PROJECT REPORT

Submitted for the partial fulfilment of

requirements for the course

Agri-Business Leadership
(AbL)
UNTAPPING THE POTENTIAL OF
PINEAPPLE IN NER
SUBMITTED TO:
Prof Anil K Gupta (Course Instructor)
Omi Kumari (Academic Associate)
Submitted By
Abhishek Bisht
Tanmoy Pramanik
 UNTAPPING THE POTENTIAL OF PINEAPPLE IN NER

Introduction to North East Region (NER)

North-Eastern India, comprising eight states with a total geographical area of 2.62 million
km2, has a high potential for pineapple cultivation. The region has fertile and organically rich
soils, ample rainfall, water resources and great climatic diversity supporting diverse cropping
possibilities. But losses in this sector as per one of the study conducted by Assam Agriculture
University, Jorhat comes around 40%.
Each state in NER has its own potential with agriculture and horticulture being of primary
importance. Let us look at each state:

1. Arunachal Pradesh: It is geographically the largest of the north eastern states. It

provides opportunity for export with neighbouring countries like Myanmar and
Bhutan. It has potential for both floriculture and horticulture crops. Among fruits
there are Kiwis, Apples and Arunachal Orange which are GI registered tag product.
The state is home to 601 species of orchids and few belts of the state are identified as
the flower belts. State also produces aromatic plants having lot of aromatic value.
Besides this, Arunachal Pradesh can be an excellent place for pork industry with
export potential in Myanmar and Bhutan.

2. Assam: This states connect the rest of India with NER and it offers great trade
potential with countries like Bangladesh, Nepal and Bhutan. The state covers 60%
horticulture produce of the north east. All crops like banana, pineapple, jackfruit,
oranges, litchi, papaya, guava, ginger, turmeric. Parts of the region also grows black
pepper. Two crops have GI tag: Tejpur Litchi and Karbi Anglong Ginger. This way
the state offers immense potential.

3. Manipur: The state is at the eastern most corner of India and shares its border with
Myanmar. The state produces good quality pineapple and passion fruit which have
huge scope for juice production pan India. Tamenglong Orange, Kachai Lemon and
Black Rice have got a GI tag. Spices like ginger, turmeric are also grown in the state.

4. Meghalaya: The state shares border with Assam in north east and Bangladesh in
South and West part. The crops in the region are Pineapple, Pear, Ginger, Khasi
Mandarin (GI tag), Black Pepper, Jackfruit, Potato and above all there is a huge
quantity of turmeric (Lakadong Turmeric whose GI registration is pending). The state
has the potential to become offseason vegetable hub. Meghalaya needs a packhouse of
its own as their quality products are excellent and therefore officer opportunity for
post-harvest processing.

5. Mizoram: The state offers gateway for engaging in international trade with South East
Asian countries and it borders Myanmar and Bangladesh. The state is well placed to
export passion fruit and there are number of processing units there. Apart from this
pineapple, citrus and avocado are also prevalent. The angular blue grapes are grown
abundantly in offseason with higher productivity than national average. The grape
wine is being produced extensively. Ginger, Turmeric and Mizo Chilli (GI tag) are
also there in the state which can be used in confectionary and in medicinal extracts.
 6. Nagaland: It borders Myanmar to the east and the productions are mainly Pineapple,
Citrus fruit, Banana and a very good volume of Ginger and King Chilli (GI Tag).

7. Tripura: This state is bounded from North, West and South by Bangladesh and offers
the best opportunity for cross border trade. The state produces Pineapple, Jackfruit,
Mandarin Oranges and Cashew-nut in a very big way. The Queen variety of pineapple
has already got a GI tag and is being exported to Dubai and other countries. State is
significant for trade with Bangladesh in Pineapple, Jackfruit and Cashew-nut.
Therefore post-harvest facilities are required in the state.

8. Sikkim: It is surrounded by Tibet in the North, Bhutan in the East and Nepal in the
West. In 2016, it became an organic state and this has given motivation for other
states to come under organic. The government has also started on Mission on Organic
Value Chain Development in North East (MOVCD-NER). Mandarin and Passion
fruits are two promising fruits. Large cardamom of Sikkim has a good market which
is said to be best in country (GI tag). Ginger and Turmeric are also there in the state.

