Estimation of Market Potential of American Sweet Corn in Gujarat

American Sweet Corn

Executive Summary

A few years back, American Sweet Corn was something that was considered rare and exotic. Now, it is ubiquitous in supermarkets, at roadside vendors, at multiplexes and malls, entertainment zones, and food courts. Despite its huge potential, farmers are not being able to reap the real benefits from American Sweet Corn due to the lack of appropriate market information. In order to have a fair assessment of the market potential of this promising crop in Gujarat, this study was constituted.

The following methodology was adopted for the study: a) exploratory research; b) interaction with experts in Main Maize Research Station, Godhara / farmers in Surat and Vadodara; c) semi-structured interviews with 20 distributors / traders / institutional buyers, and detailed mall intercept of 30 consumers was conducted across Ahmedabad, Surat, and Vadodara.

The findings indicate that Sweet Corn is just a variation of maize. Sweet Corn is commonly consumed as vegetable, rather than grain. The main differences between Sweet Corn and Ordinary Corn are different level of sugar content and uses. American Sweet Corn is mostly used as soup, fresh cobs (boiled and roasted), vegetables etc. across the locations in Gujarat.

The analysis of economics of cultivation of American Sweet Corn in Surat and Vadodara shows that net income for farmer ranges from Rs. 36,967 to 41,127 per hectare. It is estimated that annual production, purchase from outside of Gujarat, and sale are in the range of 7,000- 9,800, 7,500-9,000, and 14,500-18,800 tons respectively. The market of American Sweet Corn has been growing at the rate of 40-60 per cent during last 2-3 years and is expected to grow at the rate of 25 – 30 per cent. The expected market potential of American Sweet Corn for Gujarat would be around 28,320 – 36,719 tons in the year 2008.

The analysis of consumer survey indicates the high fondness for American Sweet Corn among surveyed consumers as almost 70 per cent of them across different locations consume American Sweet Corn more than 5 times in a month and the consumption of more than 90 per cent of respondents has either remained same or increased. According to respondents, taste of American Sweet Corn and their perception of American Sweet Corn as healthy & nutritious food are the main factors influencing their consumption. They also perceive that American Sweet Corn is for everyone instead of being restricted to youth and children.

1 American Sweet Corn

1. Rationale of the study

A few years back, American Sweet Corn was something that was considered rare and exotic. Now, it is ubiquitous in supermarkets, at roadside vendors, at multiplexes and malls, entertainment zones, and food courts. Its demand potential can be gauged from the fact that the special eating outlets for Sweet Corn promoted by Corn Club, Pune; Horticultural Produces Co-operative Marketing Society (HOPCOMS), Bangalore; and Swagat, Baroda have picked up good volumes in India. The Indian market for Sweet Corn is generally centered around Bangalore, Coimbatore, Pune, Surat, Nasik, Ahmedabad, Hyderabad and Delhi. Some of the food processing companies like Vadilal, Adani, Agrotech Foods, HLL etc. have already ventured in the Sweet Corn business. The Sweet Corn market presents a very attractive and profitable proposition for farmers because its fetches higher prices as compared to the Ordinary Corn. Its being called American Sweet Corn has been an added bonus.

Despite its huge potential, farmers are not being able to reap the real benefits from American Sweet Corn due to the lack of appropriate marketing linkages. In order to have a fair assessment of the market potential of this promising crop, this study has been constituted. This study would also facilitate in building formal linkages with food processing companies dealing in processing and marketing of Sweet Corn.

2. Objectives and methodology

The objective of the study was to estimate the market potential of American Sweet corn in Gujarat. Accordingly, the following approach and methodology has been adopted:

Approach a) Studying the market for American Sweet Corn in Gujarat based on its main and alternative uses b) Understanding the distinction among various varieties of Corn c) Identifying the key drivers for consumption of American Sweet Corn in Gujarat markets d) Compiling a list of main distributors/traders/institutional buyers of American Sweet Corn in Gujarat e) Identifying relevant markets of interest and estimating their demand and projecting the future growth rate in the market demand

