American Sweet Corn

Estimation of Market Potential of American Sweet Corn in Gujarat

Executive Summary

A few years back, American Sweet Corn was something that was considered rare and exotic. Now, it is ubiquitous in supermarkets, at roadside vendors, at multiplexes and malls, entertainment zones, and food courts. Despite its huge potential, farmers are not being able to reap the real benefits from American Sweet Corn due to the lack of appropriate market information. In order to have a fair assessment of the market potential of this promising crop in Gujarat, this study was constituted.

The following methodology was adopted for the study: a) exploratory research; b) interaction with experts in Main Maize Research Station, Godhara / farmers in Surat and Vadodara; c) semi-structured interviews with 20 distributors / traders / institutional buyers, and detailed mall intercept of 30 consumers was conducted across Ahmedabad, Surat, and Vadodara.

The findings indicate that Sweet Corn is just a variation of maize. Sweet Corn is commonly consumed as vegetable, rather than grain. The main differences between Sweet Corn and Ordinary Corn are different level of sugar content and uses. American Sweet Corn is mostly used as soup, fresh cobs (boiled and roasted), vegetables etc. across the locations in Gujarat.

The analysis of economics of cultivation of American Sweet Corn in Surat and Vadodara shows that net income for farmer ranges from Rs. 36,967 to 41,127 per hectare. It is estimated that annual production, purchase from outside of Gujarat, and sale are in the range of 7,000-9,800, 7,500-9,000, and 14,500-18,800 tons respectively. The market of American Sweet Corn has been growing at the rate of 40-60 per cent during last 2-3 years and is expected to grow at the rate of 25 – 30 per cent. The expected market potential of American Sweet Corn for Gujarat would be around 28,320 – 36,719 tons in the year 2008.

The analysis of consumer survey indicates the high fondness for American Sweet Corn among surveyed consumers as almost 70 per cent of them across different locations consume American Sweet Corn more than 5 times in a month and the consumption of more than 90 per cent of respondents has either remained same or increased. According to respondents, taste of American Sweet Corn and their perception of American Sweet Corn as healthy & nutritious food are the main factors influencing their consumption. They also perceive that American Sweet Corn is for everyone instead of being restricted to youth and children.

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American Sweet Corn

1. Rationale of the study

A few years back, American Sweet Corn was something that was considered rare and exotic. Now, it is ubiquitous in supermarkets, at roadside vendors, at multiplexes and malls, entertainment zones, and food courts. Its demand potential can be gauged from the fact that the special eating outlets for Sweet Corn promoted by Corn Club, Pune; Horticultural Produces Co-operative Marketing Society (HOPCOMS), Bangalore; and Swagat, Baroda have picked up good volumes in India. The Indian market for Sweet Corn is generally centered around Bangalore, Coimbatore, Pune, Surat, Nasik, Ahmedabad, Hyderabad and Delhi. Some of the food processing companies like Vadilal, Adani, Agrotech Foods, HLL etc. have already ventured in the Sweet Corn business. The Sweet Corn market presents a very attractive and profitable proposition for farmers because its fetches higher prices as compared to the Ordinary Corn. Its being called American Sweet Corn has been an added bonus.

Despite its huge potential, farmers are not being able to reap the real benefits from American Sweet Corn due to the lack of appropriate marketing linkages. In order to have a fair assessment of the market potential of this promising crop, this study has been constituted. This study would also facilitate in building formal linkages with food processing companies dealing in processing and marketing of Sweet Corn.

2. Objectives and methodology

The objective of the study was to estimate the market potential of American Sweet corn in Gujarat. Accordingly, the following approach and methodology has been adopted:

Approach

a) Studying the market for American Sweet Corn in Gujarat based on its main and alternative uses

b) Understanding the distinction among various varieties of Cornc) Identifying the key drivers for consumption of American Sweet Corn in

Gujarat marketsd) Compiling a list of main distributors/traders/institutional buyers of American

Sweet Corn in Gujarate) Identifying relevant markets of interest and estimating their demand and

projecting the future growth rate in the market demand

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American Sweet Corn

Methodology

Exploratory research to take stock of the market and the drivers of demand of American Sweet Corn in Gujarat

Interactions with experts in Main Maize Research Station, Godhara / other persons with relevant knowledge to understand the differences among varieties of American Sweet Corn and other relevant information like economics of production etc.

