The document analyzes the social benefits of private wholesale markets in India. It aims to quantify the tangible and intangible benefits to various stakeholders from facilities provided by such markets over a 15-year period. The total estimated benefit to society is Rs. 8740 crores, with farmers realizing the highest value of Rs. 323.43 crores annually from access to infrastructure like electronic auction, grading/sorting, and cold storage. The analysis provides a breakdown of annual benefits categorized by stakeholder and facility to assess the social impact and justify government investment in private wholesale markets.

1. SOCIAL BENEFIT ANALYSIS OF
PRIVATE WHOLESALE MARKETS IN
INDIA
Submitted to-
Dr. J. S. Yadav Submitted by-
(COO)
Premium Farm Fresh Produce Limited, Komal Fulzele
New Delhi Symbiosis Institute of
International Business
(SIIB), Pune.

2. Why Social Benefit Analysis?
 To reflect the real value of the project to the society
 It is important as the private investments are to be approved by various
governmental & quasi-governmental agencies.
 The impact of the project on the distribution of income in the society
 The contribution of the project towards the fulfillment of certain merit
wants( self-sufficiency, employment etc.)

3. Cont.…
 To highlight the need of such private wholesale markets in India
 To avail subsidies for such projects from the government
 Involvement of private parties to take up such projects

4. Objectives of the Project-
 To identify and categorize the socio-economic benefits offered by private
wholesale markets to the society
 To quantify the benefits on the basis of volume and value generated by
such markets with particular reference to Private Wholesale Market Nasik.
 To suggest the activities enhancing the value proposition of PWM from the
social perspective.
 To prepare a presentable document to State Gov. Ministry of Agriculture
and Ministry of Commerce etc. to convince the need for reversal and
matching investment pattern.

5. Research Methodology
Exploratory Research Design
In-depth Survey Of Respondents
Structured Questionnaire (Open Ended As Well As
Close Ended Questions)

6. Data Source
Primary Data
• Survey of the respondents
Secondary data
• Detailed Project Report on Modern Wholesale Market at
Nasik, background studies conducted by PFFPL
• Company’s Annual Report
• Books : Project Appraisal and Planning For Developing Countries by
I.M.D. Little and J.A. Mirrlees, Cost benefit Analysis by Ajit K. Dasgupta
and D.W. Pearce and Marketing Research by Naresh K. Malhotra and
Satyabhusan Dash
• Internet

7. Classification of Respondents Total- 150
• Farmers • Banker
• Traders • Warehousing manager/service
• Commission agents provider
• Exporters • Processing unit
• Labours management/service provider
• Cold storage • PWM employee
management/service provider • APMC security officer
• Ripening chamber • Waste management plant
manager/service provider manager/service provider
• Food testing lab • APMC Official
manager/service provider • Retail trader
• Grading/sorting • NMC Official
management/service provider • Packaging unit

8. Survey Sample Sources
Nasik fruit and vegetable market
including nearby villages
Pimplegaon tomato market
Jaolgaon
Pune

9. Division of the Project
Identification of the Benefits envisaged
• Tangible and Intangible Benefits
• Beneficiary wise benefits classification
Quantification of the benefits
• Facility Wise Quantification (Macro Analysis)
• Respondent/Beneficiary Wise Quantification
(Micro Analysis)
Findings and Recommendations

10. Benefits Offered Through the MWM to the Beneficiaries
• Hub and spoke format • General Retail Shops
• Electronic auction • Movement and Parking Facility
• Online spot commodity trading • Waste Treatment Plant
• Cold Storage & Refer Vans • Rain Water Harvesting
• Ripening Chamber • Solar Panels
• Pre-Cooling Unit • Wind Mill
• Processing Units • Sanitary and Phyto-sanitary
• Material Handling Equipment Measures
• Labelling • IT enabled Operations
• Electronic Grading and Sorting • SMS services
Line • Security
• Food Testing Lab • Employment generation
• Banking services • Packing unit management

