RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT

RAJASTHAN AGRICULTURAL

COMPETITIVENESS PROJECT

Detailed Project Report on Garlic

Peeling Unit

Prepared by:

AGRI BUSINESS PROMOTION FACILITY

Rajasthan Agricultural Competitiveness Project 1

Contents

Page

List of Tables 2

List of Figures 3

Executive Summary 4

Chapter 1: Introduction to Spices Sub-Sector 7

Chapter 2: Technology advances and circumstances in Garlic processing 32

Chapter 3: Production and processing hubs/clusters in Rajasthan 34

Chapter 4: Manufacturing process and technology benchmarks 35

Chapter 5: Appropriate technology options 38

Chapter 6: SWOT of technology 43

Chapter 7: Indicative project profiles for Rajasthan 44

Chapter 8: Method of technology dissemination and adoption 51

References 53


List of Tables

Table 1: Top 10 garlic producing countries/regions for the year 2014 ..................................................... 8 Table 2: Global total of production and yield of garlic for the year 2014 ................................................. 9 Table 3: Continent wise share of production of garlic for the year 2014 .................................................. 9 Table 4: Global production, yield and harvested area of garlic for the years 2009-2014 ........................ 9 Table 5: Annual international trade prices of garlic for 5 years .................................................................. 9 Table 6: International import data of garlic (fresh/chilled) for the year 2015, 2016 & 2017 ............... 10 Table 7:International Export data of garlic (fresh/chilled) for the year 2015, 2016 & 2017 ............... 17 Table 8: Garlic Production In India .............................................................................................................. 23 Table 9: Indian production and yield of garlic in the year 2014 ............................................................... 23 Table 10: Indian production, yield and area harvested data of garlic for 2009 to 2014 ........................ 24 Table 11: India import of garlic (fresh/chilled) (Qty in MT and value in Rs lakhs) .............................. 24 Table 12: India import of garlic (dried) (Qty. in MT and value in Rs. lakhs) ......................................... 24 Table 13: Export of garlic value and quantity from 2009 to 2013 ............................................................ 26 Table 14: Export of fresh/chilled garlic from India (Qty. in MT and value in Rs lakhs) ..................... 26 Table 15: Export of dried garlic from India (Qty in MT and value in Rs. lakhs)................................... 27 Table 16: Area & Production of Garlic in the State Of Rajasthan (2017-18) ......................................... 30 Table 17: Garlic Production in Cluster-Districts (2017-18) ..................................................................... 30 Table 18: Season availability of garlic ............................................................................................................ 34 Table 19: Market arrivals and Prices of Garlic in Rajasthan for the period 1 April 2016 to 31 March 2017 ..................................................................................................................................................................... 34 Table 20: Comparative analysis of Traditional and Modern process technology of Garlic Peeling & Packaging ........................................................................................................................................................... 36


List of Figures

Figure 1:Top Ten Importers & Their Share in Worlds Import ................................................................ 16 Figure 2:Top Ten Importers & Their Ranking in Worlds Import .......................................................... 16 Figure 3: Top Ten Importers in 2017 & their annual growth in value between (2013-2017) .............. 17 Figure 4:Top Ten Exporters & Their Share in Worlds Exports............................................................... 21 Figure 5:Top Ten Exporters & Their Ranking in Worlds Export: ......................................................... 22 Figure 6:Top Ten Exporters in 2017 & their annual growth in value between (2013-2017) .............. 22 Figure 7: Import of garlic paste in terms of value (in USD) ...................................................................... 25 Figure 8: Imports of garlic in terms of quantity of import (in kg)............................................................ 25 Figure 9:Top Ten Export Destination for HSN 33012947, Including Garlic Oil ................................. 28 Figure 10:Top Ten Export Destination for HSN 33012947, Including Garlic Oil , (Values) ............. 28 Figure 11: Top Ten Export Destination for HSN 21069099, Including Garlic Powder ...................... 29 Figure 12:Top Ten Export Destination for HSN 21069099, Including Garlic Powder (Values) ....... 29 Figure 13: Steps Involved In Garlic Peeling ................................................................................................. 35 Figure 14: Garlic grader ................................................................................................................................... 38 Figure 15: Garlic bulb breaker ........................................................................................................................ 39


Executive Summary

The development objective of Rajasthan Agriculture Competitiveness Project (RACP) is to sustainably increase agriculture productivity and farmers’ incomes in several selected locations of Rajasthan. As a part of this approach, several Farmer Producer Companies (FPCs) are being developed and supported under the project. Each of these companies will have primary and/or secondary (value adding) processing infrastructure (Farmer Common Services Centers (FCSCs)), services of which will be availed by farmers of their cluster region. Broadly, these companies will aggregate produce of farmers, process/value add and directly sell in bulk to processors/consumers. This, in turn, will enable farmers to realize higher remuneration for their produce. In a nutshell, the envisaged FCSCs will have micro or small scale milling/processing and packaging units to facilitate services to farmers.

Naturally, existing and upcoming agro and food processing units in the state play a highly important role in the scheme of things, i.e. forward linkages in agriculture. Evidently, higher investments in such agribusinesses will bolster development and sustainability of FPCs and farmers thereto. In line with the approach, RACP, through its Agri-Business Promotion Facility (ABPF), aims at:

Promoting agribusiness investments in the state

And providing incubation facilities to foster innovation & entrepreneurship

The objective of this report is “scouting of technologies and suitable replicable models” in Peeled Garlic (Raw Garlic processing). Broadly, the report aims to provide some insights, to prospective entrepreneurs and existing unit holders in the state - on technological gaps identified in existing units, on several technological advances in the industry, on benchmarking technology and efficiency vis-à-vis industry bests in other parts of the country and providing suitable replicable models for micro, small and medium/large scale investors.

Consisting anti-rheumatic, carminative and digestive properties, garlic is consumed all over the world in form of an ingredient in various cuisines. Garlic is used mostly in cooking as it softens its pungent flavour, roasted garlic is also being consumed as it balances the flavour by offering nutty and delicate flavour. A fresh and raw form of garlic is consumed more than the other forms as the raw garlic is effective in cold and flu, high blood pressure, heart diseases, it is considered as one of the best antibiotics for fungal and bacterial infections. Manufacturers are also focusing on retaining maximum benefits and taste offered by raw garlic even after converting it into a paste or powdered form. The major market players are also focusing on infusing garlic with oil to produce flavoured oil. Garlic is also being used as a meat and fish preservative, offering long shelf-life to these foods. Restaurants and fast food chains also use fresh garlic as it enhances the taste of the food.

According to a study by Fact.MR, the global garlic market is expected to experience moderate growth. The market is estimated to register 4.3% CAGR during the forecast period 2017-2022. Due to the increasing consumption of garlic as an ingredient in various foods and also being used as a traditional medicine, the demand of garlic is boosting. Manufacturers are also producing garlic in various forms such as paste, powder, oil, etc. to make it easy to use and to also balance the flavour. It is observed


that the maximum and minimum prices were around USD 1500-2000 for the years 2013, 2014 and 2015. But the year 2016 has seen a drastic increase in the prices of garlic which shot up to USD 8000. The year 2017 till now has further seen an increase in the value of the minimum prices indicating that garlic is performing very well in the international trade market.

Although, India is second in area and production of garlic in the world, the productivity per hectare is very low as compared to China, USA and other countries where the crop is grown commercially. Further, over the years the, productivity in India has remained static. In the year 2014-15, the garlic production in India was led by Madhya Pradesh which produced 424,500 tons of garlic with total share of 29.78%. It is followed by Gujarat which has total share of 22.32%. Rajasthan came fourth with production of 172,040 tons with share of 12.07%. The total Indian production was calculated to be 1,425,460 tons for the year 2014-15.

With regards to import of fresh/chilled garlic, India did not see any noticeable imports till the year 2013-14. In in the year 2014-15, India started importing fresh/chilled garlic from the region Egypt Arab Republic. In the year 2015-16, India imported garlic from Nepal worth Rs 71,660,000 a quantity of 1761.9 MT.

India is a major exporter of garlic and the following table shows the export figures of India for garlic for the years 2009 to 2013. It is observed that export has seen an upward trend except for the year 2011 when the values had declined. Both quantity and value of exports has been increasing during the year 2013, 29,461 tons were exported at a value of 11,340 thousand USD.

Rajasthan is one of the states which is leading the race in garlic production. Out of 12 districts, Kota zone, including Baran district, is leading zone which has highest area under cultivation of 7476 hectares during Rabi season of 2011-2012 out of 20,840 hectares’ garlic area in Rabi in 2011-2012. The prominent Garlic production areas of Rajasthan state are in the districts of Chittorgarh, Jhalawar, Baran and Kota. Rajasthan has a specific Mandi for marketing of Garlic at Chhipabarod in Baran district.

The processing operations with Garlic globally particularly include Garlic grading, bulb breaking, clove separation, size reduction, peeling, clove flaking, dehydration, blending, packaging, storage, grinding etc. It’s processing require special skill and care, because it’s essential volatile oil is concentrated in epidermal cell, which is mainly responsible for its characteristic aroma.

Export and value addition in the form of processed products are the important factors for stabilizing prices in internal markets and thereby bringing sustainability in production of certain commodities. To regulate the production and prices it is necessary to develop the dehydration industry in our country. Processing industries in any commodity play an important role in stabilizing prices in domestic markets. Garlic offer very good scope for value addition in the form of dehydrated flakes, powder, granules, paste and Garlic salts. Among all these products, peeled garlic, dehydrated flakes and powder of Garlic are important from Indian export point of view.

In order to prepare peeled garlics, harvested plants are dried in the sunlight for 1-2 days to bring the moisture levels down to 18%. This dried plant is then thrashed to remove the seeds. Seeds are further dried in the shade to bring the moisture levels down to 9%. Garlic seed is mainly processed into powder by crushing, and this powder, which enjoys an aroma, is used as a food ingredient. The cleaning process involves separation of whole seeds, splits, and other wastages. To separate these, different hole-size sieves are used in the process. This process involves various costs, including machines, labour, power, etc. A Garlic processor in the Kota / Ramganj mandi incurs approximately Rs15-16 per kg above his buying price in the mandi. These costs include commission (3%), mandi cess (1.6%), VAT, labour, cleaning charges, etc. Although Garlic seeds are consumed in an unprocessed form; however, its good quantity is also being processed to facilitate the international trade profitability and palatability.


The report outlines two project profiles that could be referred by entrepreneurs to select their most

suitable option. Broadly, one small scale and one medium scale investment option has been showcased

primarily to suit the investment capabilities of the entrepreneurs.