Methodology

 Exploratory research to take stock of the market and the drivers of demand of American Sweet Corn in Gujarat  Interactions with experts in Main Maize Research Station, Godhara / other persons with relevant knowledge to understand the differences among varieties of American Sweet Corn and other relevant information like economics of production etc.  Semi-structured interviews with 20 distributors/traders/ institutional buyers to estimate market demand and growth (both past and future) in Ahmedabad, Surat, and Vadodara. (Please refer checklist developed for semi-structured interviews in Annexure 1)  Detailed mall intercept of 30 consumers of American Sweet Corn to identify the key drivers for consumption of American Sweet Corn in Ahmedabad, Surat, and Vadodara. (Please refer questionnaire developed for consumer survey in Annexure 2).

3. Key findings from interactions with experts and farmers

3.1 Distinction between Maize (Ordinary Corn), Sweet Corn, Baby Corn, and Pop Corn

Sweet Corn is just a variation to a crop Indians know as maize. Sweet Corn is commonly consumed as vegetable, rather than grain. It is a specialty Corn crop in which the sweet ness is enhanced due to a gene sh-2 (shrunken type) or Su. Its sweetness has made it very popular in India.

The crop cycle, climatic requirements, and cultivation practices are same among all varieties of Corn except Baby Corn. The crop cycle or duration of Baby Corn production is only about 60 days as compared to the 110-120 days duration of the grain crop. Baby Corn is an unfertile cob, implies harvested before the fertilization process takes place in the crop. Baby Corn and Pop Corn can be extracted from any variety of corn with varying yield levels. The main differences between Sweet Corn and Ordinary Corn are following:

. Level of sugar content: The level of sugar content in Sweet Corn and Ordinary Corn is around 15 - 20% and 3 - 5% respectively. The high level of sweetness in Sweet Corn has resulted into lower storability, not exceeding seven days from the date of harvest, as compared to Ordinary Corn.

. Others: Sweet Corn does not have any industrial usage as compared to Ordinary Corn. The extraction of flour and oil from Sweet Corn would be comparatively lesser than that of Ordinary Corn. The seeds of Sweet Corn cannot be used for next crop. Following are some of the available varieties of Sweet Corn seeds.

Important available varieties of seed Company PAC 795 Advanta India Limited Golden queen Syngenta Seed pearl Nunhemps Proagro Two products: Honey Dew and Rare Pearl Mahyco IAHSC IA Madhuri National Seeds Corporation Limited Brightgene Nong Woo Seeds (India) Pvt. limited Source: www.advantageindia.com/english/sweetcorn.htm

3.2 Economics of Sweet Corn cultivation in Surat, and Vadodara

Given below is an estimate of the cost and returns farmers can expect from Sweet Corn cultivation. These figures are bound to vary depending on the variety grown, place of cultivation and the farm management.

Economics of Sweet Corn cultivation: per hectare

Surat: Input Unit Requirement Cost per unit Total cost in Rs. Seed Kgs 9 1,800 16,200 Pesticide Kgs 6.5 470 3,055 DAP Kgs 215 9.2 1,978 Urea Kgs 650 5 3,250 Irrigation 3,900 Labour 1,750 Tractor: for transportation and leveling 2,200 Total Cost (a) 32,333

S. No. Particulars Details 1 Average yield – in kgs 9,500 2 Procurement price from the farmer – (Rs./kg) 7 3 Total income from cobs (1*2) 66,500

4 Income from green fodder 2,800 5 Total income (3+4) (b) 69,300 6 Net income for the farmer / hectare (a-b) Rs.36,967

Vadodara: Item Unit Requirement Cost per unit Total cost in Rs. Seed Kgs 9 1800 16,200 Pesticide Kgs 6.5 470 3,055 DAP Kgs 215 9.5 2,043 Urea Kgs 430 5.2 2,235 Organic manure 2,150 Irrigation Number 2 650 1,300 Labour for sowing, 1,550 weeding, harvesting etc. Land preparation: 1,290 tractor Transportation 650 Total Cost (a) 30,473

