the subsequent trips to Delhi. However, because of the high
upfront costs (Rs. 180 to 200 per crate), traders continue to use wooden boxes.

Grades in Orange:
Grade Actual
name as number of Size in Grade
# Grade per trade fruits Layers of fruits mm rank
1 Extra Large 96 Dana 96 4 layers of 24 each 75-80 Third
4 layers of 30 each
2 Large - 1 141 Dana 148 and one layer of 28 70-75 First
4 layers of 35 each
3 Large -2 171 Dana 173 and one layer of 33 65-70 Second
4 Medium - 1 191 Dana 195 4 layers of 39 each 60-65 Fourth
5 Medium -2 205 Dana 210 4 layers of 45 each 55-60 Fifth
6 Small 245 Dana 288 6 layers of 48 each 50-55 Sixth
7 Waste All other Seventh
As can be observed from the table above, the number of fruits is higher than the grade name
(number) except in case of Extra Large. Higher number of fruits are packed to ensure that the
fruits are tightly packed. The trader compensates for the additional fruits by taking 100 fruits
extra for every 1000 fruits from the farmer.

Storage:
The traders in production clusters do not generally store the product. The operate in such a
way that the product reaches the destination market within 3 days of harvesting.
Transportation is carried out in ambient temperatures in open trucks. Oranges are generally
not stored for off-season sales in production clusters. If any trader wishes to store the product
for off season sale, the same is done in the distant consumption market.

Value Chain – Cost Build up across the value Chain:

A value chain, indicating the various activities in the value chain, actors performing the given
activity, cost buildup at every step has been mapped in this section. This value chain has been
mapped for the supply chain having following characteristics:

1. The marketing chain follows Channel 2, i.e, Farmer to PHC to Commission Agent to
Trader to Commission agent in Distant market to Trader/ retailer to Consumer
2. The cost of production for the farmer is only the variable cost for maintenance of one
acre orchard per year. It does not include the cost for the first five years of orange
orchard where there are no returns.
3. The Distant consumption market considered for this case is Azadpur APMC Mandi,
in New Delhi
4. The packing material is wooden box of standard dimension 18” x 12” x 12”
5. Net weight of oranges in each box is 24 kg
6. Cost of capital and opportunity cost for the all the intermediaries has not been
considered in cost build up and for calculating the spread
7. The Spread indicated is gross spread, excluding direct costs involved in handling of
product
8. The cost of retailing, which includes the cost of shop, wages, rent etc has not been
considered
 9. The prices considered are average prices for the month of October in Nagpur and
Delhi Market based on the data corroborated from traders. The same has been cross
checked with the data from National Horticulture Board 2007-08 statistics
10. The grade mix for 1 mt of product has been considered based on feed back from only
one trader. The same has to be cross checked with some more traders.
11. Wastages have been accounted at the level of packaging only. The next level of
wastage is at the level of retailer, where data is not available
Actor in Value chain Activity Unit Value
Farmer Cost of production for the farmer Rs /Acre 30000
Farmer Total production Tons/ Acre 10.5
Farmer Cost of production per MT Rs per MT 2857
Farmer Pre-harvest Contractor price to farmer Rs per MT 9500
Farmer Net realization to the farmer Rs per MT 6643
PHC Harvesting Rs per MT 185
PHC Loading Rs per MT 60
PHC Transportation Cost to mandi Rs per MT 325
PHC Unloading cost Rs per MT 80
PHC Price discovered in Local mandi Rs per MT 12000
Commission Agent Commission charges @ 6 % Rs 720
PHC Miscellaneous Expenses Rs per MT 10
PHC Total Marketing Cost for PHC Rs per MT 1380
PHC Net Realization to the PHC Rs per MT 1120
APMC Mandi Marketing cess @ 1.05 % Rs per MT 126
Trader Sorting grading and packing charges Rs per MT 167
Trader Packaging material cost Rs per MT 1958
Trader Moisture loss, damaged fruit etc Kg per MT 50
Trader Value of wastage Rs 600
Trader Loading Cost Rs per MT 63
Trader Transportation to Delhi Market Rs per MT 2310
Trader Price discovered in Delhi market Rs per MT 20925
Commission Agent Commission Charges @ 8 % Rs per MT 1674
Trader Unloading cost at Delhi Rs per MT 84
Trader Miscellaneous Expenses at Delhi Rs per MT 50
Trader Total Marketing Cost for Trader Rs per MT 7032
Trader Spread for the trader Rs per MT 1893
Retailer Mandi Cess @ 1 % Rs per MT 209
Retailer Loading Charges Rs per MT 84
Retailer Transportation Cost to Point of Sale Rs per MT 210
Retailer Average Retail Sale Price Rs per MT 24463
Retailer Spread for the retailer Rs per MT 3035
The above table can be summarized as below:
Particular Farmer PHC Trader Retailer
Cost of Production/ Buying 2857 9500 12000 20925
Sale Price 9500 12000 20925 24463
Cost of Marketing incl. Commission Agent charges 0 1380 7032 503
Spread 6643 1120 1893 3035