RACP-ABPF shall undertake mix of some or several initiatives to disseminate the suggested technologies and models, which may broadly include:

Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of

FPCs

Facilitate technology benchmarking exposure visits within and outside state for prospective

entrepreneurs/groups, existing industry owners and BoDs of FPCs

Seminars and Workshops in association with Industry Associations, Technical Institutes and

R&D Institutions

Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and experts

Facilitate through consultancy and business development services

Dissemination of success stories of units facilitated by ABPF through appropriate media

Dissemination through web portals and mobile applications

The models and business plans suggested in this report are broadly generic in nature, however involve:

technology profile

civil works requirement

raw material sourcing and logistic costs for sourcing raw material

capacity utilization for different scenarios

realistic assessment of investment and working capital needs

possible sources of funding

financial analysis

The suggested models and business plans are for optimal capacities which can be fine-tuned to the scale, investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs on statutory clearances needed for operating the business, required licenses, ways of leveraging various government schemes/subsidies and several other aspects for effective technology adoption. In order to increase the scale and potential adoption, ABPF shall pursue some or mix of several initiatives, which may broadly include:

Investor road shows

B2B Meets

Establishing Mentor Network

Mentor-Mentee Workshops

Facilitating Access to Finance

Creating a robust knowledge base

Preparation of business plans

Review of business plans for funding through RACP


Chapter 1: Introduction to Spices Sub-Sector

Garlic, Allium sativum, is an herbaceous, annual, bulbous plant in the family of Amaryllidaceae, grown

for its pungent, edible bulb of the same name. The garlic plant can either have a short, woody central

stem (hardneck) or a softer pseudostem made up of overlapping leaf sheaths (softneck). Hardneck

varieties produce a false flower stock which is termed a 'scape' and produce larger garlic cloves but in

smaller numbers. Softneck garlic is the most popular variety of garlic grown in the US. The bulb can

be up to 7 cm (2.8 in) in diameter and is made up of 1–15 cloves. The stem is very short and flattened

and gives way to a pseudostem, the garlic plant can possess 6–12 flat, blade-like leaves which can

stretch up to 50 cm (19.7 in) long. The plant can reach 60 cm (23.6 in) in height which survives one

growing season. Garlic is believed to have originated from Asia.1

Origin

Garlic started its journey in central Asia, domesticated during Neolithic times and spread to the Middle

East and northern Africa in 3000 BC, which quickly enabled it to reach Europe. The incredible journey

of garlic through our history touched every major civilization of the ancient world, but its true origins

lies in West and Central Asia. The wild plant called Allium longicuspis evolved for processing

unitennia, eventually shaping itself into the form of the modern Allium sativum, or garlic. The plant

was identified by the ancient Indians who managed to domesticate it around six thousand years ago,

incorporating its taste and medicinal properties.

Importance

Economic Importance: Garlic is generally used for flavoring the food. But over the years, it has also

been used as a medicine to prevent or treat various types of diseases. Presented below is the economic

importance of garlic:

Cash crop: USA is said to be the world’s largest import market of fresh garlic, followed by

Indonesia, France, Germany, Australia and Brazil.

Flavoring in food: Garlic is a common flavoring substance used while cooking. It serves as

a food additive which prevents food poisoning.

Pharmaceutical Industry: Garlic is used as raw material in pharmaceutical industries. It is

used to produce supplements which have enteric coatings.

Low capital requirement: In the presence of a good farm site, garlic production does not

require a huge start-up capital. It is less affected by destructive pests and diseases unlike the

1 https://www.plantvillage.org/en/topics/garlic (retrieved on 18th April 2017)

https://www.plantvillage.org/en/topics/garlic


other vegetables. It does not require sophisticated storage facility and can be stored for a long

period of time (up to 12 months) after harvest.

Health Benefits: Garlic is one of the most used and well-researched medicinal herbs. Multiple studies

are carried on garlic and alicen, for its effects on the cardiovascular system, infections, respiratory

system, blood sugar and more:

Treating respiratory infections. Its antibiotic properties render it useful for throat

infections and amygdalitis.

Treating jock itch or fungal skin infections. Fresh garlic juice works to inhibit fungi from

growing, and has long been used as a topical treatment for them.

Reducing blood pressure. The aromatic compounds in garlic work in the body as many

aromatics do: by dilating blood vessels, as well as opening and relaxing the circulation.

Balancing cholesterol. Garlic has the ability to improve the function of the liver, which is

the key in moderating healthy cholesterol and triglyceride levels in the body.

Halting arteriosclerosis. Garlic has a positive effect on halting – and sometimes even

reversing – arteriosclerosis.2

1.1. Global Scenario

In the year 2014, China was the global leader in the quantity of garlic produced with a production of

20,058,388 tons which represented approximately 80% share of the global market. The other

producers are India and Republic of Korea followed by Bangladesh, Egypt and others.

China also includes the China Mainland which is the geopolitical area under the direct jurisdiction of

the People's Republic of China (PRC). China Mainland alone produced 19,984,724 tons of garlic in

the year 2014.

The detailed production report for 2014 of the top 10 countries/regions is presented in the table

below:

Table 1: Top 10 garlic producing countries/regions for the year 2014

Rank Country/Region Production Quantity (in tons)

1 China 20,058,388

2 China, mainland 19,984,724

3 India 1,252,000

4 Republic of Korea 353,761

5 Bangladesh 312,000

6 Egypt 263,167

7 Russian Federation 256,406

8 Myanmar 208,900

9 Ukraine 191,140

10 Spain 177,420

11 USA 175,450

(Source: http://www.fao.org/faostat/en/#data/QC/visualize(retrieved on 18th April 2017)

The total global production quantity of garlic in the year 2014 was 24,939,965 tons and the harvested

area to generate the above-mentioned production quantity was 1,547,381 hectares of land. The tables

2 https://www.herbazest.com/herbs/garlic(retrieved on 18th April 2017)


presented below shows the production and yield of garlic and the continent/region wise share of

production of garlic for the year 2014:

Table 2: Global total of production and yield of garlic for the year 2014

Particulars Value

Area harvested (in Ha) 1,547,381

Production (in tons) 24,939,965

(Source: http://www.fao.org/faostat/en/#data/QC/visualize (retrieved on 18th April 2017))

Table 3: Continent wise share of production of garlic for the year 2014

Area Production Quantity (in tons)

Asia 2,288,1751

Europe 836,228

Americas 658,401

Africa 561,771

Oceania 1,814

(Source: http://www.fao.org/faostat/en/#data/QC/visualize(retrieved on 18th April 2017))

Comparing the data of past 5-year period from 2009 to 2014, it is observed that the production

quantity has an upward trend and is increasing by 2-3% every year. Also, the area under production

has been increasing simultaneously throughout the period. On the contrary, the yield, hectogram per

hectare, has a downward trend during the said period. Based on the data, it can be concluded that the

increase in production was on account of increase in the harvest area. The detailed numbers are

presented in the table below:

Table 4: Global production, yield and harvested area of garlic for the years 2009-2014

Year Production (in tons) Yield (hg/ha) Harvested Area (ha)

2009 22,045,317 167,017 1,319,944

2010 22,557,355 168,774 1,336,544

2011 23,088,184 166,428 1,387,275

2012 23,411,764 162,037 1,444,841

2013 24,188,693 155,002 1,560,544

2014 24,939,965 161,175 1,547,381

(Source: http://www.fao.org/faostat/en/#compare(retrieved on 18th April 2017))

International trade of garlic comprises of four types of garlic which have been identified in the table

presented below. The table gives international price details of the four types of garlic traded in the

world market for the current year till April 2017 and the past 4 years. It is observed that the maximum

and minimum prices were around USD 1500-2000 for the years 2013, 2014 and 2015. But the year

2016 has seen a drastic increase in the prices of garlic which shot up to USD 8000. The year 2017 till

now has further seen an increase in the value of the minimum prices indicating that garlic is

performing very well in the international trade market.

Table 5: Annual international trade prices of garlic for 5 years

Type of

Garlic

Chinese powdered,

CFR NW Europe

(USD/t)*

Chinese first grade

granules, CFR NW

Europe (USD/t)

Chinese Grade A

dehydrated flakes,

CFR NW Europe

(USD/t)*

Chinese top grade

garlic granules,

CFR NW Europe

(USD/t)*

Year Max

Price

Min

Price

Max

Price

Min

Price

Max

Price

Min

Price

Max

Price

Min

Price

2017 5900 5900 6450 6450 7500 7500 8000 8000

2016 5900 1800 6450 2100 7500 2000 8000 2700


2015 1800 1300 2100 1800 5358 2000 2700 1800

2014 1300 1300 1800 1800 2000 2000 2700 2700

2013 2300 1300 2800 1800 4000 2000 4200 2700

(Source: Agra-net (Public Ledger);

http://agriexchange.apeda.gov.in/int_prices/international_price.aspx(retrieved on 18th April 2017))

Import Scenario

Table 6: International import data of garlic (fresh/chilled) for the year 2015, 2016 & 2017

