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7/21/2019 HSAMB Cold Storage & Pack House Presentation
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COLD STORAGE, PACK HOUSE,
E-TRADING, KISAN CALL CENTRE
Presented by: Dr. Yogesh Singh
Agri-Business Manager
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Agricultural Scene in India
W
o r l d r a n k i n g
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 ?
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Opportunities
Frui t production of 11% of global output.
Vegetable production of 14% of global output
The worlds leading producer of bananas (29%),
mango (54%),
Cauliflower (33%).
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Paradox
• We are among the top fewproducers of manyagricultural commodities inthe world…
• The post-harvest losses offruits and vegetables areestimated to be 25 to 40 %
• We have a middle class of
250-300 million peoplewith adequate purchasingpower to buymanufactured goods…
Yet our share in the world foodtrade is only 1.6 %
Yet less th an 2 % is p rocessed
Yet value addition to agricultural
products is less than 7%
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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.
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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
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Key Target Markets for cold storages facilities:
The envisaged facility would especially caterto the following industries:
•Milk and Milk Products
•Fruits and Vegetables
•Meat and Meat Products
•Packed Foods
•Beverages
•Biologicals
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Cold storage facilities
• India has 5101 Cold Storage units witha total expected capacity of 22 L MT
5101 units22 L MT
Second highest fruit and vegetable producer in the world with a cold
storage facility available only for 10 per cent of produce
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5101 units22 L MT
Current Scenario
• 80% of this is used for potatoes
Current Scenario
• Huge wastage occurs due toinadequacies in technology
• Poor energy efficiency
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Jammed packing restricting air circulation
Ineffective refrigeration systems
Current Storage conditions
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Improvised bunker coils – inadequate heat transfer area
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Ceiling fans for air circulation in bunker coil systems
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Industrial humidifiers – make the cold store and produce wet
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Typical interconnecting stairway between mezzanines
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Repacking in bags – crude methods employed
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Typical machine room arrangement –
design and safety issues not considered
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Electrical control and automation – exhibiting ignorance
and lackadaisical approach
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Typical drying, grading and sorting process
Poor sorting, grading, material handling
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• No focus on energy-efficiency
• Non-compliance to international standards
• Lack of operational practice
Huge gaps in processes:
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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
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Higher utilization
Design based on - Current & Future Needs
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Maximum Space Utilization
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Usage of Racks
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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
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Demaraction – Despatch & receiving
- To avoid Congestion
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Usage of Pallets
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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.
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Cold Air Circulation
Air mixing
chamber
IDU
Air
circulation
fan
Potatoesstored in
wooden
Boxes
Dampers
With Hood
Air
Flows
through
Boxes
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• Highest Leakage Point.
• The Door glides up under
the roof when opened,
allowing free space aroundthe door opening and leaving
the door opening completely
free
Pictures of Automatic Sliding Doors
Air Tight Doors
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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 areawith increased height
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Automation
Min therm Ext block Ext Fail Hatch closed
Outside temp Fan HighOutisde AH
Outside RH Fan Low
Duct temp Hatches
Product temp RefrigerationProduct 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
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Sensor position
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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%
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Latest designs
Potato cold storage in the USA
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Pre-engineered Cold Store facility
Modern technology
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Bulk Storage Systems in Europe
Global trends
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Civil Structural
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Civil Structural
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Electricals
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Refrigeration
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Cold storage
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Seeds Storage
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Flower Storage
Pack house
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Vapur Heat Treatment plant Cooling
Pack house
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Other
treatments
Pre-cooling
Drying
Selection,
cleaning and
disinfection
Reception
Grading
Packing and
packaging
Storage Transport
Harvesting
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Typical Cold Chain
Collection
Centre
Integrated
Pack House
Terminal
Market
Multi Commodity
Cold StorageExports
Retail
Food Processing
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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 atmosphericconditions as suited for various produce
– Facilities available – Short term & long termcold storages, ripening,
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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
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Integrated Pack House
What is an IPH?