Semi-structured interviews with 20 distributors/traders/ institutional buyers to estimate market demand and growth (both past and future) in Ahmedabad, Surat, and Vadodara. (Please refer checklist developed for semi-structured interviews in Annexure 1)

Detailed mall intercept of 30 consumers of American Sweet Corn to identify the key drivers for consumption of American Sweet Corn in Ahmedabad, Surat, and Vadodara. (Please refer questionnaire developed for consumer survey in Annexure 2).

3. Key findings from interactions with experts and farmers

3.1Distinction between Maize (Ordinary Corn), Sweet Corn, Baby Corn, and Pop Corn

Sweet Corn is just a variation to a crop Indians know as maize. Sweet Corn is commonly consumed as vegetable, rather than grain. It is a specialty Corn crop in which the sweet ness is enhanced due to a gene sh-2 (shrunken type) or Su. Its sweetness has made it very popular in India.

The crop cycle, climatic requirements, and cultivation practices are same among all varieties of Corn except Baby Corn. The crop cycle or duration of Baby Corn production is only about 60 days as compared to the 110-120 days duration of the grain crop. Baby Corn is an unfertile cob, implies harvested before the fertilization process takes place in the crop. Baby Corn and Pop Corn can be extracted from any variety of corn with varying yield levels. The main differences between Sweet Corn and Ordinary Corn are following:

Level of sugar content: The level of sugar content in Sweet Corn and Ordinary Corn is around 15 - 20% and 3 - 5% respectively. The high level of sweetness in Sweet Corn has resulted into lower storability, not exceeding seven days from the date of harvest, as compared to Ordinary Corn.

Others: Sweet Corn does not have any industrial usage as compared to Ordinary Corn. The extraction of flour and oil from Sweet Corn would be

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American Sweet Corn

comparatively lesser than that of Ordinary Corn. The seeds of Sweet Corn cannot be used for next crop. Following are some of the available varieties of Sweet Corn seeds.

Important available varieties of seed CompanyPAC 795 Advanta India Limited Golden queen SyngentaSeed pearl Nunhemps ProagroTwo products: Honey Dew and Rare Pearl

Mahyco

IAHSC IAMadhuri National Seeds Corporation LimitedBrightgene Nong Woo Seeds (India) Pvt. limitedSource: www.advantageindia.com/english/sweetcorn.htm

3.2Economics of Sweet Corn cultivation in Surat, and Vadodara

Given below is an estimate of the cost and returns farmers can expect from Sweet Corn cultivation. These figures are bound to vary depending on the variety grown, place of cultivation and the farm management.

Economics of Sweet Corn cultivation: per hectare

Surat:Input Unit Requirement Cost per

unitTotal cost in

Rs.Seed Kgs 9 1,800 16,200Pesticide Kgs 6.5 470 3,055DAP Kgs 215 9.2 1,978Urea Kgs 650 5 3,250Irrigation 3,900Labour 1,750Tractor: for transportation and leveling 2,200Total Cost (a)

32,333

S. No.

Particulars Details

1 Average yield – in kgs 9,5002 Procurement price from the farmer – (Rs./kg) 7

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American Sweet Corn

3 Total income from cobs (1*2) 66,5004 Income from green fodder 2,8005 Total income (3+4) (b) 69,3006 Net income for the farmer / hectare (a-b) Rs.36,967

Vadodara:Item Unit Requirement Cost per unit Total cost in Rs.Seed Kgs 9 1800 16,200Pesticide Kgs 6.5 470 3,055DAP Kgs 215 9.5 2,043Urea Kgs 430 5.2 2,235Organic manure 2,150Irrigation Number 2 650 1,300Labour for sowing, weeding, harvesting etc.

