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Case Study 1

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Case Study 1

Ginger Value Chain : Assam , NER India
Exports of USD 13.77 billion has already been achieved in these six months of the current fiscal year against India’s export target of USD 23.56 billion fixed by APEDA for the agricultural and processed food products basket.

Sector: Spices, Agriculture
Partners: Ginger Value Chain
Date: 20121 – 2022
Location: Assam, India

The Challenge

Consumers are increasingly demanding more information and seeking assurances that the food they consume is safe and ethically produced. Especially organic and health foods have increasing demand and a good market opportunity exists. However agricultural producers in Assam, India producing Organic Ginger and spices struggled to provide this level of information in a provably authentic way and were also not aware of the statutory requirements , the process and the network to leverage the opportunity. Lack of knowledge and experience resulted in lack of interest to pursue the possibility and reduced the risk taking ability at farmer level.

The Solution

Germany based Fresh Produce distributor engaged SISOURCE to assess and enable sourcing of the fresh organic ginger due increased demand and shortage in supply. The North East India market and the product both were new business & supplier development for the importer.
Sisource bought together all the different players required to execute this sample shipment trial from Guwahati, Assam to Hamburg, Germany. Advisory services handholding the supplier producer company (FPC) alongwith the deemed exporter and linking them to the processes and network of certification bodies, primary processing requirements, storage standards, packaging specifications, packhouse& cold store, customs clearance process, was provided to plan and prepare the produce for exports. Complete planning and readiness from farm level to shipment execution and access to network for its planning, storing , packaging, transport , handling and execution was provided at every stage of the supply chain
This project was designed to create possibilities for ginger exports, identify the challenges and the change aspects needed, empower micro, small and medium enterprises as well as provide buyers with valuable information from point of origin to point of consumption (including food safety information).
During this project there was a strong need felt for information sharing across the value chain stakeholders, in a secured way and real time, while building trust and control in the chain. Farmers, traders and exporters should be able to use an interface to record details and upload to share proofs and documents as the progress happens across the supply chain and real time. Importers & validating stakeholders should be able to give real time inputs and validations in the process to make it transparent and integrated. Aspects of farm practices linked to production play a critical role in quality transfers and the way the production is managed and monitored impacts the social and environmental compliances . Hence this provided a strong case to have such a tech led advanced platform in place which can make souricng simple and responsive at the same time to allow all value chain participants greater insight and data led decision making.

Leading agricultural and allied sector exports from India in financial year 2022, by commodity(in billion Indian rupees)

Release date
May 2022

Region
India

Survey time period
FY 2022

Supplementary notes
India’s financial year begins in April and ends in March. For example, FY 2021 started in April 2020 and ended in March 2021.

One Indian rupee is equal to 0.012 euros and 0.013 dollars (as of May 2022).

Values have been rounded for clarity.

Marine products of a value higher than 579 billion Indian rupees were exported from India in the financial year 2022. This was the highest export value among agricultural and allied sector exports. The export of non-basmati rice, basmati rice, and spices followed

Agricultural sector is known as the backbone of the Indian economy as majority of the people in India depend on the agricultural sector for employment and food.

Export of agricultural products play a significant role in the accumulation of foreign exchange in India.

India is rightly called as ‘spice bowl of the world’ for its production of variety and superior quality of spices.

Spices are the major exports from India and it is generally expected that trade policies would influence the spice trade.

In the area of export, ginger occupies fifth position in terms of quality and sixth position in export earnings among the spices.

Lion share of ginger export is carried out through marine transport mode since it is possible to transfer larger quantity at cheapest cost.

Marine transport sector is one of the key economic sectors instrumental in the future unlocking of the country’s ocean economy to promote growth in the economy