(RPF III)

(PROFORMA FOR SUBMISSION OF FINAL REPORT OF RESEARCH PROJECTS)

Part - I : General Information
800

Project Code

8001 Institute Project Code No.

:70

8002 ICAR Project Code No.

801

Name of the Institute and Division :

8011 Name & Address of the Institute

: NAARM

8012 Name of the Division/Section

:Research System Management

8013 Location of the Project

: NAARM, Hyderabad

802

Project Title :

Export Performance and Potential of Fruits and Vegetables of India in Asian Countries:
Issues, Priorities and Policy concerns.
803

Priority Area :

2031 Research Approach: AppliedRes./ BasicRes./ Process Dev/ Tech. transfer

01
02
03
04
804

Specific Area

:Exports

805

Duration of the Project :

8051 Date of Start of the Project

: July 2012

8052 Date of Completion

:September 2014

806

Total Cost/Expenditure Incurred

(Give reasons for variation, if any, from the original estimated cost)

807

Executive Summary :

The export of fruits and vegetables from India is slowly gaining pace. This has been
possible because of improvement in overall production, diversified crop portfolio,
1|Page

Export Performance and Potential of Fruits and Vegetables

improvement in infrastructure and year round supply. As a result, large volumes of fruits
and vegetables move from one continent to another, reducing seasonality of produce
markets. Also multiple, regional and bilateral trade agreements and reduction of tariff
barriers as a result of WTO negotiations in Asian regions, have further boosted the trade
and access to markets, thus providing consumers in emerging markets of Asia with an
expanding array of fruits and vegetables from India.
208

Key Words: Export Potential, Fruits and Vegetables, Asian Countries

Part - II Investigator Profile

810
8101
8102
8103
8104
8105
811
8111
8112
8113
8114
8115
812
8121
8122
8123
8124
8125
813
8131
8132
8133
8134
8135

Principal Investigator :
Name
:Late Dr. D Babu (till October 2013)
Designation
: Scientist
Division/Section
:RSM
Location
: NAARM
Institute Address
: NAARM, Hyderabad
Co-investigator :
Name
: Dr. K. Srinivas
Designation
:Principal Scientist
Division/Section
:RSM
Location
: NAARM
Institute Address
: NAARM, Hyderabad
Co-investigator :
Name
: Dr. Ranjit Kumar (On Deputation)
Designation
: Senior Scientist
Division/Section
: ABM
Location
: NAARM
Institute Address
: NAARM, Hyderabad
Co-investigator :
Name
: Dr. P.C. Meena
Designation
: Senior Scientist
Division/Section
: ABM
Location
: NAARM
Institute Address
: NAARM, Hyderabad

2|Page

Export Performance and Potential of Fruits and Vegetables

Part - III : Technical Details

820

Introduction and objectives :

India is the second largest producer of the fruits and vegetables in the World after China. She
produces nearly 15 percent and 11 percent of the worlds fruits and vegetables and its
production costs are less than half when compared with other parts of the world. Despite all
these advantages, its share in global trade in fruits and vegetables are only 0.5 percent and 1.7
percent respectively (World Bank, 2007).
The direction of India's exports is oriented towards Asian region. Asian region
accounted for about 75% of India's total fruits and vegetables exports in 2003-04. Export
Import Bank of Indias (EXIM Bank) latest study observed that export potential of fresh fruits
and vegetables in India is not fully tapped considering the size and diversity of these sectors
(EXIM Bank, 2003).
8201 Project Objectives :
1. To examine the trends in export of fruits and vegetables of India to Asian countries
2. To estimate the import demand elasticity and relative price elasticity of Indian fruits
and vegetables exports to major Asian destinations
3. To assess the export competitiveness of Indian fruits and vegetables in a global
framework
4. To forecast the export potential of fruits and vegetables of India in Asian countries
5. To suggest policy measures to enhance the export of fruits and vegetables from India
to Asian countries
8202 Background Information and Importance of the Project :
Atteri et al. (1994) studied the scope of exports of horticultural commodities namely
fruits, vegetables and flowers in the light of economic liberalization. The share of horticultural
exports in total agricultural exports rose steadily from 2.33 per cent in 1976-77 to 4 per cent
in 1990-91.The pace of its rise was remarkable after liberalization when its share increased to
11 per cent in 1992-93.
Negi et al. (1994) analysed the status and potential for Indias horticultural exports
with special references to fruits and vegetables. Compound growth rates were worked out
from data collected for the period 1976-77 to 1990-91.Horticultural exports increased at a
compound growth rate of 14.80 per cent per annum during the period.Growth analysis of
export earnings of different fruit and vegetable crops revealed a prominent place for grapes,
banana, mango and apples.
3|Page

Export Performance and Potential of Fruits and Vegetables

821

Project Technical Profile :

8211 Technical Programme :

(Indicate briefly plan of procedure, techniques, instruments
organisms, special environments, etc.)

and special materials,

The data will be collected for the period between 1995-2010 from various secondary sources
like UNCOMTRADE (Commodity Trade Statistics Database) of United Nations, World Trade
Atlas, DGFT (Directorate General of Foreign Trade), DGCIS (Directorate General of
Commercial Intelligence and service), CMIE(Centre for Monitoring Indian Economy) etc.
Various analyses like export trends, Coefficient of variation, Instability Index, import demand
elasticity, relative price elasticity, Nominal Protection Co-efficient (NPC),Relative Comparative
Advantage (RCA) and Net barter terms of trade will be carried out to fulfil the objectives.
Export potential of fruits and vegetables for the year 2020 will be forecasted.