S. No. Particulars Details 1 Average yield – in kgs 8,600 2 Procurement price from the farmer – (Rs./kg) 8 3 Total income from cobs (1*2) 68,800 4 Income from green fodder 2,800 5 Total income (3+4) (b) 71,600 6 Net income for the farmer / hectare (a-b) Rs.41,127

3.3 Estimation of annual production in Surat and Vadodara

 Surat: American Sweet Corn is cultivated in Kamrej, Kem, Areth, Jahingirpura, Tarakeshwar and some other areas of Surat District. The total area under cultivation is around 800 bighas (~ 186 hectares). Farmers take three crops in a year in such a way that they can supply American Sweet Corn round the year to their clients. The production per crop of

American Sweet Corn ranges from 5,000 to 7,000 pieces per bigha. Thus, the total annual production of American Sweet Corn in the region ranges from 1,20,00,000 pieces (~ 4,000 tons) to 1,68,00,000 pieces (~ 5,600 tons).

 Vadodara: American Sweet Corn is cultivated in Vagodia, Chani, Bodeli, Sakarda, Maruhar, Rania and some other areas of Vadodara District. The total area under cultivation is around 1,000 bighas (~ 232 hectares). Farmers take only one crop in a year starting from the month of May. The crop cycle or duration of American Sweet Corn production is about 65 - 70 days. The production of American Sweet Corn ranges from 1,600 kgs to 2,200 kgs per bigha. Thus, the total annual production of American Sweet Corn in the region ranges from 16,00,000 kgs (~1,600 tons) to 22,00,000 kgs (~2,200 tons).

3.4 Estimation of annual production in Gujarat

S. No. Particulars Details Minimum Maximum 1 Annual production in Surat (in tons) 4,000 5,600 2 Annual production in Vadodara (in tons) 1,600 2,200 3. Subtotal 5,600 7,800 4. Annual production in rest of Gujarat (in tons) 1,400 2,000 5 Total annual production in Gujarat (in tons) 7,000 9,800

The estimation of annual production of American Sweet Corn in Surat and Vadodara has been given above, while the annual production in rest of Gujarat has been assumed to the tune of

1,400 -2,000 tons. This is assumed because farmers in many parts of Gujarat like Rajkot, etc. have also started cultivating American Sweet Corn in their farms.

4. Key findings from interactions with distributors, traders, and institutional buyers

4.1 Important locations of procurement

 Ahmedabad: Vashi APMC (Mumbai); Surat; and Vadodara  Surat: Directly from the farmers who cultivate in and around Surat; Vashi APMC (Mumbai); and Pune  Vadodara: Directly from the farmers who cultivate in and around Vadodara

4.2 Estimation of annual purchase by Gujarat from Vashi APMC, Mumbai

The telephonic discussion with Mr. Vilas Bhai (9821685244) and Mr. Anand Krishna Solke (9867214988), main traders of Vashi APMC, Mumbai dealing with American Sweet Corn, facilitated in understanding the supply of American Sweet Corn from Vashi APMC, Mumbai to Gujarat Market. The daily supply is in the range of 25 tons to 30 tons that makes an annual supply in Gujarat to the tune of 7,500 tons to 9,000 tons (taking into account of 65 holidays in Vashi APMC (Mumbai)). Ahmedabad, Surat, and Vadodara are the main locations in Gujarat, where they supply most of their American Sweet Corn.

4.3 Some of the main centres of consumption of American Sweet Corn in Ahmedabad, Surat, and Vadodara

 Ahmedabad: Law Garden, Makkai Masti, CG Road, Multiplexes etc.  Surat: Dummas, Lakeview Garden, Kamrej Highway, Varacha etc.  Vadodara: Genda Circle, Chani Village, Swagat Restaurant etc.

4.4 Some of the main uses of American Sweet Corn

 Soup  Fresh cob : Roasted and Boiled (prominent preparations are Lemon Masala, Butter Masala, Green Chutney, Garlic Chutney, Butter Chutney, Cheese Masala, and Cheese Chutney)  Vegetable  Pizza  Others include Corn Chat, Corn Samosa, Corn Sandwich, Corn Puffs, Corn Halwa etc.