11. MACRO ANALYSIS

12. Assumptions for Analysis
Present Export
Market Difference Price Per Export Price Difference (m-
average price Price
Price (a) (b-a) Vehicle (m)* Per Vehicle (n) n)
of the (b)
Rs./Kg Rs./Kg Rs./Truckload Rs./Truckload Rs./Truckload
commodity Rs./Kg
Tomato 12 40 28 45000 150000 105000
Grapes 43 70 27 161250 262500 101250
Pomegranate 40 65 25 150000 243750 93750
Onion 13 35 22 48750 131250 82500
Banana 40 - - 150000 - -
Average 27 52.5 25.5 101250 196875 95625
*Price per Vehicle= 150crates/vehicle * 25kg/crate * Price per kg

13. Breakup of the Various Losses in Total Loss
Present
Present Present Present
Present losses due
losses due losses due losses due to
Losses/ losses due to lack of Total
to no to lack of improper
Spoilage to spoilage cold losses
ripening pre cooling transportati
10% storage
chamber facility on
facility
Percentage 10% 22% 30% 23% 15% 28%
average 2835 8505 6520.5 4252.5 28350
*The percentages in the above table are as per the average of percentages
given by the respondents

14. Average number of customers visiting PWM in a year.
COMMISSION EXPORTERS/
FARMERS TRADERS LABORS
AGENTS SUPPLIERS
5000 250 20 10 350

15. HUB AND SPOKE FORMAT
Benefit Per unit beneficiary Total per year
Average reduction in distance to
be travelled by farmers for
Rs.7.5 lakh.
selling their produce by Rs.155
introducing 'hub and spoke
format'
Percentage increase in
interaction between buyers and
Rs.1083 Rs.21.36 crores
sellers
Percentage increase in farmers
value realization due to
Rs.7634 Rs.3.82 crores
elimination of intermediaries
Percentage increase in the
bargaining power of farmer Rs.28958 Rs.14.48 crores
Datasheet-1
Datasheet-2

16. ELECTRONIC AUCTION
Benefit Per unit beneficiary Total per year
Percentage increase in the
transparency in auctions due to Rs.21425 Rs.11.25 crores
introduction of electronic auction
facility
Percentage increase in the
farmer's value realization due to
Rs.7924 Rs.23.72 crores
electronic auction facility
Percentage reduction in
incidences of retractment by Rs.48910 Rs.25.78 crores
electronic auctions
Percentage discrepancy in
Rs.21425 Rs.10.71 crores
weighment of produce at present
Datasheet-1
Datasheet-2

17. ONLINE SPOT COMMODITY TRADING
Benefit Per unit beneficiary Total per year
Increase in farmer's value Rs.6842 Rs.3.4 crores
realization through online
spot commodity trading
Percentage increase in the Rs.27844 Rs.14 crores
price of a produce given
by a buyer for better
quality
Datasheet-1
Datasheet-2

18. COLD STORAGE FACILITY
Benefit Per unit beneficiary Total per year
Percentage reduction in spoilage
by introducing a cold store in
Rs.2143 Rs.1 crores
market
Percentage increase in the value
of produce by maintaining its
Rs.45743 Rs.22.87 crores
quality
Better price fetched by farmer if
he chooses to sell his produce at a
Rs.63473 Rs.31.74 crores
later stage of the season
Percentages of transportation
losses in total losses to produce Rs.14159 Rs.7 crores
saved by refer vans
Datasheet-1
Datasheet-2

19. PRE- COOLING FACILITY
Benefit Per unit beneficiary Total per year
Percentage reduction in spoilage
by introducing a pre-cooling unit
Rs.3286 Rs.1.64 crores
in market
Percentage increase in the value
of produce by maintaining its
Rs.2530 Rs.1.3 crores
quality through PCU
Percentage of after harvest losses
that can be saved by PCU Rs.28710 Rs.14.4 crores
Percentage of value of produce
realized by maintaining the
Rs.61050 Rs.30 crores
nutritional value of the produce
Datasheet-1
Datasheet-2