Importers 2015 2016 2017

imported quantity, Tons



World 1885485 1845155 1918747

Indonesia 479941 444301 549767

Brazil 161760 173044 159257

Malaysia 115657 138548 154561

United States of America 87555 87366 89913

Philippines 52361 58755 68014

United Arab Emirates 60666 60760 66883

Russian Federation 52555 51161 53944

Saudi Arabia 46666 45228 49475

Bangladesh 55327 33160 42585

Thailand 68431 34722 41775

Pakistan 31498 51372 37070

Taipei, Chinese 2889 18036 28122

United Kingdom 30038 33844 28082

Sri Lanka 28199 30974 27488

Netherlands 26440 30727 26313

France 26234 26865 26176

Italy 28995 27366 24531

Mali 5049 24504

Germany 22613 23462 23566

Japan 20496 20597 20917

Canada 18440 18393 18647

Colombia 21271 19826 17691

Morocco 11604 11245 13159

Mexico 14730 15623 13090

Ecuador 15347 12070 12492

Australia 10995 13625 12290

Senegal 11423 10229 12269

Tunisia 9791 8247 12133

Portugal 12752 12983 11692


Importers 2015 2016 2017




Haiti 13996 12965 11683

Kuwait 9467 9544 9858

Singapore 14154 14533 8558

Czech Republic 6440 6218 7372

Belgium 5636 7792 6988

Poland 5180 6487 6910

Lebanon 7813 7743 6686

Iraq 1628 2469 6202

Romania 4533 5301 6095

Kazakhstan 5567 2761 5770

Israel 4493 4960 5712

Jordan 5023 4929 5686

Qatar 6508 7153 5598

Oman 6385 5484 5161

Nepal 8584 5300 5140

Congo, Democratic Republic of the 5235 3830 4986

Austria 4035 4950 4588

Spain 5405 7788 4468

Kenya 3792 3165 3917

Ghana 3379 3840

Costa Rica 3068 3614 3726

Korea, Republic of 26660 35326 3654

Dominican Republic 3544 11073 3584

Trinidad and Tobago 3574 3537 3503

Panama 3081 3105 3493

Paraguay 4169 4669 3407

Sweden 3226 3090 3294

Switzerland 3222 3226 3224

Angola 10299 2264 3057

New Zealand 2786 2803 2980

Côte d'Ivoire 2651 2313 2804

Ireland 2044 2164 2639

South Africa 2359 2020 2625

Georgia 2572 1480 2582

Ukraine 4797 3197 2504

Fiji 2083 2074 2399

Denmark 2325 2243 2389

Burkina Faso 1789 2444 2369

Guyana 2181 2388 2318

El Salvador 2034 1896 2201

Honduras 1818 1611 2182


Importers 2015 2016 2017




Somalia 3072 1581 2100

Slovakia 1736 1942 1998

Cameroon 1345 1911 1963

Nicaragua 1820 1762 1949

Suriname 1650 1931

Chile 7955 1894 1819

Bahrain 2567 2649 1752

Yemen 11677 759 1724

Mauritius 1624 1834 1693

Sudan 11936 1649

Benin 1164 737 1582

Mauritania 1562 1285 1393

Bulgaria 655 998 1382

Greece 1327 1697 1351

Macao, China 1020 1130 1331

Norway 1474 1313 1328

Guinea 677 903 1290

Congo 1286

Lithuania 1223 1027 1260

Gabon 801 774 1258

Guatemala 1431 1153 1256

Slovenia 1296 1211 1223

Egypt 4894 1775 1212

Finland 1412 1229 1208

Belarus 1533 1226 1204

Jamaica 1548 1042 1180

Korea, Democratic People's Republic of 3101 763 1092

Latvia 860 900 1086

Brunei Darussalam 1009 913 1055

Croatia 1684 1246 1043

Hungary 867 1351 1016

Uganda 785 892 992

Maldives 614 2301 833

Libya, State of 677 385 741

Gambia 447 308 713

Cabo Verde 649 684 712

Tajikistan 1236 465 676

Djibouti 1091 570 667

Comoros 621 660 661

Serbia 679 654 594

Timor-Leste 574


Importers 2015 2016 2017




Tanzania, United Republic of 655 658 555

Albania 1081 1100 546

Hong Kong, China 62 73 541

Papua New Guinea 380 345 478

Bolivia, Plurinational State of 491 297 465

Kyrgyzstan 757 1837 459

Mozambique 4801 1582 456

Mongolia 308 305 444

Bosnia and Herzegovina 485 338 440

Algeria 13269 12017 436

Barbados 345 328 425

Turkey 2651 2513 415

Moldova, Republic of 540 681 395

Estonia 304 340 376

Luxembourg 344 367 366

Niger 349 719 361

Antigua and Barbuda 232 233 324

Saint Lucia 317 321 314

Samoa 407 379 303

French Polynesia 352 359 303

Uruguay 358 360 281

Lesotho 1 264

Belize 252 333 258

Montenegro 242 164 247

Malta 239 503 238

Seychelles 239 224 237

Saint Vincent and the Grenadines 149 143 222

Togo 417 199 216

New Caledonia 211 244 211

Curaçao 105 136 206

Equatorial Guinea 111 128 200

Cyprus 216 184 197

Saint Kitts and Nevis 62 146 196

Namibia 190 263 187

Zambia 219 334 180

Botswana 205 243 171

Liberia 164

Iceland 132 145 163

Sao Tome and Principe 90 135 141

South Sudan 119 76 137

Armenia 151 66 122


Importers 2015 2016 2017




Macedonia, North 221 103 121

Myanmar 15 35 117

Guinea-Bissau 116

Uzbekistan 27 100

Aruba 110 96 95

Eswatini 62 18 87

Malawi 20 23 79

Palau 31 37 79

Ethiopia 21 80 74

Azerbaijan 207 509 73

Argentina 107 123 70

Solomon Islands 17 98 63

Cambodia 860 2108 61

Turkmenistan 118 23 60

India 1919 29 56

Tonga 43 54 54

Bermuda 133 46 52

Vanuatu 41 50 49

Central African Republic 40 0 41

Afghanistan 0 0 36

Bahamas 123 135 33

Palestine, State of 4546 5661 30

Gibraltar 28 27 26

Venezuela, Bolivarian Republic of 35 25

Zimbabwe 29 27 21

Sierra Leone 0 4 20

Greenland 18 18 18

Cook Islands 15 16 16

Ship stores and bunkers 2 6 15

Grenada 109 11

Madagascar 0 0 10

Faroe Islands 8 9 9

Tuvalu 4 9 9

Syrian Arab Republic 1350 9

United States Minor Outlying Islands 7 6 8

Kiribati 34 7 7

Sint Maarten (Dutch part) 4 5 5

Wallis and Futuna Islands 1 5 5

Nauru 5 3 4

Burundi 5 8 3


Importers 2015 2016 2017




Rwanda 117 20 3

Saint Helena 2 2 2

Viet Nam 15369 12833 No Quantity

China 0 126 0

Nigeria 0 No Quantity No Quantity

Niue 1 1 0

Northern Mariana Islands 0 0 0

Montserrat 2 0

Bonaire, Sint Eustatius and Saba 0

Marshall Islands 0

Lao People's Democratic Republic 368 481 No Quantity

Christmas Island

Cayman Islands 1 1

Andorra 8 1

French Southern and Antarctic Territories

Cuba 1

Eritrea 26

Dominica 96 26

Free Zones 6 10 Source: International Trade Centre Statistics, Trade Map, GT Analysis (retrieved on 13th March 2018)


Recent Trend line in International Import (In the Year 2017)

Figure 1:Top Ten Importers & Their Share in Worlds Import

Figure 2:Top Ten Importers & Their Ranking in Worlds Import


Figure 3: Top Ten Importers in 2017 & their annual growth in value between (2013-2017)

Export Scenario Table 7:International Export data of garlic (fresh/chilled) for the year 2015, 2016 & 2017

Exporters 2015 2016 2017

Exported quantity, Tons



World 2144864 1970524 2169489

China 1754047 1530719 1711549

Spain 149207 162623 165875

Argentina 66248 77675 83022

India 7477 21534 33736

Netherlands 31911 38247 29830

Malaysia 20719 8326 18501

Mexico 13459 15659 14408

Peru 4302 12951 13112

France 10069 14571 12607

Chile 10043 10469 11198

United Arab Emirates 11826 8001 10946

Italy 10558 10040 9141

Egypt 3914 11980 8516

United States of America 9218 10113 5192

Uzbekistan 381 1266 3579

United Kingdom 5135 4593 3466

Myanmar 2059 418 2679

Portugal 1757 2581 2323

Saudi Arabia 2633 1827 1971


Exporters 2015 2016 2017




Kuwait 775 669 1794

Denmark 1909 1864 1738

Pakistan 317 643 1491

Belgium 1442 1833 1420

Iran, Islamic Republic of 3966 2910 1325

Ethiopia 412 669 1250

Germany 1202 1249 1248

Greece 196 298 991

Czech Republic 1275 1307 938

South Africa 815 977 907

Turkey 25 449 872

Slovenia 1307 443 847

Niger 28 61 815

Kyrgyzstan 287 451 815

Poland 175 219 714

Singapore 1210 1750 707

Madagascar 578 683 609

Oman 253 391 581

Libya, State of 201 589 562

Russian Federation 455 357 548

Kazakhstan 0 62 547

Guatemala 323 362 511

New Zealand 545 630 501

Slovakia 15 211 431

Syrian Arab Republic 350 752 423

Hungary 800 649 408

Austria 342 310 400

Indonesia 205 348 289

Hong Kong, China 92 42 288

Georgia 144 213 285

Algeria 0 24 252

Latvia 260 270 242

Ukraine 83 195 239

Canada 79 212 236

Bulgaria 215 198 215

Serbia 327 97 199

Lithuania 345 89 162

Kenya 333 37 148

Taipei, Chinese 28 4 144

Jordan 0 58 131

Macedonia, North 165 125 111


Exporters 2015 2016 2017




Australia 97 96 104

Côte d'Ivoire 46 46 96

Yemen 1585 90

Tajikistan 38 16 87

Costa Rica 23 12 83

Korea, Republic of 149 11 79

Belarus 411 27 71

Ireland 17 39 68

Tanzania, United Republic of 0 0 66

Croatia 325 8 63

Haiti 0 0 46

Albania 51 48 41

Cameroon 0 2 40

Benin 11 0 39

Romania 4 80 38

Thailand 54 1227 37

Morocco 134 106 36

Lebanon 1 1 33

Tunisia 6 3 33

Sweden 13 18 27

Colombia 70 19 27

Uganda 67 40 27

Chad 53 26

Azerbaijan 0 130 20

Suriname 162 20

Moldova, Republic of 15 1 20

Afghanistan 0 0 17

Japan 0 7 16

Turkmenistan 2 16

Luxembourg 10 11 11

Fiji 9 18 11

Honduras 0 0 10

Faroe Islands 9

Angola 0 9

Bosnia and Herzegovina 0 0 9

Brazil 1 1 9

Sri Lanka 8 49 8

Finland 0 3 8

Panama 0 0 8

Trinidad and Tobago 291 3 8

Uruguay 0 2 6


Exporters 2015 2016 2017




Zambia 0 0 6

Estonia 2 5 5

Dominican Republic 3 2 4

Guyana 4 5 4

Sudan 0 3

Anguilla 2

Switzerland 26 17 2

Rwanda 0 0 2

Lao People's Democratic Republic 57 57 2

Ghana 0 1

Cyprus 0 0 1

Cabo Verde 0 0 0

Barbados 0 0 0

Burundi 4 0 0

Brunei Darussalam 4 75 0

Botswana 0 0 0

Bermuda 0 0 0

Antigua and Barbuda 1 0 0

Ecuador 0 0 0

El Salvador 37 0 0

Iceland 0 0 0

Israel 0 0 0

Montenegro 1 0 0

Mozambique 0 0 0

Malawi 0 0 0

Saint Kitts and Nevis 0 0 0

Paraguay 0 0 0

Philippines 0 0 0

Norway 0 0 0

Nigeria 0 No Quantity 0

Namibia 20 0 0

Nepal 2008 12 0

United States Minor Outlying Islands 0 0

Burkina Faso 1406 0 0

Senegal 27 0 0

Viet Nam 666 1604 No Quantity

Eswatini 0 0 0

Somalia 29 80

Turks and Caicos Islands 1

New Caledonia 0 28


Exporters 2015 2016 2017




Niue 3

Korea, Democratic People's Republic of 0

Dominica

Gibraltar

Palestine, State of 575 74

Gabon 9 3

Bahrain 16 0

Bangladesh 7

Christmas Island 27 Source: International Trade Centre Statistics, Trade Map, GT Analysis (retrieved on 13th March 2018)

Figure 4:Top Ten Exporters & Their Share in Worlds Exports


Figure 5:Top Ten Exporters & Their Ranking in Worlds Export:

Figure 6:Top Ten Exporters in 2017 & their annual growth in value between (2013-2017)


1.2. Indian Scenario

Although, India is second in area and production of garlic in the world, the productivity per hectare

is very low as compared to China, USA and other countries where the crop is grown commercially.

Further, over the years the, productivity in India has remained static.

Table 8: Garlic Production In India

2013-14 2014-15 2015-16

Sr No.

