The fruit and vegetable industry in India
BookMyCrop
Nov 10, 2022
The Fruits and Vegetables Industry in India
After China, India is the world's second-largest producer of fruits and vegetables. Because of the country's diverse topography and temperature, fruits and vegetables are available throughout the year. India produced 107.10 million metric tones of fruits and 204.61 million metric tones of vegetables between 2021 and 2022. In 2021–2022, there were 7.09 million hectares of land under cultivation for fruits, compared to 11.28 million hectares for vegetables. Along with banana, papaya, mango, and guava, India also tops the globe in the production of ginger and okra.
Indian fruits and vegetables are now more frequently produced and exported. India exported fresh produce totaling US$1.527.60 million during 2021 and 2022, consisting of US$ 750.7 million in fruits and US$ 767.01 million in vegetables. The UAE, Bangladesh, Pakistan, Saudi Arabia, Sri Lanka, and Nepal are India's primary export destinations. Even though India only accounts for roughly 1% of the world market, its horticultural products are getting more and more well-liked thanks to improvements in cold chain infrastructure, research, modern post-harvest technologies, helpful governmental laws, and quality control methods.
India's production of fruits and vegetables
The Food and Agriculture Organization of the United Nations ranked India as the second-largest producer of fruits and vegetables worldwide. The largest fruit-producing states in India are Andhra Pradesh, Maharashtra, Madhya Pradesh, Uttar Pradesh, Tamil Nadu, Karnataka, and Gujarat. India has a sizable food sector. Uttar Pradesh, Madhya Pradesh, West Bengal, Bihar, Gujarat, Odisha, and Maharashtra are the top vegetable-producing states.
A 3.0% CAGR was used to boost fruit production in India from 97.97 million tones in 2018–19 to 107.10 million tones in 2021–22. In addition, the production of vegetables increased by 3.8% CAGR to 204.61 million tones over this time.
Exports of fruits and vegetables from India
Due to its extensive production base, India has enormous export potential. In 2021–22, it exported fresh product worth Rs. 11,412.50 crore, of which Rs. 5,593 crore was for fruits and Rs. 5,745.54 crore was for vegetables. Exports of processed fruits and vegetables (including pulses) totaled Rs. 12,858.66 crore during this time, of which Rs. 8,308.04 crore and Rs. 4,550.62 crore were spent on processed vegetables (including pulses).
Grapes, pomegranates, mangoes, bananas, and oranges are the main fruits exported, while onions, mixed vegetables, potatoes, tomatoes, and green chilies are the main vegetables exported.
Compared to the same period last year, processed fruits and vegetables showed a significant gain of 51% between April and July 2022, while fresh fruits and vegetables only witnessed an increase of 3.79%, according to preliminary statistics from the Directorate General of Commercial Intelligence and Statistics. Exports of fresh produce reached a total of US$498 million during this time period, and US$517 million over the same months of the current fiscal year. Exports of processed fruits and vegetables increased significantly in the first four months of the current fiscal year, from US$ 441 million to US$ 665 million.
Government Programs to Encourage Fruit and Vegetable Exports
The agricultural and industrial sectors both heavily rely on fruits and vegetables. The government has announced many measures to enhance chances in the fruits and vegetable business and promote exports due to their relevance for the nation's economic development. Below is a list of a few of these reforms:
- The food processing sector is granted 100% Foreign Direct Investment:
In the industry of food processing, the government had authorized 100% FDI via the automated method. The goal was to remove the regulatory barriers limiting investment inflows into the sector and the nation while also making the FDI policy more favorable to investors. - Agriculture Export Policy
In 2018, the Indian government unveiled its agriculture export policy, emphasizing production that is export-oriented, export promotion, increased farmer awareness, and alignment with government policies and programmes. Mobile applications for farmers are valued by the AEP. Giving farmers and Farmer-Produce Organizations a share in the export of their produce has advanced significantly during the implementation of AEP. Direct linking of FPOs/farmers with the export market has increased farmers' earnings and resulted in better farming practises as a result of the requirement to serve international markets. - Farmers' Direct Involvement in Exports:
1.Farmer Connect Portal: A platform for FPOs, Farmer Producer Companies, and cooperatives to interact with exporters has been established on the website of the Agricultural and Processed Food Products Export Development Authority.
2.Systems of traceability: To ensure the quality of exports and position India as a reliable source of high-quality goods, traceability down to the farm level is crucial. To promote simple business flow and guarantee system transparency, numerous digital platforms for traceability have been developed.
HortiNet-Mango:There have been registered more than 38,000 farmers and 66,000 farms.
HortiNet-Vegetables: The method includes 43 veggies. Over 10,000 farmers and 10,000 farms have enrolled as of this writing.
HortiNet-Citrus Fruit: In July 2018, this method was put into place. Numerous farmers and farms have been registered thus far.
Managing Logistics and Transportation Issues:
The Indian Railways has introduced the Kisan Rail service, under which trains are run with multiple commodities (perishables, agricultural products, and seeds), consignors, and consignees, in order to assist farmers and producers transport their agricultural products from rural areas to significant towns and cities. To date, 157 Kisan Rail services have been run by the Indian Railways on 18 routes to transport perishable items like fruits, vegetables, and other consumables.
The Operation Greens initiative of the Ministry of Food Processing Industries offers a 50% subsidy on the Kisan Rail transport of fruits and vegetables.
Outlook
One of the largest in the world and one that has become more well-known in recent years is the food processing industry in India. The availability of resources and supportive governmental policies have greatly aided the industry's growth. The main sub-segment of this market is fruits and vegetables. The government has set a US$23.56 billion export goal for the agricultural and processed food sector for 2022–2023; 40% of this goal has already been met in the first four months of this year. India's fruits and vegetables have mainly been exported to South Asian and Middle Eastern nations. However, it has a great deal of potential to grow its market share in the foreseeable future.
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