Cold Chain facility at the farm end
for storage of agricultural produce
to maintain temperature, humidityand atmospheric conditions as
suited for various produce
C t f IPH
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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
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Pre-cooling chamber
What is Pre-cooling?
A process of rapid removal of
heat from freshly harvest
produce to minimise enzymaticand other process which cause
deterioration
Because 1 hour lost in pre-cooling may result in 8 to 24
hour loss in shelf life
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Pre-Cooling Chamber
Pre Cooling
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Movement of the caloric
energy from the product to thecooling substance.
Objective: to remove the field heat.
Vacuum Cooling
Pre Cooling
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Pallet pre-cooling and transition to CA rooms
i G i
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Packing, Grading
W hi
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Simple on-Farm Washing of Fruit
Washing
Potato Washing
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Grading
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Grading of Onions
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Waxing and Grading of fruits
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Conveyor System
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Air in the internal
CavityWax layer restricts
the gases interchange.
Packaging
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g g
Packaging
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Sh t / L t
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Short / Long termCold 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
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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
ResultsExtended marketing season
Better prices
Greater volumeMore distant markets
C ld t
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Cold storage
T = +1°C
L ife = 18 weeks
N2 = 79%
O2
= 16%
CO2 = 5%
Air
C A St
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C.A. Store
T = +1°C
L ife = 40 weeks
N2 = 97%
O2
= 2%
CO2 = 1%
Air
CO2
Scrub
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Ripening Rooms
What are Ripening Rooms?
Rooms with regulated ingress
of ethylene to promote
ripening, with controlled gaslevels and safety mechanisms to
prevent accidents
Ripening Chamber
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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
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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
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Equipment layout of Ripening Room
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Equipment layout of Ripening Room
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The design & selection of equipments
should ensure a smooth operation and
uninterrupted product flow fromarrivals to Cold room or Ripening
room with in least possible time
Important Feature-IPH
Necessity of Modernization
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• 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
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Material Handling
Dock Leveler
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Dock Leveler
• Dock leveler is intended to bridge the gap betweendispatch area and transport vehicle
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Material Handling - Dock Leveler
• Bridging the Gap… for quicker loading & unloadingmovements…
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Handling - Dock Shelter
Seals betweenVehicle & Building - reducing the
Ambient temp ingression
in the Cold Storage Area.
PACKINGHOUSE OPERATIONS
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Receiving,
inspectionInitial cooling
Cold storage
Bin dump presize Wash / scrub
Special
operations
Dry Waxfungicide
Hand sort
Cull and byproduct
AutomaticSorting & 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
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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
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Commodity Markets: Commodity Futures
Why Commodity Futures Markets ?
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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 withknown information
Commodity Markets
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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 afuture date at a today’s negotiated price
Future Contract :
•Agreement between two parties to buy or sell at a future date at today’s futures
price
•Standardized and exchange traded
F t C t t
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Futures Contract
• A futures contract is essentially an exchange-traded version of a forwardcontract
• It is an agreement to buy or sell a specified quantity in a designated futuremonth 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
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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
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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
h
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Exchanges
Other RegionalExchangesNMCE
Commodity Exchanges
ICEX
National Exchanges
Regional Exchanges
FMC (Forward Markets
Commission)
NBOT NCDEX MCX ACE
Major Commodities Traded
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j
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
C dit M k t
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Commodity Markets
• World over commodity markets are larger than stockmarkets.
• In India too, commodity futures markets are growingdespite the prohibitions that had been imposed onthem.
• In the commodity futures market, the period after theset up of national level exchanges witnessedexponential growth in trading. The turnover increasedfrom 5.71 lakh crores in 2004-05 to 119.48 lakh croresin 2010-11.
• Commodities of different segments traded oncommodity exchanges- Agri, metals, energy etc.
i C i i
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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
Bullion18,01,636.31 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
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NCDEX - Products
Guar Seed &Guar Gum
Other s
Bullion
Metal
Energy
Oil
& Oil Seed
Pulses
Spices
NCDEX
Role of Futures Market
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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
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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
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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
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Trading Structure
EXCHANGE
MEMBER
CUSTOMER
Types of Members
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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 theexchange. (FIs. NRIs, Banks, MFs etc are not allowed to participate in Commodityexchanges at the moment).
