Supply Chain Management-3237
Supply Chain Management-3237
Supply Chain Management-3237
Vol. 4, Issue 1, pp: (261-275), Month: April 2016 - September 2016, Available at: www.researchpublish.com
Abstract: The study on the supply chain management is selected with an objective to fine out the modern and
traditional supply chains in the tomatoes and their way of the managing it. It is observed that the cost of
cultivation is higher in cultivators registered to the modern chain than non-registered to modern chain. The
procurement by the modern chain is highly efficient. The price paid by the consumer is lower and price received
by the cultivator is higher in modern supply chain as compared to traditional supply chain.
Keywords: Supply Chain Management, agricultural market.
1. INTRODUCTION
The retail market of the agro-commodities in India is largely unorganized since past time. Now days the agricultural
market is gaining organized form such as ITC retail outlet, Reliance Fresh etc, particularly in the metropolitan cities. As
the agro-commodities are perishable in nature, those require high level of care to maintain its quality. The supply of such
perishable commodities through market chain and functions requires higher efficiency. Very few studies are done on the
Supply Chain Management in Tomatoes. From past studies, it is observed that the tomatoes are gaining importance in
modern supply chain. Tomato is highly demanding fruit type vegetable. It has multipurpose use in food industry. It has
various kinds of the processed product. This project is selected with an aim to identify and evaluate the traditional and
modern supply chains for tomatoes.
2. METHODOLOGY
The following samples and methods are taken for the present study.
2.1 Sample and Supply chains:
The sample of the 90 cultivators is selected and divided it as fallows
1. A sample of 30 cultivators who are registered to modern supply chain(Reliance Fresh, Nasik)
2. A sample of 30 cultivators who are not registered to modern supply chain but from the same area.
3. A sample of 30 cultivators who are not registered to modern supply chain but are not from the same area(most of the
sample are from Vidarbha region)
2.3 Socio-economic status:
The socio economic status is studied with family size, educational status, land use pattern, cropping pattern, fixed capital
investment.
2.4 Cost of cultivation:
The cost of the cultivation for all the three types of tomatoes cultivators is estimated as per the standard norms of
Agricultural Prices Cell which includes Cost A, Cost B and Cost C concept.
2.5 Efficieny of the supply chain:
The efficiency of the chain is estimated with quantity lost in the supply chains as follows
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International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online)
Vol. 4, Issue 1, pp: (261-275), Month: April 2016 - September 2016, Available at: www.researchpublish.com
Chain Efficiency: (Total quantity procured in the chain – Total quantity lost in the chain)/ Total quantity procured in the
chain Higher the ratio, higher will be the efficiency.
3. GROWTH IN TOMATOES
The tomato is one of the important vegetable crops. It has special nutritive value and widespread production over world.
Tomato is said to be the native of tropical America. From tropical America it spread to other parts of the world in the 16th
century and it became popular in India within the last six decades. It is the world's largest vegetable crop after potato and
sweet potato. World produces around 117 million tons of tomatoes from an area of 43 lakh hectares (average of 2001 to
2005).
Tomato is major crop in vegetable production. Area under tomato in the country is about 4.97 lakh hectares and it is about
7.3% of the total cropped land under vegetables. Annual production of tomato in India is 86 lakh tons which is 8.5% of
the total vegetable production. There has been a gradual increase in the area under tomato while the production has been
fluctuating due to weather related factors.
Tomato in Maharashtra is cultivated in 34000 hectares with production at about 8 lakh tons. The top five districts viz.,
Nasik, Pune, Nagpur, Chandpur and Ahmednagar contributes for nearly 75% of state’s production. Nasik stands with 35%
contribution.
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The cropping intensity of the registered and non-registered cultivators is i.e. 197.59 and it is due to higher irrigation in the
area, whereas the cropping intensity of the tomato cultivators in non-modern outlet area is 128.38. The percentage of
fallow land is higher in the in case of tomato cultivators in non-modern outlet area (vidarbha)
4.4 Cropping Pattern of Tomato cultivators:
The cropping pattern of tomato cultivators is given table.5. The share of vegetables in cropping is specially mentioned
here. The share of tomato in gross cropped area is 19.82, 9.06 and 6.56 in registered cultivators, non-registered cultivators
and cultivators of the non-modern outlet respectively. In registered and non-registered cultivators the other major
contributing crops are sugarcane i.e. 10.37 and 12.87 respectively and grapes i.e. 6.40 and 10.82 respectively.
