September 03, 2013
The combined annual production of fruit and vegetables in India – currently estimated to be over 227 million tonne (MT) is likely to cross the 377-MT mark by 2021. However, the Associated Chambers of Commerce and Industry (ASSOCHAM) stated that in the absence of on-farm processing facilities, wastage would also rise simultaneously.
“Currently over 77 MT fruit and about 150 MT vegetables are produced in India, and their production is growing at a compound annual growth rate (CAGR) ranging between 5-6 per cent respectively,” a study which was conducted by the apex industry body and titled, 'Horticulture Sector in India: State-level Experience', said.
Given that the expenditure on fruit and vegetables rises with the growth of the economy, the study projected that the demand for them in India is likely to grow exponentially. As projected by the Twelfth Five-year Plan, the economy and the agricultural sector are likely to grow at over eight per cent and about four per cent respectively.
“However, the projected production of fruit and vegetables would only cater to the domestic demand, leaving no scope for growth on the export front,” D S Rawat, ASSOCHAM's secretary general, said while releasing the study.
He added, “Efforts should be made to minimise and remove supply constraints, thereby making the supply chain efficient to reduce wastage.”
“Besides, there is also a need to produce horticultural products for exports, as this can act as an engine for the growth of the agri sector more so, as India accounts for just about one per cent of the total fruit and vegetable exports in the world and majority of the produce gets consumed domestically,” Rawat said.
“Though the quantity of fruit and vegetable exports from India has declined by about six per cent in the past few years, the export value has interestingly increased by over 31 per cent during the same period,” he added.
The export of fresh mangoes, onions and grapes declined by 13-24 per cent. This has impacted the overall decrease in exports quantity-wise.
The United Arab Emirates (UAE), the United States of America (USA), the United Kingdom (UK), Germany, France, Russia, Kuwait, Saudi Arabia, Singapore, Nepal and Bangladesh are among the top export destinations for India’s fruit and vegetables.
ASSOCHAM's study has stressed upon the urgent need to develop a conducive environment for exporters, as they have been facing severe supply constraints like high transportation costs, inadequate infrastructure and technology, which yield huge gaps and logistical costs, thereby hampering India’s competitiveness in the world trade market.
In its study, ASSOCHAM has also highlighted that India incurs post-harvest fruit and vegetable losses worth over Rs 2 lakh crore each year, largely owing to the absence of food processing units, modern cold storage facilities and a callous attitude towards tackling the grave issue of post-harvest losses.
West Bengal leads the pack in this regard with annual post-harvest losses worth over Rs 13,657 crore, followed by Gujarat (Rs 11,400 crore), Bihar (Rs 10,700 crore) and Uttar Pradesh (Rs 10,300 crore).
Decline in the market arrival of fruit and vegetables was another significant issue highlighted in the study, as just about 22 per cent of the fruit and vegetables produced in India reach the wholesale market.
“Developing wholesale markets, together with enhancing the cold storage capacities in local and regional markets, are the key to reduce the post-harvest fruit and vegetable losses and enhancing their market arrival,” the study said.
Bananas, mangoes, citrus fruit, papayas and guavas account for the major share of India's total fruit production, while potatoes, tomatoes, onions, brinjal and tapioca account for the maximum share in the country's total vegetable production.
Source:-www.fnbnews.com
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