4.5 List of main distributors and traders of American Sweet Corn in Ahmedabad, Surat, and Vadodara

Location Distributors and traders Ahmedabad: 1. Mr. Prahlad Bhai (Murlidhar Fruits & Vegetables) , 9327075412 2. Mr. Mitesh Bhai Patel (Shop No. 15, Jamalpura APMC) 3. Mr. Kanti Bhai (Shop No. 27, Jamalpura APMC) 4. Mr. Magan lal Desai (Shop No. 83, Jamalpura APMC), 9825011225 5. Mr. Devang Bhai Joshi, Makai Masti, 9825086202 6. Mr. Ashwin Bhai, Corn Fantasy, 9327019902 (Deals in Bright gene only) 7. Ms. Madhu Bagaria (Dealt in frozen Sweet Corn)

Surat: 1. Mr. Pappu Bhai, Sardar Market, 9825280832 2. Mr. Karsan Bhai, 9825127433 3. Mr. Shailesh Bhai, 9825112031 4. Mr. Dinesh M Ramani, Mast American Sweet Corn, 9825964580

Vadodara: 1. Mr. Akshay Patel, Swagat, 2313536 2. Mr. Vallabh Bhai Das Bhai Patel, (0265) 2772676 3. Mr. Jitu Bhai, Baroda APMC, 9879000577

4.6 Estimation of annual sales in Ahmedabad, Surat, and Vadodara

Ahmedabad:

Name of the respondent Daily average quantity sold (in kgs)

Winter Summer Monsoon Min Max Min Max Min Max Mr. Prahlad Bhai 1,000 2,000 200 500 3,000 4,000 Mr. Mitesh Bhai Patel 500 1,000 700 800 1,000 1,200 Mr. Kanti Bhai 3,000 4,000 2,000 2,000 7000 8,000 Mr. Magan lal Desai 3,000 4,000 1,500 2,000 4,000 6,000 Ms. Madhu Bagaria* 70 70 50 50 70 70 Mr. Ashwin Bhai ** 120 150 75 100 200 250 Mr. Devang Bhai 1,800 2,000 1,000 1,300 1,800 2,000 Total daily average sales 9,490 13,220 5,525 6,750 17,070 21,520 Weighted average daily sales Min 10,695 Adjusted 11,764.5 minimum (with 10%) Max 13,830 13,830 *Figures are only for Frozen Corn ** Figures are only for Bright gene variety of Corn Min: Minimum and Max: Maximum

The above table gives the daily average sale details of various distributors and traders dealing in American Sweet Corn across seasons. Summing up the minimum and maximum daily average sales of all gives a rough estimate of Ahmedabad’s daily average sales range across seasons. Overall minimum and maximum daily average sales of Ahmedabad is calculated by using weighted average method in which equal weights are assigned to all the seasons. Assuming that entire market has not been captured as the interaction was limited to key distributors and traders, and also overall minimum daily average sales is a summation of the minimum sales which are the conservative figures of the individual distributors so the above calculated overall minimum daily average sales is increased by 10 percent. Similar correction is not required for the overall maximum daily average sales as the maximum sales quoted by respondents have fewer chances of occurrences and also all the respondents might not have maximum sales at the same time and so the figure is self corrected to the error.

Name of the Total daily sales in Ahmedabad city Daily weighted average respondent (in kgs) sales Winter Summer Monsoon Min Max Mr. Prahlad Bhai 5,000 5,000 5,000

Mr. Mitesh Bhai Patel 2,000-3,000 4,000-5,000 7,000-8,000 4,333 5,333 Mr. Kanti Bhai 10,000 6000 30000 15,333 15,333 Mr. Magan lal Desai 10,000-12,000 4,000-5,000 12,000-16,000 8,667 11,000 Mr. Devang Bhai 15,000 15,000 15,000 9,667 10,333 Ms. Madhu Bagaria* 200-250 200 250 Mr. Ashwin Bhai ** 1,300-1,800 1,000-1,300 3,000-3,300 1,767 2,133 11,633 12,717 *Figures are only for Frozen Corn ** Figures are only for Bright gene variety of Corn Min: Minimum and Max: Maximum