State Production Share(%) Production Share(%) Production Share(%)

1 Madhya Pradesh

270 21.57 424.5 29.78 424.5 26.25

2 Rajasthan 218.42 17.45 172.04 12.07 377.49 23.34

3 Gujarat 250 19.97 318.2 22.32 318.2 19.67

4 Uttar Pradesh 218.18 17.43 196.13 13.76 193.62 11.97

5 Assam 69.42 5.55 70.17 4.92 76.95 4.76

6 Punjab 45 3.59 65.6 4.6 73.74 4.56

7 West Bengal 40 3.2 40 2.81 36.07 2.23

8 Haryana 35.83 2.86 35.83 2.51 35.83 2.22

9 Orissa 35.5 2.84 35.5 2.49 35.5 2.19

10 Maharashtra 40 3.2 40 2.81 12.69 0.78

11 Himachal Pradesh

6.14 0.49 6.14 0.43 9.35 0.58

12 Karnataka 8.42 0.67 5.47 0.38 5.19 0.32

13 Bihar 4 0.32 4 0.28 4 0.25

14 Chhattisgarh 3.2 0.26 3.4 0.24 3.6 0.22

15 Nagaland 0.15 0.01 0.15 0.01 2.89 0.18

16 Tamil Nadu 2.59 0.21 2.89 0.2 2.72 0.17

17 Uttarakhand 1.54 0.12 1.54 0.11 1.93 0.12

18 Meghalaya 1.11 0.09 1.11 0.08 1.11 0.07

19 Telangana 1.5 0.12 1.68 0.12 1.01 0.06

20 Jammu & Kashmir

0.46 0.04 0.46 0.03 0.56 0.03

21 Kerala 0.4 0.03 0.63 0.04 0.37 0.02

22 Mizoram 0.01 0 0.01 0 0.01 0

23 Arunachal Pradesh

0.01 0 0.01 0 0.01 0

Page Total 1,251.88 100 1,425.46 100 1,617.34 100

Source: National Horticulture Board (NHB)

Table 9: Indian production and yield of garlic in the year 2014

Element Value

Area harvested (in ha) 231,000

Production (in tons) 1,252,000

Source: http://www.fao.org/faostat/en/#data/QC/visualize(retrieved on 18th April 2017)

Comparing the data for past 5 Year period from 2009 to 2014, it is observed that the production

quantity has shown an upward trend and is increasing by 1-2% every year. Also, the area under


production has been increasing throughout. On the contrary, the yield, hectogram per hectare, has

seen an upward trend but by acute figures during the 5 years. It can be calculated that the increase in

production was on account of increase in harvested area. The detailed numbers have been presented

in the table below:

Table 10: Indian production, yield and area harvested data of garlic for 2009 to 2014

Year Production (in tons) Yield (in hg/ha) Area Harvested (in ha)

2009 831,100 50,003 166,210

2010 833,970 50,587 164,860

2011 1,057,800 52,732 200,600

2012 1,228,000 50,744 242,000

2013 1,259,000 50,766 248,000

2014 1,252,000 54,199 231,000

Source: http://www.fao.org/faostat/en/#compare(retrieved on 18th April 2017)

Import of Garlic

With regards to import of fresh/chilled garlic, India did not see any noticeable imports till the year

2013-14. In in the year 2014-15, India started importing fresh/chilled garlic from the region Egypt

Arab Republic. In the year 2015-16, India imported garlic from Nepal worth Rs 71,660,000 a quantity

of 1761.9 MT. The following table presented shows the import of fresh/chilled garlic in India for the

past 3 years.

Table 11: India import of garlic (fresh/chilled) (Qty in MT and value in Rs lakhs)

Country 2013-14 2014-15 2015-16

Qty Value Qty Value Qty Value

Nepal 0 0 0 0 1,761.91 716.6

Egypt Arab Republic 0 0 432 101.61 0 0

Total 0 0 432 101.61 1,761.91 716.6

Source: DGCIS Annual

Import;http://agriexchange.apeda.gov.in/importtoindia/Product_description.aspx?hscode=07032000 (retrieved

on 18th April 2017)

Considering India’s import of dried garlic, a noticeable quantity was imported in the year 2013-14.

However, in the year 2014-15, there were no major imports. In the year 2015-16, India imported dried

garlic from China Mainland worth a value of 2,594,000 a quantity of 12 MT. The following presented

table gives details of the imports of dried garlic for past 3 years.

Table 12: India import of garlic (dried) (Qty. in MT and value in Rs. lakhs)

Country 2013-14 2014-15 2015-16

Qty. Value Qty. Value Qty. Value

China Mainland 6 15.76 0 0 12 25.94

Netherland 0 0 0.1 0.34 0 0

Singapore 3 9.92 0 0 0 0

United States 0.4 1.15 0 0 0 0

Total 9.4 26.83 0.1 0.34 12 25.94

Source: DGCIS Annual

Import;http://agriexchange.apeda.gov.in/importtoindia/Product_description.aspx?hscode=07129040 (retrieved

on 18th April 2017)

http://agriexchange.apeda.gov.in/importtoindia/Product_description.aspx?hscode=07032000

http://agriexchange.apeda.gov.in/importtoindia/Product_description.aspx?hscode=07129040


Import of Garlic Paste

In regard to the import of garlic paste during the period of February 2014 to October 2016, it is

observed that there were few imports in the months of January 2015 and February 2015 and towards

the end of the year 2016. Apart from these months, there were very little or no imports. The highest

import during this period was in July 2016 a value of USD 10,465. The graph presented below gives

details of the imports of garlic paste in terms of the value of imports.

Figure 7: Import of garlic paste in terms of value (in USD)

(Source: https://www.zauba.com/importanalysis-garlic+paste-report.html(retrieved on 18th April 2017))

With regards to quantity import of garlic paste during the period of February 2014 to October 2016,

it is observed that there were few imports during the past years. Though, there was reported an

increase in imports during the months of February 2015 and July 2016 when 592 kg and 1593 kg

quantity were imported respectively. The graph presented below gives details of the imports of garlic

paste in terms of quantity of the imports.

Figure 8: Imports of garlic in terms of quantity of import (in kg)

Source: https://www.zauba.com/importanalysis-garlic+paste-report.html (retrieved on 18th April 2017)

During the period of February 2014 to October 2016, the average price per unit of import was USD

10.19. The highest import price was in January 2015 where the average price per unit was 40.04. Prices

more or less remained in the range of 12-22 USD during the year 2016 with a decline trend towards

the end of the year. The following graph shows the average prices per unit levels for the different

months.

0

2000

4000

6000

8000

10000

12000

Total Value (in USD)


Import of Garlic Oil

The total quantity of garlic oil imported during the period January 2014 to November 2016 was 69,036

kg. The highest quantity of import was in November 2014 when 13,628 kg was imported. The total

value of imports of garlic oil during the period was USD 2,272,493. The highest value of import was

unexpectedly in May 2016 when the value was USD 336,992 as during that period the quantity of

imports was stable at a low level. Regarding the average price per unit during the period, it was USD

32.92 and the highest average price was reported in Jun 2016 when the average price per unit was

USD 15,225.3

Import of Garlic Powder

The total quantity of garlic powder imported during the period January 2014 to November 2016 was

325,651 kg. The highest quantity of import was in November 2016 when 82,523 kg was imported.

The total value of imports of garlic powder during the period was USD 899,492. The highest value of

import was in May 2016 when the value was USD 96,280. Regarding the average price per unit during

the period, it was USD 2.76 and the highest average price was reported in July 2015 when the average

price per unit was USD 38.72.4

Exports of Garlic

India is a major exporter of garlic and the following table shows the export figures of India for garlic

for the years 2009 to 2013. It is observed that export has seen an upward trend except for the year

2011 when the values had declined. Both quantity and value of exports has been increasing during the

year 2013, 29,461 tons were exported at a value of 11,340 thousand USD.

Table 13: Export of garlic value and quantity from 2009 to 2013

Year Value (in 1000 USD) Quantity (in tons)

2009 9202 17781

2010 19214 24665

2011 2615 2784

2012 10386 25436

2013 11340 29461

Source: http://www.fao.org/faostat/en/#compare(retrieved on 18th April 2017)

The table presented below shows the export of fresh/chilled garlic from India during the past 3 years.

As per reports of 2015-16, it is observed that Malaysia ranks first in importing garlic from India with

an export quantity of 5,123.02 MT worth a value of Rs 221,277,000. Malaysia is followed by Pakistan,

Sri Lanka, Vietnam Social Republic and others. The details about the export figures have been

presented in the table below:

Table 14: Export of fresh/chilled garlic from India (Qty. in MT and value in Rs lakhs)

Country 2013-14 2014-15 2015-16


Malaysia 2,967.00 686.41 2,037.00 533.66 5,123.02 2,212.77

Pakistan 7,234.52 1,933.56 3,772.70 1,056.82 3,444.99 1,763.56

Sri Lanka 0 0 0 0 1,221.86 939.91

Thailand 3,122.00 738.08 1,208.00 300.46 1,913.00 754.78

3 https://www.zauba.com/importanalysis-garlic+oil-report.html (retrieved on 18th April 2017) 4 https://www.zauba.com/importanalysis-garlic+powder-report.html (retrieved on 18th April 2017)

https://www.zauba.com/importanalysis-garlic+oil-report.html

https://www.zauba.com/importanalysis-garlic+powder-report.html


Vietnam Social

Republic 0 0 27 7.99 1,339.00 553.01

Indonesia 140 25.95 0 0 1,588.00 490.52

Philippines 0 0 0 0 400 214.69

Nepal 36.11 15.83 126.12 56.21 119.01 105.12

Sudan 0 0 0 0 110 90.65

United States 3.62 3.32 60 39.36 56.34 55.66

Oman 27.1 31.18 82.08 42.82 39.34 42.15

Singapore 0 0 0.01 0 42 30.6

Saudi Arabia 0 0 0 0 32.76 23.21

Morocco 0 0 0 0 28 16.94

United Arab

Emirates 7.1 5.27 1.36 0.7 15.1 11.99

Source: DGCIS Annual Export;

http://agriexchange.apeda.gov.in/indexp/Product_description.aspx?hscode=07032000(retrieved on 18th April

2017)

The table presented below shows the export of dried garlic from India during the past 3 years. As per

reports of 2015-16, it is observed that Mexico ranks first in importing dried garlic from India with an

import quantity of 190 MT worth a value of Rs 17,267,000. Mexico is followed by UAE, Kazakhstan,

Nepal and others. The details about the export figures are presented here under:

Table 15: Export of dried garlic from India (Qty in MT and value in Rs. lakhs)

Country 2013-14 2014-15 2015-16


Mexico 231 173.61 145 113.12 190 172.67

United Arab Emirates 0 0 18.5 11.59 365 170.61

Kazakhstan 26 19.67 19 15.84 43 57.27

Nepal 147 57.66 81.4 46.28 47.7 37.35

Poland 10 7.15 0 0 43.2 37.19

China Ma 0 0 194 51.33 25 25.88

Turkey 14 11.1 26 17.52 16 20.91

Serbia 15 7.28 15 9.63 16 20.29

Ukraine 11.3 6.16 12 9.76 19 19.13

Netherland 0 0 0 0 25 19.09

Bulgaria 0 0 0 0 13.1 18.2

Jordan 0 0 0 0 28 12.81

Iraq 0 0 0 0 38 12.69

Kuwait 3 1.77 20 11.34 20 12.3

Libya 0 0 0 0 14 10.66


Export of Garlic Oil

The total quantity of garlic powder exported in the year 2017 amounts to 124,241 Kg and 113,322 Kg

in the Year 2018. Out of the total quantity exported top 10 export destinations in terms of quantities

& values in given below.