20. RIPENING CHAMBER
Benefit Per unit beneficiary Total per year
Percentage reduction in Rs.19403 Rs.9.7 crores
spoilage by introducing a
ripening chamber in market
Percentage better price Rs.12048 Rs.6 crores
realized by commodity if
kept in a ripening chamber
Datasheet-1
Datasheet-2

21. MATERIAL HANDLING
Benefit Per unit beneficiary Total per year
Percentage reduction in
spoilage by using
material handling Rs.28063 Rs.14.73 crores
equipment’s in market
Datasheet-1
Datasheet-2

22. ELECTRONIC GRADING & SORTING
Benefit Per unit beneficiary Total per year
Grading & Sorting Rs.27485 Rs.13.80 crores
Datasheet-1
Datasheet-2

23. FOOD TESTING
Benefit Per unit beneficiary Total per year
percentage of
better price a
commodity
realizes if
quality is Rs.31937 Rs.16.77 crores
assured along
with safe and
hygienic
condition
percentage
exports boosted
by establishing
Rs.23565 Rs.12.37 crores
a food testing
laboratory in
the market
Datasheet-1
Datasheet-2

24. WAREHOUSE
Benefit Per unit beneficiary Total per year
Percentage increase in value
of the commodity due to Rs.17719 Rs.9.30 crores
storage in warehouses
Datasheet-1
Datasheet-2

25. MOVEMENT AND PARKING FACILITY
Benefit Per unit beneficiary Total per year
Percentage improvement in
the general efficiency of the
markets by providing proper Rs.643 Rs.32 lakh
parking and circulation
space
Datasheet-1
Datasheet-2

26. EMPLOYMENT GENERATION
Benefit Per unit beneficiary Total per year
Benefit to the unskilled
Rs.26704 Rs.9.35 crores
Labour
Datasheet-1
Datasheet-2

27. PACKING UNIT MANAGEMENT
Benefit Per unit beneficiary Total per year
Due to proper packaging of
Rs.13669 Rs.6.85 crores
commodities
Datasheet-1
Datasheet-2

28. Quantification Of Benefits Envisaged For One Year
Facilities/Services Value In Crores (Rs.)
Hub & Spoke Format 39.73
Electronic Grading and Sorting Line 71.50
Online Spot Commodity Trading 17.34
Cold Storage 55.68
Ripening Chamber 17.37
Pre-Cooling Unit 47.79
Material Handling Equipment (Crates, pallets, etc.) 14.73
Electronic Grading and Sorting Line 13.77
Food Testing Lab 29.14
Movement and Parking Facility 0.32
Refer Vans 7.08
Employment generation 0.93
Packaging unit management 6.85
Warehouse management 9.30
Total Benefit from all the facilities - Rs. 331.53 crores

29. Total benefit of all facilities provided through PWM over 15 years
Years Total In Crores
First Year 331.5
Increase @10% for 2nd year 364.68
Increase @10% for 3rd year 401.15
Increase @10% for 4th year 441.27
Increase @10% for 5th year 485.4
Increase @5% for 6th years 533.94
Increase @5% for 7th years 560.64
Increase @5% for 8th years 588.67
Increase @5% for 9th years 618.1
Increase @5% for 10th years 649.0
Increase @5% for 11th years 681.5
Increase @5% for 12th years 715.5
Increase @5% for 13th years 751.3
Increase @5% for 14th years 788.9
Increase @5% for 15th years 828.3
Total 8739.9
The total benefit to the society over a span of 15years is Rs.8740 Crores.