8212 Total Man-months Involvement of Component Project Workers :

Scientific:
822

8 man months per year

Final Report on the Project :

Detailed report containing all relevant data with a summary

of results

Objective 1:
To examine the trends in export of fruits and vegetables of India to Asian countries
It is observed that there is a almost one and half time increase in aera under fruits in India
during 2001-02 due to impetus by the Union Government though National Horticulture
Mission. The compound growth observed during this period for area was 5.27 (Table 1).
Similarly the production has also increase from 43000 thousand MT to 81285 thousand MT
during this period with a growth rate of 5.91 per cent per annum during this period. This
signifies the importance given by the government to this sector. However, the low level
technology infusion the productivity grew slowly at the rate of only 0.64 per cent fro 10.8
MT/Ha to only 11.6 MT/ha).
Table 1: All India Area, Production and Productivity of total fruits
Year
Area
Production
Productivity
(000HA)
(000MT)
(MT/HA)
2001-02
4010
43001
10.7
2002-03
3788
45203
11.9
2003-04
4661
45942
9.9
2004-05
5049
50867
10.1
4|Page

Export Performance and Potential of Fruits and Vegetables

2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
CAGR, %

5324
5554
5857
6101
6329
6383
6704
6982
5.27

55356
59563
65587
68466
71516
74878
76424
81285
5.92

10.4
10.7
11.2
11.2
11.3
11.7
11.4
11.6
0.64

In vegetables also increase in area, production and productivity has shown and growth rate
of 3.86, 5.84 and 1.91 respectively (Table 2) It is the largest producer of Okra (75%) and
2nd largest producer of Cauliflower & Brocli (34%), Binjal (27%), Cabbage (12%), Potato
(11%), Onion (20%), Tomato (12%).
Table 2: All India Area, Production and Productivity of total vegetables
Year
Area
Production
Productivity
(000HA)
(000MT)
(MT/HA)
2001-02
6156
88622
14.4
2002-03
6092
84815
13.9
2003-04
6082
88334
14.5
2004-05
6744
101246
15.0
2005-06
7213
111399
15.4
2006-07
7581
114993
15.2
2007-08
7848
128449
16.4
2008-09
7981
129077
16.2
2009-10
7985
133738
16.7
2010-11
8495
146555
17.3
2011-12
8990
156325
17.4
2012-13
9205
162187
17.6
CAGR, %
3.86
5.84
1.91

India is the 2nd largest producer of the Fruits and fresh vegetables in the world, producing
about 10% of global production. Figure 1 and 2 presents top 10 fruit and vegetable
producing countries in world. Despite this the exports of F&V have not picked up as
expected due to the huge local demand for F& V in India.

5|Page

Export Performance and Potential of Fruits and Vegetables

Figure
1 : Top 10 fruit producing countries

Figure 2 : Top 10 vegetable producing countries

6|Page

Export Performance and Potential of Fruits and Vegetables

Growth rate as mentioned earlier is not uniform in different periods in fruits and
vegetables in India. During 2003-2007 i.e. first phase of NHM the growth was impressive
(Fig 3) in both fruits and vegetables and during second phase i.e. 2008-2012 there was a
slack observed in both frits and vegetable area. However the production and productivity
growth were fairly well during this period

F
igure 2: Growth rates of F&V in different periods
The export scenario of fruits and vegetables are presented in table 3. Both are exported as
fresh and processed. The growth rate was observed during three periods i.e. pre NHM
1997-98 to 2001-02, NHM-I 2002-03 to 2006-07 and NHM 3 2007-08 to 2012-13. The
rate of growth were comparatively less in period I, which gradually increased in period II
and period II
Table 3: Commodity composition of Indias Fruit and Vegetable Exports
(In USD million)
Year
Fresh
Fresh
Processed
Processed
Total fruits
Fruits
Vegetables
fruits and
vegetables
and
juices
vegetables
1997-98
74.58
84.31
73.51
31.39
263.79
1998-99
63.29
65.12
69.12
39.75
237.28
1999-00
71.03
77.51
86.23
42.68
277.45
2000-01
84.71
100.18
122.09
50.04
357.02
2001-02
87.73
120.97
107.79
41.81
358.3
7|Page

Export Performance and Potential of Fruits and Vegetables

CAGR
2002-03
2003-04
2004-05
2005-06
2006-07
CAGR
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
CAGR

4.14

9.45

10.04

7.43

7.96

92.61
170.74
191.83
253.09
312.27
35.51
359.49
423.62
478.51
477.10
527.74
559.40
10.07

133.08
207.74
191.99
207.73
341.55
26.57
367.27
534.44
620.36
558.67
602.82
638.99
13.19

118.87
74.84
82.13
135.48
157.11
7.22
192.20
239.36
244.48
228.47
345.94
366.70
15.83

53.15
63.40
80.64
111.67
143.60
28.21
149.65
154.88
158.65
167.65
220.31
233.53
10.15

