Horticulture exports jump, cereals contract in Apr-Feb period

India is making big inroads in horticulture (fruits and vegetables) exports with an improvement in quality and a special focus on market-specific approach to reach out to customers according to their requirement.

Data compiled by the Agricultural & Processed Food Products Export Development Authority (Apeda) showed India’s exports of fresh fruits have jumped by a staggering 20.95 per cent in volume terms and 17.4 per cent in value terms during the period between April 2016 and February 2017.

This shows a sharp reversal in trend until last year when overseas importers were cautiously monitoring souring of horticulture products from India. In fact, many overseas buyers, including countries in the European Union and the Middle East, had imposed temporary suspensions on imports of fruits and vegetables from India. The reason cited for these suspensions was that Indian products were of an inferior quality when compared to global standards.

However, it appears that Indian exporters have become quality conscious. Horticulture shares 10 per cent in India’s overall agri and processed food exports recorded by Apeda.

“India has become more quality conscious by maintaining products’ standard according to market requirement. Indian horticulture products like fruits and vegetables were not allowed in a number of countries earlier. For example, Indian grapes and mangoes were not exported to European countries earlier. But, market access has been provided now. Most importantly, Indian exporters are focusing on organic products that have greater demand overseas and also fetch higher realisation. All these issues put together have helped India perform so well. Still, India is nowhere near to its potential and we can look for a quantum jump in horticulture exports going forward,” said Ajay Sahai, director general and chief executive officer, Federation of Indian Export Organisations.

India’s exports of fresh vegetables declined steadily to 699,600.34 tonnes, valued at $323.87 million, for 2015-16 from the level of 953,731.22 tonnes, valued $374.07 million, in 2013-14. Similarly, fresh mango exports declined to 156,218.34 tonnes, valued at $49.54 million, for 2015-16 from 192,616.91 tonnes, valued at $50.55 million.

The entry of large corporates, including Mahindra and Mahindra, into the farm-to-fork business, along with advisory on sowing, harvesting and selling, has ensured huge strides in grape exports. In fact, India’s fresh grape exports shot up to 156,218.34 tonnes, valued at $232.07 million, for 2015-16 from 107,257.81 tonnes, valued at $203.44 million, in the previous year.

“Apart from fresh fruits, India must explore exports of processed horticulture products also. The phenomenal growth in horticulture products is a nice blend of the government’s policy and entrepreneurship of Indian exporters. India’s exports of horticulture products would continue to witness a phenomenal growth in future as well,” said a senior industry official.

Meanwhile, India’s exports of cereals have declined or witnessed marginal growth, with shipments of basmati rice falling by a marginal 3.4 per cent in volume terms and over 14 per cent in value terms in the period between April and February. Exports of non-basmati rice, however, rose by a marginal 2.2 per cent and 4.94 per cent in volume and value terms, respectively. Apart from rice, exports of wheat and other cereals also fell sharply during the 11-month period ending February 2017.

“While exports of horticulture are promoted by the government to fetch better realisation than domestic price, shipment of cereals and other agri products are politically driven. Hence, exports of cereals, including wheat and non-basmati rice, might continue to fall going forward,” said another industry official.

Data compiled by the Food and Agriculture Organisation of the United Nations showed global markets in oversupply for cereals resulting in lower imports.