30. The total benefit derived by the beneficiaries in a year through various
facilities provided by PWM
Commission Exporters
Beneficiaries Farmers Traders Labors
Agents /Suppliers
Total No 5000 250 20 10 350
Value In Crores 323.43 5.3 0.14 0.082 0.93

31. Percentage Breakup of Total Benefit Realized From All The Facilities
Hub & Spoke Format
0% Electronic Grading and Sorting Line
2% 2%
0% Online Spot Commodity Trading
3% 12%
9%
Cold Storage
4%
Ripening Chamber
5% 22%
Pre-Cooling Unit
14% Material Handling Equipment
(Crates, pallets, etc.)
5% Electronic Grading and Sorting Line
5%
17% Food Testing Lab
Movement and Parking Facility
Refer Vans
Employment generation
Packaging unit management
Warehouse management

34. CATEGORIES OF RESPONDENTS
1 Farmers
-Farmer using Hub & Spoke format
2 Traders
3 Commission Agent
4 Labour
5 Exporter
6 PWM Employee
7 Cold Storage Management
8 Farmer using cold storage
9 Warehouse Management
10 Farmer using warehouse
11 Food Testing Lab
12 Farmer using food testing lab
13 Ripening Chamber
14 Farmer using ripening chamber
15 Grading & Sorting Management

36. Increase in transparency by electronic auction
Farmer's value realisation due to removal of
intermediaries.
Reduction in incidences of retractment by e -
auction Total benefit per
FARMER farmer in Rs.
Discrepancy in weighment of produce saved 79,240
Farmer's value realisation due to spot trading
Efficiency increased by providing parking
facility

37. Reduction in distance due to 'Hub
and Spoke Format'
Increased interaction between
buyer and seller Total benefit per
HUB & SPOKE
farmer using hub &
FORMAT
Farmer's value realisation due to spoke in Rs. 77,377
do removal of intermediaries
through said format
Increased bargaining power of
farmers

38. TRADER
Increase in Transparency through
Electronic Auction
Reduction in Retractment by E- auction
Increase in Price by trader For Better
Quality
Total benefit per
TRADER Reduction in spoilage by using Material
trader in Rs. 1,57,384
Handling Equipment’s
Increase in Price Realised Through
Electronic Sorting / Grading
Increase in Efficiency Through Better
Parking & Circulation Space

39. Transparency increased by introducing
electronic auction Total benefit
per
COMMISSION
commission
AGENT
agent in Rs.
82,864
Reduction in incidences of retreatment

40. Increase in Price Due to Electronic
Grading & Sorting
Increase in Price Due to Quality Total benefit per
EXPORTER assurance through Safe & Hygienic exporter in Rs.
Conditions 97,369
Boost in Exports Due to Food
Testing Lab

41. RETAIL TRADER
 Retail traders will be benefitted if the stakeholder like farmers satisfies
their input requirement of the crop from the retail traders inside the PWM
premises rather than the retail traders outside the PWM.
 For this the inputs available at the retail traders should be of high quality.
 Farmers will be at ease because they will get all their requirements fulfilled
at one place and thus save on fuel expenses.
 This will be an equally profitable business for the retail traders since they
will get huge number of buyers

42. One of the major social benefits of the PWM to the society is the amount
of employment generated. Rural unskilled labour is the major beneficiary
of this system. They will be provided with training at PWM for doing
commodity specific work like material handling, manual grading in some
fruits like grapes
Employment generated through PWM
in a year.
Total benefit per
LABOUR
labour in Rs. 26,704
Wage received per day

43. PWM EMPLOYEE
The reduction in distance to be travelled
by farmers for selling their produce by
introducing 'Hub and Spoke Format'
Hub & Spoke format facilitating
interaction between buyer and seller
Total benefit per
PWM Farmer's value realization through the said farmer according to
EMPLOYEE format eliminating intermediaries PWM employee in
Rs. 84,452
Reduction in spoilage by using material
handling equipment’s in market
Increase in the bargaining power of
farmers
Employment generated through PWM