Figure 9:Top Ten Export Destination for HSN 33012947, Including Garlic Oil

Figure 10:Top Ten Export Destination for HSN 33012947, Including Garlic Oil , (Values)

Export of Garlic Powder

The total quantity of garlic powder exported in the year 2017 amounts to 52,273,385 Kg and

69,547,676 Kg in the Year 2018. Out of the total quantity exported top 10 export destinations in

terms of quantities & values in given below.


Figure 11: Top Ten Export Destination for HSN 21069099, Including Garlic Powder

Figure 12:Top Ten Export Destination for HSN 21069099, Including Garlic Powder (Values)

1.3. State Scenario

Rajasthan is one of the states which is leading the race in garlic production. Out of 12 districts, Kota

zone, including Baran district, is leading zone which has highest area under cultivation of 7476 hectares

during Rabi season of 2011-2012 out of 20,840 hectares’ garlic area in Rabi in 2011-2012.

Substantiating


Table 16: Area & Production of Garlic in the State Of Rajasthan (2017-18)

S. No. DISTRICT Garlic

Area (Ha) Production (MT)

1 AJMER 2 6

2 ALWAR 1 2

3 BANSWARA 0 0

4 BARAN 41779 292453

5 BARMER 0 0

6 BHARATPUR 0 0

7 BHILWARA 574 2139

8 BIKANER 7 8

9 BUNDI 3345 16896

10 CHITTOR 6610 33921

11 CHURU 0 0

12 DAUSA 0 0

13 DHOLPUR 1 5

14 DUNGARPUR 14 70

15 GANGANGAR 85 1153

16 HANUMANGARH 48 89

17 JAIPUR 24 29

18 JAISALMER 0 0

19 JALORE 3 6

20 JHALAWAR 27763 166578

21 JHUNJHUNU 351 702

22 JODHPUR 2452 36780

23 KARUALI 4 13

24 KOTA 22157 144021

25 NAGAUR 105 1302

26 PALI 10 10

27 PRATAPGARH 7271 58168

28 RAJSAMAND 144 432

29 S.MODHPUR 12 24

30 SIKAR 35 303

31 SIROHI 0 0

32 TONK 16 4

33 UDAIPUR 78 236

Total 112891 755350

Table 17: Garlic Production in Cluster-Districts (2017-18)

District Area (In

Ha) Production in

(MT) Ranking

(Production)

% Share of the Total

Production

BARAN 41779 292453 1 40.93

JHALAWAR 27763 166578 2 23.31


District Area (In

Ha) Production in

(MT) Ranking

(Production)

% Share of the Total

Production

KOTA 22157 144021 3 20.15

PRATAPGARH 7271 58168 4 8.14

CHITTOR 6610 33921 5 4.75

BUNDI 3345 16896 6 2.36

NAGAUR 105 1302 7 0.18

GANGANGAR 85 1153 8 0.16

JAIPUR 24 29 9 0.004

S.MODHPUR 12 24 10 0.003

BIKANER 7 8 11 0.001

AJMER 2 6 12 0.001

DHOLPUR 1 5 13 0.001

TONK 16 4 14 0.001

ALWAR 1 2 15 0.000

BANSWARA 0 0 NA NA

JAISALMER 0 0 NA NA

TOTAL 109178 714570 100.00


Chapter 2: Technology advances and circumstances in Garlic processing

2.1. Global scenario

The processing operations with Garlic globally particularly include Garlic grading, bulb breaking, clove

separation, size reduction, peeling, clove flaking, dehydration, blending, packaging, storage, grinding

etc. It’s processing require special skill and care, because it’s essential volatile oil is concentrated in

epidermal cell, which is mainly responsible for its characteristic aroma. Following products may be

prepared from the processing of the Garlic:

Before processing the bulb is broken to separate the cloves. Powder and flex are made after flaking,

drying and grinding the cloves. For making paste wet cloves are pilled and grind.

Main products of Garlic which are demanded throughout the world are Garlic Oil Capsules, Odour

Controlled Dried Garlic Products, Aged Odourless & Garlic Extract. The volatile oil is obtained by

steam distillation from the crushed bulbs or cloves of the common garlic plant Garlicin is the main

content in garlic oil. There are two general categories of garlic hard-neck and soft-neck. Garlic Powder

is obtained from peeling, drying and pulverizing of Garlic bulbs which are commonly available s

vegetable additives. Garlic powder can be manufactured by automatic flaking, spray drying &

powdering process and Semi-automatic batch type flaking drying & palavering process. The semi-

Products Prepared

From Garlic

Garlic Flakes

Garlic Powder

Garlic Digestive

Churn

Garlic Paste

Garlic Oil

Garlic Tablet

Garlic Pickle


automatic batch type process is suitable for small scale sector. To set up Plant to produce one ton of

garlic powder per month will need investment of about one processing unition Indian Rupees.

The world's largest producer of Garlic is the USA. Kyolic, Kwai, Garlicin, Pure-Gar are the major

brands of medicinal products. Producing garlic for medicinal purposes is more complex. China &

Argentina are the next important countries in this trade for low prices of products.

2.2. National scenario

India is one of the leading Garlic (Allium sativam) producing countries. The area under cultivation

and production of garlic in India (2010-11) is 200.70 thousand ha and 1061.85 thousand tons. Madhya

Pradesh, Gujarat, Orissa, Rajasthan, Karnataka, Tamil Nadu, Maharashtra, Bihar and UP are the major

Garlic producing states. Study revealed that the area and production of garlic is increasing in most of

the states.

Garlic is the most important foreign exchange earning spicy vegetable crop, commercially grown in

India. Indian garlic is now exported even to Pakistan, Thailand, and USA, Nepal and Malaysia as well

as the traditional market of Bangladesh. About 21,827.16 metric tons of Garlic bulbs amounting to

Rs.7, 731.52 lakhs were exported during 2010-11(www.nhrdf/database). During the year 2006-07, the

export of dehydrated powder and flakes was to the tune of 780 tonnes worth Rs. 437 lakhs and 188

tons worth Rs. 108 lakhs respectively.

Garlic has digestive, carminative and anti-rheumatic properties. It is used in ayurvedic formulation

since ancient times for curing muscular pain, giddiness, lungs, heating intestinal ulcer, etc. Garlic is

consumed as green as well as dried in the spice form and as ingredient to flavour the various

vegetarian, non-vegetarian dishes and pickles. Good tasty pickles, chutneys, curry powders are

prepared from Garlic cloves. Garlic is also used to disguise the smell and flavour of salted meat and

fish. Dehydrated Garlic in powdered or granulated form is being used in place of fresh bulbs in

many countries. The main advantages of preparation of value added products from Garlic are to

increase the storage life and also to reduce the transportation cost and earn more foreign exchange.

Garlic is being exported either in the form of dehydrated flakes or dehydrated powder. Now-a-days

the dehydrated Garlic is gaining considerable importance in the world. Also, the dehydrated products

are more uniform in flavour than the stored bulbs. From India, large amounts of dehydrated products

(flakes, Garlic oil, and dehydrated Garlic powder) are exported to Japan, UK, Italy, Turkey, Germany

and France. Other Garlic products are peeled processed Garlic, crushed or chopped Garlic, Garlic

granules and fried/roasted Garlic. Fried Garlic granules are also prepared from fresh Garlic bulbs

and having good demand in foreign market. Since the cost of fresh Garlic is widely fluctuating (Rs 5

to Rs 100 in a year), simple process technology need to be made available for preparing quality

products with long shelf life from Garlic during the season for their use in off-season. Further because

lack of available time for kitchen work, the demand for ready to use product is increasing with increase

in number working women in urban areas.

Export and value addition in the form of processed products are the important factors for stabilizing

prices in internal markets and thereby bringing sustainability in production of certain commodities.

To regulate the production and prices it is necessary to develop the dehydration industry in our

country. Processing industries in any commodity play an important role in stabilizing prices in

domestic markets. Garlic offer very good scope for value addition in the form of dehydrated flakes,

powder, granules, paste and Garlic salts. Among all these products, dehydrated flakes and powder of

Garlic are important from export point of view.


Chapter 3: Production and processing hubs/clusters in Rajasthan

The fresh garlic season starts from July and last till the start of October month. The harvest season

of garlic is from mid-February to mid-April as presented in the table below:

Table 18: Season availability of garlic5

Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Harvesting Sowing

In most areas, it is grown in two seasons.

1st season: June – July

2nd season: October – November

The prominent Garlic production areas of Rajasthan state are in the districts of Chittorgarh, Jhalawar,

Baran and Kota. Rajasthan has a specific Mandi for marketing of Garlic at Chhipabarod in Baran

district. Table 19: Market arrivals and Prices of Garlic in Rajasthan for the period 1 April 2016 to 31 March 2017

(Source: Indian spices (retrieved on 19th April 2017))

0

2000

4000

6000

8000

10000

12000

Pri

ce in

Rs.

Major Markets

Price Arrivals in Mandi

Average of Min Price (Rs/Quintal)

Average of Max Price (Rs/Quintal)

Average of Modal Price (Rs/Quintal)

https://www.bbcgoodfood.com/content/local/seasonal/july/

https://www.bbcgoodfood.com/content/local/seasonal/october/


Chapter 4: Manufacturing process and technology benchmarks

4.1. Manufacturing process in a Garlic Peeling & Packaging

Harvested plants are dried in the sunlight for 1-2 days to bring the moisture levels down to 18%. This

dried plant is then thrashed to remove the seeds. Seeds are further dried in the shade to bring the

moisture levels down to 9%. Garlic seed is mainly processed into powder by crushing, and this

powder, which enjoys an aroma, is used as a food ingredient. The cleaning process involves separation

of whole seeds, splits, and other wastages. To separate these, different hole-size sieves are used in the

process. This process involves various costs, including machines, labour, power, etc. A Garlic

processor in the Kota / Ramganj Mandi incurs approximately Rs15-16 per kg above his buying price

in the Mandi. These costs include commission (3%), Mandi cess (1.6%), VAT, labour, cleaning

charges, etc. Although Garlic seeds are consumed in an unprocessed form; however, its good

quantity is also being processed to facilitate the international trade profitability and palatability.

