Economics of processing and marketing of custard apple pulp
Dr. J. P. Yadav and R.A. Patil
1.Associate Professor of Agricultural Economics, MPKV, Rahuri, NARP, Ganeshkhind, Pune
2. Ph.D. Scholar, Department of Agricultural Economics, MPKV, Rahuri
ABSTRACT
The spread of custard apple orchard in Purandhar tehsil is on 2150 hectares. Due to
high perishable nature of custard apple, post-harvest value addition plays a vital role
in minimizing loss of custard apple growers. With the aided support of Government,
many SHG’s of village women in these villages are taking pulping as their income
generation activities. The average quantity of custard apple processed by a processing
unit was 5304 kilograms and the pulp produced was about1414.58 kilograms and the
pulp recovery per cent was 26.67 per cent. Per kilogram cost to process the custard
apple into pulp was Rs. 137.09 and the benefit cost ratio was 1. 47. Three channels
were observed in disposing of the pulp. According to Responses-Priority Index (RPI),
the most important constraint in processing of custard apple was ‘small scale
processing’.
Women SHG’s in Purandhar Tahsil can opt fruit processing with
inclusion of other seasonal fruits to add on the benefit from the processing and for
employment and income generation throughout the year.
-------------------------------------------------------------------------------------------------------------Key words: Custard apple, perishable, processing, pulp , SHG’s, Responses-Priority Index
--------------------------------------------------------------------------------------------------------------Introduction:
The name “sitaphal” of custard apple is originated from the two Sanskrit words “sita”
means cold and “phal” means fruit. It belongs to family annonaceae. It is regarded by way of
numerous synonyms names including sugar apple, sweet cleaning soap, sitaphal and sharifa.
Custard apple prospers properly in tropical and warmer sub tropics elements of India. Custard
apple is one of the important topical fruit crops in India. Custard apple is mainly used as dessert
fruit however both the pulp and seeds are also used for medicinal purposes. Of late, custard apple
has gained commercial significance and exclusive orchards are emerging in Maharashtra.
Purandhar tehsil of Pune district is well known for its custard apple production. The dry loamy
soil of Purandhar tehsil is ideal for the growth of custard apple. but given the highly perishable
nature of the fruits, farmers have not been able to explore the full potential of the markets.
Currently. The spread of custard apple orchard in Purandhar tehsil is on 2150 hectares. Due to
high perishable nature of custard apple, post-harvest value addition plays a vital role in
minimizing loss of custard apple growers. Singapur, Gurholi, Pisarve, Pargaon, Waghapur,
Rajewadi and Vanpuri in Purandar taluka are involved in production and processing of custard
apple processing. With the aided support of Government, many SHG’s of village women in these
villages are taking pulping as their income generation activities. The extraction of pulp starts
from July and continues till November. So with this backdrop an attempt was made to find the
economics of custard apple pulping in Purandhar tahasil
Methodology:
The study was conducted in the Purandhar tehsil of Pune district. The selection of
Purandhar district was based on the fact that custard apple production in this thasil is
geographically identified and well recognised. Seven villeges were selected purposively for the
study viz; Singapur, Gurholi, Pisarve, Pargaon, Waghapur, Rajewadi and Vanpuri. These villages
were chosen because they had Self-Help Groups (SHGs) which were actively engaged in the
collection and processing of custard apple. A total of seven Self-Help Groups (SHGs) which
were involved in custard apple collection and processing were selected for data collection. From
these seven SHG’s, 70 respondents were selected for the study using random sampling
techniques. The primary data was collected for the study purpose.
Analytical Tools:
The total cost of processing was divided into
1. Fixed cost
2. Variable cost
The item wise fixed and variable cost was computed with the help of tabular analysis pertaining
to year 2022-23 from the information collected from sample processing units.