1,550

Land preparation: tractor

1,290

Transportation 650Total Cost (a) 30,473

S. No.

Particulars Details

1 Average yield – in kgs 8,600 2 Procurement price from the farmer – (Rs./kg) 83 Total income from cobs (1*2) 68,8004 Income from green fodder 2,8005 Total income (3+4) (b) 71,6006 Net income for the farmer / hectare (a-b) Rs.41,12

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3.3Estimation of annual production in Surat and Vadodara

Surat: American Sweet Corn is cultivated in Kamrej, Kem, Areth, Jahingirpura, Tarakeshwar and some other areas of Surat District. The total area under cultivation is around 800 bighas (~ 186 hectares). Farmers take three crops in a year in such a way that they can supply American Sweet Corn round the year to their clients. The production per crop of American Sweet Corn ranges from 5,000 to 7,000 pieces per bigha. Thus, the total annual production of American Sweet Corn in the region ranges from 1,20,00,000 pieces (~ 4,000 tons) to 1,68,00,000 pieces (~ 5,600 tons).

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American Sweet Corn

Vadodara: American Sweet Corn is cultivated in Vagodia, Chani, Bodeli, Sakarda, Maruhar, Rania and some other areas of Vadodara District. The total area under cultivation is around 1,000 bighas (~ 232 hectares). Farmers take only one crop in a year starting from the month of May. The crop cycle or duration of American Sweet Corn production is about 65 - 70 days. The production of American Sweet Corn ranges from 1,600 kgs to 2,200 kgs per bigha. Thus, the total annual production of American Sweet Corn in the region ranges from 16,00,000 kgs (~1,600 tons) to 22,00,000 kgs (~2,200 tons).

3.4Estimation of annual production in Gujarat

S. No.

Particulars Details

Minimum

Maximum

1 Annual production in Surat (in tons) 4,000 5,6002 Annual production in Vadodara (in tons) 1,600 2,2003. Subtotal 5,600 7,8004. Annual production in rest of Gujarat (in

tons)1,400 2,000

5 Total annual production in Gujarat (in tons)

7,000 9,800

The estimation of annual production of American Sweet Corn in Surat and Vadodara has been given above, while the annual production in rest of Gujarat has been assumed to the tune of 1,400 -2,000 tons. This is assumed because farmers in many parts of Gujarat like Rajkot, etc. have also started cultivating American Sweet Corn in their farms.

4. Key findings from interactions with distributors, traders, and institutional buyers

4.1Important locations of procurement

Ahmedabad: Vashi APMC (Mumbai); Surat; and Vadodara Surat: Directly from the farmers who cultivate in and around Surat; Vashi APMC (Mumbai); and Pune Vadodara: Directly from the farmers who cultivate in and around Vadodara

4.2Estimation of annual purchase by Gujarat from Vashi APMC, Mumbai

The telephonic discussion with Mr. Vilas Bhai (9821685244) and Mr. Anand Krishna Solke (9867214988), main traders of Vashi APMC, Mumbai dealing with

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American Sweet Corn

American Sweet Corn, facilitated in understanding the supply of American Sweet Corn from Vashi APMC, Mumbai to Gujarat Market. The daily supply is in the range of 25 tons to 30 tons that makes an annual supply in Gujarat to the tune of 7,500 tons to 9,000 tons (taking into account of 65 holidays in Vashi APMC (Mumbai)). Ahmedabad, Surat, and Vadodara are the main locations in Gujarat, where they supply most of their American Sweet Corn.

4.3Some of the main centres of consumption of American Sweet Corn in Ahmedabad, Surat, and Vadodara

Ahmedabad: Law Garden, Makkai Masti, CG Road, Multiplexes etc. Surat: Dummas, Lakeview Garden, Kamrej Highway, Varacha etc. Vadodara: Genda Circle, Chani Village, Swagat Restaurant etc.

4.4Some of the main uses of American Sweet Corn

Soup Fresh cob : Roasted and Boiled (prominent preparations are Lemon Masala, Butter Masala, Green Chutney, Garlic Chutney, Butter Chutney, Cheese Masala, and Cheese Chutney) Vegetable Pizza Others include Corn Chat, Corn Samosa, Corn Sandwich, Corn Puffs, Corn Halwa etc.

