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Fruits and Vegetables Marketing-final

Fruits and Vegetables Marketing-final



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Published by ABID H
Its about marketing of Fresh fruits and vegetables in India- a fact report
Its about marketing of Fresh fruits and vegetables in India- a fact report

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Published by: ABID H on Nov 05, 2008
Copyright:Attribution Non-commercial


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Fresh Fruits and Vegetables marketing
constrains & opportunities
INTRODUCTION:Horticulture – Success story of India
Horticultural development had not been a priority until recent years in India. It was later inthe post 1993 period that focused attention was given to horticulture development through anenhancement of plan allocation and knowledge-based technology. Despite of this decade being a period of “golden revolution” productivity of the horticultural crops has increased only marginallyfrom 7.5 tonnes per hectare in 1991-92 to 8.4 tonnes per hectare in 2004-05 (NHB, 2005 In 2005total area under fruits and vegetables had been 11.72 million hectares and total production had been 150.73 million tones (NHB, 2005). Of the 456 million tons of vegetable produced in theworld, India’s share is 59 million tons. All taken together, India’s share of the world’s vegetablemarket is 17 per cent. Presently, the horticultural crops cover 13.6 million hectares, i.e. roughly 7 per cent of the gross cropped area and contributes 18-20 per cent of the gross value of India’sagricultural output. India is the second largest producer of fruits and vegetables in the world nextonly to China and accounts for about 16% of the world’s production of vegetables and 10% of world’s fruits production. Annual area and production growth under fruits and vegetables in the period 1991-2005 was 2.6 per cent and 3.6 per cent respectively in India. Share of fruits andvegetables in total value of agricultural exports has increased over years from 9.5 per cent in 1980-81 to 16.5 per cent in 2002-03. But we are still lagging behind in actual exports of these produce.For example, India produces 65 per cent and 11 per cent of world’s mango and banana,respectively, ranking first in the production of both the crops. Yet our exports of the two crops arenearly negligible of the total agricultural exports from India. It is a known fact that horticulturesector in India is constrained by low crop productivity, limited irrigation facilities andunderdeveloped infrastructure support like cold storages, markets, roads, transportation facilitiesetc. There are heavy post-harvest and handling losses, resulting in low productivity per unit areaand high cost of production. However, on the other hand India’s long growing-season, diverse soiland climatic conditions comprising several agro-ecological regions provide ample opportunity togrow a variety of horticulture crops. Thus, efforts are needed in the direction to capitalize on our strengths and remove constrains to meet the goal of moving towards a horticulture lead agriculturalgrowth in India. The foreign trade policy 2004-09 emphasized that to boost agricultural exports,1
growth and promotion of exports of horticultural products is important. Horticulture contributesnearly 28 per cent of the GDP in agriculture and 54 per cent of export share in agriculture.
: Includes fruits, vegetables, spices, floriculture, and plantations-is expected to be 20 million hectares in 2006-07. With production of 53 MT and 108MT, respectively, in 2005-06, India was the second largest producer of both fruits and vegetablesin the world. India occupies first position in the production of cauliflower, second in onion andthird in cabbage. The National Horticulture Mission (NHM) was launched in May 2005 as a major initiative to bring about diversification in agriculture and augment income of farmers throughcultivation of high value horticultural crops. The National Horticulture Mission (NHM) aims atdoubling horticulture production by 2012.
Area and Production of Major Horticulture Crops
(Area-Million ha,Production-Million tonnes)
Fruits4.849. 86.7101.47.1108.27.2113.5Spices2. National Horticulture Board * Estimated
Vegetables are typically grown in India in field conditions; the concept is opposed to thecultivation of vegetables in green houses as practiced in developed countries for high yields. Thefruits and vegetables considered important by the horticulture board are mostly grown in the areasof Jammu & Kashmir, Himachal Pradesh, hilly regions of North Uttar Pradesh, Bihar, Tamil Nadu,Maharashtra, Karnataka, Gujarat, Andhra Pradesh, Assam, Madhya Pradesh, Rajasthan, Punjab,Tripura, West Bengal and Orissa.
Ongoing liberalization and the emergence of and integrated global market have opened newvistas for Indian horticulture. In fact, till very recently, India’s main policy focus that until recentlywas only on grains and cereals, has been changed in a timely manner, with the launch of NationalHorticulture Mission in 2005-06 by Government of India with a mandate to promote integrated2
development in horticulture, to help in coordinating, stimulating and sustaining the production and processing of fruits and vegetables and to establish a sound infrastructure in the field of  production, processing and marketing with a focus on post harvest management to reduce losses. Itenvisages to double the production of horticulture produce by the end of 1912. This enabled Indiato exploit its true potential. Since liberalization and withdrawal of excise duty on fruit andvegetable products there has been significant rise in the growth rate of the industry. No industriallicense is required for setting up Fruits & Vegetables Processing industries; setting-up 100% EOUsrequire specific Govt. approvals. Many subsidies, irrigation plans, loans, pre and post harvestingschemes led to the following figures of production.
Mango, Guava, Banana & PeasWorld's largest produceLemon, Onion, Brinjal, Cabbage, Cauliflower, Pumpkins &Gourds, Total Vegetables and Total FruitsWorld's 2
largest producer CoconutWorld's 3
largest producer OrangesWorld's 4
largest producer Papaya, Lettuce & PineappleWorld's 5
largest producer TomatoWorld's 6
largest producer Citrus Fruits/ Mosambi & CassavaWorld's 7
largest producer Sweet PotatoWorld's 9
largest producer AppleWorld's 10
largest producer GrapesWorld's 16
largest producer & Worldrecord in productivity
Commodity that a nation should produce and export is determined by the principal of comparative advantage. The comparative advantage tells about that capability of the country toexport a commodity, while the competitiveness of the commodity in the world market isdetermined by the measure of export competitiveness.
Export Competitive Commodities
: Banana, Papaya
: Brinjal, Cabbage, Cauliflower, Peas
Commodities with Comparative Advantage

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