Potato Cooperative

POTATO COOPERATIVE Aman Jyoti Nitesh Kumar Priyang Bhatt Suhail Pratap Singh Swati Nayak Joseph Kalassery

29004 29023 29024 29032 29035 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 Seeds & seed treatment Irrigations Fertilizers DAP Potash Urea NPK Pesticides Mancozeb Tricyclazole Weedicides Sancor Hired Labour Machinery

Quantity requirement 100 5 times 50 50 50 50 150 120 50 2-3 times,10-12 labour-day 2-3 times

Cost per Bigha 1800 550 1351 450 222 250 429 450 250 200 100 100 1000 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.

2004 2005 2006 2007 2008

March

February

January

December

November

October

September

August

July

June

May

April

Price Trend

1200

1100

1000

900

800

700

600

500

400

300

200

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 Vadod Cooperative

Expansion

Other villages

Product market

Diversification

Banana/ Tobacco Credits

Institutiona l Supply/ Exports Retail Shop

Fertilizers/ Insecticides

THANK YOU !!!