4.5List of main distributors and traders of American Sweet Corn in Ahmedabad, Surat, and Vadodara

Location Distributors and tradersAhmedabad

:1. Mr. Prahlad Bhai (Murlidhar Fruits & Vegetables) , 93270754122. Mr. Mitesh Bhai Patel (Shop No. 15, Jamalpura APMC)3. Mr. Kanti Bhai (Shop No. 27, Jamalpura APMC)4. Mr. Magan lal Desai (Shop No. 83, Jamalpura APMC), 98250112255. Mr. Devang Bhai Joshi, Makai Masti, 98250862026. Mr. Ashwin Bhai, Corn Fantasy, 9327019902 (Deals in Bright gene only)7. Ms. Madhu Bagaria (Dealt in frozen Sweet Corn)

Surat: 1. Mr. Pappu Bhai, Sardar Market, 98252808322. Mr. Karsan Bhai, 98251274333. Mr. Shailesh Bhai, 9825112031

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American Sweet Corn

4. Mr. Dinesh M Ramani, Mast American Sweet Corn, 9825964580

Vadodara: 1. Mr. Akshay Patel, Swagat, 23135362. Mr. Vallabh Bhai Das Bhai Patel, (0265) 27726763. Mr. Jitu Bhai, Baroda APMC, 9879000577

4.6Estimation of annual sales in Ahmedabad, Surat, and Vadodara

Ahmedabad:

Name of the respondent Daily average quantity sold (in kgs)

  Winter Summer Monsoon  Min Max Min Ma

xMin Max

Mr. Prahlad Bhai 1,000

2,000

200 500 3,000 4,000

Mr. Mitesh Bhai Patel 500 1,000

700 800 1,000 1,200

Mr. Kanti Bhai 3,000

4,000

2,000

2,000

7000 8,000

Mr. Magan lal Desai 3,000

4,000

1,500

2,000

4,000 6,000

Ms. Madhu Bagaria* 70 70 50 50 70 70Mr. Ashwin Bhai ** 120 150 75 100 200 250Mr. Devang Bhai 1,80

02,00

01,00

01,30

01,800 2,00

0 Total daily average sales

9,490

13,220

5,525

6,750

17,070

21,520

Weighted average daily sales

Min 10,695

Adjusted minimum (with 10%)

11,764.5

 

  Max

13,830

    13,830

 

*Figures are only for Frozen Corn ** Figures are only for Bright gene variety of Corn Min: Minimum and Max: Maximum

The above table gives the daily average sale details of various distributors and traders dealing in American Sweet Corn across seasons. Summing up the minimum and maximum daily average sales of all gives a rough estimate of Ahmedabad’s daily average sales range across seasons. Overall minimum and maximum daily average sales of Ahmedabad is calculated by using weighted average method in which equal weights are assigned to all the seasons. Assuming

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American Sweet Corn

that entire market has not been captured as the interaction was limited to key distributors and traders, and also overall minimum daily average sales is a summation of the minimum sales which are the conservative figures of the individual distributors so the above calculated overall minimum daily average sales is increased by 10 percent. Similar correction is not required for the overall maximum daily average sales as the maximum sales quoted by respondents have fewer chances of occurrences and also all the respondents might not have maximum sales at the same time and so the figure is self corrected to the error.

Name of the respondent

Total daily sales in Ahmedabad city

(in kgs)

Daily weighted average sales

  Winter Summer Monsoon Min MaxMr. Prahlad Bhai 5,000 5,000 5,000Mr. Mitesh Bhai Patel

2,000-3,000

4,000-5,000

7,000-8,000 4,333 5,333

Mr. Kanti Bhai 10,000 6000 30000 15,333 15,333Mr. Magan lal Desai

10,000-12,000

4,000-5,000

12,000-16,000

8,667 11,000

Mr. Devang Bhai 15,000 15,000 15,000  9,667 10,333

Ms. Madhu Bagaria*

200-250 200 250

Mr. Ashwin Bhai **

1,300-1,800

1,000-1,300

3,000-3,300 1,767 2,133

  11,633 12,717*Figures are only for Frozen Corn ** Figures are only for Bright gene variety of Corn Min: Minimum and Max: Maximum

The above table shows the views of different respondents on probable estimates of total daily sales in Ahmedabad city. The minimum and maximum daily weighted average sales of American Sweet Corn has been computed for each individual distributor by assigning equal weights to all seasons. The above figures of 9,667 kgs and 10,333 kgs are the overall daily weighted average sales of Ahmedabad city barring two distributors’ estimates as these estimates are of specific varieties of corn in which they deal. Therefore, their probable estimates have been added to the above figures to arrive at more probable overall minimum and maximum daily weighted average sales of American Sweet Corn in Ahmedabad city. This almost corroborates the above calculated average daily sales range of around 12,000 to 14,000 kgs. Therefore, the total annual sales in Ahmedabad city would be in the range of 43,80,000 kgs (~ 4,380 tons) to 51,10,000 kgs(~5,110 tons).