Figure 13: Steps Involved In Garlic Peeling

Garlic Bulbs

Primary Grading & Clove Seperation

Peeling

Sorting

Washing

Drying

Packaging


4.2. Benchmarking the Garlic Peeling & Packaging process

To summarize, the process of Garlic Peeling & Packaging by processors in the cluster involves various

activities which may be benchmarked in terms of best practices in other locations:

Table 20: Comparative analysis of Traditional and Modern process technology of Garlic Peeling & Packaging

Sr.

No.

Process of

Garlic

processing

uniting

Traditional method Modern Method

1. Raw

Material

Storage

Farmers still use their own knowledge and

experiences for reducing storage losses.

stored onions and garlic by simply tying

them up and hanging them in bunches in

the room which are generally, non-

ventilated and packed in hessian cloth

bags.

The total storage losses are comprised of

physiological loss in weight (PLW), i.e.

moisture loss and shrinkage (30-40%),

rotting (20-30%) and sprouting (20-40%).

Noticeable sprouting losses are observed

because of storage of poor quality bulbs

having less rest and dormant period and

also having thick neck.

Well cured garlics are stored in

controlled temperature and

pressure, in storage structures with

bottom ventilation and packaging

materials i.e. stakes.

For long term storage, garlic is best

maintained at temperatures of -1°C

to 0°C with low relative humidity

(60-70%). Also good air flow is

necessary to prevent the moisture

accumulation. Under, these

controlled conditions, potential

storage duration increased to 9

months.

For bulk storage of garlic,

ventilation systems should be

designed to provide air into the

store room from the bottom at the

rate of 2 cubic feet per minutes per

cubic feet of produce. Rows of

containers should be stacked

parallel to the direction of the flow

of air and should be spaced six to

seven inches apart.

2 Garlic clove

Separation

The garlic clusters of Kota region

use machines for breaking the bulb

and separating the cloves

3 Garlic

peeling Traditionally, it has been a manual process

where the outer skin of the garlic is

removed with little or no mechanized

intervention.

This process leads to uneven abrasion of

the garlic cloves leaving marks on the

same. The clove may even loose luster and

color due to the same reducing the

customer demand and its economic value.

In modern method, automated/

semi-automated machines are

being used top peel the garlic

clove.

Dry Garlic Peel

Remover /De-

skinner

Fresh Garlic Clove

Peeler


Lye peeling requires caustic soda and

supply of water and steam. In this method,

garlic is immersed in hot caustic soda

solution in the lye peeler itself followed by

vigorous water rinse to remove the

chemicals adhered to the skin. The cloves

are then neutralized in acid bath and

trimmed to give perfect finish.

Another traditional method of peeling

involves the submergence of cloves in

warm water for 5-10 minutes. This makes

the outer skin soft and can be easily peeled

by hand.

In the oven method of peeling, garlic is

placed in oven for 5-10 seconds. the root is

then cut and skin slides off easily.

Flame peeling is another tedious method in

which garlic is brought into direct contact

with the live flame. High temperature burns

the outer skin and can be easily removed.

The cost of skin removal through

conventional manual practice is

about Rs. 200/q, hence machine

results into about 300% saving in

cost of operation.

4 Garlic clove

sorting Traditionally, it is done through the eye &

hand sorting method where the skilled

manual labors segregate and sort the garlic

cloves of various sizes and colors, in

different lots.

This process, however, does not ensure

the uniform quality maintenance in terms of

size, shape and color of garlic cloves.

Currently, automated/ semi-

automated color sorting machines

are available which are capable of

sorting the garlic cloves on the

basis of their colour, shape & size.

Such sorting machines can have

efficiency up to 85% as well as they

save time & cost of labor required

in the traditional method.


Chapter 5: Appropriate technology options

5.1. Innovations in Garlic Peeling & Packaging Process

Garlic Peeling & Packaging technology has undergone major technological upheaval in terms of

innovation and technical upgradation. Following are the major advances in the technology of Garlic

Peeling & Packaging-

Garlic Sorter The machine works on the principle of size separation based on rotary screen hole. As the screen with

bigger holes of more than 30 mm was not available, it was fabricated using punch. The MS screen

prepared was tested for grading; however, skin of about 15 - 20 % bulbs gets scratched/bruised. This

was due to inner sharp edges of screen holes. Therefore, insulated sheet (used for motor rewinding

purpose) was used, as the material has sufficient strength and flexibility to make holes and convert in

to cylindrical roller. The desired size holes were cut using SS cutter. The grader was evaluated with

the new screens and it was found quite satisfactory with

no scratch on bulb surface during grading operation.

The material is graded in to three lots i.e. < 30 mm,

between 30 - 40 mm (class I & II) and > 45 mm sizes

(extra class). Further the samples were drawn from all

the discharge outlets it was observed that misclassified

material constitutes about 7-8 % on weight basis which

is well within acceptable range (size tolerance - not

more than 10 % by weight) as per Agmark rule - 2004.

Also, Agmark rule - 2004 requires that difference of

diameter between smallest and largest bulb in a lot

should not exceed 15 mm where diameter of smallest

bulb is less than 40 mm and should not exceed 20 mm

where diameter of smallest bulb is 40 mm or more.

Overall grading efficiency was 82 %, whereas

separation efficiency for grade I, grade II and grade III was 84, 86 and 89 %, respectively. Approx.

0.2 to 0.8% Cloves gets loosened & separated during operation accumulating to 1.5 % on weight basis.

However, damage and peeling of cloves was not observed during operation. The machine was found

to have capacity of 100 kg/hr. The cost of machine was estimated as Rs. 35,000/= (inclusive motor)

with unit cost of operation as Rs. 30 per/q of Garlic resulting in almost saving of 200% cost over

conventional practice.

The cost of Garlic grading unit with bag closer and other accessories such weighing scale, etc was

estimated as Rs 50,000. The Garlic grader found economically feasible with 27.18 % return on

Figure 14: Garlic grader


investment, payback period as 0.36 and 1.78 year for the machine and project cost, respectively and

annual net profit of Rs 1.40 lac. Assuming yearly mean wholesale price of Garlic as Rs 20/kg with

cost for grade I, II and III as 25, 20 and 15 Rs/kg.

Garlic Bulb Breaker: Bulb breaking i.e. separation of individual cloves from Garlic bulbs is

the first and foremost unit operation in

processing of Garlic. Garlic bulb breaker

has been developed to separation

individual cloves from bulbs. The

machine consists of a rotating beater with

cushioned battens, a concave and an

aspirator. The cloves are separated

because of the beating action of battens

and friction between bulb and concave.

The machine has generated lot of interest

in Garlic cultivation belt of MP&

Rajasthan for separating individual cloves

for seed purposes. The machine has been

demonstrated & field evaluated at many

locations. Bulb breaking i.e. separation of

individual cloves from garlic bulbs is the

first and foremost unit operation in processing of garlic. The machine was refined to

accommodate improved bold varieties also. The machine consists of a hollow cylinder with

cushioned battens, a concave and an aspirator. The cloves are separated because of the

beating action of battens and friction between bulb and concave. It requires 0.5 hp single

phase electric motor. The machine has generated lot of interest in garlic cultivation belt of

MP& Rajasthan for separating individual cloves for seed purposes. The machine has been

demonstrated & field evaluated at many locations. Bulb breaking i.e. separation of individual

cloves from garlic bulbs is the first and foremost unit operation in processing of garlic. The

machine was refined to accommodate improved bold varieties also. The machine consists of

a hollow cylinder with cushioned battens, a concave and an aspirator. The cloves are separated

because of the beating action of battens and friction between bulb and concave. It requires

0.5 hp single phase electric motor. The machine has generated lot of interest in garlic

cultivation belt of MP& Rajasthan for separating individual cloves for seed purposes. The

machine has been demonstrated & field evaluated at many locations. Bulb breaking i.e.

separation of individual cloves from garlic bulbs is the first and foremost unit operation in

processing of garlic. The machine was refined to accommodate improved bold varieties also.

The machine consists of a hollow cylinder with cushioned battens, a concave and an aspirator.

The cloves are separated because of the beating action of battens and friction between bulb

and concave. It requires 0.5 hp single phase electric motor. The machine has generated lot of

interest in garlic cultivation belt of MP& Rajasthan for separating individual cloves for seed

purposes. The machine has been demonstrated & field evaluated at many locations. Bulb

breaking i.e. separation of individual cloves from garlic bulbs is the first and foremost unit

operation in processing of garlic. The machine was refined to accommodate improved bold

varieties also. The machine consists of a hollow cylinder with cushioned battens, a concave

and an aspirator. The cloves are separated because of the beating action of battens and friction

between bulb and concave. It requires 0.5 hp single phase electric motor. The machine has

generated lot of interest in garlic cultivation belt of MP& Rajasthan for separating individual

cloves for seed purposes. The machine has been demonstrated & field evaluated at many

Figure 15: Garlic bulb breaker


locations. It is available in two models: (i) hand operated (50 kg/h) (ii) power operated (800

kg/h, 0.5 hp single phase motor). The light stem, root and peels are then winnowed to

collected clean cloves. In power-operated model, an aspirator is provided to remove the

lighter substance. This machine has an additional utility as the separated individual cloves

could also be used as seed material. The cost of bulb breaking through machine comes to Rs

2.50/qtl in comparison to Rs 26.75 through manual bulb breaking.

Dry Garlic Peel Remover /De-skinner

The machine works on principal of abrasion and friction during movement of material. The

dehydrated flakes (with peel attached) were fed into machine through hopper. The feed control flap

was kept full open tom have proper feeding. As the scrubber rotates in the barrel with forward material

movement, the peel gets detached from dry material and the mass comes out through discharge spout.

The speed of scrubber is kept 160 rpm so as to get de-skinning properly. The aspirator speed is 1440

rpm which helps in sucking out the skinny material. The clearance between the scrubber edge and

barrel is 8 mm. The discharge opening can be

controlled for changing degree of de-skinning. With the

restricted discharge opening the de-skinning is better;

however, it results into more breakage of flakes and

powder making. Therefore, discharge opening was kept

full open so that no loss of material occurs, however it

was observed that more than one pass is required to get

the de-skinning to a satisfactorily level. About 80-85 %

de-skinning was observed in two passes. The overall

capacity of machine was worked out as 150 kg/hr.

Fresh Garlic Clove Peeler

The thin papery skin tightly adhered on Garlic clove is to be removed for further processing for

pickling, paste formulation, etc. Based on experience various local methods have been used for

facilitating peeling of Garlic. In one method, the cloves are dressed with edible oil (2-3%) & salt (1-

2%) and then conditioned in open sun (4-5hr) to loosen the skin. In another method, the oil dressed

cloves are heat up and stirred in wide pan for a short duration and then peeled manually through

rubbing against gunny bag or palm. Though, these local methods alleviate the drudgery of hand

peeling, however the hygienic conditions are not maintained, which are must for retaining the quality

of products for export as well as for local market. An efficient peeling device is therefore required to

gently peel off the skin from Garlic clove without any adverse effect on its shape, structure & aroma.