Total cost (Rs.) = Total fixed cost + Total variable cost
Gross Return (Rs.) = Return from pulp+ return from seed
Net return (Rs.) = Gross income – Total cost
Output Input Ratio = 𝐺𝑟𝑜𝑠𝑠 𝑅𝑒𝑡𝑢𝑟𝑛 /𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡
Benefit Cost Ratio = 𝑁𝑒𝑡 𝑟𝑒𝑡𝑢𝑛/𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡
a Responses-Priority Index (RPI) will be constructed as a product of Proportion of Responses
(PR) and Priority Estimate (PE), where PR for the ith constraint gives the ratio of number of
responses for particular constraints to the total responses.
k
 f .X 
( k 1)  j 
ij
j 1
RPI =
1
k
i 1
j 1
  fij
(0 ≤ RPI <5)
where,
RPI = Response Priority Index for ith constraint,
f ij = Number of responses for the jth priority of the ith constraint (i=1, 2……, l; j=1,2,3…..k),
k
∑ fij = Total number of responses for the ith constraint,
j=1
k = Number of priorities, i.e. 5,
X [(k+1)-j] = Scores for the jth priority,
1 k
Σ Σ fij = Total number of responses to all constraints.
i=1
Results:
Processing cost of custard apple pulp
The results pertaining to per kg processing cost of custard apple into pulp is presented in
Table 1.
The units were running the processing activity from July to November and were
processing about 54.37 kg of custard apple per day. On an average the units were processing
custard apple for 97.14 days
From the table it was observed that, the total cost bourn by sample
custard apple processing unit was Rs. 193925.35, of which, the total fixed cost accounted for Rs.
29122.57 (15.02 per cent) while total variable cost accounted for Rs. 164802.78 (84.98 per cent).
From the total variable cost, the cost of raw material cost was Rs. 93922.86 and it
contributed to the tune of 48.43 per cent to the total cost. The other major contributing item of
the total variable cost was labour cost (Rs. 55880.32) which contributed 28.82 per cent to total
cost.
Table1 Item wise processing cost of custard apple into pulp (2022-23)
(Average per processing unit)
Sr.
No.
I
1
2
3
II
1
2
3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Particulars
General Information
Season of processing
July- November
Per unit average working days
97.14 days
Per unit average quantity processed per day
54.37 kg/day
Cost Items
Actual amount
Per cent
land rent
10571.43
5.45
Depreciation
5108.29
2.63
Interest on fixed capital
13442.86
6.93
Total Fixed cost
29122.57
15.02
Raw material processed ( Kg)
5304.00
Purchase rate of raw material(Rs /kg)
17.43
Raw material cost (Rs.)
93922.86
48.43
Labour cost(Rs.)
55880.32
28.82
Transportation cost of raw material ( Rs.)
7964.29
4.11
Packaging material cost(Rs.)
2121.87
1.09
Others ( Electricity and Miscellaneous)
4913.45
2.53
Total Variable cost
164802.78
84.98
Total cost
193925.35
100.00
Total quantity of pulp produced ( Kg)(Recovery 26.67%)
1414.58
Total quantity of seed (Kg)(Recovery 7.8%)
424.32
Returns from Pulp
258733.29
Returns from seed
25459.20
Total returns
284192.49
Net profit
90267.14
Per kg processing cost of custard apple pulp ( Rs.)
137.09
B:C ratio
1.47
The average quantity of custard apple processed by processing unit was 5304 kilograms
and the pulp produced was about1414.58 kilograms and the pulp recovery per cent was 26.67 per
cent. The total returns generated through the sale of pulp and seed was Rs. 284192.49, while per
kilogram cost bourn by the processing unit to process the custard apple into pulp was Rs. 137.09.
The result revealed that average net profit generated by the processing unit was Rs. 90267.14 and
the benefit cost ratio was 1. 47.
Marketing cost, margin and price spread
In case of perishable products, the market players are very important to move the commodity
from processor to consumer. The involvement of those players in channel costs and margins to
either the processor or the player himself which defines the efficiency of the channel therefore an
attempt was made to identify the channel in movement of custard apple pulp and also to find out
the price spread and efficiency of those channels.
