HSAMB Cold Storage & Pack House Presentation

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



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 ?



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%).



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%



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.



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



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



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



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



Jammed packing restricting air circulation

Ineffective refrigeration systems

Current Storage conditions



Improvised bunker coils – inadequate heat transfer area



Ceiling fans for air circulation in bunker coil systems



Industrial humidifiers – make the cold store and produce wet



Typical interconnecting stairway between mezzanines



Repacking in bags – crude methods employed



Typical machine room arrangement –

design and safety issues not considered



Electrical control and automation – exhibiting ignorance

and lackadaisical approach



Typical drying, grading and sorting process

Poor sorting, grading, material handling



• No focus on energy-efficiency

• Non-compliance to international standards

• Lack of operational practice

Huge gaps in processes:



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



Higher utilization

Design based on - Current & Future Needs





Maximum Space Utilization



Usage of Racks



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



Demaraction – Despatch & receiving

- To avoid Congestion



Usage of Pallets



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.



Cold Air Circulation

Air mixing

chamber

IDU

Air

circulation

fan

Potatoesstored in

wooden

Boxes

Dampers

With Hood

Air

Flows

through

Boxes



• 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

http://www.crawfordamber.co.uk/sectional-overhead-door-concept.htm

http://www.crawfordamber.co.uk/sectional-overhead-door-concept.htm



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



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



Sensor position



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%



Latest designs

Potato cold storage in the USA



Pre-engineered Cold Store facility

Modern technology



Bulk Storage Systems in Europe

Global trends



Civil Structural



Civil Structural



Electricals



Refrigeration



Cold storage



Seeds Storage



Flower Storage

Pack house



Vapur Heat Treatment plant Cooling

Pack house



Other

treatments

Pre-cooling

Drying

Selection,

cleaning and

disinfection

Reception

Grading

Packing and

packaging

Storage Transport

Harvesting



Typical Cold Chain

Collection

Centre

Integrated

Pack House

Terminal

Market

Multi Commodity

Cold StorageExports

Retail

Food Processing



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,



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



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



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



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



Pre-Cooling Chamber

Pre Cooling



Movement of the caloric

energy from the product to thecooling substance.

Objective: to remove the field heat.

Vacuum Cooling

Pre Cooling



Pallet pre-cooling and transition to CA rooms

i G i



Packing, Grading

W hi



Simple on-Farm Washing of Fruit

Washing

Potato Washing



Grading



Grading of Onions



Waxing and Grading of fruits



Conveyor System



Air in the internal

CavityWax layer restricts

the gases interchange.

Packaging



g g

Packaging



Sh t / L t



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



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



Cold storage

T = +1°C

L ife = 18 weeks

N2 = 79%

O2

= 16%

CO2 = 5%

Air

C A St



C.A. Store

T = +1°C

L ife = 40 weeks

N2 = 97%

O2

= 2%

CO2 = 1%

Air

CO2

Scrub



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



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



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



Equipment layout of Ripening Room



Equipment layout of Ripening Room



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



• 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



Material Handling

Dock Leveler



Dock Leveler

• Dock leveler is intended to bridge the gap betweendispatch area and transport vehicle



Material Handling - Dock Leveler

• Bridging the Gap… for quicker loading & unloadingmovements…



Handling - Dock Shelter

Seals betweenVehicle & Building - reducing the

Ambient temp ingression

in the Cold Storage Area.

PACKINGHOUSE OPERATIONS



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





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



Commodity Markets: Commodity Futures

Why Commodity Futures Markets ?



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



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



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



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



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



Exchanges

Other RegionalExchangesNMCE

Commodity Exchanges

ICEX

National Exchanges

Regional Exchanges

FMC (Forward Markets

Commission)

NBOT NCDEX MCX ACE

Major Commodities Traded



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



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



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



NCDEX - Products

Guar Seed &Guar Gum

Other s

Bullion

Metal

Energy

Oil

& Oil Seed

Pulses

Spices

NCDEX

Role of Futures Market



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



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



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



Trading Structure

EXCHANGE

MEMBER

CUSTOMER

Types of Members



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



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



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



Source: Sahadevan (2002)



Trade Confirmation



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



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



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



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



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



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



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



KISAN CALL CENTER (KCC)

HSAMB

TOLL FREE NUMBER

KISAN CALL CENTER



TOLL FREE NUMBER

18001802060

Kisan Call Centre Kisan Bhawan Sector 14 Panchkula

KCC OBJECTIVE



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



• 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



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



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





Marketing information of ood Grains

Toll Free helpline:

18001802060



18001802060

Facil i ties in KCC



Ticker Board Displaying



p y g

Commodity Rates

KCC LIBRARY



Empowering young minds by griculture







Thank you

for kind attention....

Documents

HSAMB Cold Storage & Pack House Presentation