• The price buildup from Farmer to Consumer is almost two and half times.
• There are 5 intermediaries in this case
• While the intermediaries are making decent profits, the cost benefit ratio for orange
farmer at 1:2.3 is also very good.
• The APMC mandi cess accounts for close to Rs. 335 per mt, which is close to 1.5 % of
the final price paid by the consumer
• The share of consumers rupee by various actors in the value chain emerges as below:

Value Chain Actor % of Consumers Rupee

Farmer 39
PHC 5
Trader 8
Retailer 12
Commission Agents 10
Other Marketing Costs Incurred 27
Institutional /Marketing Infrastructure
In the entire study area there are five orange related facilities. Of the five facilities three
facilities are for sorting-washing-waxing-grading lines, primarily set up for handling of
fresh oranges for domestic and export markets. The summary of these three facilities in
provided in table below:
Particulars Warud Morshi Karanja
District Amaravati Amaravati Wardha
Ownership Owned by APMC, Warud Owned by APMC, Morshi Owned by MSAMB
sorting-washing-
waxing-grading
lines 2 mt per hour 5 mt per hour 2 mt per hour
Pre-cooling 5 mt per batch yes, capacity not known 10 mt per batch
Cold storage 30 mt yes, capacity not known 32 mt
Pack house Present Present Present
Loading- unloading
bay Present Present Present
Backup power Not available Not Available Available
Weigh bridge Not available Not Available Available
Available, but in dilapidated
Worker Quarters Not available state Available and good

The facility was lying idle

for many years. However,
the facility was used by one
trader, SKC and Co, of
The facility was created by Warud at a nominal price in
a private entrepreneur, but 2008-09 season. The
could not use the facility experience of the trader is
and in 2006 sold to APMC, that the manual grading is
Warud at Rs. 22 lakhs. Last both cost effective, and This facility has been
year the facility was given more efficient. As the constructed recently in
out lease to Reliace Retail mechanical grading line 2008-09 and has not
and a charge of Rs. 65 per separates fruits on the basis commenced commercial
quintal was collected from of size only, while the operation yet. The
Reliance. Approximately manual grading takes into facility has been created
200 mt of produce was account other physical with the Financial
Usage handled parameters of the fruit. Assistance of APEDA

The other two facilities for Orange processing and are owned by NOGA – Nagpur
Orange Growers Association. Though, NOGA was originally a farmers association
involved in processing of Oranges and other fruit crops, it was eventually taken over by
the State Government through Maharashtra State Agriculture Infrastructure Development
Corporation (MAIDC). At present NOGA has two multiproduct fruit processing
facilities. One facility is at Katol and other is at Hingna Road, Nagpur. Of the two
facilities, NOGA, Hingna Road facility is being managed by the State government
through MAIDC and the Katol Facility has been given out on lease to one, Alliance Agro
Private Limited.
The Katol facility has a multi product fruit processing line, cold storage, aseptic filling
line and bottling line. Reportedly, there is a dispute between NOGA and Alliance Agro
and the matter is pending in the court of law. At present the facility is lying idle and is not
in use.
The Hingna Road Facility of NOGA has a multi product fruit processing line, and
bottling line, canning line only. In 2008-09, NOGA- Hingna Road has processed 2732 mt
of various fruits and vegetables of which 331 mt is Orange.

MahaOrange:
MahaOrange is a marketing co-operative society registered under the Maharashtra State
Co-operative Societies Rules 1961. It is a federal body of Orange cultivators in the state
of Maharashtra. It was formed in 10th Mar 2008, with head quarters at Nagpur. At present
11 block level co-operative societies are members of MahaOrange.

The objectives of Mahaorange are

• To promote production of export quality fruits
• To provide direct access of market to Orange cultivators
• To provide infrastructure for direct access of market
• To educate, train and promote the concept of pre-cooling and post harvest
management in Oranges
• To make available domestic and international knowledge to cultivators on
production practices
The society plans to provide crates and corrugated boxes at a concessional price to
farmers.

Hub and spoke Locations for Orange:

Orange is the only major horticultural crop produced in the region. With the availability
of oranges is spread across two seasons and for 5-6 months only, feasibility of setting up
Orange specific facilities has to be ascertained in greater detail before finalizing the
plans. Assuming that Orange specific facilities are to be constructed the following hub
and spoke locations emerge based on field survey.
 Hub/ Spoke Location District
Hub Location 1 Butibori Nagpur
Hub Location 2 Amaravati Amaravati
Spoke 1 Karanja Wardha
Spoke 2 Katol Nagpur
Spoke 3 Kalmeshwar Nagpur
Spoke 4 Warud Amaravati
Spoke 5 Morshi Amaravati
Spoke 6 Ashti Wardha
Spoke 7 Chandurbazar Amaravati
Spoke 8 Narkhed Nagpur