397.71
516.72
546.59
707.97
954.53
24.47
1068.61
1352.3
1502.0
1431.89
1696.81
1798.62
12.25

Major vegetable export destination for India is Asian countries as countries depicted in
table 4 which signifies that Indian exports are not much preferred in other continets.
Table 4: Export Scenario of Indian vegetables
Year
Per cent
Quantity Exported to
Quantity
Share of
Asia
Exported to World export to Asia
(Tonnes)
(Tonnes)
w.r.t world
1997-98
496.00
634.33
78.19
1998-99
340.73
426.55
79.88
1999-00
487.67
613.01
79.55
2000-01
585.21
765.81
76.42
2001-02
675.03
822.68
82.05
CAGR
8.01
6.72
--2002-03
802.27
991.89
80.88
2003-04
1116.84
1268.29
88.06
2004-05
1250.42
1410.37
88.66
2005-06
1480.66
1766.50
83.82
2006-07
1798.45
2030.75
88.56
CAGR
22.36
19.62
--2007-08
1441.25
1657.41
86.96
2008-09
2220.20
2463.21
90.13
2009-10
2112.16
2323.40
90.91
2010-11
1756.82
1999.20
87.88
2011-12
2065.03
2357.23
87.60
2012-13
2230.23
2545.81
87.61
8|Page
Export Performance and Potential of Fruits and Vegetables

CAGR
9.41
9.21
--Due to the vegetable export to the Asian countries, the value realized is also less from
these countries (Table 5).
Table 5: Export Scenario of Indian vegetables (Value terms)
Year
Value of vegetables
Value of vegetables
exported to Asia
exported to World
(USD million)
(USD million)
1997-98
125.71
215.43
1998-99
99.47
157.99
1999-00
136.41
217.38
2000-01
154.94
264.99
2001-02
153.75
235.92
CAGR
5.16
2.30
2002-03
2003-04
2004-05
2005-06
2006-07
CAGR
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
CAGR

160.41
246.61
286.66
394.54
452.18
29.57
446.57
586.49
671.02
679.14
703.89
781.32
12.05

253.63
328.61
383.82
567.87
623.96
25.24
626.71
767.93
848.85
897.56
1008.38
1099.13
12.63

Per cent
Share
58.35
62.96
62.75
58.47
65.17
--63.25
75.05
74.69
69.48
72.47
--71.26
76.37
79.05
75.67
69.80
71.08
---

Exports of fruits also has the same explanation as vegetables where the majority of fruits
are exported to Asian counties (Table 6) but the value realized from these counties is very
less (Table 7)
Table 6: Export Scenario of Indian fruits (Quantity terms)
Year
Quantity Exported to
Quantity
Asia
Exported to World
(Tonnes)
(Tonnes)
1997-98
164.93
278.23
1998-99
142.56
239.45
1999-00
184.95
316.76
2000-01
187.52
309.42
2001-02
241.91
373.61
9|Page

Per cent
Share
59.28
59.54
58.39
60.60
64.75

Export Performance and Potential of Fruits and Vegetables

CAGR
2002-03
2003-04
2004-05
2005-06
2006-07
CAGR
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
CAGR

10.05
256.97
329.26
327.30
403.71
442.11
14.53
466.68
602.67
615.35
570.04
629.80
680.18
7.78

7.65
426
475.24
488.79
591.1
664.69
11.76
681.92
825.6
840.47
773.4
845.25
879.06
5.51

Table 7: Export Scenario of Indian fruits (Value terms)

Year
Value of fruits
Value of fruits
exported to Asia
exported to World
(USD million)
(USD million)
1997-98
141.2
494.89
1998-99
143.59
491.32
1999-00
171.4
719.24
2000-01
173.73
599.27
2001-02
149.28
521.12
CAGR
1.40
1.30
2002-03
169.47
588.6
2003-04
185.69
554.21
2004-05
227.51
757.6
2005-06
289.22
850.04
2006-07
317.3
881.05
CAGR
16.98
10.61
2007-08
375.07
928.97
2008-09
482.39
1087.47
2009-10
536.53
1096.62
2010-11
540.65
1137.68
2011-12
739.35
1516.21
2012-13
857.65
1728.48
CAGR
18.49
13.03

10 | P a g e

--60.32
69.28
66.96
68.30
66.51
--68.44
73.00
73.21
73.71
74.51
77.38
---

Per cent
Share
28.53
29.23
23.83
28.99
28.65
--28.79
33.51
30.03
34.02
36.01
--40.37
44.36
48.93
47.52
48.76
49.62
---

Export Performance and Potential of Fruits and Vegetables

The stability of exports in quantitative terms have improved over time, that means the
consistency of Indian exports of fruits and vegetables are increasing consistently without
much fluctuation (Table 8).
Table 8: Growth and Instability of Indian Fruits and Vegetables
Commodities Compound Annual Growth Rate
Coefficient of Variation
(Per cent)
1997-02 2002-07 2007-12
1997-02
2002-07 2007-12
Vegetables
8.01
22.36
9.41
24.08
29.12
16.56
(Tonnes)
Fruits
(Tonnes)
Vegetables
(USD million)
Fruits
(USD million)