We can see the NER region has abundant fruits & vegetables and Spices. The region is
mainly dominated by non-vegetarians. The domestic production is unable to meet the demand
and therefore meat and poultry is being imported. We also often hear that there is no surplus
in NER but APEDA came up with a study in 2019 which found that there is surplus to the
extent of Banana: 80%, Pineapple: 95%, Orange or Citrus: 85%, Jackfruit: 83%, Tomato:
67%. This has given lot of impetus for start-ups to come in this region. The major processing
happening in the region is primary processing. If we can move on to primary and secondary
processing the farmers can actually double their income. Apart from that there are 23 GI
produce products in the NER and a Packhouse has already come in Guwahati.

Potential for Pineapples in NER

With the progress made and the region's potentials demonstrated as a result of implementing
modern technological approaches such as the staggering technique, high density planting
(HDP), and organic cultivation and certification, pineapple yield and quality have improved,
and pineapple cultivation in the region has great potential. In 2001, the Indian government
launched the 'Horticulture Technology Mission' after recognising the North East region's
potential for horticultural crops. The area and production of pineapple increased by 140.7
percent as a result of this. More than 40% of the country's pineapple is grown in this region,
and 90 to 95 percent of the crop is organic. 'Giant Kew' and 'Queen' are two popular varieties.
Pineapples grown in this location are regarded to be among the "Best in the World" because
they are "very sweet (high TSS) and have little fibre." Given the high demand for organic
pineapples on the national and international markets, as well as the low volume of such
products, this region of India is a perfect location for pineapple growing. This enterprise will
result in a breakthrough in social empowerment for the tribal people of India's North East
states, as the region is an agrarian civilization with an average tribal population of 80%.

Area (000’ha); Production (000’tons); Productivity (Tons/Ha)

State 2008-09 2009-10 2010-11
Area Are Prod. Pdy. Area Prod. Pdy. Area Prod. Pdy. % Share
a
West Bengal 9.6 283.9 29.7 9.6 293.8 30.5 9.9 303.7 30.6 21.5
Assam 12.9 225.1 17.5 14.2 223 15.7 14 220.7 15.8 15.6
 Karnataka 3 186.3 61.7 2.8 177.2 63.3 3 186.1 62 13.1
Tripura 6.3 101.2 16.1 6.8 117.5 17.3 6.8 153.3 22.6 10.8
Bihar 4.7 119.5 25.5 4.7 125 26.4 4.9 129.4 26.5 9.1
Manipur 8.6 78.5 9.1 12.1 103.5 8.6 12.2 104.4 8.6 7.4
Meghalaya 10.8 106.8 9.9 10.8 106.8 9.9 9.7 86 8.9 6.1
Kerala 12.5 102.4 8.2 9.8 80.8 8.2 10.2 85.5 8.4 6
Nagaland 3.7 57.5 15.5 8 80.1 10 3.7 57.5 15.5 4.1
Arunachal Pradesh 9.3 37.8 4.1 10.9 34.4 3.2 10.9 34.4 3.2 2.4

Total production of Pineapple in India in 2010-11 was 1,415,400 MT which increased to

1,969,000 MT in 2016-17. Out of this, Northeast produced 706,877 MT which is equal to
~50% of the domestic production. Six north eastern states feature in the top 10 states
producing pineapple.

Types of Pineapples Prevalent in NER

S No Type Description
Fruit is large in size, deep yellow to coppery yellow in colour, with
1 Kew or Giant Kew broad and flat eyes, pale yellow to yellow flesh, and a T.S.S. of 12-14
degrees brix.
Queen or Common Fruit is petite, golden yellow in colour, with small, elevated eyes, deep
2
Queen golden yellow flesh, and a T.S.S. of 15-16 degrees brix.
3 Mauritius Fruit is medium in size and colour, with yellow and red hues.

Industry
Interest and
Focus

Favorable
Rich
Climatic
Biodiversity
Conditions

NER Competitive
Advantage

Regional
Export
Capability in
Potential
Focus Crop
Agri-Export Zone for Pineapple in North East India

The Agri-export zone scheme for the entire NER in Tripura was recently approved by the
Ministry of Commerce and Industry. Enhanced international market access, as well as
required infrastructure, financial flow, transportation support, and other facilities for
enhancing agricultural export through pineapple cultivation, will be offered to farmers under
this programme.

