ICRIER calls for horticulture export strategy
Friday, 17 August 2007
NEW DELHI, Aug 16 (PTI): India's fledgling horticulture industry will face tough competition from China, Pakistan and Australia if right export strategies are not adopted, warns a policy oriented think tank.
The threat arises from the fact that countries like China have a huge production base, efficient supply chain and better infrastructural facilities, the Indian Council for Research on International Economic Relations (ICRIER) said in a working paper "Can Horticulture be a success story for India?"
"These countries (China, Pakistan and Australia) can give India a tough competition if right export strategies are not adopted," the ICRIER paper said.
India's fruit exports have increased over four-fold during the past four years and value of exports has gone up 10 times.
In value terms, mango and grapes earn the maximum exchange for the country. Potato and onion are the most important vegetables, both in terms of quantity and value of exports.
Maximum number of fruits and vegetables are exported to Bangladesh, while some vegetables such as brinjal have found a market in the UK, Saudi Arabia, the Netherlands and France.
UAE imports 60 per cent of Papaya, sapota, pineapple and pumpkins from India. Other major export markets for horticultural products are Nepal, Singapore and Malaysia.
Making a case for improving export strategies, the paper pointed out that China's horticultural economy has advantages with varied agro-climatic regions and abundance of labour.
The competition from Pakistan and Australia would become intense in commodities like mango, guava, potato and grapes.
Australia is India's competitor in exporting grapes to Bangladesh, while Pakistan in export of guava, mango and potato to the South Asian countries, the report added.
In fruits exports, India is the world's largest producer of banana, mango and guava and second largest in lemon after Mexico. In case of vegetables, the country is the largest producer of peas and ranks two in brinjal, onion, cabbage and couliflower.
The report suggested that India should focus on diversification of horticulture, improving efficiency through post-harvest management and enhancing per hectare productivity.
Horticultural development, it said will also help the country in overall economic growth through generation of foreign exchange and uplift the small and marginal farmers.
Horticultural crop diversification should be encouraged by inter cropping horticultural with non-horticultural crops, for more food, income and better soil health, the report said.
India also needs to strengthen research on horticulture crops and develop demand-driven technology by improved variety, pest management, in both private and public sectors.
"These technologies should be disseminated through government institutions, NGOs and even private participants by encouraging farmers' participation and upgrading their technical capabilities," report added.
The horticulture mission identifies the potential states for identified fruits and vegetables that will enhance the export potential of the country. Andhra Pradesh is targeted to enhance exports of mango, banana, grapes, papaya, guava, brinjal and cabbage. Maharashtra and Karnataka are targeted to raise exports of banana, grapes, papaya, guava and onion.
The mission aims at doubling the production of fruits and vegetables in the country by 2010. It is estimated that the production of fruits and vegetable would increase to 66.9 mt and 131 mt respectively by 2010 and almost double by 2015.
The threat arises from the fact that countries like China have a huge production base, efficient supply chain and better infrastructural facilities, the Indian Council for Research on International Economic Relations (ICRIER) said in a working paper "Can Horticulture be a success story for India?"
"These countries (China, Pakistan and Australia) can give India a tough competition if right export strategies are not adopted," the ICRIER paper said.
India's fruit exports have increased over four-fold during the past four years and value of exports has gone up 10 times.
In value terms, mango and grapes earn the maximum exchange for the country. Potato and onion are the most important vegetables, both in terms of quantity and value of exports.
Maximum number of fruits and vegetables are exported to Bangladesh, while some vegetables such as brinjal have found a market in the UK, Saudi Arabia, the Netherlands and France.
UAE imports 60 per cent of Papaya, sapota, pineapple and pumpkins from India. Other major export markets for horticultural products are Nepal, Singapore and Malaysia.
Making a case for improving export strategies, the paper pointed out that China's horticultural economy has advantages with varied agro-climatic regions and abundance of labour.
The competition from Pakistan and Australia would become intense in commodities like mango, guava, potato and grapes.
Australia is India's competitor in exporting grapes to Bangladesh, while Pakistan in export of guava, mango and potato to the South Asian countries, the report added.
In fruits exports, India is the world's largest producer of banana, mango and guava and second largest in lemon after Mexico. In case of vegetables, the country is the largest producer of peas and ranks two in brinjal, onion, cabbage and couliflower.
The report suggested that India should focus on diversification of horticulture, improving efficiency through post-harvest management and enhancing per hectare productivity.
Horticultural development, it said will also help the country in overall economic growth through generation of foreign exchange and uplift the small and marginal farmers.
Horticultural crop diversification should be encouraged by inter cropping horticultural with non-horticultural crops, for more food, income and better soil health, the report said.
India also needs to strengthen research on horticulture crops and develop demand-driven technology by improved variety, pest management, in both private and public sectors.
"These technologies should be disseminated through government institutions, NGOs and even private participants by encouraging farmers' participation and upgrading their technical capabilities," report added.
The horticulture mission identifies the potential states for identified fruits and vegetables that will enhance the export potential of the country. Andhra Pradesh is targeted to enhance exports of mango, banana, grapes, papaya, guava, brinjal and cabbage. Maharashtra and Karnataka are targeted to raise exports of banana, grapes, papaya, guava and onion.
The mission aims at doubling the production of fruits and vegetables in the country by 2010. It is estimated that the production of fruits and vegetable would increase to 66.9 mt and 131 mt respectively by 2010 and almost double by 2015.