Post Harvest Management & Technology 22 March 2012 NCML’s Network 952 Locations 18 States + 2 Union Territory 57 Commodities 6 37 24 3 +16,000 Clients 18 39 1 3 1 9 50 26 4 1 29 52 117 50 42 AUM – Rs 60 Billion Cross Border Trade Transaction Permanent Footprints 44 Locations 12 States 3 3 7 2 4 2 1 4 VIDISHA UJJAIN DEWAS BIKANER 8 4 2 4 Post Harvest Management Technology used elsewhere is not necessarily the best for use under conditions in India PRSERVATION OR Containment of Post Harvest Loss Many of the recent developments in post-harvest technology have come about in response to the need to economize on labor, materials, and energy use, and to protect the environment. •Latest jargon is “PHL” Maize Post Harvest Loss (PHL) Activity % Loss 7 Market Storage 6.40% 4.00% 1.20% 2.30% 2.10% 1.00% 4.00% Total PHL 21.00% 1 Harvesting & Field Dryland 2 Platform Drying 3 Shelling 4 Transport to Farm 5 Farm Storage 6 Transport to Market Is this the solution Agriculture Warehousing: Macro View PSU Capacity (in million MT) FCI 32.05 CWC 10.07 SWCs 21.29 State Civil Supplies Corporations/ Deptts. 11.30 Total Public Sector 64.30 Cooperative Sector 15.07 Private Sector 18.97 Total 108.75 Why Silo projects have not created replicas • Mega Silo Structures without any state subsidy can be successful when the other activities in the supply chain also develop • Incoming : Mega Silo being filled in by opening bagged cargo result in operational incompatibility • Outgoing: Rail Rakes being filled again by re-bagging the bulk cargo will AGAIN create incompatibity • Individual projects have remained only as pilots (Base 2003) Mar-13 Nov-12 Jul-12 Mar-12 Nov-11 Jul-11 Mar-11 Nov-10 Jul-10 Mar-10 Nov-09 Jul-09 Mar-09 Nov-08 Jul-08 Mar-08 Nov-07 Jul-07 Mar-07 Nov-06 Jul-06 Mar-06 Nov-05 Jul-05 Mar-05 Nov-04 Jul-04 Mar-04 Nov-03 Jul-03 Mar-03 % variation in Maize Prices vs Silo Construction materials 600% 500% 400% 300% 200% 100% 0% -100% World’s Oldest Mega Grainery for Post Harvest Management Faults the economic thinking for failing to consider the most appropriate scale for an activity Location :Patna Capacity :140,000 MT Year: 1786 Raises the question on the notion that “Bigger is Better" POSTCOSECHA Programme (1983-2003) in Central America has been a success. Approximately 336,000 tons of grain worth US$ 75 milo could be saved from loss. Tinsmith Benefit Growers Benefit Silo technology costs (incl. financial expenses) Price for 900 kg silo = 100 USD, lifetime = 15 years => amortization costs 7.0 USD/year Interest rate = 10% => cost of capital invested 3.0 USD/year Price of storage technology replaced by silo Fumigation costs TOTAL 3.0 USD/year Raw materials for 40 silos 0.5 USD/year Interest rate = 10%, stocking period = 1 month => cost of operating capital 13.5 USD/year Net average profit due to silo technology TOTAL 40 USD/year 10 USD/year 2000 USD/year 17 USD/year 2067 USD/year Silo sales benefits Silo technology benefits 10% loss avoidance (90 kg à 0.22 USD) Silo production costs Price of tools = 200 USD, lifetime = 5 years => amortization costs Interest rate = 10% => cost of capital invested 20.0 USD/year 6.5 USD/year 40 silos à 60 USD Net average profit from silo production 2400 USD/year 333 USD/year Suggested Post Harvest Mgmt. Models • Homegrown solutions and need based scales • Labour efficiency by optimum used of technology • Use of material for structures suited for the climatic regions • Cost Efficiency from farm-gate to warehouse & warehouse to destination • Nationwide Post Harvest Loss Grid and plugging the gaps • Grading Sorting and Testing Coming together is a beginning. Keeping together is progress. Working together is success Thank You National Collateral Management Services Ltd. Gayatri Towers 954, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025. Tel: +91 22 4041 9191 Fax: +91 22 4041 9193 website: www.ncmsl.com