• 1.Trading cum Clearing Member (TCM) :
Members can carry out the transactions.(Trading , settling , and clearing) on theirown 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 tradedthrough TCMs or traded as TMs.
• 3.Trading member ( TM ):
Member who can only trade through their account or on account of their clients andwill 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 ownaccount, also on account of their clients. They can clear and settle these trades andalso clear and settle trades of other trading members who are only allowed to tradeand are not allowed to settle and clear.
Electronic Trading
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Electronic Trading
• The driving factors are speed, efficiency and reduced cost oftransactions
• Electronic trading systems enable remote investors to make
transactions in real time
• Electronic trading is an automated trade execution system withthree 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
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Electronic Trading Process Flow
• Customers may directly enter orders into the terminal or phone or through a broker
• Electronic order-matching systems, the host computermatches bids with offers as per rules that determine anorder’s priority
• Priority rules on most systems include price and time ofentry
Order and execution flows in electronic futures trade
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Source: Sahadevan (2002)
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Trade Confirmation
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Trade Confirmation
• A trade confirmation is sent out by the hostcomputer to the respective terminals of the
members
• Member shall issue contract notes to theirconstituents for trades executed in prescribed
format with all relevant details filled in within
24 hours from the close of trading hours whenthe trade is executed
103
Clearing
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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
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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
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Final Settlement
106
Settlement
CashSettlement
DeliverySettlement
All contracts materializing into deliveries are settled in a period as notified by the Exchange separately foreach 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
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Final Settlement
107
Settlement
CashSettlement
DeliverySettlement
All contracts materializing into deliveries are settled in a period as notified by the Exchange separately foreach 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.
Farmer’s Involvement
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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
MoreWAREHOUSES
Working with
all leading
assayers
NCMSL
arranges credit
Benefit to Farmers
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Farmers Concerns
& Futures Pricesas 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
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KISAN CALL CENTER (KCC)
HSAMB
TOLL FREE NUMBER
KISAN CALL CENTER
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TOLL FREE NUMBER
18001802060
Kisan Call Centre Kisan Bhawan Sector 14 Panchkula
KCC OBJECTIVE
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Toll free number for farmers and traders with the following objective:
• To provide maximum rate of agriculture produce.
• To help farmer’s 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 useof Information Technology.
Kisan Knowledge Management System (KKMS)
• Consistency and Accuracy in replies to farmers
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• 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
RETAIL
CHAINSFARMERS
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KISAN
CALL
CENTRE
COMMISSION
AGENTS
PROCESSORS
AGRICULTURE
DEPT.AGRIPRENURES
IMPORTERS
TRADERS
EXPORTERS
AGRICULTURAL
UNIVERSITIES
TWO WAY COMMUNICATION KNOWLEDGE SHARING QUSETION ANSWERS
HSAMB
EMPLOYEES
Communication with Farmers
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Communication with Farmers
• Commodity wise Area / Production / Price Trends.
• Market wise Pricing trends/ Future Pricing through electronicexchanges ( NCDEX) / Spot Exchanges.
• Information related to Crops its pest and Diseases.
• Cropping Patterns and Production trends within state. throughoutINDIA and internationally.
• Marketing techniques and guidelines.• Post Harvest Management Techniques and Schemes.
• Information on Packaging and Certification.
• Export / Import Scenario.
• Forward and Backward Linkage for farm produce.
• New Projects and Schemes of HSAMB.
• And Other Agriculture related information.
Marketing information about Horticulture
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Marketing information of ood Grains
Toll Free helpline:
18001802060
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18001802060
Facil i ties in KCC
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Ticker Board Displaying
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p y g
Commodity Rates
KCC LIBRARY
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Empowering young minds by griculture
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