transportation cost of rice from west bengal to delhi

1. UNIVERSITY OF PETROLEUM & ENERGY STUDIES
DEHRADUN
INDIVIDUAL ASSIGNMENT
A Comparison of Transportation Cost of various modes of Transport
for any Food Grain for a specific route
QUANTITATIVE TECHNIQUES
(MBCQ 721)
Submitted to:
Dr. NEERAJ ANAND
Associate Professor & HOD – QT/RM/Operations
CMES
Submitted by :
AYUSH MEHROTRA (R600212011)
ASTHA KHANDELWAL (R600212010)
MBA (LSCM) Sem I

2. A Comparison of Transportation Cost of various modes of Transport for any Food
Grain for a specific route
1. INTRODUCTION
A trade route is a logistical network identified as a series of pathways and stoppages
used for the commercial transport of cargo. Allowing goods to reach distant markets, a
single trade route contains long distance arteries, which may further be connected to
smaller networks of commercial and noncommercial transportation routes.
What we are transporting?
Rice
From KOLKATA to Delhi
2. Rice Production Scenario in West Bengal
West Bengal is the largest producer of rice. Rice occupied almost 53% of the total agricultural
crop areas of the state during and it contributed the same percentage (53%) towards
the total production of all agricultural crops during the same period. In West Bengal, the
area and production under food grains were 63.70 lakh hectare and 160.61 lakh metric
tonnes respectively, out of which percentage share of rice (total) alone was 91 in the
case of area and 93 in production. Rice grows in the state in 3 different seasons viz., Aus
(autumn rice), Aman (winter rice) and Boro (summer rice). The percentage shares of
these three categories of rice during 2007-2008 were 4.92, 68.65 and 26.43 with respect
to area and similarly 3.84, 62.69 and 33.47 in production of total rice respectively.

3. Table 1: Rice cultivation in major rice producing States of India
STATE AREA YIELD
(million hectares) (kg/hectares)
West Bengal 5.78 2509
Uttar Pradesh 5.58 1996
Orissa 4.48 1531
Andhra Pradesh 3.98 2939
Punjab 2.64 3858
Tamil Nadu 2.05 2546
Karnataka 1.49 3868
Haryana 1.05 3051
Source: Government of India
VARIOUS FOOD GRAIN’S SALES IN WEST BENGAL

4. Sales
3%
6%
RICE
6%
4%
FRUITS
VEGETABLES
8%
POTATO
53% FIBRE CROP
OIL SEED
18%
WHEAT
3. IMPORTANT ASSEMBLING MARKETS
The following are the major assembling markets for paddy/rice producing states in the
country.
Despatches from major paddy producing states in India
States Despatches to states apart from local markets
1.Andhra Pradesh : Karnataka, Kerala, Tamil Nadu, Gujarat, Maharashtra, West Bengal
2.Bihar : Uttar Pradesh, West Bengal, Madhya Pradesh, North Eastern States
3.Gujarat : Kerala, Maharashtra
4.Haryana : Assam, Bihar, Delhi, Madhya Pradesh, Maharashtra, Orissa, U. P.
5.Karnataka : Maharashtra, Andhra Pradesh, Tamil Nadu, Kerala
6.Madhya Pradesh: Andhra Pradesh, Maharashtra, Assam, Gujarat, Orissa, West Bengal
7.Maharashtra : Madhya Pradesh, Uttar Pradesh, Gujarat, West Bengal, A. P., Orissa
8.Orissa : West Bengal, Madhya Pradesh
9.Punjab : Assam, Bihar, Delhi, Uttar Pradesh, West Bengal, Madhya Pradesh,
Maharashtra, Rajasthan, Andhra Pradesh
10.Tamil Nadu : Kerala, Karnataka, Gujarat, Pondichary, Orissa
11.Uttar Pradesh : Assam, Delhi, Bihar, Haryana, Uttaranchal, Rajasthan, Maharashtra,
13. West Bengal : Delhi,Bihar, Uttar Pradesh, Orissa, North Eastern States

5. 4. Availability of cheaper and convenient modes of transport
There are different modes of transport used in paddy/rice transportation. Road and rail
transport are normally used for internal markets.
1) Road transportation : Road transport is the most predominant mode of transport used
in the movement of paddy/rice. Road transport is used in right
from the producing fields to the ultimate consumer. The initial
movement of paddy/rice is done on village roads, which are
generally non tarred (Kachha), and mostly tracks wind through
the fields. Over the years, road transport has expanded
phenomenally, due to the development of roads in rural areas,
as well as by the increase of numbers and efficiency of different
types of vehicles i.e. trucks and tractors etc. The following
means of road transport are employed in different parts of the
country to transport paddy/rice.
a) Head load b)Tractor trolley
c) Bullock carts d) Trucks
2) Railways : Railway is one of the most important means of transportation of
paddy/rice. Railway is cheaper than road transport and more suitable for longer distance, as well
as for large quantity of paddy/rice. The rate charged for the transport of paddy/rice depends on
distance, quantity etc. Railway transportation requires more handling cost, as it requires loading
and unloading charges and local transportation cost. However, losses are more in case of
transport by railways.
3) Water transport : This is the oldest and cheapest mode of transportation. This form of
transport is used in case of cities situated on or near the bank of a
river, canal or in coastal parts. The export of paddy/rice is mainly
done by sea transport. This transport system is slow but cheap and
suitable for carrying large quantity. The following means of water
transport are used in paddy/rice transport :
4) River transport : This system is used in some states like Uttar Pradesh, Bihar, Orissa,
Kerala, Tamil Nadu, West Bengal, Assam, etc.
5) Canal transport : Canals are used for paddy/rice transportation to certain extent in
Uttar Pradesh, West Bengal, Bihar, Orissa, Tamil Nadu and Andhra
Pradesh.
6) Sea transport : The coastal trade is in practice mainly in Maharashtra, Orissa, West
Bengal, Tamil Nadu, Kerala and Goa.
5. Selection of mode of transportation

