NATIONAL COLD CHAIN SUMMIT - 2015 AN APPROACH FOR SUSTAINABLE ORGANIC PRODUCE MARKETING 1
The Cooperative Structure in Sikkim Government of Sikkim Department of Cooperation Sikkim Denzong Sikkim SISCO Consumers SIMFED Cooperative Milk Cooperative Bank A P E X C O O P E R A T I V E S O C I E T I E S Society Ltd Union Society Ltd . Member Societies consisting of MPCS/ CCS GROWERS and other grassroot members 2
SIMFED Sikkim State Co ‐ operative Supply and Marketing Federation ltd. (SIMFED): � was established in the year 1983 � Established under the Sikkim Cooperative Society’s act of 1978 and Sikkim Co operative Societies Rule of 1981. � SIMFED was established as an Apex Marketing society for the state of Sikkim for undertaking bulk marketing of the surplus Agricultural, horticulture produce of the state. � SIMFED has 191 member cooperative societies in the state of Sikkim. � 86.96% of the shares of SIMFED are held by the Government of Sikkim whereas 13.04% of the share is being held by the member societies. 3
Management of SIMFED. SIMFED is managed by a board of Directors. The Board of Directors consists of officials from the government departments and elected members of the MPCS. The federation is managed a Board consisting of the following Directors: ‐ Directors Nos. Hon’ble Chairman 1 REPRESENTATIVES FROM PRIMARY SOCIETIES East District: 2 West District: 2 South District: 2 North District: 2 Representative from State Government. 4 Representative from the financing bank (SISCO Bank) 1 Managing Director, SIMFED 1 4
Employees of SIMFED. SIMFED has a strong workforce of 121 employees to manage the multifarious activities such as purchase, sales, supply, Agri inputs, ICS, managing branch depots at Rangpo, Jorethang, Gangtok, Mangan, Gyalshing, Ravangla, Namchi, Siliguri and New Delhi. 5
OBJECTIVES The objectives of SIMFED are as follows: � To arrange for the sale of agricultural produce and other allied products of the members of the affiliated societies and others members to their best advantages. � To purchase and sell Agricultural & Horticultural Produce and the supply of Agricultural Inputs such as seeds, Bio ‐ fertilizer, Bio ‐ Pesticides, etc as required by farmers. � To act as an agent of members societies for the disposal of produce. � To carry on trading in agricultural produce and other essential commodities as agent of the state Government and distribution of controlled non ‐ controlled commodities procured from outside the state in suitable circumstances or on behalf of the affiliated societies and other cooperatives. � To do such business with non members as may be conducive to the promotion of the economic interest of members under conditions as may be directed upon from time to time by the board of Directors by a resolution in writing provided that the registrar does not direct otherwise. � To undertake procurement, processing, grading and marketing of agricultural produce, fruits and vegetables handled by the Federation as and when necessary and to establish and run manufacturing and processing units for the production of consumer goods in collaboration with other co ‐ operative or directly by itself. � To encourage general thrift, self ‐ help and cooperation among the members 6
BUSINESS OF SIMFED Presently SIMFED is involved in the following businesses: � Procurement of Surplus Agriculture and Horticulture produce and disposal of the same at the local market or through SIMFED’s yard at the regulated market, Siliguri and Sikkim Organics, New Delhi or to the buyers across India. � Procurement and supply of seeds, bio ‐ fertilizer, agricultural tools and Implements, organic manure, pesticides etc. to the Food Security and Agriculture Development Department and the Horticulture and Cash Crops Development Department. � Processing of ginger and turmeric, packaging and marketing the same. Packaging of pulses, cereals and marketing the same. � Service of provider of the Internal Control system (ICS) under Organic Mission in Sikkim, Odisha, Jharkhand, Assam & Bihar. � Procurement of all consumer items from the nearest whole sale market at Siliguri and supply of the same to the MPCS and CCS all over the state. � Procurement and Supply of various construction materials viz. TMT Bars, cement, and other hardware items to various govt. departments and various other institutional buyers. � Procurement and supply of office stationeries, exercise book, furniture, computers etc. � Supply of uniforms to class IV staffs of the Government departments including Police Department. � Supply of various miscellaneous items required by the Govt. departments. 7