Surat:

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American Sweet Corn

Name of the respondent

Daily average quantity sold (in kgs)

  Winter Summer Monsoon  Min Max Min Ma

xMin Max

Mr. Pappu Bhai 5,000

8,000

3,000 4,000

15,000

20,000

Mr. Karsan Bhai 800 1,000

500 800 800 900

Mr. Shailesh Bhai 3,500

3,500

3,500 3,500

3,500

3,500

  9,300

12,500

7,000 8,300

19,300

24,400

Weighted average Min   11,867 Adjusted minimum (with 10%)

13,053

  Max

  15,067      

Min: Minimum and Max: Maximum

Name of the respondent

Total daily sales in Surat city (in kgs)

Daily weighted

average sales  Winter Summer Monsoon Min Max

Mr. Pappu Bhai 15,000 8,000-10,000

30,000-35,000

17,667

20,000

Mr. Karsan Bhai 10,000 7,000 8,000 8,333 8,333Mr. Shailesh Bhai 15,000 15,000 15,000 15,00

015,000

        13,667

14,444

Min: Minimum and Max: Maximum

Similarly analyzing both sets of information (individual sales figures of different respondents and their views on overall sales estimates of Surat city), the overall average daily sales of American Sweet Corn in Surat city is estimated in the range of 13,000 kgs to 15,000 kgs. Therefore, the total annual sales would be in the range of 47,45,000 kgs (~ 4,745 tons) to 54,75,000 kgs (~5,475 tons)

Vadodara:

This city is little bit peculiar from other cities as most of the consumption happen during the months of July, August, and September. The retail vendors like

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American Sweet Corn

lorrywala and others directly purchase American Sweet Corn from the villages where it is grown during the same months. The total annual sale of American Sweet Corn in Vadodara city has been calculated as following:

S. No.

Particulars Details

1 Number of retail vendors at Genda circle and Chani highway

250

2 Average daily sales per retail vendor (in kgs) 80-100 3 Number of days 75 4 Total sales (in Kgs) (1*2*3) 15,00,000 –

18,75,000 5 Average daily sales of Swagat restaurant (in kgs) 200-250 6 Number of days 3657 Total sales of Swagat restaurant (in Kgs) (5*6) 73,000-91,2508 Total annual sales (in Kgs) (4+7) 15,73,000 –

19,66,2509 Total annual sales (in tons) 1,573 – 1,966

4.7Estimation of annual sales in Gujarat

Annual sales

(in tons)

Annual sales/urbanite (in kg)

Location Urban population*

(a)

Min (b)

Max (c)

Min (b/a)

Max (c/a)

Ahmedabad 4,652,035 4,380

5,110 0.94 1.10

Surat 2,995,654 4,745

5,475 1.58 1.83

Vadodara 1,647,317 1,573

1,966 0.95 1.19

Subtotal 9,295,006 10,698

12,551

1.15 1.35

* Source: Census India, 2001Min: Minimum and Max: Maximum

The above table shows the minimum and maximum annual sales per urbanite for Ahmedabad, Surat, and Vadodara. The same has been computed for the combined

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American Sweet Corn

urban population of these main consumption centres of Gujarat that is 1.15 kgs and 1.35 kgs respectively.