Garlic peeling machine has been developed using the novel concept of gentle impact of compressed

air. The developed system consists of a cylindrical peeling chamber with an inlet for feeding cloves

and an outlet at the bottom for discharge of peeled clove. The chamber has an opening for entry of

compressed air. About 500-750 g conditioned cloves are filled in the batch prototype at a time and

compressed air is injected for 45 to 60 seconds. A Garlic bulb breaking machine for separating

individual cloves, a dryer for conditioning the cloves and an air compressor for supplying compressed

air to the peeler are essential pre-requisites for the peeling system. The developed system consists of


a cylindrical peeling chamber with an inlet for feeding cloves and an outlet at the bottom for discharge

of peeled clove. The chamber has an opening for entry of compressed air. About 500-750 g

conditioned cloves are filled in the batch prototype at a time and compressed air is injected for 45 to

60 seconds. A garlic bulb breaking machine for separating individual cloves, a dryer for conditioning

the cloves and an air compressor for supplying compressed air to the peeler are essential pre-requisites

for the peeling system.

The study indicated that 96-98% peeling efficiency could be achieved.

Appropriate technology options

5.1.1. Garlic Bulb Cutter Machine

Capacity:300 kg/Per hr

Motor Power:2HP

Weight:150kg

Approximate Material: Internal made by MS

Completely automatic

Power Source: 220 Single or Three phase

No damage to garlic clove

Four type grading available.

5.1.2. Dry Garlic Peeling machine

Capacity:120 kg/hr

Dimension:L700,W600,H1300mm

Motor Power:2KW

Weight:175kg

Approximate Material: Internal made by stainless steel

Power Source:220/380 ACV or according customers supply source

Require Air Pressure:8 kg/CFM 45

Computerize control panel

Completely automatic dry-peeling operation

Energy saving unit

Automatic temperature control and in feed device

No damage to garlic clove

5.1.3. Screw air Compressor

Capacity: 20HP screw compressor

RPM Min – 2900

CFM – 110 CFM

Dimension:L940 x W705 x H1120 mm

Motor Power:15KW

Weight:350kg

Noise (db)-62+-2

Automatic Electric control panel

Completely automatic cut off system

Energy saving unit

High speed air compressor system.

Features- 1. 1-year warranty for screw Air End.


2. Oil cooler is designed at 45 C ambient Temperature which is suitable for Indian Industrial

Circumstances

3. All parts are designed with universal design code/standard.

4. Consumable cost is low up to 35% as compare to others.

5. Thermostatically operated fan motor.

5.1.4. Garlic clove sorter 1. Contains no abrasive substances or elements.

2. Finishing is extremely seamless.

3. High Functionality machine.

4. Automatic Cleaning System – For consistent sorting quality.

5. Cost Effective and great value for money.

6. For higher accuracy and reliability.

7. Capacity is 100-200 Kg per Hour

8. Requires power of 2-4 HP depending on design and make.


Chapter 6: SWOT of technology

The SWOT analysis of the modern technology proposed in the previous chapter is given below- Strength Weakness

1. The use of modern technology in the pre-

cleaning section of garlic processing unit

can reduce the yield loss over processing

by 5% to 8%

2. The use of modern technology can enable

the processors to move into export quality

pea nuts and thus, ensure better margins.

3. Scope for market price increases by even

2-3% for better quality products

1. The adoption rate of latest technology

innovation is low among the processors

due to high capital investment involved in

setting it up.

2. Most of the processing units have been

fabricated and built more than 10 years

ago. The processing prefers to add only a

part of the entire technology line to their

existing set up which does not effectively

add up to the yield as there is capacity

mismatch among the various sections of

machines.

3. Lack of awareness and knowledge

regarding the latest innovations in the

garlic processing uniting process flow is

another reason for low rate of adoption

among processors.

4. There is lack of customised R&D in the

proximity of these processing units

Opportunity Threat

1. By adopting the latest innovations

processing unit, there is an opportunity

for the processing to generate better

cash inflows by developing higher quality

graded Garlic powder

2. Scope for technology upgradation

3. Increase market demand with better

quality product- with least contamination

4. Higher value realization for processing

1. Technology once obsolete would require

re-investment upon upgradation to latest

technology.

2. Technology breakdown for a longer period

may have much higher cost implications

than the labour intensive firm.


Chapter 7: Indicative project profiles for Rajasthan

This section of the report outlines three project profiles that could be referred by entrepreneurs to

select their most suitable option. Broadly, one small scale and one Medium scale investment option

has been showcased primarily to suit the investment capabilities of the entrepreneurs. The upcoming

sub- sections of 7.1 individually showcase the financial feasibility of these projects.

7.1. Project Profile 1: Small Scale Unit

7.1.1. Critical Assumptions

Capacity : Per Hour (in Kg) 120

No. of Working Hours Per Day 8

Total No. of Working Days Per Year 300

Y1 Year 2 Year 3 Year 4 Year 5

Actual Operating Capacity 65% 70% 75% 80% 85%

Actual No. of operational days 195 210 225 240 255

Quantity Required (Kg)

187,200

201,600

216,000

230,400

244,800

Handling Loss (3%)

5,616

6,048

6,480

6,912

7,344

Quantity for processing (Kg)

181,584

195,552

209,520

223,488

237,456

Peeled Garlic (80% of Total Quantity

Processed)

145,267.20

156,441.60

167,616

178,790

189,965

Raw Material Procurement Price: Rs 40/Kg in Year One with 5% Increase Year On Year

Over the base Year one.

Selling Price of Peeled Garlic at Rs 70/Kg in Year 0ne with 5% Increase Year On Year


7.1.2. Project Cost

# Particular Total Value (Rs.)

1 Land and Building 800,000

2 Machinery and Equipment 1,647,500

3 Furniture and Fixture 20,000


# Particular Total Value (Rs.)

4 IT & Infrastructure 50,000

5 P&P Expenses 39,000

6 Working Capital margin 623,340

Total 3,179,840

7.1.3. Means of Finance

Sr. No. Particular Total Value (Rs.)

1 Own Contribution 794,960

2 Bank Loan 2,384,880

Total 3179840

7.1.4. Machinery & Equipment’s

Sr. No. Description No.

Required Rate

Total Value (Rs.)

1 Garlic Bulb Cutter Machine 1 120,000 126000

2 Garlic Peeling Machine 1 380,000 399000

3 Generator 1 600,000 650000

4 Screw Air Compressor 1 450,000 472500

Total (Inclusive of GST) 1,647,500

7.1.5. Land and Building

Sr. No. Particular Unit No. of Unit Rate per unit Total Value

(Rs.)

1 Building Sq. ft. 1000 800 800000

Total 800000

7.1.6. Fixed cost & Variable Cost

Number of Unit

Unit Cost Year 1 Year 2 Year 3 Year 4 Year 5

Fixed

Telephone 12

Months 1,200 14,400 15,120 15,840 16,560 17,280

Internet 12

Months 1,000 12,000 12,600 13,200 13,800 14,400

Office Maintenance 12

Months 1,500 18,000 18,900 19,800 20,700 21,600

Electricity Charges 12

Months 1,000 12,000 12,600 13,200 13,800 14,400

Printing & Stationery 12

Months 750 9,000 9,450 9,900 10,350 10,800

Courier, Postage etc 12

Months 500 6,000 6,300 6,600 6,900 7,200

Misc Expenses 12

Months 1,000 12,000 12,600 13,200 13,800 14,400

Insurance 5% of P&M 82,375 86,494 95,143 109,415 131,298


Number of Unit

Unit Cost Year 1 Year 2 Year 3 Year 4 Year 5

Audit Expense One time 20,00

0 20,000 21,000 22,000 23,000 24,000

Supervisor 1 7,000 84,000 88,200 92,400 96,600 100,800

Sub-Total 269,775 283,264 301,283 324,925 356,178

Variable Cost

Raw material - Garlic 40 7,488,0

00 8,467,2

00 9,504,00

0 10,598,4

00 11,750,4

00

Labor cost- 3 300 175,500 198,450 222,750 248,400 275,400

Transportation-inward 500 93,600 105,840 118,800 132,480 146,880

Transportation-outward 500 72,634 82,132 92,189 102,804 113,979

Electricity cost (Rs.) 147 Units 7 201,059 227,351 255,190 284,576 315,508

Packing Material-Poly Films 0.5 72,634 82,132 92,189 102,804 113,979

Sub-Total 8,103,4

26 9,163,1

05 10,285,1

18 11,469,4

65 12,716,1

46

Total 8,373,2

01 9,446,3

69 10,586,4

01 11,794,3

89 13,072,3

23

7.1.7. Revenue Schedule

Average Selling

Price Per Kg (In Rs) Y1 Y2 Y3 Y4 Y5

Peeled Garlic 70

10,168,704 11,498,458 12,906,432 14,392,627 15,957,043

Total 10,168,704 11,498,458 12,906,432 14,392,627 15,957,043

7.1.8. Profit & Loss Statement

Particulars Y1 Y2 Y3 Y4 Y5

Peeled Garlic 10,168,704 11,498,458 12,906,432 14,392,627

15,957,043

Total Revenue 10,168,704 11,498,458 12,906,432 14,392,627

15,957,043

Fixed Cost 269,775 283,264 301,283 324,925

356,178

Variable Cost 8,103,426 9,163,105 10,285,118 11,469,465

12,716,146

Total Operational Expenses 8,373,201 9,446,369 10,586,401 11,794,389

13,072,323

Earnings Before Interest, Depreciation, Taxes and Amortization (EBITDA) 1,795,503 2,052,089 2,320,031 2,598,238

2,884,720

Depreciation 211,750 211,750 211,750 211,750

211,750

Amortization 7,800 7,800 7,800 7,800

7,800

Earnings Before Interest and Taxes (EBIT) 1,575,953 1,832,539 2,100,481 2,378,688

2,665,170

Interest Expense 403,536 360,368 310,980 254,565

190,208

Earnings Before Taxes (EBT) 1,172,417 1,472,171 1,789,501 2,124,123

2,474,962

Tax 316,738 428,912 541,208 655,824

773,471


Earnings After Taxes (EAT) 855,679 1,043,259 1,248,292 1,468,298

1,701,491

7.1.9. Financial Indicators

1 Average DSCR 3.44

2 IRR 32.50%

3 Payback period 2.63 Years

7.2. Project Profile 2: Medium Scale Unit

7.2.1. Critical Assumptions

Capacity 240

No. of Hours 8

No. of Operational Days 300

Capacity Utilization 80% 85.00% 90.00% 95.00% 95.00%

No. of operational days 240 255 270 285 285

Quantity Required (Kg) 460800 489600 518400 547200 547200

Handling Loss 13824 14688 15552 16416 16416

Quantity for processing (Kg) 446976 474912 502848 530784 530784

Peeled Garlic 357581 379930 402278.4 424627.2 424627.2

Raw Material Procurement Price: Rs 40/Kg in Year One with 5% Increase Year On Year


Selling Price of Peeled Garlic at Rs 70/Kg in Year 0ne with 5% Increase Year On Year


7.2.2. Project Cost

Sr. No. Particular Total Value

1 Land and Building 1200000

2 Machinery and Equipment 3161900

3 Furniture and Fixture 50000

4 IT & Infrastructure 50000

5 P&P Expenses 39000

6 Working Capital Margin 1364488

Total 5,865,388


7.2.3. Means of Finance

Sr. No. Particular Amount

1 Own Contribution 1,466,347

2 Bank Finance - Long Term Loan 4,399,041

Total 5,865,388

7.2.4. Machinery & Equipment’s

Sr. No. Description No.