10.05

14.53

7.78

20.01

20.57

11.35

5.16

29.57

12.05

17.07

37.81

17.05

1.40

16.98

18.49

9.99

26.97

24.76

Direction of exports
Fresh fruits are mainly exported to Asian countries in which UAE, Bangladesh with export
of about 17% each (table 9 and figure 4) tops the list, followed by Saudi Arabia (10%).
Other countries where fresh fruits are exported in less than 3% of value are Pakistan,
Nepal, Kuwait, Yemen, Thailand, Japan and Oman.
Table 9: Direction of Indias exports: Fresh fruits (In USD million)
S.No. Countries
2007-08
2008-09
2009-10
2010-11
1.
UAE
55.92
81.83
92.84
87.86
(15.55)
(19.31)
(19.40)
(18.41)
2.
Bangladesh
32.64
45.26
39.52
44.90
(9.07)
(10.68)
(8.25)
(9.41)
3.
Saudi Arabia
40.03
57.61
66.37
62.12
(11.13)
(13.59)
(13.86)
(13.02)
4.
Pakistan
0.33
0.28
1.45
4.99
(0.09)
(0.06)
(0.30)
(1.04)
5.
Nepal
11.35
11.71
9.83
10.59
(3.15)
(2.76)
(2.05)
(2.21)
6.
Kuwait
8.11
10.46
16.54
13.49
(2.25)
(2.46)
(3.45)
(2.82)
7.
Yemen
11.20
12.17
14.75
13.67
(3.11)
(2.87)
(3.08)
(2.86)
11 | P a g e

2011-12
89.64
(16.98)
88.77
(16.82)
54.23
(10.27)
17.27
(3.27)
15.21
(2.88)
13.52
(2.56)
10.76
(2.03)

Export Performance and Potential of Fruits and Vegetables

8.

Thailand

9.

Japan

10.

Oman

Top ten Asian countries

total

0.29
(0.08)
9.42
(2.62)
2.16
(0.60)

0.60
(0.14)
8.68
(2.04)
4.27
(1.00)

2.57
(0.53)
4.65
(0.97)
4.57
(0.95)

171.45
232.87
253.09
(46.23)
(56.66)
(52.84)
Other Countries
188.04
190.75
225.42
(53.77)
(43.34)
(47.16)
Total world exports
359.49
423.62
478.51
(100.00)
(100.00)
(100.00)
Figures within parentheses are the share in total world export

3.67
(0.76)
6.94
(1.45)
4.34
(0.90)

6.52
(1.23)
6.37
(1.20)
4.41
(0.83)

252.57
(52.88)
224.53
(47.12)
477.10
(100.00)

306.7
(59.49)
221.04
(40.51)
527.74
(100.00)

Direction of processed fruits and juices also exported to UAE with 10% share in total
export, whereas rest of the Asian countries where processed fruits and juices exported are
Iran, Japan, Kuwait, Philippines and Bangladesh (Table 10 and figure 5).
Table 10: Direction of Indias exports: Processed fruits and juices (USD million)
S.No. Countries
2007-08
2008-09
2009-10
2010-11
2011-12
1.
Saudi Arabia
15.82
15.06
15.65
18.45
36.65
(8.22)
(6.29)
(6.40)
(8.07)
(10.59)
2.
UAE
9.07
9.05
7.69
7.81
18.05
(4.71)
(3.78)
(3.14)
(3.42)
(5.21)
3.
Iran
2.72
4.07
5.59
9.98
10.35
(1.41)
(1.70)
(2.28)
(4.36)
(2.99)
4.
Japan
5.39
4.19
2.64
2.40
6.47
(2.80)
(1.75)
(1.08)
(1.05)
(1.86)
5.
Kuwait
1.82
1.74
2.08
1.90
4.25
(0.94)
(0.72)
(0.84)
(0.83)
(1.22)
6.
Philippines
0.26
0.17
0.82
2.83
3.37
(0.13)
(0.07)
(0.33)
(1.23)
(0.97)
7.
Bangladesh
0.39
1.61
1.66
1.00
2.72
(0.20)
(0.67)
(0.67)
(0.43)
(0.78)
Top seven Asian
35.47
35.89
36.13
44.37
81.86
countries total
(18.41)
(14.98)
(14.74)
(19.39)
(23.62)
Other Countries
156.73
203.47
208.35
184.1
264.08
(81.59)
(85.02)
(85.26)
(80.61)
(76.38)
Total world exports
192.2
239.36
244.48
228.47
345.94
(100.00)
(100.00)
(100.00)
(100.00)
(100.00)
Figures within parentheses are the share in total world export
12 | P a g e

Export Performance and Potential of Fruits and Vegetables

Figure 4: Exports of Fresh Fruits:

US$ 527
million

Figure 5: Exports of Processed fruits & juices

US$ 346
million

13 | P a g e

Export Performance and Potential of Fruits and Vegetables

Main export competitor for some of the major Indian fruits are Thailand, for Mango having
advantage of price; quality, and tariffs; Spain and Iran for Pomegranate having advantage of
price; Thailand and China in Litchi, Philippines and Thailand for Pineapple and Philippines
for Banana (Table11). Most of the countries have the advantage of price that means they
have better efficient cost reducing technology (mostly mechanization) in production of
fruits.
Table 11: Competitors in Asia for exports of fruits
Products