Comparison between Hub Location 1 and Hub Location 2

Particulars Butibori
District Nagpur
Distance from Dist HQ 15 km
In the five star MIDC area in Butibori
there is a Food Park Promoted by
MAIDC under the 10th five year plan
scheme. Reportedly, there are many
vacant plots available in the food
park. Details of vacant plots could not
Availability of land be obtained.
Cold storage, Quality Control lab
Other Facilities building, Dry warehouse
Distance from Highway Abetting Highway
Distance from railway Nearest railway station at
station Dhamangoan at 13 km
Nearest airport is at Nagpur and is 25
Distance from Air port km from the site
Low to Medium as the location is at
one extreme of the production
clusters. However, with development
of Multimodal International Hub
Airport at Nagpur (MIHAN), Nagpur
is all set to become the centre of
distribution logistics for the entire
Suitability for Hub country
Dhamangoan
Amaravati
35 km
110 acres of land available. There was a
co-operative sugar factory on this land
which was closed few years back. To
repay the debt obligations, plant and
machinery was sold off two years back.
At present the land is in the possession
of Maharashtra Co-operative Bank and
the same can be purchased for setting
up the Hub
Asbestos roofed sheds, worker quarters,
Admin building, Water and Power
Abetting Highway
Nearest railway station at Butibori is 3
km from the site
Nearest Airport is at Yavatmal and is at
50 km from the site
Medium to High, as the location is in
the centre of the production clusters
Availability of land/infrastructure at spoke Locations:
Location Land/ Infrastructure Facilities
Karanja Orange pack house with pre-cooling, cold store spread in 3 acres available.
• Orange processing facility with pre-cooling, cold
store, multi fruit processing line, aseptic filling line spread in
more than 15 acres available in Katol MIDC Area.
• Vacant land in MIDC Katol is available
Katol • One acre of Vacant land in APMC Katol - available
• 2 acres of vacant land in APMC Kalmeshwar -
available
Kalmeshwar • Vacant land in MIDC Kalmeshwar - available
• Orange pack house with pre-cooling, cold store
spread in 1 acre available
• The above facility is in MIDC area and this is the
only facility in the MIDC area. Vacant land available in MIDC
Warud area
• Orange pack house with pre-cooling, cold store
spread in 5 acre available
• The above facility is in MIDC area and this is the
only facility in the MIDC area. Vacant land available in MIDC
Morshi area
Ashti These locations were identified as potential locations when the field study
Chandurbazar was being done for the above identified locations. Data has to be collected
Narkhed for these locations.
Warud
 Value Chain – Cost Build up across the value Chain:

A value chain, indicating the various activities in the value chain, actors performing the given
activity, cost buildup at every step has been mapped in this section. This value chain has been
mapped for the supply chain having following characteristics:

1. The marketing chain is from Farmer to Commission Agent to Trader to Processor

2. For Processing conversion to Crude oil and DOC has been considered. Further,
refining has not been considered. The price of DOC is dependent on protein content
and moisture content, however, standard prices as told by traders has been considered
3. The packing material is new gunny bag of capable of taking 100kg of soya bean
4. Cost of capital and opportunity cost for the all the intermediaries has not been
considered in cost build up and for calculating the spread
5. The Spread indicated is gross spread, excluding direct costs involved in handling of
product
6. Wastages have been accounted at the level of packaging and storage only.
7. Cost of storage has not been considered

Actor Particulars Unit Value

Farmer Cost of production per acre Rs per Acre 4000
Farmer Production per Acre Mt 1
Farmer Cost of Production per mt Rs per MT 4000
Farmer Transportation to mandi Rs per MT 150
Farmer Unloading, Heaping, weighing charges Rs per Mt 35
Commission agent Price discovered in the mandi Rs per MT 10000
Commission agent Commission Charges @ 1.25 % Rs per MT 125
Farmer Weight loss Kg 10
Farmer Value of weight loss Rs per MT 100
Farmer Total marketing cost Rs per MT 420
Farmer Gross realisation by the farmer Rs per MT 9590
Farmer Net realization by the farmer Rs per MT 5590
Trader Bagging stitching and Loading Charges Rs per MT 30
APMC Mandi APMC Cess @ 1.05% Rs per MT 105
Trader New Bags @ 35 Rs per Bag Rs per MT 350
Trader Net price to the trader ex-farm gate Rs per MT 10485
Trader Storage loss for processing season @ 4 % Rs per MT 419
Trader Sale price by trader to Processor Rs per MT 12000
Trader Gross realization for trader Rs per MT 1096
Processor Transportation cost to the oil Processing Unit Rs per MT 200
Processor Conversion Cost to crude Oil Rs per MT 1500
Processor Value of Oil - 180 Kgs Rs per MT 6300
Processor Value of De-Oiled Cake (DOC)- 850 kg Rs per MT 12750
Processor Total Processing Cost Rs per MT 1700
Processor Gross realization from processing Rs per MT 5350