Value Added Products from Pineapple:

1. Pineapple juice
It is made from pineapple and can be sold in sterilised bottles or cans; the shelf life of the
juice can be prolonged to 6-7 months by adding a preservative at a specific level
(KMS70ppm or benzoic acid120ppm). Taking slices from under-sized pineapple fruits,
broken slices, cores, peel meat, and trimmings are all used in the making of pineapple juice.
The slices are then pulverised using a grinder or mixer. The juice is then pasteurised after
being removed using a filter press. The mixture is then poured into glass bottles and sealed
with a hand sealer before being chilled and stored.

2. Pineapple Squash
Pineapple squash should be made from fully ripened and sound pineapple fruits that are
devoid of insects, illnesses, and other contaminants. The amount of juice, sugar, citric acid,
preservatives (KMS OR Sodium Benzoate), water, flavour, and colour required for pineapple
squash preparation is calculated according to FPO criteria. At the time of intake, it should be
diluted 2-3 times with water. Receiving slices from undersized pineapple fruits, broken slices,
cores, skin, flesh, and trimmings are all part of the manufacturing process. The fruit is then
grated and strained through a clean cloth, with the juice recovered. Squash is a concentrated
fruit beverage. At the time of eating, the pineapple squash is usually diluted 2-3 times with
water.

3. Ready to Serve Beverages

The soluble solids and acidity of pineapple juice must be adjusted according to FPO
specifications while making pineapple RTS beverage. Color and scent are also added as
needed and well blended. The beverage is poured into the bottle with a 2.5-3 cm headspace,
crown corked, and treated in water for 15-20 minutes at 85°C before being air chilled.

4. Pineapple Jam
Pineapple Jam is a solid gel created from fruit pulp or juice, which is cooked over low heat
with pineapple pulp and water. With a wooden ladle, stir it constantly. While it's heating up,
gradually add the sugar. Bring it to a boil, stirring constantly. Continuously whisk in the
pectin powder. When the jam is finished, stir in the citric acid, lemon yellow food colouring,
and pineapple essence. Remove the pot from the heat and pour the contents into a bottle.
Close the bottle's mouth after the jam has cooled. Pour some jam onto a dry plate to see if it
has formed. Allow for cooling before tilting the plate. The jam will fall in flakes when it is
ready.

5. Canned Pineapples
Pineapple in tin cans is carefully packed in light sugar syrup or natural fruit juice to preserve
the natural flavour and aroma while allowing the product to be exported globally. Even after
 canning, canned pineapple in syrup retains its shape, colour, and flavour. Fruits canned with
water or fruit juice help to lower the amount of sugar in canned fruit.

6. Wines
Pineapple wine is prepared by fermenting pineapple juice in a temperature-controlled vat and
stopping it when it's almost dry. Pineapple juice is used to make pineapple wine. The
pineapple juice is fermented in temperature-controlled vats and halted when it is nearly dry.
The outcome is a fruit wine that is delicate, dry, and has a pronounced pineapple flavour.

7. Vinegar
The acetic fermentation of alcohol solutions obtained from sugar or starchy sources is used in
the production of vinegar (fermentable sugar content of 8-20 percent ). Strains obtained from
the raw ingredients are used to ferment the majority of the time. By-products of the pineapple
processing industry, such as peels and cores, are used as raw materials to manufacture natural
vinegar, allowing residuals to be properly utilised. Once vinegar has been produced and
bottled, it should be pasteurised. It remains stable at room temperature (Coveca, 2002).

Comparing The Value of Processed Pineapple With Fresh Pineapple

1. Dehydrated Pineapples

Fresh Pineapple Vs Dehydrated Form Worst Case Best Case

Amount (Kg) 1000
Average Weight of One Pineapple 1.5
Total Pineapples in 1000 Kg 667
Amount of Dried Form From 10 Pineapple 1
Amount of Dried Form From 667 Pineapples 67
  Worst Case Best Case
Wholesale Price of Dehydrated Pineapple (Per Kg) 500 800
Total Value of Dehydrated Pineapple ₹ 33,333 ₹ 53,333
Current Prices Received by Farmer (Per Kg) 7
Total Value of Fresh Pineapple ₹ 4,667 ₹, 4667
% Difference in Value 614% 1043%

2. Pineapple Candy

Fresh Pineapple Vs Pineapple Candy Best Case Worst Case

Amount of Fresh Pineapple (Kg) 1000
Pineapple Cost to be Considered 20 35
Total Cost of Fresh Pineapple 13,333 23,333
Pineapple Candy
Pulp Extraction 45%
Yield 88%
Amount of Pineapple Candy That Will Be Produced 880