6. For the selection of mode of transportation, following points may be
considered:
1) The mode of transportation should be comparatively cheaper among available alternatives.
2) It should be convenient during loading and unloading of paddy/rice.
3) It should protect paddy/rice during transportation from adverse weather conditions i.e. rain,
floods etc.
4) It should be insured against any accident.
5) It should be safe from pilferage etc.
6) The delivery of paddy/rice to consignee should be made as per specified time schedule.
7) It should be easily available particularly during post harvest period.
8) It should be producer friendly for the payment of transportation.
6. MARKETING CHANNELS
Criteria for selection of channels
There are many marketing channels involved in marketing of paddy/rice. The following
are the criteria for the selection of efficient marketing channels.
1. The channel, which ensures reasonable return to producer, is considered to be good or
efficient.
2. Transportation cost in that channel.
3. Commission charges and market margins received by the intermediaries, such as trader,
commission agent, wholesaler and retailer.
4. Financial resources.
5. The shorter channel with minimum market cost should be selected.
The following are the important marketing channels existing in the
marketing of paddy/rice.

7. 1) Producer ó Miller ó Wholesaler ó Retailer ó Consumer
2) Producer ó Commission Agent ó Miller ó Wholesaler ó Retailer
ó Consumer
3) Producer ó Itinerant Merchant ó Miller ó Wholesaler ó Retailer
óConsumer
4) Producer ó Wholesaler (Paddy) ó Miller ó Wholesaler(Rice) ó Retailer
ó Consumer
5) Producer ó Miller ó Retailer ó Consumer
6) Producer ó Miller ó Consumer.
7) Producer ó Procuring Agency (FCI/State Govt./Co-operatives) ó
Miller (FCI/Co-operatives/Private) ó Distributing Agency (State Govt.)
ó Fair price/Ration shop ó Consumer.
7. TRANSPORTATION FROM KOLKATA TO DELHI
Time taken : 18hrs 12 min
Distance : 1390.5 Km
Route : NH-2
MODES OF TRANSPORTATION OF RICE FROM KOLKATA TO DELHI

8. ROADWAYS
TRUCK TRAILER TRACTOR
(used within
distribution in delhi)
Amount in Kg 90,000 50,000 700
Amount (Rs.) 25,000 80,000 5000-6000
Distance(KM) 1390.5 1390.5 50-100
RAILWAYS
COMMODITY RISK RATE BASE CLASS
FOOD GRAIN (RICE) Railway Risk Rate(RR) 130
For Base Class 130 cost of transportation is Rs. 1326.80/tonne for (1301-1400)KM.
8. Storage facilities
I) Producers’ storage
Producers store paddy/rice in bulk at farm godown or own house using various types of
traditional and improved structures.
II) Rural godowns

9. Considering the importance of rural storage in marketing of agricultural produce, the
Directorate of Marketing and Inspection initiated a Rural Godowns Scheme, in collaboration with
NABARD and NCDC. Its objective is to construct scientific storage godowns with allied facilities in
rural areas and to establish a network of rural godowns in the States and Union Territories.
III) Mandi godowns
Most of the paddy/rice is moved to the market after the harvest. Generally, paddy is
stored both in bulk and in bags in every State, while the rice is kept in bags. Most of the States
and U.Ts. have enacted Both in producing and consuming centers/markets, traders also possess
permanent storage in the form of godowns or warehouses, or on hire basis.
IV) Central Warehousing Corporation ( CWC )
CWC was established during 1957. It is the largest public warehouse operator in the
country. Apart from storage, CWC also offers services in the area of clearing and forwarding,
handling and transportation, distribution, disinfestation, fumigation and other ancillary services
like safety and security, insurance, standardization and documentation.
V) State Warehousing Corporations (SWCs)
Different States have set up their own warehouses in the country. The area of operation
of the State Warehousing Corporations is district places of the State. The total share capital of
the State Warehousing Corporations is contributed equally by the Central Warehousing
Corporation and concerned State Government. The SWCs are under the dual control of the State
Government and the CWC.
VI) Cooperatives
Cooperative storage facilities are provided to the producer at cheaper rates, which
reduces the storage cost. These cooperatives also provide pledge loan against the produce and
storage is more systematic and scientific than traditional storage.
9. Reference
www.agrarianstudies.org
Agarwall Movers and Packers,Dehradun
www.Indianrailway.gov.in