The above table shows the views of different respondents on probable estimates of total daily sales in Ahmedabad city. The minimum and maximum daily weighted average sales of American Sweet Corn has been computed for each individual distributor by assigning equal weights to all seasons. The above figures of 9,667 kgs and 10,333 kgs are the overall daily weighted average sales of Ahmedabad city barring two distributors’ estimates as these estimates are of specific varieties of corn in which they deal. Therefore, their probable estimates have been added to the above figures to arrive at more probable overall minimum and maximum daily weighted average sales of American Sweet Corn in Ahmedabad city. This almost corroborates the above calculated average daily sales range of around 12,000 to 14,000 kgs. Therefore, the total annual sales in Ahmedabad city would be in the range of 43,80,000 kgs (~ 4,380 tons) to 51,10,000 kgs(~5,110 tons).

Surat:

Name of the respondent Daily average quantity sold (in kgs) Winter Summer Monsoon Min Max Min Max Min Max Mr. Pappu Bhai 5,000 8,000 3,000 4,000 15,000 20,000 Mr. Karsan Bhai 800 1,000 500 800 800 900 Mr. Shailesh Bhai 3,500 3,500 3,500 3,500 3,500 3,500 9,300 12,500 7,000 8,300 19,300 24,400 Weighted average Min 11,867 Adjusted 13,053 minimum (with 10%) Max 15,067 Min: Minimum and Max: Maximum

Name of the respondent Total daily sales in Surat city (in kgs) Daily weighted average sales

Winter Summer Monsoon Min Max

Mr. Pappu Bhai 15,000 8,000-10,000 30,000-35,000 17,667 20,000 Mr. Karsan Bhai 10,000 7,000 8,000 8,333 8,333 Mr. Shailesh Bhai 15,000 15,000 15,000 15,000 15,000 13,667 14,444 Min: Minimum and Max: Maximum

Similarly analyzing both sets of information (individual sales figures of different respondents and their views on overall sales estimates of Surat city), the overall average daily sales of American Sweet Corn in Surat city is estimated in the range of 13,000 kgs to 15,000 kgs. Therefore, the total annual sales would be in the range of 47,45,000 kgs (~ 4,745 tons) to 54,75,000 kgs (~5,475 tons)

Vadodara:

This city is little bit peculiar from other cities as most of the consumption happen during the months of July, August, and September. The retail vendors like lorrywala and others directly purchase American Sweet Corn from the villages where it is grown during the same months. The total annual sale of American Sweet Corn in Vadodara city has been calculated as following:

S. No. Particulars Details 1 Number of retail vendors at Genda circle and Chani highway 250 2 Average daily sales per retail vendor (in kgs) 80-100 3 Number of days 75 4 Total sales (in Kgs) (1*2*3) 15,00,000 – 18,75,000 5 Average daily sales of Swagat restaurant (in kgs) 200-250 6 Number of days 365 7 Total sales of Swagat restaurant (in Kgs) (5*6) 73,000-91,250 8 Total annual sales (in Kgs) (4+7) 15,73,000 – 19,66,250 9 Total annual sales (in tons) 1,573 – 1,966

4.7 Estimation of annual sales in Gujarat

Annual sales Annual (in tons) sales/urbanite (in kg) Location Urban Min Max Min Max population* (a) (b) (c) (b/a) (c/a) Ahmedabad 4,652,035 4,380 5,110 0.94 1.10 Surat 2,995,654 4,745 5,475 1.58 1.83 Vadodara 1,647,317 1,573 1,966 0.95 1.19 Subtotal 9,295,006 10,698 12,551 1.15 1.35 * Source: Census India, 2001 Min: Minimum and Max: Maximum

The above table shows the minimum and maximum annual sales per urbanite for Ahmedabad, Surat, and Vadodara. The same has been computed for the combined urban population of these main consumption centres of Gujarat that is 1.15 kgs and 1.35 kgs respectively.