Selling Price of Pineapple Candy (Rs/Kg) 200

Total Value of Candy 176000
Increase in Value 1220% 654%

3. Canned Pineapple (Slices)

Canned Pineapple (Pineapple Slice) Best Case Worst Case

Yield 80%
Pineapple Slices That Will Be Produced 800
Selling Price of Pineapple Slice 132
Total Value of Pineapple Slice 105600

Increase in Value 692% 353%

4. Canned Pineapple (Pineapple Juice

Canned Pineapple (Pineapple Juice) Best Case Worst Case

Yield 80%
Pineapple Juice That Will Be Produced 800
Selling Price of Pineapple Slice 168
Total Value of Pineapple Slice 134400

Increase in Value 908% 476%

Approximate costs considered to calculate ROI for various products

Product Machinery Ideal Cost Final Life of Revenue RoI

Capacity (Lacs) Product Plant (in Mn)
for NE Cost/ Kg
(MT)
Fresh Pineapple Pack 5000 720 35 15 2625 35
House
RTS Beverage/ Processing 100 50 200 10 200 39
Squashes Plant
Canned Canning 3000 650 300 8 7200 110
Pineapple/ Line
Titbits
Candied Pineapple Processing 200 150 350 5 350 22
Plant
Pineapple Juice and 5000 650 250 15 18750 287
Juice Concentrate Aseptic
Line
Freeze Dried Snack NA NA NA NA NA NA NA

Strategy and Action Plan for Pineapples

Fresh/dried pineapples, pineapple squash, canned/prepared/preserved pineapples, and juice

concentrates of 20 brix and >20 brix are the most common types of pineapples exported
internationally. Along with fresh pineapples, there is a substantial demand in the international
markets for canned/preserved pineapples and juice concentrates, as shown in the graph
below, which illustrates both international and Indian trends. However, these products'
exports from India are quite limited, presenting an opportunity for NER.

Moving into canned pineapples and pineapple juice concentrate, which are reasonably
straightforward to make due to high levels of automation in the processing lines and have
large international demand, is an immediate potential in terms of value addition.

1.0X to 2.5X 2.0X to 10.0X >10.0X

Pineapple Juice
Canned Concentrate
Pineapples/Titbits
International Demand

Fresh Pineapples

Candied
Pineapple Pieces

RTS Fruit
Beverage/Squash Snacks/Freeze
es Dried

Value Addition Level

Future or
Current Intermediate Difficult
Opportunity Opportunity Opportunity
Top Five Destination for India Export of Pineapples

Pineapple Products 1 2 3 4 5
Fresh/ Dried pineapples Qatar Maldives Nepal Oman Saudi Arabia
RTS beverages (<20 brix) Netherlands US Germany Malaysia -
Preserved pineapple pieces Netherlands USA Germany Canada Italy
Pineapple Squash* Hungary Saudi Arabia Nepal

Pineapple juice concentrate UAE Netherland Germany US Korea Republic

Start-up Support:

 Birac has come to the North East in a bigger way and they are trying to support some
of the industries.
 Assam state has started with Assam Start-up NEST. PMA here is Indian Institute of
Management Calcutta. They are giving technical support on all fronts to them.
 Ministry of DONER, we have NEDFi who have north east venture fund for startups
and are coming in a big way.
 ICAR has also setup some incubation centres here
 Ministry of DONER with its scheme STINER (Science and Technology Intervention
for NER) is giving thrust to link IITs to support in a bigger way.

Therefore lot of support is coming to strengthen the start-up situation in this part of the
country.

Government Thrust for Organic

 Each state is having a mission director that is specifically working on organic

 MOVCD scheme 75% grant for FPC and organic which is the highest grant among all
the schemes. In other cases, MoFPI is providing 50% grant in aid to industries
 An integrated approach under MOVCD with focus on processing and marketing
 To market the organic produce, in some states anger organic outlets have been setup.
Organic mobile marketing had also started initially in the first two years in different
states.
 There are 6 mega food parks in the country with 3 already functionals under MoFPI
 Agro processing clusters have already come up where 10 acre plot is given. Assam
has already started with 3 Agro processing clusters.
BUSINESS MODEL