Required Rate Total Value

1 Small Garlic Clove Grading/Sorting Machine

1 1100000 1100000

2 Garlic Bulb Cutter Machine 1 239,400 239400

3 Garlic Peeling Machine 1 700,000 700000

4 Generator 1 650,000 650000

5 Screw Air Compressor 1 472,500 472500

Total 3,161,900

7.2.5. Land and Building

Sr. No. Particular Unit No. of Unit Rate per unit Total Value

1 Building Sq. ft. 1500 800 1200000

Total 1200000

7.2.6. Fixed cost & Variable Cost

Number of Unit

Unit Cost

Year 1 Year 2 Year 3 Year 4 Year 5

Fixed

Telephone 12

Months 2,500 30,000 31,500 33,000

34,500

36,000

Internet 12

Months 3,000 36,000 37,800 39,600

41,400

43,200

Office Maintenance

12 Months 4,500 54,000 56,700 59,400

62,100

64,800

Electricity Charges 12

Months 1,000 12,000 12,600 13,200

13,800

14,400

Printing & Stationery

12 Months 750 9,000 9,450 9,900

10,350

10,800

Courier, Postage etc.

12 Months 500 6,000 6,300 6,600

6,900

7,200

Misc. Expenses 12

Months 1,000 12,000 12,600 13,200

13,800

14,400

Marketing Expense 200,000 210,000 220,000

230,000

240,000

Branding Expense 75,000 78,750 82,500

86,250

90,000

Audit Expense Onetime 35,00

0 35,000 36,750 38,500

40,250

42,000


Insurance ( 1% of Assets value) 5% 158,095 166,000 173,905

181,809

189,714

Manager 1 25,00

0 300,000 315,000 330,000

345,000

360,000

Supervisor 1 15,00

0 180,000 189,000 198,000

207,000

216,000

Process In charge 2 12,00

0 288,000 302,400 316,800

331,200

345,600

Sub-Total 1,395,095 1,464,850 1,534,605

1,604,359

1,674,114

Variable Cost

Raw material - Garlic 40

18,432,000

20,563,200

22,809,600

25,171,20

0

26,265,60

0

Labor cost- 5 Man-days 300 360,000 401,625 445,500

491,625

513,000

Transportation-inward 1000 240,000 267,750 297,000

327,750

342,000

Transportation-outward 2000 480,000 535,500 594,000

655,500

684,000

Electricity cost (Rs.) 444 Unit 7 745,920 832,167 923,076

1,018,647

1,062,936

Packing Material-Poly Films 0.5 178,790 199,463 221,253

244,161

254,776

Sub-Total 20,436,71

0 22,799,70

5 25,290,42

9

27,908,88

3

29,122,31

2

Total 21,831,80

5 24,264,55

5 26,825,03

4

29,513,24

2

30,796,42

6

7.2.7. Revenue

Value (in Rs/

kg) Y1 Y2 Y3 Y4 Y5

Peeled Garlic-Grade A (85%) 75

22,795,776

29,919,456

33,187,968

36,624,096

38,216,448

Peeled Garlic Grade B (10%) 65

2,324,275

2,593,019.52

2,876,291

3,174,088

3,312,092

Peeled Garlic Grade C (5%) 55

983,347

1,097,047

1,216,892

1,342,884

1,401,270

Total

26,103,398

33,609,522

37,281,151

41,141,068

42,929,810

7.2.8. Profit & Loss

Particulars Y1 Y2 Y3 Y4 Y5

Peeled Garlic-Grade A (85%)

26,103,398

29,919,456

33,187,968

36,624,096

38,216,448

Total Revenue

26,103,398

29,919,456

33,187,968

36,624,096

38,216,448

Fixed Cost

1,395,095

1,464,850

1,534,605

1,604,359

1,674,114

Variable Cost

20,436,710

22,799,705

25,290,429

27,908,883

29,122,312

Total Operational Expenses

21,831,805

24,264,555

26,825,034

29,513,242

30,796,426


Earning Before Interest, Depreciation, Taxes and Amortization (EBITDA)

4,271,593

5,654,901

6,362,934

7,110,854

7,420,022

Depreciation

386,190

386,190

386,190

386,190

386,190

Amortization

7,800

7,800

7,800

7,800

7,800

Earnings Before Interest and Taxes (EBIT)

3,877,603

5,260,911

5,968,944

6,716,864

7,026,032

Interest Expense

776,548

602,624

499,983

382,785

249,795

Earnings Before Taxes (EBT)

3,101,055

4,658,287

5,468,962

6,334,079

6,776,237

Tax

883,109

1,395,702

1,670,587

1,957,810

2,111,109

Earnings After Taxes (EAT)

2,217,945

3,262,585

3,798,375

4,376,269

4,665,128

7.2.9. Financial Indicators

1 Average DSCR

2 IRR 23.53 %

3 Payback period 2.04 Years


Chapter 8: Method of technology dissemination and adoption

Method of dissemination of suggested technology and models

RACP-ABPF shall undertake mix of some or several initiatives to disseminate the suggested technologies and models, which may broadly include:

Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of

FPCs

Facilitate technology benchmarking exposure visits within and outside state for prospective

entrepreneurs/groups, existing industry owners and BoDs of FPCs

Seminars and Workshops in association with Industry Associations, Technical Institutes and

R&D Institutions

Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and subject

experts

Facilitate through consultancy and business development services

Dissemination of success stories of units facilitated by ABPF through appropriate media

Dissemination through web portals and mobile applications

Scale of adoption in the clusters and state, through ABPF support

The models and business plans suggested in this report are broadly generic in nature, however involve:

technology profile

civil works requirement

raw material sourcing and logistic costs for sourcing raw material

capacity utilization for different scenarios

realistic assessment of investment and working capital needs

possible sources of funding

financial analysis

The suggested models and business plans are for optimal capacities which can be fine-tuned to the scale, investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs on statutory clearances needed for operating the business, required licenses, ways of leveraging various government schemes/subsidies and several other aspects for effective technology adoption. In order to increase the scale and potential adoption, ABPF shall pursue some or mix of several initiatives, which may broadly include:

Investor road shows: ABPF will organize road shows which will comprise of meets aimed

at disseminating information regarding opportunities to invest in the state, targeting potential

investors both within & outside the state.


B2B Meets: ABPF will hold Business to Business Meetings to forging partnerships amongst

entrepreneurs with complimentary offerings.

Establishing Mentor Network: ABPF will also prepare a list of well-established

entrepreneurs/ subject matter experts who could mentor the emerging entrepreneurs-

advising them on technical and commercial aspects of running a business.

Mentor-Mentee Workshops: ABPF will hold a series of workshop wherein the potential

entrepreneurs and their mentors would interact and exchange ideas on establishing,

developing and running new businesses. Based on the interest and seriousness of the

entrepreneur, ABPF will also facilitate one on one discussion with the mentors. ABPF will

also invite commercial banks to these workshops and investor meets, so as to establish a

rapport between the entrepreneur and the banks. By building a good working relationship

with the banks over a period of time, ABPF will be able to recommend viable business

projects for accessing commercial credit from these banks.

Facilitating Access to Finance: ABPF will guide and facilitate entrepreneurs to explore

possible sources of funding including ways of leveraging various government

schemes/subsidies. ABPF will facilitate one on one dedicated meetings between

entrepreneurs and commercial banks in order to facilitate access to finance (both investment

as well as working capital).

Creating a robust Knowledge Base: ABPF will prepare an operational knowledge base that

could be used by an entrepreneur throughout the life cycle of the enterprise. The knowledge

base would comprise of fundamentals of business management including objectives,

operations management, organizational behaviour, human resources management, structure

of the organization, products and markets, operations finance including major expenditures,

sources of financing across the stages of the life cycle of the enterprise (from start up to

mature business and expansion). Knowledge base would also cover fundamentals of

accounting, sales, marketing, promotion, branding, distribution, logistics, human resource

management etc. ABPF will also establish a business performance tracking system of the

enterprises supported by ABPF.

Review of Business Plans for funding through RACP: ABPF will review the business

plans and provide its recommendations on applications.


References

https://www.plantvillage.org/en/topics/garlic (retrieved on 18th April 2017)

http://www.vegetablefacts.net/vegetable-history/history-of-garlic/ (retrieved on 18th April 2017)

http://agriculturenigeria.com/farming-production/horticulture/garlic (retrieved on 18th April 2017)

https://www.herbazest.com/herbs/garlic(retrieved on 18th April 2017)

http://www.thehindubusinessline.com/economy/agri-business/static-productivity-poor-

postharvest-technology-pound-garlic/article2506671.ece (retrieved on 18th April 2017)

https://www.zauba.com/importanalysis-garlic+oil-report.html (retrieved on 18th April

2017)

https://www.zauba.com/importanalysis-garlic+powder-report.html (retrieved on 18th

April 2017)

https://www.zauba.com/exportanalysis-garlic+oil-report.html (retrieved on 18th April

2017)

https://www.zauba.com/exportanalysis-garlic+powder-report.html (retrieved on 18th April

2017)

https://www.researchgate.net/publication/303805105_An_Economic_Analysis_of_Garlic

_Production_in_Baran_District_of_Rajasthan (retrieved on 18th April 2017)

Trade Map.Org

National Horticulture Board

https://www.plantvillage.org/en/topics/garlic

http://www.vegetablefacts.net/vegetable-history/history-of-garlic/

http://agriculturenigeria.com/farming-production/horticulture/garlic

http://www.thehindubusinessline.com/economy/agri-business/static-productivity-poor-postharvest-technology-pound-garlic/article2506671.ece

http://www.thehindubusinessline.com/economy/agri-business/static-productivity-poor-postharvest-technology-pound-garlic/article2506671.ece

https://www.zauba.com/importanalysis-garlic+oil-report.html

https://www.zauba.com/importanalysis-garlic+powder-report.html

https://www.zauba.com/exportanalysis-garlic+oil-report.html

https://www.zauba.com/exportanalysis-garlic+powder-report.html

https://www.researchgate.net/publication/303805105_An_Economic_Analysis_of_Garlic_Production_in_Baran_District_of_Rajasthan

https://www.researchgate.net/publication/303805105_An_Economic_Analysis_of_Garlic_Production_in_Baran_District_of_Rajasthan

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