FARM TO FORK

SPI CINEMAS

Project Guide: Neeti Agnihotri

Name: Sagar Bora

Roll No.: 16F648
Background of the Project

Expansion of restaurant business and associate this expansion as

CSR activity
Constant supply of F&B needs to be achieved
Demand across all the restaurant chains will increase
SPI wants to help the horticulture famers through contract farming
 Objective

To understand the distribution channel of horticulture industry

and analyse the issues faced by the farmers
Scope and Limitation of the Project

SPI cinemas will be able to draft personalized contracts

Only secondary research was done to identify the issues of the
farmers.
Unwillingness among the respondents to share information
The commission agents and the wholesalers were reluctant to
speak the truth.
Demographics Captured
Methodology

Extensive secondary research was done to identify the issues faced

by the farmers.
Survey was conducted across 4 location
Price evaluation of every commodity in every market across 4
location.
In depth interview were conducted with various commission
agents and wholesalers at various mandis
Microsoft Excel 2007 was used to interpret the data been captured
for the purpose of understanding the preference of contract
farming by various farmers.
 CA collects the produce from various farmers
and helps them selling off the produce to the
wholesaler

CA conducts the auction of the produce and the

DISTRIBUTION CHANNEL wholesaler with the highest bid sets the
OF HORTICULTURE minimum price for the commodity. CA gets 10%
of the deal
INDUSTRY
Wholesaler sets the price for the commodity by
adding the logistics cost plus the profit margin
Issues Faced by
Farmers
Perishable in nature
Tendency to sell off the produce
before the fruits or vegetable starts
to degrade
 High Production Cost
of farming
Expenses Approx. Cost
Seeds Rs.8000-40000 /Acre( differs
for each commodity)

Manure Rs.50000-90000/Acre

Pesticides Rs.25000/Acre
Labour Rs.500/day(male)
,Rs.350/day(female

Harvesting Rs.6/kg
Transportation Rs.2/kg
Irrigation Rs.5000/day
 Overdependence on
Commission Agent for
Credits
% of farmers
80.0%

69.8%
70.0%

60.0%

50.0%

40.0%
30.2%
30.0%

20.0%

10.0%

0.0%
Commision agent PSU bank
% of farmers
Fluctuation of Price
on daily Basis
The price for every commodity
changes in at least a week time and
is not constant throughout all the
market
Loss of Produce
Natural disasters, Wastage and
spoilage by animals and insects
Major factors
Dependence

What are the

factors that
impact a farmer
?
Facilities Loans

Factors

Farmer Crop
Issues Cultivation
 Climate

Dependence
Commission Agent

Government

Wholesaler

Customers
 Dependence Analyse

t-Test: Two-Sample
Assuming Unequal
Variances

Ho: There is NO Significant difference Dependence Uneducated Dependence Educated

between the means of the dependence on the Mean 2.533333333 2.875
basis of education of farmers Variance 0.009275362 0.042
Observations 24 16
Ha: There is a Significant difference between Hypothesized Mean
the means of the dependence on the basis of Difference 0
education of farmers df 19
t Stat -6.226057006
P(T<=t) one-tail 2.7875E-06
t Critical one-tail 1.729132792
P(T<=t) two-tail 5.58E-06
t Critical two-tail 2.09302405
 Pesticides

Manure
Facilities
Seeds

Irrigation

Labour
 Facilities Analysis
t-Test: Two-Sample
Assuming Unequal
Variances

Ho: There is NO Significant difference

between the means of the facilities on the Facility Uneducated Facility Educated
basis of education of farmers Mean 4.25 4.75
Variance 0.119130435 0.056
Ha: There is a Significant difference Observations 24 16
between the means of the facilities on the
Hypothesized Mean
basis of education of farmers Difference 0
df 38
t Stat -5.434857057
P(T<=t) one-tail 1.69521E-06
t Critical one-tail 1.685954461
P(T<=t) two-tail 3.39042E-06
t Critical two-tail 2.024394147
 Commission
Agents
Loans
PSU banks

Organizations
 Loan Analysis

t-Test: Two-Sample
Assuming Unequal
Variances

Ho: There is NO Significant difference

between the means of the loans on the basis Loan Uneducated Loan Educated
of education of farmers Mean 2.319444444 2.020833333
Variance 0.00462963 0.066203704
Ha: There is a Significant difference Observations 24 16
between the means of the loans on the basis
Hypothesized Mean
of education of farmers
Difference 0
df 16
t Stat 4.537642609
P(T<=t) one-tail 0.000168169
t Critical one-tail 1.745883669
P(T<=t) two-tail 0.000336338
t Critical two-tail 2.119905285
 Expertise