Table.4: Cropping Pattern of Tomato Cultivator
Non-Registered
Registered Cultivators Tomato Cultivators in
Sr. Cultivators at Modern
Particulars at Modern outlet non-modern outlet area
No. outlet in same area
Value Percentage Value Percentage Value Percentage
1 Buildings 164502.00 59.60 152424.60 58.40 148700.00 57.67
2 Irrigation infrastructures 75468.00 27.34 75110.00 28.78 74333.33 28.83
3 Animals 25500.00 9.24 24909.80 9.54 26400.00 10.24
4 Machinery 4576.00 1.66 3566.70 1.37 3426.67 1.33
5 Implements 5177.00 1.88 4165.00 1.60 4165.00 1.62
6 Other unit 787.00 0.29 822.00 0.31 800.00 0.31
Total 276010.00 100.00 260998.10 100.00 257825.00 100.00
Table.7 . Cost of cultivation of Tomato of Non-Registered Cultivators at Modern retail outlet (Per Hectare)
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Net Net
Sr. Gross B:C
Particulars Yield Cost A Cost B Cost C Return Return
No. Return ratio
Cost A Cost C
Registered
1 Cultivators at 218.70 49139.96 76184.92 80511.96 142709.79 93569.83 62197.83 1.77
Modern outlet
Non-
Registered
2 Cultivators at 242.60 49985.49 71408.48 74225.60 106666.55 56681.06 32440.96 1.44
Modern outlet
in same area
Tomato
Cultivators in
3 202.00 31462.08 46053.27 50783.07 63337.10 31875.02 12554.03 1.25
non-modern
outlet area
Economics of tomatoes
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7. PRICE SPREAD OF THE TOMATO OVER THE DIFFERENT SUPPLY CHAINS OF THE
TOMATOES
In case of modern chain, the tomatoes are pass from producer to consumer through modern chain, the charges of
consolidation were paid to consolidation centre by cultivator at the rate Rs.22 per quintal and retailer of the modern outlet
take it from processing centre(grading and standardization) of the modern centre at the rate of Rs.28 per
quintal(processing charges) in addition to regular price. It was observed that the share of the producers’ price in consumer
price was 85.23 percent. The modern outlet has taken the net benefit of 3.66 percent.
In traditional chains, where the retailers in the vegetable market and hawkers roaming in the colonies and residential area
are observed. In these traditional chains, in some cases, the wholesaler procures tomatoes from the producers and in some
cases producers themselves procures the tomatoes to the wholesaler in vegetable market. The wholesaler calls bids for
tomatoes in the vegetable in the morning session. The two type of chain functionaries buys tomatoes from the wholesaler,
those are retailer and hawkers. In the present study, the price spread of retailers’ hawkers’ and modern chain are given in
the table no11, 12 and 13 respectively. In case of the retailers’ chain, it is observed that the share of producer in consumer
price was 31.04 percent and the share of the net return of the wholesaler was 12.95 percent. The selling price of the
producers Rs.313.55 increased to Rs. 1010 and to 1133.33 by retailer and by hawker respectively, when it reached to
consumer.
Table.11: Price Spread of the Tomato in Modern Supply Chain
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In modern chain the losses were highest when pass from producer to outlet i.e. 19.63 kg per quintal. In modern outlet
centre, when tomatoes move from modern outlet to consumer, the losses were 0.70 kg.
In case of the different chains, the when tomatoes passed from the producer to wholesaler, the 19.63 kg per quintal
tomatoes were lost. When it passed from wholesaler to retailer/hawker, the 3.94 kg tomatoes were lost. When the
tomatoes passed from the retailer to consumer the losses were 3.62kg and when from hawker to consumer the losses were
only 0.10 kg. The maximum loss was seen in from producer to wholesaler(72.20 percent).
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The highest efficiency was observed in modern chain i.e. 0.80 as compared to retailer chain(0.73) and hawker chain(0.76)
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Table. 15 : Chainwise loss of Tomato in Procurement from Producer to Consumer (per quintal)
Modern Chain
Suppliers Quantity loss (Kg) Percent
Producer
19.63 96.55
Modern Outlet Centre
0.70 3.45
Consumer
Total 20.33 100.00
Chain Efficiency: (100-20.33)/100 = 0.80
Traditional Chain-1
Suppliers Quantity loss (Kg) Percent
Producer
19.63 72.20
Wholesaler
3.94 14.49
Retailer
3.62 13.31
Consumer
Total 27.18 100.00
Chain Efficiency: (100-27.18)/100 = 0.73
Traditional Chain-2
Suppliers Quantity loss (Kg) Percent
Producer
19.63 82.92
Wholesaler
3.94 16.65
Hawker
0.10 0.43
Consumer
Total 23.67 100.00
Chain Efficiency: (100-23.67)/100 = 0.76
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10. CONCLUSION
It is concluded that the tomato cultivators involved in the modern supply chain are more profitable and the consumers also
more beneficial from modern supply chain as compared to traditional
REFERENCES
[1] Anonymous 2008, Tomato Profile. Safal National Exchange of India Limited Bangalore.
[2] K. Loknanadan, 2007. Supply Chain Management Analysis of tomatoes from farm to modern retail outlet. Indian
Journal of Agricultural Marketing. Vol.21 (65-71)
[3] Rakesh Singh, 2008, New farm supply chain initiatives in Indian agriculture. Website of institute of management,
Chennai.
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