S. No.

Particulars Details

1 Urban population in locations (Ahmedabad, Surat, Vadodara)

9,295,006

2 Minimum annual sales per urbanite for 1 (in kgs) 1.153 Maximum annual sales per urbanite for 1 (in kgs) 1.354 Urban population in other locations (like Rajkot,

Jamnagar, Dahod etc.)9,604,37

15 Adjustment factor .336 Minimum annual sales per urbanite for 4 (in kgs) (5*2) .387 Maximum annual sales per urbanite for 4 (in kgs) (5*3) .458 Total minimum annual sales in Gujarat (in tons)

((2*1+6*4)/1000)14,348

9 Total maximum annual sales in Gujarat (in tons) ((3*1+7*4)/1000)

16,873

The urban population of Gujarat state as per Census India 2001 is around 18899377 out of which the share of Ahmedabad, Surat, and Vadodara is around 49 percent. The demand of other locations has been assumed as 33 percent of the demand of combined urban population of Ahmedabad, Surat, and Vadodara. This is assumed because the demand for American Sweet Corn has been picking up in other urban locations as well like Rajkot, Jamnagar etc. However, these three locations (Ahmedabad, Surat, and Vadodara) are the main centres of consumption in Gujarat as compared to other locations.

4.8Summary of annual production, purchase, and sale of American Sweet Corn in Gujarat

    DetailsS. No. Particulars Minimu

mMaximu

m1 Annual production in Gujarat (in tons) 7,000 9,8002 Annual purchase from outside of Gujarat (in

tons)7,500 9,000

3 Expected annual sales (in tons) (1+2) 14,500 18,8004 Estimated annual sales in Gujarat (in tons) 14,348 16,873

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American Sweet Corn

The above table shows that annual sales computed by summing annual production and annual purchase from outside of Gujarat almost corroborates with the above estimated annual sales figure of Gujarat.

4.9Price fluctuation

The average price at which distributors and big traders purchase fresh cobs of American Sweet Corn during different seasons of last year is given below

Season Minimum price (Rs./kg) Maximum price (Rs./kg)Winter 5 10Summer 4 7Monsoon 5 22

The average price of a kg of fresh kernel is in the range of Rs. 40 – 60 whereas a kg of frozen kernel is in the range of Rs. 32 – 38.

4.10 Estimation of past and expected future growth rate

The discussion with various distributors and big traders across the three cities brings out that the demand for American Sweet Corn had picked up around 2002-03. Besides, the compounded annual growth rate for different distributors and big traders for last 3 years is in the range of 40 to 60 per cent. The different distributors and big traders expect that future growth rate would be in the range of 25 to 30 per cent.

4.11 Estimation of market potential

Expected annual sales (in tons)S. No. Year Min Max

1 2005 14,500 18,8002 2006* 18,125 23,5003 2007* 22,656 29,3754 2008* 28,320 36,719

* Growth rate has been assumed as 25 per cent per annumMin: Minimum and Max: Maximum

The above table shows that the existing annual sale of around 14,500 - 18,800 tons of American Sweet Corn in Gujarat would grow at the rate of 25 per cent per annum. The market potential of American Sweet Corn in Gujarat would be around 28,320 – 36,719 tons in the year 2008.

4.12 Other observations

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American Sweet Corn

The consumption of American Sweet Corn varies with holidays and seasons (High during weekends, monsoon, and marriage season). The important concern of retail vendors is that their market share has been declining due to influx of more players although market size has increased in last 2 – 3 years.

5. Key findings from interactions with consumers

5.1Preferred form of consumption

  Form of consumptionLocation Soup Roasted

cobBoiled

cobVegetabl

esPizza Others

Ahmedabad

60% 30% 90% 50% 10% 10%

Surat 60% 100% 30% 60% 10% 0%Vadodara 90% 90% 100% 60% 40% 60%Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

The above table indicates the number of respondents across Ahmedabad, Surat, and Vadodara (in percentage) who have consumed different preparations of American Sweet Corn. It is found that the main form of consumption of American Sweet Corn is Boiled Cob, Soup, and Vegetables in Ahmedabad; Roasted Cob, Soup, and Vegetables in Surat; and almost all forms in Vadodara. The other forms include Bhel, Samosa, Patty etc. which are being largely consumed in Vadodara.

5.2Frequency of consumption

  Frequency of consumptionLocation Once a

month2-4 times a

month5-8 times a month

More than 8 times a

monthAhmedabad 10% 30% 40% 20%

Surat 10% 20% 10% 60%Vadodara 0% 20% 40% 40%Overall 7% 23% 30% 40%

Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

It can be inferred from the above table that almost 70 per cent of the respondents across locations consume American Sweet Corn more than 5 times in a month.