Channel-I: SHG - Local vendors - Ice-cream making companies/ Hoteliers/Caterers
Channel-II: SHG - Ice-cream making companies
Channel III : SHG - Consumer
Table 2 Disposal pattern of custard apple pulp
Particular
Average quantity of
custard apple pulp
(Kg)
Channel-I
Channel-II
Channel-III
SHG
1400
933.66
411.31
41.17
Per cent
100.00
67.35
29.67
2.98
The disposal of custard apple pulp was done through three channels which were enlisted in
Table 2. From the table it was revealed that the quantity of pulp disposed of through Channel-I
was the highest and was 67.35 per cent of the total quantity, while through Channel II, 29.67 per
cent pulp was disposed of. The least quantity of 41.17 kg was disposed of directly to the
consumers.
The marketing cost and margin of different market players was computed and presented
in Table 3. From Table 3, it was found that the SHG’ s share in the price paid by the ice-cream
company/ hoteliers/caterers was 64.38 per cent, while the marketing efficiency of this channel
was 1.81. The market margin obtained by local vendor in this channel was 19.84 per cent. The
cost paid by the final consumer was Rs.3200 per quintal.
In Channel-II, Hoteliers and the caterers who deal with smaller volume than the icecream companies, the SHG’s share in the price paid by them was 72.03 per cent and the
marketing efficiency of this channel was 2.17. The marketing cost bourn by the SHG’s was
27.97 per cent.
In direct channel, where consumers purchase a smaller quantity of pulp, the highest
marketing efficiency of 13.29 was observed. And the SHG’s share in consumer’s rupee was the
highest (93 per cent).
Table 3 Marketing cost, market margin and marketing efficiency in different marketing
channel of custard apple pulp
Players
Players
SHG
Channel-I
Rs/Q
Per
cent
2060.00
64.38
Players
SHG
Channel-I
Rs/Q
Per
cent
1941.15
72.03
Storage cost
140.00
4.38
Storage cost
140.00
5.19
Storage
cost
140.00
7.00
Local venders
2200.00
68.75
Labour charge
225.75
8.38
Consumer
2000.00
100.00
Storage cost
128.35
4.01
252.30
9.36
transportation cost
132.10
4.13
Transportation
cost
Packing cost
135.80
5.04
Labour charges
105.75
3.30
Sub total
753.85
27.97
Sub total
366.20
11.44
Price paid by
Hoteliers/
caterers
2695.00
100.00
Margin of local
vendors
633.80
19.81
Ice-cream making
companies
Marketing
efficiency
3200.00
100.00
1.81
2.17
SHG
Channel III
Rs/Q
Per
cent
1860.00
93.00
13.29
7.3 Constraints in processing and marketing of custard apple pulp
The SHG’s members were asked to list priority-wise major constraints in processing and
marketing custard apple pulp. All these were sorted and screened and finally eight major
constraints in processing and seven major constraints in marketing were identified. A perusal of
Table 4 revealed that the constraint ‘Seasonal fruit availability’ was the biggest constraint,
followed by ‘sub-quality fruit’. Also based on the maximum responses in first priority, it was
concluded that the constraint ‘Skill in transplanting’ was the major constraint. To get unanimity
across the constraints, the Responses-Priority Index (RPI) was constructed (Table 4), wherein,
the maximum value (0.46) was for the constraint No. 8, viz. ‘seasonal fruit availability’.
Therefore the most important constraint in processing was ‘seasonal availability of fruits’,
followed by ‘sub-quality fruits’ and ‘non availability of fruits in time’.
Table 4 Prioritization of constraints in processing of custard apple into pulp
Sr.
Problems
priorities
No
.