Major competitors

Criteria

Mango

Thailand

Price & Quality, Import duty, Free from

Fruit fly (VHT)

Pomegranate

Spain, Iran

Price

Litchi

Thailand, China

Time (can be advanced from NE & later

from Punjab)

Pineapple

Philippines, Thailand

Supply chain cost

Banana

Philippines

Price

Fresh vegetables exports are again were realized in Asian countries. Pakistan on top of list
with about 17 per cent of the fresh vegetables being exported, followed by Malaysia,
Bangladesh, UAE, Sri Lanka, Nepal, Saudi Arebia, Indonesia, Qatar and Kuwait (Table 12 Fig
6)
Table 12: Direction of Indias exports: Fresh vegetables (In USD million)
S.No. Countries
2007-08 2008-09 2009-10 2010-11 2011-12
1.
Pakistan
32.08
69.60
38.61
12.82
102.55
(8.73)
(13.02)
(6.22)
(2.29)
(17.01)
2.
Malaysia
51.41
69.90
87.63
111.32
93.77
(13.99)
(13.07)
(14.12)
(19.92)
(15.55)
3.
Bangladesh
105.12
162.52
243.81
130.14
88.13
(28.62)
(30.40)
(39.30)
(23.29)
(14.61)
4.
UAE
55.26
69.26
61.57
77.43
75.33
(15.04)
(12.95)
(9.92)
(13.85)
(12.49)
5.
Sri Lanka
28.32
41.36
44.38
54.48
47.47
(7.71)
(7.73)
(7.15)
(9.75)
(7.87)
6.
Nepal
14.09
13.87
19.88
22.20
25.65
14 | P a g e

Export Performance and Potential of Fruits and Vegetables

(3.83)
9.41
(2.56)
2.41
(0.65)
5.57
(1.51)
6.12
(1.66)

(2.59)
12.91
(2.41)
2.98
(0.55)
9.54
(1.78)
9.88
(1.84)

(3.20)
15.90
(2.56)
2.86
(0.46)
11.56
(1.86)
9.32
(1.50)

(3.97)
17.10
(3.06)
20.77
(3.71)
12.28
(2.19)
11.74
(2.10)

(4.25)
20.65
(3.42)
18.24
(3.02)
14.98
(2.48)
11.52
(1.91)

309.79
(84.30)

461.82
(86.34)

535.52
(86.29)

470.28
(84.13)

498.29
(82.61)

57.48
72.62
84.84
88.39
(15.70)
(13.66)
(13.71)
(15.87)
Total world exports
367.27
534.44
620.36
558.67
(100.00) (100.00) (100.00) (100.00)
Figures within parentheses are the share in total world export

104.53
(17.39)
602.82
(100.00)

7.

Saudi Arabia

8.

Indonesia

9.

Qatar

10.

Kuwait

Top ten Asian countries

total
Other Countries

Share of processed potatoes were very less and mostly exported to UAE, Nepal, Bangladesh
and Saudi Arabia in Asia (Table 13, Fig 7)
Table 13: Direction of Indias exports: Processed vegetables (USD million)
S.No. Countries
2007-08
2008-09
2009-10
2010-11
2011-12
1.
UAE
3.46
3.07
3.3
3.91
6.02
(2.31)
(1.97)
(2.08)
(2.32)
(2.73)
2.
Nepal
0.44
1.00
0.95
2.44
3.98
(0.29)
(0.64)
(0.60)
(1.45)
(1.80)
3.
Bangladesh
11.47
0.71
0.17
0.74
2.68
(7.66)
(0.45)
(0.10)
(0.44)
(1.21)
4.
Saudi Arabia
1.63
0.96
2.24
2.74
2.38
(1.08)
(0.62)
(1.41)
(1.63)
(1.07)
Top four Asian
17
5.74
6.66
9.83
15.06
countries total
(11.34)
(3.68)
(4.19)
(7.24)
(6.81)
Other Countries

132.65
149.14
151.99
(88.66)
(96.32)
(95.81)
Total world exports
149.65
154.88
158.65
(100.00)
(100.00)
(100.00)
Figures within parentheses are the share in total world export

15 | P a g e

157.82
(92.76)
167.65
(100.00)

205.25
(93.19)
220.31
(100.00)

Export Performance and Potential of Fruits and Vegetables

Figure 6: Exports of Fresh Vegetables

US$ 603
million

Figure 7: Exports of Processed vegetables

US$
220

Jordan and Syria are main competitor for tomato and Jordan for Chillies as the markets are
same, i.e. Gulf Countries (Table 14). China, Eygpt, Turkey are the main competitors for
Onion and China, Ethiopia and Nigeria for Ginger crop due to price advantage.
16 | P a g e

Export Performance and Potential of Fruits and Vegetables

Table 14: Competitors in Asia for exports of vegetables

Products

Major competitors

Criteria

Tomato

Jordan, Syria

Same market (Gulf countries),

Trade partners

Green Chillies

Jordan

Same market (Gulf countries)