44. COLD STORAGE MANAGEMENT
Reduction in Spoilage Due to Cold Store
Increase in Value of Produce by
Maintaining Quality
Change in price fetched by selling later in
season through CS
Total benefit per
Transportation losses in total Losses
COLD STORAGE farmer according to
MGT Pre Cooling Unit cold storage mgt. in
Reduction in Spoilage Due to Pre cooling Rs. 4,21,308
unit
Increase in Value of Produce by
Maintaining Quality through PCU
Harvest losses saved through PCU
Value of produce realized by maintaining
Nutritional value

45. COLD STORAGE FARMER
Reduction in Spoilage Due to Cold Store
Increase in Value of Produce by
Maintaining Quality
Change in price fetched by selling later
in season through CS
Transportation losses in total Losses Total benefit per
COLD STORAGE farmer using cold
Pre Cooling Unit
USING FARMER storage in Rs.
Reduction in Spoilage Due to Pre 41,59,452
cooling unit
Increase in Value of Produce by
Maintaining Quality through PCU
harvest losses saved through PCU
Value of produce realized by
maintaining Nutritional value

46. Increase in value due to
storage total benefit per
farmer according to
WAREHOUSE MGT.
warehouse mgt.in
Decrease in distance due to
Rs. 17863
Hub & Spoke Model
Increase in value due to total benefit per
storage farmer according to
WAREHOUSE FARMER farmer using
Decrease in distance due to warehouse mgt.in Rs.
Hub & Spoke Model 17859

47. Better price a commodity realize if
total benefit per
quality assured, safe and hygienic
farmer according to
FOOD TESTING LAB
Exports boosted by establishing a food testing labs in
food testing laboratory in the market Rs. 57445
Better price can a commodity realize total benefit per
if quality assured, safe and hygienic farmer according to
FOOD TESTING LAB
farmer using food
FARMER
Exports can be boosted by testing lab in Rs.
establishing a food testing laboratory 141975
in the market

48.  Banks will offer a very safe payment settlement solution to both traders and
farmers for settlement of money after the trade. Banks are still in the process
of identifying and formulating a method for settlement of money in the
wholesale markets.
 The benefit derived by the farmers and traders that are going to use banking
facility for payment settlement will be in intangible terms like up to what
extent are they willing to take bank credit for trading, would they like it to
be settled through cheque or cash or online money transfer

49. RIPENING CHAMBER
Reduction in spoilage by
introducing ripening chamber total benefit per
in market farmer according
RIPENING
to ripening
CHAMBER Better price of commodity chamber in Rs.
realised by introducing 132760
ripening chamber in market
Reduction in spoilage by
introducing ripening chamber total benefit per
RIPENING in market farmer using
CHAMBER ripening
FARMER better price realised by the chamber in Rs.
commodity if kept in a ripening 109403
chamber

50. Grading sorting facility makes the commodities more standardized for trading.
PWM operates via electronic auctions where the grade of the product
determines its price. So grading and sorting is a necessity for export products
as well as domestic products
total benefit per
GRADING Better price can a commodity
farmer according to
SORTING realizes if it is electronically
grading sorting mgt.
MGT. sorted and graded
in Rs. 15188
total benefit per
GRADING
Better price can a commodity farmer according to
&
realize if it is electronically farmer using grading
SORTING
sorted and graded & sorting unit in
FARMER
Rs.48094

51. Material handling equipment reduces the post-harvest losses from the field to the market
yard. The plastic crate reduces the mechanical shock to the agricultural commodities as
compared to gunny bags.
Packaging adds value to the product and results in considerable increase in the prices of
the product. Setting up a packaging unit inside the PWM market yard has been
envisaged keeping the below mentioned benefit in focus.
total benefit per
FARMER USING
Reduction in spoilage by using farmer by using
MATERIAL
material handling equipment’s in material handling
HANDLING
market equipment in Rs.
EQUIPMENT
27844
total benefit per
PACKAGING Increase in value due to Packaging
farmer by using
UNIT
packaging unit
MANAGEMENT Decrease in distance due to Hub &
mgt. in Rs. 13844
Spoke Model