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American Sweet Corn

This proves the high fondness of American Sweet Corn among the respondents. Here, respondents mean a person who consumes American Sweet Corn.

5.3Consumption pattern in last 2-3 years

  Consumption pattern Location Increase Decrease No changeAhmedabad 30% 10% 60%Surat 30% 0% 70%Vadodara 40% 10% 50%Overall 33.3% 6.7% 60.0%Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

The above table further corroborates the fact of high fondness of American Sweet Corn among respondents as the consumption of more than 90 per cent of respondents have either remained same or increased.

5.4Main factors influencing the purchase decision

Rank Taste Easy availabili

ty

Association with the

word "American

"

Healthy and

nutritious food

Price

1 73% 0% 0% 27% 0%2 20% 40% 3% 27% 10%3 3% 37% 7% 27% 27%4 3% 20% 0% 17% 60%5 0% 3% 90% 3% 3%

Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

Taste and healthy & nutritious food can be considered as two important factors influencing the consumption of American Sweet Corn across Ahmedabad, Surat, and Vadodara. Around 73 and 27 per cent of the respondents ranked Taste and Healthy & Nutritious Food respectively as an important factor. It can be seen from the table that respondents (around 90 per cent) do not consider association with the word “American” as a significant factor influencing their purchase decisions.

5.5Perception about American Sweet Corn

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American Sweet Corn

ResponsesPerception as Agree Disagree Indifferent

Fun food 60% 23% 17%Youth food 30% 53% 17%

Healthy food 70% 0% 30%Children's food 20% 47% 33%

Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

The above table shows that people perceives American Sweet Corn as a healthy and nutritious food (70 per cent), and fun and party food (60 per cent). They also perceive that everyone can eat American Sweet Corn rather being restricted to youth (53 per cent) and children (47 per cent).

5.6Main sources of information about American Sweet Corn

  Sources of information Location Recommended

by friend/relative

Saw in malls/multiplexes/entertainment centres etc

Others

Ahmedabad 40% 50% 10%Surat 60% 40% 0%Vadodara 40% 20% 40%Overall 46.7% 36.7% 16.7%Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

The above table shows that good word of mouth created by friends and relatives and specific centers for the availability of American Sweet Corn like Makai Masti, Law Garden in Ahmedabad; Dummas, Lakeview Garden in Surat; and Swagat in Vadodara are the main sources, which have enhanced the information about American Sweet Corn among respondents. It is also observed that almost all consumers would like to serve American Sweet Corn to their relatives and friends from other states, who are less familiar with it.

6. Recommendation

The existing annual sale of around 14,500 - 18,800 tons of American Sweet Corn in Gujarat with an annual growth rate of around 25-30 per cent per annum presents an attractive and profitable proposition to marginalized farmers who may earn an income of around 36,967 to 41,127 per hectare from the cultivation. The nature of the crop (perishability period of seven days) necessitates that the farmers establish appropriate marketing linkages before they take up the

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American Sweet Corn

cultivation of Sweet Corn. Therefore, it is recommended that Sajjata Sangh should build formal linkages with food processing companies dealing in processing and marketing of Sweet Corn before their farmers take up the cultivation of Sweet Corn. It is also suggested that the cultivation of Sweet Corn should be done in a phased manner, as this would provide Sajjata Sangh enough exposure and experience to manage operational and other issues efficiently and effectively.

7. List of organizations interested in procuring American Sweet Corn from Sajjata Sangh

1. Mr. Navnit Singh #Agro Tech Foods Limited31, Sarojini Devi Road, Secunderabad - 500 003, India.Tel : 91-40-2780 1205, 2780 4750, 5533 3444 Fax: 91-40-040-27800947Email: navnit.singh@atfoods.comMobile: 98480 45627

# A set of information has been asked from the representative of Agro Tech Foods Ltd., Hyderabad to explore the possibility of marketing tie-up with them. (Please refer Annexure 3 for set of questions)