Onion

China, Egypt, Turkey

Price

Ginger

China, Ethiopia, Nigeria

Price

Objective 2:
To estimate the import demand elasticity and relative price elasticity of Indian fruits
and vegetables exports to major Asian destinations
Due to lack of data as envisaged the exact elasticities for import demand could not be
computed. However as the proxy of this demand for fruits and vegetables the income
demand has been worked out using standard QUAIDS model for different sections of
people. Price elasticity as mentioned was worked out using FCDS model (Kumar et all,
2011). Table 15 provides these estimates.
Table 15: Demand elasticities due to income and price
Sr Item
Income Group
No
Very poor Moderately Non-Poor Non Poor
poor
Lower
Upper
Income elasticities
1
Fruits and
0.759
0.785
0811
0.839
vegetables
Uncompensated own price elasticities
2
Fruits and
-0.893
-0.901
-0.908
-0.928
vegetables
Based on FCDS model
4
Fruits
0.753
0.599
0.492
0.282
5
Vegetable
0.693
0.518
0.370
0.174

17 | P a g e

All

0.817

-0.917

0.362
0.259

Export Performance and Potential of Fruits and Vegetables

Objective 3:
To assess the export competitiveness of Indian fruits and vegetables in a global
frame work
Competitiveness of Indian fruits and vegetables were assessed by using the indicator called
Revealed Comparative advantage. This indicator basically takes into account both in
physical and financial aspects of exports from the country of origin and world trade
volumes.
Table 16 deals with the Banana exports advantage. Really speaking there is no real
advantage of Banana exports from India as the RCA is very less in this case in almost all the
years under study the demand for Banana in India is high therefore the domestic prices are
also high.
Table 16: Estimates of Revealed Comparative Advantage (RCA) in Banana Exports
Particulars
2006
2007
2008
2009
2010
2011
4.6
5.0
10.7
21.7
25.1
17.2
Indias export of
Banana
(US$ billion)
Worlds total
export of Banana

6266.0

7093.9

7936.0

8139.2

8326.9

9141.9

855.4

873.5

1133.2

1035.4

1088.7

1449.0

53038.9

61690.7

70774.4

67295.0

76007.6

86490.6

0.05

0.05

0.08

0.17

0.21

0.11

(US$ billion)
Indias export of
edible fruits&nuts
to the world
(US$ billion)
Worlds total
export of edible
fruits&nuts
(US$ billion)
RCA

Table 17 deals with the Mango export advantage. Indian Mangoes are very famous in
world and the advantage of exporting mangoes to world market is distinctly visible. The
RCA more than 1 means the country is really taking the advantage of exporting the
commodity. In this case it is mango, which showed a consistent revealed comparative
advantage more than 1.
18 | P a g e

Export Performance and Potential of Fruits and Vegetables

Table 17: Estimates of Revealed Comparative Advantage (RCA) in Mango Exports

Particulars

2006

2007

2008

2009

2010

2011

Indias export of
Mango

31.3

29.4

41.6

40.7

35.5

46.0

800.2

994.2

1064.0

1134.5

1269.4

1508.6

855.5

873.5

1133.2

1035.4

1088.7

1449.0

53038.9

61690.6

70774.4

67295.0

76007.6

86490.6

2.43

2.09

2.44

2.33

1.95

1.82

(US$ billion)
Worlds total export
of Mango
(US$ billion)
Indias export of
edible fruits&nuts to
the world
(US$ billion)
Worlds total export
of edible fruits&nuts
(US$ billion)
RCA

In grapes as given in table 18, the Revealed Comparative Advantage (RCA) is fluctuating.
During 2010 the RCA is more than one that means that year the exports of grape was
advantageous. For rest of the years it was less than one. The recommendation is that we
need to see the Indian grape production situation during 2010 as compared to other years
and if possible amend our production strategy to improve export prospects.
Table 18: Estimates of Revealed Comparative Advantage (RCA) in Grapes Exports
Particulars
2006
2007
2008
2009
2010
2011
Indias export of
53.4
60.1
90.6
68.3
102.5
77.7
Grapes
(US$ billion)
Worlds total export
of Grapes

4436.5

5067.5

6025.6

5664.9

6282.0

7011.1

855.4

873.4

1133.2

1035.4

1088.7

1449.0

(US$ billion)
Indias export of
edible fruits&nuts to
the world
(US$ billion)
19 | P a g e

Export Performance and Potential of Fruits and Vegetables

Worlds total export

of edible fruits&nuts

53038.9

61690.6

70774.4

67295.0

76007.6

86490.6

0.75

0.84

0.94

0.78

1.14

0.66

(US$ billion)
RCA

In vegetables onions are the major exports from India having very high revealed
comparative advantage of more than 7 throughout during 2006 to 2011. Highest
advantage was during 2009 and 2008. Recently government has taken decision to restrict
the export due to increased local demand. However there is definitely the production,
price and quality advantage in this crop for India.
Table 19: Estimates of Revealed Comparative Advantage (RCA) in Onion Exports
Particulars
2006
2007
2008
2009
2010
2011
Indias export of
226.4
263.6
330.6
474.9
465.4
370.0
Onion
(US$ billion)
Worlds total export
of Onion

1885.6

2395.7

2364.3

2394.1

3181.6

3144.8

609.3

632.9

683.7

797.7

962.3

1009.0

38645.0

44995.6

49270.9

48770.9

56349.0

61796.3

7.62

7.82

10.08

12.13

8.57

7.21

(US$ billion)
Indias export of
edible vegetables&
tubers to the world
(US$ billion)
Worlds total export
of edible vegetables&
tubers (US$ billion)
RCA

Tomato exports have been consistently increasing but there is no revealed comparative
advantage in doing so. The RCA were 0.09, 0.21, 0.35, 0.27, 0.18, 0.61 respectively during
2006, 2007, 2008, 2009, 2010 and 2011 (Table 20).