52.  WASTE MANAGEMENT UNIT:
Waste management unit takes up the charge of collecting all the waste from
the market yard every day and convert the biodegradable waste into compost
or organic manure. This organic manure can be sold in the market earning
revenue.
 APMC SECURITY GUARD:
APMC security guard provided the information regarding the probable
increase in the efficiency of market yard operations by proper parking and
circulation facility in percentage. The total benefit availed by the increased
security is Rs. 357 per farmer. Incidences of theft are greatly reduced in the
private wholesale market due to security and also due to the maintained
databases of every stakeholder

53. APMC OFFICIAL:
APMC official provided information regarding the various facilities available in the
market like percentage of market that has been computerised, increase in the
efficiency of market operation by introducing IT enabled operations, percentage
increase in data accuracy and percentage decrease in labour requirement due to IT
enabled operation
NMC OFFICIAL:
NMC official provided information regarding the various facilities available in the
market like percentage of market that has been computerised, increase in the
efficiency of market operation by introducing IT enabled operations, percentage
increase in data accuracy and percentage decrease in labour requirement due to IT
enabled operation

54.  WIND MILL MANAGEMENT
Wind mill will provide electricity to the PWM. The initial cost of establishing
the wind mill inside the PWM premises is high but the maintenance cost is
comparatively much less making it a viable source of electricity in the market
yard. It will reduce the market dependency on the government source of
electricity making the system self-dependent.
 SOLAR PANEL MANAGEMENT:
Solar panel also will be providing electricity to the market yard. Similar to the
wind mill its initial cost will be high but in later years its maintenance cost will
be much less

56. BENEFIT TO RESPONDENT FOR ONE YEAR
Per Commis
Name Of Farm Trade Total
S.N Unit sion Exporter Labore
Stakeholde ers rs Benefit
o Benef Agents s (Cr.) rs (Cr.)
rs (Cr.) (Cr.) In (Cr.)
it (Cr.)
5000 250 20 10 350
0.54 2702
1 Farmers 2702.2
Cr .2
0.02
2 Traders 4.98 4.98
Cr
Commissio 82,86
3 0.17 0.17
n Agents 4
0.02
4 Exporters 1.55 1.55
Cr
26,70
5 Laborers 0.93 0.93
3
Total 2708.4

57. BENEFIT TO RESPONDENTS FOR FIFTEEN YEARS
Total Benefit
Total Projected Including All
S.No Respondents Benefit After 15 The
Years In crores Respondents In
Crores
1 Farmers 6751.3
2 Traders 12.4
3 Commission Agents 0.4 6766.9
4 Exporters 0.4
5 Laborers 2.3

58. RECOMMENDATIONS
The activities enhancing the value proposition of PWM from the social
perspective have been classified as follows:
 Electronic Grading and Sorting Line
 Cold Storage
 Pre-cooling Unit
 Hub & Spoke Format
 Food Testing Lab

59. Learning

60. REFERENCES
 Detailed Project Report on Modern Wholesale Market at Nasik- This DPR of Premium Farm
Fresh Produce Ltd. has all the financial analysis, background studies and various outcomes of
the company.
 I.M.D. Little and J.A. Mirrlees 1974, ‘Project Appraisal and Planning for Developing
Countries’ – the knowledge and application method of appraisal is understood from this book
 Ajit K. Dasgupta and D.W. Pearce, 1978 ‘Cost-benefit Analysis, Theory and Practice’ – Case
study ‘The siting of London’s Third Airport’ containing the application of social cost analysis
was referred from this book.
 Marketing Research by Naresh K. Malhotra and Satyabhusan Dash- this book was used for
reference purpose for gaining better understanding of research methodology.
 http://agmarknet.nic.in/reforms.htm
 http://mofpi.nic.in