S. No. Particulars Details 1 Urban population in locations (Ahmedabad, Surat, Vadodara) 9,295,006 2 Minimum annual sales per urbanite for 1 (in kgs) 1.15 3 Maximum annual sales per urbanite for 1 (in kgs) 1.35 4 Urban population in other locations (like Rajkot, Jamnagar, 9,604,371 Dahod etc.) 5 Adjustment factor .33 6 Minimum annual sales per urbanite for 4 (in kgs) (5*2) .38 7 Maximum annual sales per urbanite for 4 (in kgs) (5*3) .45 8 Total minimum annual sales in Gujarat (in tons) 14,348 ((2*1+6*4)/1000) 9 Total maximum annual sales in Gujarat (in tons) 16,873 ((3*1+7*4)/1000)

The urban population of Gujarat state as per Census India 2001 is around 18899377 out of which the share of Ahmedabad, Surat, and Vadodara is around 49 percent. The demand of other locations has been assumed as 33 percent of the demand of combined urban population of Ahmedabad, Surat, and Vadodara. This is assumed because the demand for American Sweet Corn has been picking up in other urban locations as well like Rajkot, Jamnagar etc. However, these three locations (Ahmedabad, Surat, and Vadodara) are the main centres of consumption in Gujarat as compared to other locations.

4.8 Summary of annual production, purchase, and sale of American Sweet Corn in Gujarat

Details S. No. Particulars Minimum Maximum 1 Annual production in Gujarat (in tons) 7,000 9,800 2 Annual purchase from outside of Gujarat (in tons) 7,500 9,000 3 Expected annual sales (in tons) (1+2) 14,500 18,800 4 Estimated annual sales in Gujarat (in tons) 14,348 16,873

The above table shows that annual sales computed by summing annual production and annual purchase from outside of Gujarat almost corroborates with the above estimated annual sales figure of Gujarat.

4.9 Price fluctuation

The average price at which distributors and big traders purchase fresh cobs of American Sweet Corn during different seasons of last year is given below Season Minimum price (Rs./kg) Maximum price (Rs./kg) Winter 5 10 Summer 4 7 Monsoon 5 22 The average price of a kg of fresh kernel is in the range of Rs. 40 – 60 whereas a kg of frozen kernel is in the range of Rs. 32 – 38.

4.10 Estimation of past and expected future growth rate

The discussion with various distributors and big traders across the three cities brings out that the demand for American Sweet Corn had picked up around 2002-03. Besides, the compounded annual growth rate for different distributors and big traders for last 3 years is in the range of 40 to 60 per cent. The different distributors and big traders expect that future growth rate would be in the range of 25 to 30 per cent.

4.11 Estimation of market potential

Expected annual sales (in tons) S. No. Year Min Max 1 2005 14,500 18,800 2 2006* 18,125 23,500 3 2007* 22,656 29,375

4 2008* 28,320 36,719 * Growth rate has been assumed as 25 per cent per annum Min: Minimum and Max: Maximum

The above table shows that the existing annual sale of around 14,500 - 18,800 tons of American Sweet Corn in Gujarat would grow at the rate of 25 per cent per annum. The market potential of American Sweet Corn in Gujarat would be around 28,320 – 36,719 tons in the year 2008.

4.12 Other observations

The consumption of American Sweet Corn varies with holidays and seasons (High during weekends, monsoon, and marriage season). The important concern of retail vendors is that their market share has been declining due to influx of more players although market size has increased in last 2 – 3 years.

5. Key findings from interactions with consumers

5.1 Preferred form of consumption

Form of consumption Location Soup Roasted cob Boiled cob Vegetables Pizza Others Ahmedabad 60% 30% 90% 50% 10% 10% Surat 60% 100% 30% 60% 10% 0% Vadodara 90% 90% 100% 60% 40% 60% Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

The above table indicates the number of respondents across Ahmedabad, Surat, and Vadodara (in percentage) who have consumed different preparations of American Sweet Corn. It is found that the main form of consumption of American Sweet Corn is Boiled Cob, Soup, and Vegetables in Ahmedabad; Roasted Cob, Soup, and Vegetables in Surat; and almost all forms in Vadodara. The other forms include Bhel, Samosa, Patty etc. which are being largely consumed in Vadodara.