Objective:
To decrease the post-harvest losses and improve farmer’s income, we plan to setup solar de-
hydrators at the farm level. Since the primary processing level is low therefore much of the
pineapple which is of high quality gets wasted due to spoilage, a solar dehydrator would not
only help the farmers fetch better prices for their produce but would also lead to lower food
wastage. We will also provide market connect so that we are able to remove the middlemen
and empower the farmers.
Solar drying is the most common method used across India to preserve fruits and vegetables.
Some benefits of it includes:

1. Removal of moisture content thus inhibiting the growth of micro-organisms

2. Helps in improving the transportation due to reduced weight
3. It will help in reducing the price fluctuations as the fruit will be available in glut
season.
4. Dehydrated pineapple finds usage in variety of products
5. Solar dehydration finds economic viability compared to other methods of dehydration
like irradiation and free drying.

About the Business:

We want to increase the processing capacities at the farm level by utilizing solar hybrid
dryers that can bring about an impactful and significant revolution in the Agro food sector.
Dehydrators would be setup at suitable locations in the Northeast with technological support
from NIFTEM, Thanjavur (formerly Indian Institute of Food Processing Technology).

The business is proposed keeping in mind the following aspects:

 To promote the setting up of the Solar Hybrid Dryers at the farmers’ level so that the
surplus produce can be dried and stored.
 The technology being cost effective can be easily purchased by the farmer
 To increase the export of pineapple/pineapple products from North East Region of
India
 To provide an avenue for income generation through dehydration.

Business Approach:
The present project is proposed to enhance capacities of beneficiaries in terms of production
and marketing with the following approach(s):

1. Social Empowerment:
The setting up of these dehydrators in districts where locally available raw material is
present will skill the farmers in terms of knowledge, awareness and necessary skills to
 convert fresh produce into dehydrated form. This will open up huge opportunities for
entrepreneurs and marketeers.
At the community and societal level, this will help the consumers to get basic fruits
i.e. pineapple in different forms and readily available at affordable prices throughout
the year.

2. Economic Empowerment
The setting up of dehydrators at the farm level holds potential for economic
empowerment of not only farmers but the nation as well due to demand for export of
organic pineapples from Northeast region.
 Increase in profitability of value-added dried products by selling them at
appropriate prices through effective marketing linkages and further opening
export opportunities.
 Replicating this model at their own end for creating business opportunity such
as production and sale of value added products
 Providing skills to farmers to provide gainful employment

3. Partnerships and Linkages

Apart from selling dehydrators, we also plan to provide forward linkage to the
farmers by connecting them to businesses who would be identified by us. These
trustworthy businesses would purchase the produce of farmer thereby providing them
better price for their crop. Backward linkage of the business would be the support and
advisory to be provided by the company.

Technology:
The Solar Dryer operates on the greenhouse effect, which traps solar energy inside a closed
container. It is divided into two sections: a collection area where heat is generated by a black
floor, and a drying room where fresh products are stored to dry. The trapped radiation heats
the air in the collector, which is then blown over fresh items using a continual air supply from
the fan. This causes moisture to evaporate, and the moisturized air is then blown out the other
side of the tunnel. The Solar Dryer is a self-sustaining model that does not require any
electricity.

NIFTEM, Thajavur has developed solar dryers for number of products. It is ideally suited for
rural areas. The NIFTEM developed dryer unit has a poly-house made up of polycarbonate
sheet and consists of tray racks for keeping products, it is also equipped with Infra-Red lamps
,hot air blower, solar panel, control unit and exhauster. Inverters and batteries are fixed for
uninterrupted power supply. Modifications in design, construction materials and capacity can
be made in these types of dryers in order to meet the local/specific needs and for improving
drying performance.
Mobile solar hybrid dryer with IR lamps developed by IIFPT
Also, normal purely solar power based dryers can also be manufactured for small farmers
which can cost as low as ₹15000. The price can go up to ₹80,000 depending on the capacity
of the dryer.

The following benefits are provided by the Hybrid Solar Dehydrator:

1. Eco-friendly process of drying the fruits and vegetables

2. Clean energy source thus causing minimum harm to the environment
3. Shorter drying time which reduces the risk of damage and spoilage of the fruit
4. There is no requirement for the use of chemicals and preservatives before the drying
5. Easy to operate and low functional cost
6. Low investment product which can be purchased by the farmer
7. Customizable depending upon the capacity and use case
Business Model Canvas