Fruit export from India

By:Kode Hemanth Kumar(11408220)Harikrishnan.K (11409565 )Erashani Naveen Goud (11408053 )

introductionIndia is the largest producer of fruits in the

world , because India consists of diverse agro-climatic conditions and allows the production of various

tropical (mango,coconut,cashew)subtropical (sugar orange,litchi,dates) temperate (apple,pear,almond) fruits

The annual production is estimated to be nearly million tones and it shares 10% of of word production (it consists of 4% of citrus fruits and 46% of mango)

Fruit production in India , is practiced over of 3.79 MHz It, however ,contributes only 1% to the export earnings from agriculture products

• Grape and mango together constitute 60% of India‘s exports of fresh fruits.

• Citrus, banana, apple and papaya are other important fruits for export.

FRUITS29.70%

VEGETABLES60.76%

AROMATIC PLANTS0.22%

FLOWERS0.64% PLANTATION CROPS

6.36%SPICES2.31%

PRODUCTION SHARE OF HORTICULTURAL CROPS

Lower prices and greater availability of produce year round , with increasing incomes

Other factors such as concern for a healthy diet and improved handling and transportation ,have furthered the globalization of fruit trade

The export market for fresh fruits is highly competitive among the top exporters .

The production and exporting of fruits from India is gradually increases from year to year

Production of major fruit

fruit India world

Banana 13.304 64

Grapes 1.250 68

Mango 12.733 25

Papaya 2.150 5

Pineapple 1.172 17

Others 14.5942 267

total 45.203 446

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

0

10

20

30

40

50

60

70

80

90

43.0 45.2 45.950.9

55.459.6

65.668.5

71.574.9 76.4

FRUITS

FRUITS

(Production in Million Tonnes)

Trends in Fruits Production from 2001-12

• There are two types of exporting • They are:

1. Direct exporting

• Directly export to foreign buyers

2. Indirect exporting

• Do not directly export to foreign buyers

Direct exporting

• The production is directly exports goods on his own, to his foreign buyers.

• Such exporter are known as manufacturer exporter.

• It is usually under taken by large sized manufacturing companies.

• E.g.. The TATA Group, The Aditya Birla Group, etc….

Advantages

• High profit margin.• Intensive use of selected market.• Benefits of government incentives.• No dependence on the middle-men.• Optimum use of production capacity.

Disadvantages

• Higher risk.• Higher investment.• Lack of specialization.• Higher overheads.• Not suitable for small productions.• Absence of specification.

Indirect Exporting

• The production does not directly export to the foreign buyers.

• The production makes use of the middle man.

• Organization generally uses indirect exporting if it’s a small scale business, availability of limited capital and resourced, lack of knowledge.

Advantages

• Limited investment.• Relief from actual exporting.• Benefit of service of middlemen.• Limited business risk.• Specialization.• Less overheads.

Disadvantages

• Non availability of middle-men.• Sales target may not be achieved.• Dependence on middle-men.• Non-benefits of export incentives.• Non-availability of reliable market

information.

Constraints for Exports• Lack of exportable varieties • Lack of post-harvest infrastructure • High cost of obtaining certification

for exports

1. Supply Chain Issues

• Uneconomic scale of operation

• Lack of consistency in supply and quality

• Lack of cost competitiveness

• Inadequate and inappropriate storage and distribution infrastructure

• Lack of technical support for the agro-industrial sector

2. Market Access Issues

• Non-Tariff Barriers

• Import Policy Barriers

• Standards, Testing, Labelling and Certification requirements

• Export Subsidies and Domestic Support

• Government procurement • Short product life cycle

• Lack of brand image

3.Technological Constraints

• Majority of holdings are small and unirrigated

• Unproductive plantations needing replacement

• Low productivity of crops due to inferior genetic stocks and poor management.

• Inadequate supply of quality planting materials of improved varieties

• High incidence of pests and diseases

• Heavy post harvest losses

Proposed Solutions

1. Targeted Products

• – India’s production advantage (in aggregate terms or for specific varieties)

• – Production should shift to demand driven rather than supply driven

• – Current and likely trade volumes in the category, based on underlying demand trends

• – Potential for differentiation• – Comparative cost advantage

2. Improvement of market access

• Market Intelligence • Major importing markets

• Existing tariff structure and non-tariff barriers, and likely changes in the context of WTO(World Trade Organisation )requirements

• Current status of quality standards and food regulations in target markets for imports of defined products.

• Encourage importing countries to set up offices in India for certification of export consignments

• Promote certification of organic farming for different crops

3. Supply chain alignment with international requirements

• Enable direct farmer-importer linkages• Set-up independent world class food

testing and inspection infrastructure• Devise an alternate system of processing

grade products specifications based on internationally accepted norms

• Support private sector initiatives for investing in specialized transport infrastructure

• Encourage investment in infrastructure to improve product quality

4.Integration of Government Schemes

• The Government ,through various ministries and allied agencies, officers support to exporters through various schemes to part-finance specific investment requirements.

• It is essential to align the various offerings of the Governments, to address various requirements of exports to avoid duplication of efforts.

Recommendations

• Integrate all schemes offered for export promotion through various ministries and other agencies

• Strengthen food processing infrastructure in identified agri-export zones

• Encourage food testing laboratories to get accreditation from international agencies

• Promote certification for different crops• Build global brands on the back of India ‘s strength • Promote aggregation of export to meet the

minimum order requirement of importers

• Although India is a leading fruit producer in the world, the fresh fruit export from India is small owing to a number of constraints. These constraints related to production of practices , post harvest technologies ,issues related to supply chain, market access and nontariff restrictions and government policies . the solutions specific to fresh fruit export s from the India have been outlined . Adoption and effective implement of these solutions should lead to realization of vision related to the enhance ment of export in the near future.

References • http://museum.agropolis.fr/english/pages/expos/aliments/fruits _legumes

/prodconso.htm• MOFPI,2005.vision,strategyand action plan for food processing

industries ,government of India ,panchsheel bhawan new Delhi . • Ministry of commerence and industries ,2005 export of agricultural and processed

food products data sheet ,ministry of commerence ad industries ,government of India ,udyoga bhawan , new Delhi

• http://www.unapcaem.org/Activities%20Files/A22/121_Issues.pdf• https://www.google.co.in/search?

q=fruit+export+clipart&es_sm=93&source=lnms&tbm=isch&sa=X&ei=IyAQVar6GYu0uQTzzYGABA&ved=0CAcQ_AUoAQ&biw=1366&bih=657#imgdii=

• www.google.co.in• https://www.google.co.in/search?q=gap+b%2Fw+farmer+and+export&oq=gap+b

%2Fw+farmer+and+export&aqs=chrome..69i57.11806j0j7&sourceid=chrome&es_sm=93&ie=UTF-8 is