5.2 Frequency of consumption

Frequency of consumption Location Once a 2-4 times a 5-8 times a More than 8 month month month times a

month Ahmedabad 10% 30% 40% 20% Surat 10% 20% 10% 60% Vadodara 0% 20% 40% 40% Overall 7% 23% 30% 40% Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

It can be inferred from the above table that almost 70 per cent of the respondents across locations consume American Sweet Corn more than 5 times in a month. This proves the high fondness of American Sweet Corn among the respondents. Here, respondents mean a person who consumes American Sweet Corn.

5.3 Consumption pattern in last 2-3 years

Consumption pattern Location Increase Decrease No change Ahmedabad 30% 10% 60% Surat 30% 0% 70% Vadodara 40% 10% 50% Overall 33.3% 6.7% 60.0% Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

The above table further corroborates the fact of high fondness of American Sweet Corn among respondents as the consumption of more than 90 per cent of respondents have either remained same or increased.

5.4 Main factors influencing the purchase decision

Rank Taste Easy Association Healthy and Price availability with the nutritious word food "American" 1 73% 0% 0% 27% 0% 2 20% 40% 3% 27% 10% 3 3% 37% 7% 27% 27% 4 3% 20% 0% 17% 60% 5 0% 3% 90% 3% 3% Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

Taste and healthy & nutritious food can be considered as two important factors influencing the consumption of American Sweet Corn across Ahmedabad, Surat, and Vadodara. Around 73 and 27 per cent of the respondents ranked Taste and Healthy & Nutritious Food respectively as an important factor. It can be seen from the table that respondents (around 90 per cent) do not consider association with the word “American” as a significant factor influencing their purchase decisions.

5.5 Perception about American Sweet Corn

Responses Perception as Agree Disagree Indifferent Fun food 60% 23% 17% Youth food 30% 53% 17% Healthy food 70% 0% 30% Children's food 20% 47% 33% Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

The above table shows that people perceives American Sweet Corn as a healthy and nutritious food (70 per cent), and fun and party food (60 per cent). They also perceive that everyone can eat American Sweet Corn rather being restricted to youth (53 per cent) and children (47 per cent).

5.6 Main sources of information about American Sweet Corn

Sources of information Location Recommended by Saw in malls/multiplexes/ Others friend/relative entertainment centres etc Ahmedabad 40% 50% 10% Surat 60% 40% 0% Vadodara 40% 20% 40% Overall 46.7% 36.7% 16.7% Source: Consumer survey conducted in Ahmedabad, Surat, and Vadodara

The above table shows that good word of mouth created by friends and relatives and specific centers for the availability of American Sweet Corn like Makai Masti, Law Garden in Ahmedabad; Dummas, Lakeview Garden in Surat; and Swagat in Vadodara are the main sources, which have enhanced the information about American Sweet Corn among respondents. It is also observed that almost all consumers would like to serve American Sweet Corn to their relatives and friends from other states, who are less familiar with it.

6. Recommendation

The existing annual sale of around 14,500 - 18,800 tons of American Sweet Corn in Gujarat with an annual growth rate of around 25-30 per cent per annum presents an attractive and profitable proposition to marginalized farmers who may earn an income of around 36,967 to 41,127 per hectare from the cultivation. The nature of the crop (perishability period of seven days) necessitates that the farmers establish appropriate marketing linkages before they take up the cultivation of Sweet Corn. Therefore, it is recommended that Sajjata Sangh should build formal linkages with food processing companies dealing in processing and marketing of Sweet Corn before their farmers take up the cultivation of Sweet Corn. It is also suggested that the cultivation of Sweet Corn should be done in a phased manner, as this would provide Sajjata Sangh enough exposure and experience to manage operational and other issues efficiently and effectively.