OPPORTUNITIES: •Government' s priority on Sikkim Organic Mission •Premier Organic state in the country •Publicity of organic produce of Sikkim world wide •Support of the government to organize potential organic produce marketing •Focus of the government to establish the required infrastructure for smooth marketing of the surplus organic agriculture produce 8
Marketing of the Organic produces by SIMFED. Major Organic produces marketed by SIMFED are as follows: 1. Fruits: Oranges/ Sikkim Mandarin, Kiwi, G9 Bananas, Papaya, Sea Buckthorn. 2. Vegetables: Cabbages, Cauliflower, beans, squash, broccoli, spinach, bitter gourd, Tomatoes, bottle gourd etc 3. Flowers and bulbs: Cymbidium orchid, Lilium Asiatic, Lilium Oriental, gerbera, Alstromeria, Calalily, Rose etc 4. Spices: Ginger, Turmeric, Cardamom and Cherry Pepper. 5. Tuber Crop: Potatoes, Yam 6. Pulses and cereals: Buck wheat, Millet, Paheli dal, Rajmash, beans, rice bean, maize, popcorn, Black dal, Rice, Soya bean etc. 7. Minor Forest Produce: Hill broom and Medicinal Plants. 9
� SIMFED’s field functionaries visits the growers fields personally. � Coordinates with the growers to lift their produces. � SIMFED buys the produces at the farmgate prices. � Payment is made by cheques to the growers to encourage saving habits. 10
� All kinds to produces are lifted by SIMFED regardless of the quantity. � Small private vehicles, service vehicles and goods carriers are utilised for transporting of the produces depending on the quantity. � Weighment of the produces are done at the farm using electronic weighing machines. 11
� The produces are collected from the farm gate of the growers by SIMFED. � Most of the produces are brought to Gangtok, Lal Market. � The produces are sold from SIMFED’s own organic outlet at lal market. � The produces are also sold to other traders on wholesale basis. 12
� The first of its kind in the state “Mobile Vegetable Van” was introduced by SIMFED during November, 2014. � The Mobile Vegetable van was introduced to promote Organic produces of the state. 13
� The state’s major cash crops, Ginger and Sikkim Mandarin are marketed by SIMFED. � These are usually sold off in auctions at the Siliguri Regulated market. � SIMFED has its own yard at the Siliguri Regulated market. 14
� SIMFED is also engaged in the marketing of the cut flowers of the floriculture growers of the state. � Cut flowers like Lilium, Cymbedium Orchids, Gerbera etc are being marketed. � These cut flowers are mostly being sold in the local market, Delhi and Kolkata. 15
� 200 ltrs of Sea buck thorn concentrate exported to France during 2011. 16
Promotion Materials 17
PRESENT CONSTRAINTS IN MARKETING: � High overhead expenses involved in the collection of the farm produces due to logistics problem within the state. � Due to the logistics problem, the average time taken for the produce to reach from the farm to the store is more than 24 hours. � Lack of proper infrastructures like pack houses, sorting grading units, inadequate cold storage facilities, transport facilities etc. � Cost of transportation is high owing to the hilly terrain of the state. The nearest Railhead is 115 kms and the Airport is 120 kms from Gangtok. Therefore, all materials are to be transported by Road. 18
PROPOSED MARKETING STRATEGY OF SIMFED Development of Backward Market Linkages. BACKWARD MARKET LINKAGE Growers SIMFED Contract farmings Creation of Creation of Primary & Providing Creation of for consistent Auction Secondary collection Transportation cold storages. supplies houses centres. facilities. Refer Vans, Non Refer Trucks, Multi Chamber Utility vehs etc cold storages. 19
PROPOSED MARKETING STRATEGY OF SIMFED Development of Forward Market Linkages. Forward Market Linkages Establishment of Promotional Activities for Strengthening of proper distribution Value addition Technlogy back up brand establishments Sales Outlets net work all over the for R&D and Tests country Sorting, Grading, 1. Sikkim Organics at Sales through other 1. Registration of Trade Ties ups with Processing & New Delhi mark (IPL) established Organic CAE&PHT and Packaging. 2. the yard at Siliguri outlets Sikkim University 2. Participation at Regulated Market. exhibitions & Trade fairs. Ginger powder, Turmeric powder, Introduction of Pulses, mandarin etc Organic Menus in hotels and restaurants in Sikkim 20
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