20 | P a g e

Export Performance and Potential of Fruits and Vegetables

Table 20: Estimates of Revealed Comparative Advantage (RCA) in Tomato Exports

Particulars
Indias export of
Tomato

2006
8.2

2007
20.3

2008
35.9

2009
30.8

2010
25.0

2011
86.1

5699.3

6738.0

7378.4

7041.4

8251.9

8651.2

609.3

632.9

683.7

797.7

962.3

1009.0

38645.0

44995.6

49270.9

48770.9

56349.0

61796.3

0.09

0.21

0.35

0.27

0.18

0.61

(US$ billion)
Worlds total export
of Tomato
(US$ billion)
Indias export of
edible vegetables&
tubers to the world
(US$ billion)
Worlds total export
of edible vegetables&
tubers (US$ billion)
RCA

Potato exports were also same as tomato. Despite exports the potato has never shown
promise for better export realization. This is due to the fact the quality and price if potato
does not match with international requirement. The RCA has always been less than 1 in
case of potato (Table 21)
Table 21: Estimates of Revealed Comparative Advantage (RCA) in Potato Exports
Particulars
Indias export of
Potato

2006
10.5

2007
12.9

2008
24.4

2009
12.8

2010
26.9

2011
35.3

2222.5

2709.0

2416.4

2209.5

2818.0

3459.4

609.3

632.9

683.7

797.7

962.3

1009.0

(US$ billion)
Worlds total export of
Potato
(US$ billion)
Indias export of
edible vegetables&
tubers to the world
(US$ billion)
21 | P a g e

Export Performance and Potential of Fruits and Vegetables

Worlds total export of

edible vegetables&
tubers (US$ billion)
RCA

38645.0

44995.6

49270.9

48770.9

56349.0

61796.3

0.30

0.34

0.73

0.35

0.56

0.63

Objective 4:
To Forecast the export potential of Fruits and Vegetables In India in Asian Countries
The forecast of the exports of fruits and vegetables are presented in Table 22 where based
on the past performance the exports seems to be doing very good in next five years. The
expected exports may get almost doubled in all categories of fruits and vegetables.
Table 22: Forecasting of the export potential of fruits and vegetables to Asian
countries
S.No.
2007-08
2008-09
2009-10
2010-11
2011-12
CAGR
2012-13
2013-14
2014-15
2015-16
2017-18
Half of growth
2012-13
2013-14
2014-15
2015-16
2017-18

22 | P a g e

Fresh Fruits

Processed
Fruits

Fresh
Vegetable

Processed
Vegetable

171.45
232.87
253.09
252.57
306.70
13.3
347.3
393.4
445.5
504.5
571.4
6.7
327.2
349.2
372.6
397.5
424.2

35.47
35.89
36.13
44.37
81.86
20.7
98.8
119.3
144.1
174.0
210.1
10.4
90.3
99.7
110.0
121.4
133.9

309.79
461.82
535.52
470.28
498.29
10.2
549.0
604.8
666.3
734.1
808.8
5.1
523.7
550.4
578.5
608.0
639.0

17.00
5.74
6.66
9.83
15.06
3.0
15.5
16.0
16.5
17.0
17.5
1.5
15.1
15.3
15.6
15.8
16.0

Export Performance and Potential of Fruits and Vegetables

Objective 5:
To suggest policy measures to enhance the export of fruits and vegetables from India
From the above discussion it is clear that processed fruits and vegetables have a better
export advantage over fresh one. Besides the post harvest losses in fruits and vegetables
are very high ranging from Rs 40,000 to Rs 50000 crores annually (Exhibit 1). This
demand a strong policy towards processing of Fruits and Vegetables for export purpose
only. This will not only reduce the Post Harvest loss but also will earn foreign exchange.
Besides the investment will bring in lot of opportunity to livelihood in all the three sectors
of the economy. Farmers in primary sector will improve his efficiency, In Secondary sector
processing industry will improve the employment opportunities. And in tertiary sector
(marketing and export services for fruits and vegetables).
Exhibit 1: Losses in Fruits & Vegetables in India
Extent of losses of fruits and
vegetables in India accounts to
about Rs. 40,000 to 45,000 crores
annually.

Post-harvest losses in F&V is at

very high level.

Mango
Banana
Oranges
Apples
Grapes
Pineapple
Guava

West Bengal

- Rs. 13.7 K crore

Gujarat

- Rs. 11.4 K crore

Bihar

- Rs. 10.7 K crore

U.P.