7. List of organizations interested in procuring American Sweet Corn from Sajjata Sangh

1. Mr. Navnit Singh # Agro Tech Foods Limited 31, Sarojini Devi Road, Secunderabad - 500 003, India. Tel : 91-40-2780 1205, 2780 4750, 5533 3444 Fax: 91-40-040-27800947 Email: [email protected] Mobile: 98480 45627

# A set of information has been asked from the representative of Agro Tech Foods Ltd., Hyderabad to explore the possibility of marketing tie-up with them. (Please refer Annexure 3 for set of questions)

2. Mr. Kamlesh Champaneri General Manager (Supply Chain) Vadilal Industries Limited Vadilal House, 53, Shrimali Society, Nr. Navrangpura Railway Crossing, Ahmedabad - 380 009 Tel: 2656 4018 -24 (Ext - 115)

Email: [email protected] [email protected]

3. Mr. Devang Joshi CEO, Makai Masti Panchdhara Plaza, Nr. Ocean Park, Nehrunagar Char Rasta, Satellite Road, Ahmedabad – 380 015 Tel: 26765319 Mobile: 98250 86202

Annexure – 1

1. Checklist for Institutional Buyers (Restaurants, eating joints, retail vendors etc.)

1. What are the different preparations of American sweet corn sold by you? 2. What is your daily consumption of American sweet corn (fresh and processed)? 3. Where do you procure from (fresh and processed)? 4. What is the frequency of purchase and quantum of each order (fresh and processed)? 5. Whether your consumption pattern fluctuates in different seasons? 6. Do you find any change in consumer preferences for the preparations of American sweet corn over the last few years? How? 7. What is your view on the demand of American sweet corn in the coming years?

2. Checklist for Distributors/Traders of American sweet corn?

1. Who are the different buyers of American sweet corn? 2. What is the daily average quantity of processed or fresh American sweet corn you sell? 3. What is your market coverage? 4. What is the percentage break-up of sales in terms of buyers? And what is the growth in various segments? 5. What is your view on the total consumption of American sweet corn in Gujarat? 6. What is the seasonal variation in sales of American sweet corn? 7. In your knowledge, what is the total number of distributors/traders dealing in American sweet corn? 8. Where do you procure from (fresh/processed and domestic/import)? 9. What is the average price at which you procure (fresh/processed and domestic/import)? 10. Any other relevant information.

Annexure – 2

Questionnaire for Consumer survey

1. Name:

2. Sex :

3. Age group:

6-9 10-19 20-39 >40

4. Occupation:

5. In what form and how much do you consume American sweet corn and with what frequency?

Form of Please Amount of Frequency of consumption consumption tick consumption Once a 2-4 5-8 More month times a times a than 8 month month times a month Soup Fresh cob Stew (boiled corn) Vegetables Pizza Any other (please specify)

6. How did you come to know about American sweet corn? a. Recommended by friend/ relative b. Saw in Malls/ Multiplex/ Entertainment Centres etc. c. Advertisement/Bill boards d. Any other (please specify)

7. How your consumption pattern has changed in last 2-3 years a. Increased and by how much % b. Decreased and by how much % c. No change

8. Rank the following factors which influence your purchase decision a. Taste b. Easy availability c. Association with the word “American” d. Healthy and nutritious food e. Price

9. Your perception about American sweet corn is Write “3” for “Agree” Write “2” for “Neither agree nor disagree” Write “1” for “disagree”

a) American sweet corn is a fun food / party food b) American sweet corn is a youth food c) American sweet corn is a health food / nutritious d) American sweet corn is a children’s food

10. Your household monthly expenditure is (Rs.)

<5,000 5,000- 10,000- 15,000- >20,000 10,000 15,000 20,000

11. Would you like to recommend American sweet corn to your friends and relatives?

Yes or No

If yes, then which form of American sweet corn?

Annexure – 3

1. What would be the modus-operandi for the procurement of American Sweet Corn? Please provide specific information on a. Which type of American Sweet Corn do you want to be grown by our farmers? b. What would be the quality requirements? And how quality parameters would be determined? c. What would be the minimum and maximum procurement quantity requirement? d. What would be the frequency of procurement? Would you be interested in procuring seasonal production or require regular supply? e. How crop produce would be procured from different locations across Gujarat? f. How prices would be determined? How transportation cost would be factored in? g. What legal formalities need to be adhered to? h. What kind of other support in terms of seed procurement, crop management practices etc would you provide? 2. What type of processing of American Sweet Corn are you planning to undertake? 3. Where is your processing plant? What factors would decide to set up a processing plant near to farmers? And how much time would it take to set up the processing plant? 4. Any other relevant information