2. Mr. Kamlesh ChampaneriGeneral Manager (Supply Chain)Vadilal Industries LimitedVadilal House, 53, Shrimali Society,Nr. Navrangpura Railway Crossing,Ahmedabad - 380 009Tel: 2656 4018 -24 (Ext - 115)Email: kamlesh@vadilalgroup.compfdpurchase@vadilalgroup.com

3. Mr. Devang JoshiCEO, Makai MastiPanchdhara Plaza, Nr. Ocean Park,Nehrunagar Char Rasta, Satellite Road, Ahmedabad – 380 015Tel: 26765319Mobile: 98250 86202

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American Sweet Corn

Annexure – 1

1. Checklist for Institutional Buyers (Restaurants, eating joints, retail vendors etc.)

1. What are the different preparations of American sweet corn sold by you?2. What is your daily consumption of American sweet corn (fresh and processed)?3. Where do you procure from (fresh and processed)?4. What is the frequency of purchase and quantum of each order (fresh and

processed)?5. Whether your consumption pattern fluctuates in different seasons?6. Do you find any change in consumer preferences for the preparations of

American sweet corn over the last few years? How? 7. What is your view on the demand of American sweet corn in the coming years?

2. Checklist for Distributors/Traders of American sweet corn?

1. Who are the different buyers of American sweet corn?2. What is the daily average quantity of processed or fresh American sweet corn

you sell?3. What is your market coverage?4. What is the percentage break-up of sales in terms of buyers? And what is the

growth in various segments?5. What is your view on the total consumption of American sweet corn in

Gujarat?6. What is the seasonal variation in sales of American sweet corn?7. In your knowledge, what is the total number of distributors/traders dealing in

American sweet corn?8. Where do you procure from (fresh/processed and domestic/import)?9. What is the average price at which you procure (fresh/processed and

domestic/import)?10.Any other relevant information.

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American Sweet Corn

Annexure – 2

Questionnaire for Consumer survey

1. Name:

2. Sex :

3. Age group:

6-9 10-19 20-39 >40

4. Occupation:

5. In what form and how much do you consume American sweet corn and with what frequency?

Form of consumption

Please tick

Amount of consumption

Frequency of consumption

Once a month

2-4 times a month

5-8 times a month

More than 8 times a month

SoupFresh cobStew (boiled corn)VegetablesPizzaAny other (please specify)

6. How did you come to know about American sweet corn?a. Recommended by friend/ relativeb. Saw in Malls/ Multiplex/ Entertainment Centres etc. c. Advertisement/Bill boardsd. Any other (please specify)

7. How your consumption pattern has changed in last 2-3 years a. Increased and by how much %b. Decreased and by how much %c. No change

8. Rank the following factors which influence your purchase decisiona. Tasteb. Easy availability

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American Sweet Corn

c. Association with the word “American”d. Healthy and nutritious foode. Price

9. Your perception about American sweet corn is Write “3” for “Agree”Write “2” for “Neither agree nor disagree”Write “1” for “disagree”

a) American sweet corn is a fun food / party foodb) American sweet corn is a youth foodc) American sweet corn is a health food / nutritiousd) American sweet corn is a children’s food

10.Your household monthly expenditure is (Rs.)

<5,000

5,000-10,000

10,000-15,000

15,000-20,000

>20,000

11. Would you like to recommend American sweet corn to your friends and relatives?

Yes or No

If yes, then which form of American sweet corn?

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American Sweet Corn

Annexure – 3

1. What would be the modus-operandi for the procurement of American Sweet Corn? Please provide specific information ona. Which type of American Sweet Corn do you want to be grown by our

farmers?b. What would be the quality requirements? And how quality parameters

would be determined?c. What would be the minimum and maximum procurement quantity

requirement?d. What would be the frequency of procurement? Would you be interested in

procuring seasonal production or require regular supply?e. How crop produce would be procured from different locations across

Gujarat?f. How prices would be determined? How transportation cost would be

factored in?g. What legal formalities need to be adhered to?h. What kind of other support in terms of seed procurement, crop

management practices etc would you provide?2. What type of processing of American Sweet Corn are you planning to

undertake?3. Where is your processing plant? What factors would decide to set up a

processing plant near to farmers? And how much time would it take to set up the processing plant?

4. Any other relevant information

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