Pomegranate From Maharashtra

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BUSINESS STUDIES PROJECT

CASE STUDY
POMEGRANATE FROM MAHARASHTRA

Introduction
Pomegranate (Punica granatum) of the Lythraceae family is one of the
oldest edible fruit known to humans. The fruit was domesticated
around 2000 BC. The pomegranate is native from Iran to the Himalayas
in northern India and has been cultivated and naturalized over the
Mediterranean region and the Caucasus region of Asia since ancient
times. The juicy arils of the fruit are eaten fresh, and the juice is the
source of grenadine syrup, used in flavourings and liqueurs.
Pomegranate is high in dietary fibre, folic acid, vitamin C, and vitamin K.

Pomegranate from Maharashtra

India ranks first in pomegranate cultivation in the world. In India, major


pomegranate producing states are Maharashtra, Karnataka, Gujarat,
Andhra Pradesh, Madhya Pradesh, Tamil Nadu and Rajasthan.
Maharashtra leads with 90 thousand ha area with an annual production
of 9.45 lakh Mt tones and 10.5 Mt/ha productivity. Maharashtra state
accounts for 78 percent of India’s total area and 84 percent of its total
production. Within Maharashtra, production of Pomegranate is mainly
concentrated in the Western Maharashtra region and the Marathwada
region. Pomegranates are commercially cultivated in Solapur, Sangli,
Nashik, Ahmednagar, Pune, Dhule, Aurangabad, Satara, Osmanabad
and Latur districts.
Fluctuations in Price
The prices of Pomegranates in Maharashtra range from Rs 1196 to
1543 per quintal approximately. The prices in May are lowest around
Rs 1196 and prices in april are highest at Rs 1543 approximately due to
changes in quantity produced and quality of pomegranates.
Pomegranate can make a sale at the wholesale rate of 60 to 80/kg in
domestic markets, whereas in the distance market, it gets a higher
price of 90 to 150/kg depending on quality.
Pomegranates are available almost throughout the year. With the
adoption of bahar treatment its harvest can be tailored according to
demand. But the best quality is produced during certain months
differing from one type of pomegranate to another.

Bahar Flowering Time Period of Harvest


Mrig June-August November-March
Hasta October- November February-May
Ambe January-February June - August

Effect on prices in the absence of an effective


Transport system
Transporting fresh produce from point of origin (the field) to the point
of use (retail store or foodservice establishment) requires a great deal
of planning. Produce is susceptible to physical or chemical damage as
well as microbial contamination during transport. Procedures and
controls must be in place during the transportation process in order to
assure the product arrives in good condition, safe and ready for
consumption.

Fresh produce has a very limited shelf life. Fresh fruits and vegetables
are sometimes harvested before they are fully ripened in order to
increase shelf life. However, the transportation from the field to the
retailer or foodservice establishment plays a major role in the longevity
of the commodity. To assure freshness and quality, it is imperative that
produce deliveries be made as quickly as possible and delays are
avoided.

Transporting pomegranate boxes from Maharashtra to markets in the


rest of the country, during the upcoming harvest will cost around 20
percent more due to the recent hike in petrol and diesel prices.

Bad roads in Maharashtra severely affect transportation of


pomegranates to markets across the country. Many of the link roads in
the pomegranate belt are also in a bad shape due to which many of the
transporters exploit the farmers by charging very high transportation
costs. Scarcity of trucks and expensive transportation costs increases
the production cost of farmers thereby forcing them to increase the
price of pomegranates.
Due to bad roads, pomegranates reach the market hours late which
damages the quality and hence people are willing to pay a lower price
and prices are reduced. Also due to slippery and rough roads the
pomegranates get damaged while transportation which then yields less
money. Sometimes the trucks, instead of reaching in a day, take almost
three days to reach the markets in other cities, which damage the fruit.

Effect on prices in the absence of suitable


warehouse facilities
Farmers are often forced to sell their commodities at significantly low
prices, fearing that in the absence of adequate warehousing facilities
they will perish, leading to losses. The absence of adequate storage
facilities can affect the price of pomegranates in the market.
Pomegranate being perishable goods, the lack of adequate storage
means rodents and other species attacking. In the absence of cooling
facilities, pomegranates can get damaged with time. Depending on the
extent of the harm, the damage caused by these infestations decreases
market value. It is deemed in some cases unfit for use and must be
destroyed. In the absence of proper storage facilities, farmers would be
forced to sell pomegranates at much lower prices since they have to
dispose of their stock before it becomes unfit for consumption. With
the help of warehousing facilities farmers can store their produce and
sell it when the price is high.

Pomegranate should be carefully maintained in cold storage after


harvest because fruit are susceptible to chilling injury (CI). Fruit
should be kept at 70C (450F) with relative humidity between 90-
95% during storage and transportation to attain a postharvest-life
longer than 8 weeks.

Duties performed by Warehouses


Warehousing can also be defined as assumption of responsibility for
the storage of goods. By storing the goods throughout the year and
releasing them as and when they are needed, warehousing creates
time utility.

Following important functions are performed by warehouses:


(1) Storage:
This is the basic function of warehousing. Surplus commodities which
are not needed immediately can be stored in warehouses. They can be
supplied as and when needed by the customers.

(2) Price Stabilization:


Warehouses play an important role in the process of price stabilisation.
It is achieved by the creation of time utility by warehousing. Fall in the
prices of goods when their supply is in abundance and rise in their
prices during the slack season are avoided.

(3) Risk bearing:


When the goods are stored in warehouses they are exposed to many
risks in the form of theft, deterioration, exploration, fire etc.
Warehouses are constructed in such a way as to minimise these risks.
Contract of bailment operates when the goods are stored in
warehouses. The person keeping the goods in warehouses acts as
bailor and warehouse keeper acts as bailee. A warehouse keeper has to
take the reasonable care of the goods and safeguard them against
various risks. For any loss or damage sustained by goods, warehouse
keeper shall be liable to the owner of the goods.

(4) Financing:
Loans can be raised from the warehouse keeper against the goods
stored by the owner. Goods act as security for the warehouse keeper.
Similarly, banks and other financial institutions also advance loans
against warehouse receipts. In this manner, warehousing acts as a
source of finance for the businessmen for meeting business operations.

(5) Grading and Packing:


Warehouses now-a-days provide the facilities of packing, processing
and grading of goods. Goods can be packed in convenient sizes as per
the instructions of the owner.

5. (v) Demand and supply situation of the product during harvesting


season, prices near the place of origin and away.

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