ASSEFA Association for Sarva Seva Farms 279, Avvai Shanmugam Road, Royapettah, Chennai

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1 A brief proposal Food Processing Unit To Support Small and Marginal Farmers in Marketing Horticulture Products in Natham area of Tamil Nadu, India Submitted to ASSEFA Italia February 2012 ASSEFA Association for Sarva Seva Farms 279, Avvai Shanmugam Road, Royapettah, Chennai

2 1. Background Natham is one of the semi arid areas located in the north of Madurai. The area is surrounded with many hillocks and the climate remains pleasant. The local population is dominated by the semi tribe, Muthuraja community, and is mainly involved in subsistent agriculture farming practices and cattle wealth for their income generation. Agriculture is the main occupation here. Due to suitability of the agro-climatic conditions, the farmers grow horticulture crops mainly. Coconut Mango Tamarind Lemon Gooseberry Papaya Short-term crops such as vegetables and groundnut are cultivated as intercrops. In many instance, the farmers complain in getting low price for their produce due to exploitation of the middlemen (sales agents). Sometime, the farmers produce passes through more than two middlemen before reaching the consumers. In such case, the margin taken at each level (middlemen) results in low price for the producers. In order to address these issues, ASSEFA proposes to establish a Food Processing Unit in Natham area. This unit will help the farmers to avoid middlemen in selling their produce, as the produce can be processed in the unit as value added products and marketed the same in the surrounding areas at better price. Of course, this intervention in turn will enable the farmers to fetch higher prices for their produces than what they earn at present. The Unit is proposed to be established in ASSEFA s community land at Vembarali village in Natham. This place is selected as It is centrally located Easily accessible by the local farmers Access to Electricity for the unit and Availability of adequate water for the unit.

3 2. Mango Bye products: In the first phase, it is proposed to prepare mango juice from raw mango fruits, pack it in pet container and market the same in the surrounding areas, where the demand for such juice is reasonably high throughout the year. The farmers growing mango trees will be brought under mango tree growers group. The group will be limited to one in each village enrolling all the interested mango growers. This group will be encouraged to conduct meeting regularly so as to discuss the issues and matters in respect of growing mango. At the area level, ASSEFA will organize training as and when required in respect of Availability of varieties of mango saplings Planting and maintenance of the mango saplings Pest control measures Application of fertilizers including organic ones. Introduction of drip irrigation system in horticulture farming, etc. through collaboration with ASSEFA Community College and Horticulture department. In case of necessity, the selective farmers will be taken to other areas, where mangoes are grown efficiently. In each group, one of the progressive farmers will be encouraged to be the leader of the group and guide others in enhancing the mango production and supply quality mangoes to the food processing unit. Generally, preparation of mango juice involves Selection of quality mangoes Preparation of mango bulb and sterilization Dilution of the bulb Addition of sugar and other mixture Processing Quality checking Bottle filling and Marketing It is proposed to process 5,000 kg of mango per month initially. 2

4 3. Process in Making Mango Juice: The preparation of the mango juice involves the following steps. Procurement of Raw Mango Fruit Mango Pulping Sterilization Diluting the pulp with 20% Addition of sugar and other mixtures Process by heating and holding (90C for 30 mins) Quality Check Filling at Pet 80 C Labeling Dispatch to Market 3

5 4. Requirement of Investment S. No Particulars Unit In Rs In Euros Remark 1 Construction of Building 2856 Sq ft 3,200,000 49, Vide annex i 2 Plant and Machinery 1 set 1,315,000 20, Vide annex ii 3 Working Capital 1 month Cost 175,000 2, Vide annex iii Total 4,690,000 72, Conversion rate Euro 1 = Rs Duration of the Project The project could be completed within a year upon getting the required capital. 6. Expected Benefits This project is proposed to benefit the small and marginal farmers, mainly semi tribal, called Muthuraja community. The project is expected to bring in the following benefits. - The farmers sharing of their experiences in the group are expected to increase the production/productivity of mangoes. - Farmers will get higher prices for their produces than what they get it today due to avoidance of middlemen for marketing - Local youths will get employment opportunities to work in the proposed food processing unit and - The successful intervention will motivate other tree crops growers to join this unique venture and get benefited in the future. 4

6 Plant and Machineries Budget S. No Particulars Qty Budget in Rs 1 Mixing Tank 250 litres 1 no 30,000 2 Heating Kettle 250 litres 2 nos 230,000 3 Storage Tank 250 litres 1 no 30,000 4 Semi Automatic filling and capping 1 no 200, kg steam boiler 1 no 190,000 6 Homogenizer 500 lph 1 no 170,000 7 Lab Testing Equipments 1 set 25,000 8 Mango Pulping machine 1 no 40,000 9 Packing label cylinder 1 no 75, Electric items 1 set 75, Genset 10 Kva 1 no 250,000 Total 1,315,000 Annex ii Working Capital to process 5000 kg/month Annex iii S. No Particulars Budget in Rs 1 Cost of Mangoes 30,000 2 Sugar and other mixers cost 25,000 3 Pet bottle with cap 55,000 4 Label and Carton box 5,000 5 Transport cost 10,000 6 Fuel and Electricity 5,000 7 Workers Salary 30,000 8 Admin cost 5,000 9 Market Promotion Cost 10,000 Total 175,000 5