1
2
3
4
5
6
7
8
Numbers in respective
Difficulty in transportation
Non-avilability of labour
High wage rate
Non availability of fruits in time
Lack of technical knowledge
about enhancing keeping quality
Low-availability of credit
Sub-quality fruits
seasonal fruit availability
Total
Total
(recorded)
responses
RPI
Rank
I
II
III
IV
V
9
5
10
10
9
8
10
6
11
6
11
6
9
8
10
10
5
7
9
6
8
6
9
11
7
46
32
41
49
38
0.39
0.28
0.35
0.42
0.34
IV
VIII
V
III
VI
7
9
11
70
8
9
12
70
5
12
9
70
11
12
10
70
8
10
11
70
39
52
53
350
0.32
0.43
0.46
VII
II
I
A perusal of Table 5 revealed that the constraint ‘small scale processing’ was the biggest
constraint, followed by ‘dis-colouration of pulp’. Also based on the maximum responses in first
priority, it was concluded that the constraint ‘small scale processing’ was the major constraint.
Table 5 Prioritization of constraints in marketing of custard apple into pulp
Sr.
Problems
Numbers in respective
priorities
No.
I
II
III
IV
V
Total
(recorded)
responses
RPI
Ran
k
1
Lack of market reach
10
10
14
8
14
56
0.46
III
2
Small scale processing
12
13
10
12
13
60
0.51
I
3
Lack of market intelligence
9
6
9
10
7
41
0.35
VII
4
Low price of pulp
10
11
9
10
6
46
0.42
IV
5
Delay in payment
10
9
10
9
8
46
0.41
V
6
Low keeping quality
8
9
8
11
9
45
0.37
VI
7
Dis-coloration of pulp
11
12
10
10
13
56
0.47
II
Total
70 70 70 70 70
350
To get unanimity across the constraints, the Responses-Priority Index (RPI) was
constructed (Table 5), wherein, the maximum value (0.51) was for the constraint No. 2, viz.
‘small scale processing’. Therefore the most important constraint in processing was ‘small scale
processing’, followed by ‘dis-colouration of pulp’ and ‘lack of market reach’.
Conclusions:
1. The average quantity of custard apple processed by a processing unit was 5304 kilograms and
the pulp produced was about1414.58 kilograms and the pulp recovery per cent was 26.67 per
cent.
2. The total returns generated were Rs. 284192.49.
3. Per kilogram cost to process the custard apple into pulp was Rs. 137.09.
4. The average net profit generated by the processing unit was Rs. 90267.14 and the benefit cost
ratio was 1. 47.
5. Three channels were observed in disposing of the pulp viz; Channel-I: SHG - Local vendors Ice-cream making companies/ Hoteliers/Caterers, Channel-II: SHG - Ice-cream making
companies and Channel III : SHG – Consumer
6 The highest quantity of pulp disposed of through Channel-I (67.35 per cent ), followed by
Channel II ( 29.67 per cent ). The least quantity of 41.17 kg was disposed of directly to the
consumers i.e. Channel III.
7. In channel –I, the per cent share acquired by SHG in consumer’s rupee was 64.38, in channelII , it was 72.03 and in Channel III, it was 93.00 per cent.
8. The marketing efficiency observed was 1.81, 2.17 and 13.29 in Channel-I, Channel-II and
Channel-III, respectively.
9. Prioritization of constraints in processing of custard apple into pulp revealed that, the most
important constraint in processing was ‘seasonal availability of fruits’, followed by ‘sub-quality
fruits’ and ‘non availability of fruits in time’.
10. According to Responses-Priority Index (RPI), the most important constraint in processing of
custard apple was ‘small scale processing’, followed by ‘dis-colouration of pulp’ and ‘lack of
market reach’.
Policy Implication:
The custard apple pulp processing is a beneficial activity and is carried seasonally.
Therefore, more women SHG’s in Purandhar Tahsil can opt fruit processing with inclusion of
other seasonal fruits to add on the benefit from the processing and for employment and income
generation throughout the year.