- Rs. 10.3 K crore

:
:
:
:
:
:
:

17-35 %
12-19 %
8-13 %
10-13 %
23-25 %
15-25 %
3-15 %

Annual loss in major states:

(ASSOCHAM, 2013)

The Government of India therefore has established a separate ministry for food processing
besides It has also announced in the year 2001 to establish 60 agri-export zones (AEZ) for
40 different agri-commodities spread over 20 states to promote export of respective agricommodities. Out of these, 39 AEZs have been earmarked for different fruits & vegetables.
These AEZs are expected to function on Cluster approach providing End-to-end approach
of integrating entire process and promoting Integration of activities of various agencies.
The state-wise approved AEZs are given below:

23 | P a g e

Export Performance and Potential of Fruits and Vegetables

State

No. of
AEZ

AEZ project

Assam

Fresh & Processed Ginger

Andhra Pradesh

Mango Pulp & Fresh Vegetables; Mango & Grapes; Mango;

Gherkins; Chilli

Bihar

Litchi, Vegetables & Honey

Gujarat

Mango & Vegetables; Value added onion; Sesame seeds

H.P.

Apples

Karnataka

Gherkins; Rose Onion; Flowers; Vanilla

J&K

Apple; Walnuts

Jharkhand

Vegetables

Kerala

Horticulture products; Medicinal plants

M.P.

Potatoes, Onion & Garlic; Seed spices; Wheat (Duram); Lentil &
Grams; Oranges

Maharashtra

Grape & grapewine; Mango (Alphanso); Mango (Kesar);

Flowers; Onions; Pomegranate; Banana; Oranges

Odisha

Ginger & Turmeric

Punjab

Vegetables; Potatoes; Basmati Rice

Rajasthan

Coriander; Cumin

Sikkim

Flowers (Orchids) & Cherry Pepper; Ginger

Tripura

Organic pineapple

Tamil Nadu

Flowers (2); Mangoes; Cashewnut

Uttar Pradesh

Potatoes; Mangoes & Vegetables; Mangoes; Basmati rice

Uttaranchal

Litchi; Flowers; Basmati Rice; Medicinal & Aromatic Plants

West Bengal

Litchi; Potatoes; Mango; Vegetables; Darjeeling Tea; Pineapple

24 | P a g e

Export Performance and Potential of Fruits and Vegetables

Mega Food Parks

A major step in improving export of fruits and vegetables Government of India has
approved setting up of 12 new Mega Food Park in August 2013. First Mega Food Park was
opened on 12 July 2012 in Chittoor, A.P. These Mega Food parks aim to provide service
from
-

Seed to shelf

World-class facilities for pulping, bottling, tetra packing, modular cold storage,
warehousing & testing lab.

These Mega Food Park is expected to provide service for domestic as well as export
oriented firm.
The conceptual framework of such mega food park is given below:

Distributors/ Retail Chains/ Exporters/ Importers/

End consumers
25 | P a g e

Export Performance and Potential of Fruits and Vegetables

8221 Achievements in Terms of Targets Fixed for Each Activity :

All the objectives of the project were successfully completed.
8222 Questions - Answered :
- What is the export potential of Indian fruits and vegetables in Asian countries?
- What is the export competitiveness of fruits and vegetables of India in a global framework?

8223 Process/Product/Technology/Developed:
The project is forecasted the export potential of fruits andvegetables in Asian countries for the
year 2015
8224 Practical Utility :
(Not more than 150 words)
a.
b.
c.

Immediate Benefits: Enhance the understanding of export potential and

competitiveness of fruits and vegetables of India in Asian region
Medium-term Benefits : The import demand elasticity and relative price elasticity of
Indian fruits and vegetables exports to major Asian destinations will be estimated
Long-term Benefits: Will help the policy makers to enhance the export of fruits and
vegetables from India to Asian countries

8225 Constraints, if any : N.A.

823

Publications and Material Development :

(One copy each to be supplied with this Proforma)

8231 Research Papers :

Under process

8232 Popular Articles :

N.A.

8233 Reports :

NA

8234 Seminars, Conferences and Workshops (Relevant to the Project)

Scientists have Participated :
N.A.
824

in which the

Infrastructural Facilities Developed :

N.A.
(Details of field, laboratory, notebooks and final material and their location)

26 | P a g e

Export Performance and Potential of Fruits and Vegetables

825

Comments/Suggestions of Project Leader regarding possible future line of work

that may be taken up arising out of this Project :

Survey based study may be conducted to establish the maize utilization pattern, actual
value chains and adoption of varieties of maize crop in different regions in India.
Part - IV : Project Expenditure
(Summary)
Year2011-2014

830

Total Recurring Expenditure :

N.A.

8301 Salaries : (Designation with pay scale)

EstimatedActual
i) Scientific
ii) Technical
iii) Supporting
iv) Wages

: Nil
: Nil
: Nil
------------------------------------

Sub-total
-----------------------------------8302 Consumables : N.A.
8303 Travel :

N.A.

8304 Miscellaneous :
(Other costs)
------------------------------------8305 Sub-total
(Recurring)
831

-------------------------------------

Non-recurring Expenditure :
(Equipment and works)

832 Total :
(830 and 831)

27 | P a g e

Nil

Expenditures covered under MAIZE-CRP (CIMMYT) funded project.

------------------------------------

Export Performance and Potential of Fruits and Vegetables