Cultivation Production cost

Crop

Profitability

Environment
 Crop Cultivation Analysis

Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
H0: All the means are equal. The farmers are
Expertise 53 202 3.811321 0.502177
indifferent when it come to the decision of
crop cultivation Production Cost 53 181 3.415094 0.478229

Ha: At least two of the means are different Profitibility 53 221 4.169811 1.028302
from others. That is the farmers have a Environment 53 220 4.150943 0.246009
difference on opinion when it comes to crop
cultivation
ANOVA
Source of Variation SS df MS F P-value F crit

Between Groups 20.03774 3 6.679245 11.84937 3.39E-07 2.64801

Within Groups 117.2453 208 0.563679

Total 137.283 211

 Crop Cultivation Analysis

t-Test: Two-Sample
Assuming Unequal Variances

Ho: There is NO Significant difference

Crop Uneducated Crop Educated
between the means of the crop cultivation
on the basis of education of farmers Mean 4.104166667 3.671875
Variance 0.026721014 0.080989583
Ha: There is a Significant difference Observations 24 16
between the means of the crop cultivation Hypothesized Mean
on the basis of education of farmers Difference 0
df 22
t Stat 5.501111986
P(T<=t) one-tail 7.90027E-06
t Critical one-tail 1.717144335
P(T<=t) two-tail 1.58005E-05
t Critical two-tail 2.073873058
 Perishable Product

Farmer Issues Stiff Competition

Fluctuation price

Small Scale Holdings

High Production Cost

Loss due to wastage

 Farmer Issues Analysis
Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
H0: All the means are equal. The farmers are Perishable Products 53 265 5 0
indifferent when it come to the issues faced Stiff Competition From
by them in the supply chain Forign Goods 53 111 2.09434 0.317852
Fluctuation Price 53 213 4.018868 0.403483
Ha: At least two of the means are different Small Scale Holding 53 203 3.830189 1.451379
from others. That is the farmers have a High Production Cost 53 240 4.528302 0.753991
difference on opinion on the issues faced by Loss due to Wastage 53 198 3.735849 0.62119
the farmers

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 259.9623 5 51.99245 87.92669 1.8E-57 2.242926
Within Groups 184.4906 312 0.591316

Total 444.4528 317

 Farmer Issues Analysis

t-Test: Two-Sample
Assuming Unequal
Variances

Ho: There is NO Significant difference

between the means of the Farmer Issues on Issues Uneducated Issues Educated

the basis of education of farmers Mean 4.076388889 3.739583333

Variance 0.028935185 0.166550926
Ha: There is a Significant difference Observations 24 16
between the means of the Farmer Issues on
Hypothesized Mean
the basis of education of farmers Difference 0
df 19
t Stat 3.125132341
P(T<=t) one-tail 0.002786864
t Critical one-tail 1.729132792
P(T<=t) two-tail 0.005573729
t Critical two-tail 2.09302405
CONTRACT FARMING
 Stable Price

Suitable Loans
Contract
Farming
Higher Quality Seeds

Cover for Loss

Long term Contract

 Contract Farming Analysis

Anova: Single Factor

SUMMARY

H0: All the means are equal. The farmers are Groups Count Sum Average Variance
indifferent when it come to the specifics of Stable Price 53 231 4.358491 0.234398
the Contract farming Suitable Loans 53 191 3.603774 0.513062

Ha: At least two of the means are different Higher Quality Seeds 53 171 3.226415 1.063135
from others. That is the farmers have a Cover for Loss 53 246 4.641509 0.388244
difference on opinion on the specifics of the Long term contract 53 226 4.264151 0.775036
contract farming
ANOVA
Source of Variation SS df MS F P-value F crit
72.2641
Between Groups 5 4 18.06604 30.37457 9.55E-21 2.406362
154.641
Within Groups 5 260 0.594775

226.905
Total 7 264
 Analysis of Contract Farming
6.0

5.0 5.0
5.0 4.8
4.7
4.4 4.4 4.3
4.1 4.1
4.0 3.8
3.7 3.6
3.5 3.4

3.0

2.4

2.0

1.0

0.0
Till Class 10 Till Class 12 Graduation

Stable Price Suitable Loans Higher Quality Seeds Cover for Loss Long term contract