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Marketing and Export of Fruits and Vegetables in Punjab M.S.SIDHU Senior Economist (Marketing)-cum-Head Department of Economics & Sociology Punjab Agricultural University Ludhiana 141004

Marketing and Export of Fruits and Vegetables in Punjab

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Marketing and Export of Fruits and Vegetables in Punjab. M.S.SIDHU Senior Economist (Marketing)-cum-Head Department of Economics & Sociology Punjab Agricultural University Ludhiana 141004. Introduction. - PowerPoint PPT Presentation

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Page 1: Marketing and Export of Fruits and Vegetables in Punjab

Marketing and Export of Fruits and Vegetables in Punjab

M.S.SIDHU

Senior Economist (Marketing)-cum-Head

Department of Economics & Sociology

Punjab Agricultural University

Ludhiana 141004

Page 2: Marketing and Export of Fruits and Vegetables in Punjab

Introduction

• India with its wide variability of climate and soil produces a large range of horticultural crops such as fruits and vegetables.

• India is the second largest producer of fruits and vegetables in the world.

• Horticultural crops occupy about seven per cent of the gross cropped area of the country, constituting about 25 per cent of the gross value of agricultural output.

• The per capita consumption of vegetables in the rural areas has increased from 2.71 kgs per month in 1993-94 to 4.04 kgs per month in 2009-10.

• The corresponding figures for urban areas were 2.91 kgs and 4.12 kgs per month.

• Punjab is a progressive agricultural state.

Page 3: Marketing and Export of Fruits and Vegetables in Punjab

• Wheat and paddy are two principal crops and cover about 80 per cent of the total cropped area.

• The pre-dominance of wheat-paddy rotation has some far reaching implications for the state.

• Diversification of agriculture is need of the hour.

• Fruit and vegetable cultivation is one of the sustainable alternatives in place of water intensive crop like paddy.

• It can provide more employment opportunities to the marginal and small farmers because these crop enterprises are labour intensive.

• Kinnow is the major fruit crop having a share of about 64 per cent in the total fruit production in the state.

• Other important fruits are guava and mango.

Page 4: Marketing and Export of Fruits and Vegetables in Punjab

• Potato is the principal vegetable crop having a share of about 57 per cent in the total vegetable production of Punjab.

• Other important vegetables are peas, cauliflower, onion and tomato.

• There are a number of middlemen between the producer and consumer of fruits and vegetables.

• Producer’s share is small in the consumer’s rupee.

• The organized sale of fruits and vegetables has been introduced in the recent years in major urban centres of the country but the share of organized retail is hardly 4 to 5 per cent in the total sale.

• The Government of India has allowed FDI in the multi-brand retail in September, 2012 but there is opposition to this decision by various State Governments including Punjab.

• The export of fresh fruits and vegetables is meagre from Punjab due to various reasons.

Page 5: Marketing and Export of Fruits and Vegetables in Punjab

Objective:

• The present study has been planned to study the scenario of fruit and vegetable marketing and its export in the state.

Page 6: Marketing and Export of Fruits and Vegetables in Punjab

Data base

• The study is mainly based on the secondary data taken from the reputed published sources.

Page 7: Marketing and Export of Fruits and Vegetables in Punjab

Area under fruits and vegetables vis-a-vis total cropped area in Punjab, 2000-01 to 2010-11

(000 ha)

Year Total cropped area

Area under fruits

Area under vegetables

2000-01 7941 34.21 (0.43) 140.45 (1.77)

2007-08 7870 61.62 (0.79) 173.34 (2.20)

2008-09 7912 64.80 (0.82) 178.41 (2.25)

2009-10 7876 67.55 (0.86) 183.35 (2.33)

2010-11 7882 69.81 (0.89) 188.44 (2.39)

Note: Figures in parentheses indicate percentages to total cropped area.Source: i) Department of Horticulture, Punjab, Chandigarh ii) Statistical Abstract of Punjab, various issues

Page 8: Marketing and Export of Fruits and Vegetables in Punjab

Production of fruits and vegetables in Punjab, 2000-01 to 2010-11 (lakh tons

Year Fruits Vegetables Total (Col. 2+3)

1 2 3 4

2000-01 4.80 (17.04) 23.37 (82.96) 28.17 (100.00).

2007-08 10.55 (27.41) 27.94 (72.59) 38.49 (100.00)

2008-09 11.83 (25.97) 33.72 (74.03) 45.55 (100.00)

2009-10 13.65 (27.93) 35.22 (72.07) 48.87 (100.00)

2010-11 13.73 (27.36) 36.45 (72.64) 50.18 (100.00)

Note: Figures in parentheses are percentages to total fruits and vegetables production. Source: As given in Table 1.

Page 9: Marketing and Export of Fruits and Vegetables in Punjab

Area, yield and production of principal fruits and vegetables in Punjab, 2010-11

Crop Area (000 ha) Yield (Kgs/ha) Production (000 tons)

Fruits

Kinnow 41.21 21177 872.63

Guava 7.84 21807 170.97

Mango 6.51 15826 103.01

Vegetables

Potato 83.57 24988 2088.36

Peas 19.66 10199 200.56

Onion 82.24 22164 182.27

Cauliflower 8.65 17879 154.66

Tomato 6.26 24658 154.46

Source: Department of Horticulture, Punjab, Chandigarh

Page 10: Marketing and Export of Fruits and Vegetables in Punjab

Disposal of Kinnow orchards (area basis) by the selected farmers in Punjab,2002-03

(Area in hectares)

Farm category Orchard retained by the farmers

Orchards leased out to the contractors

Small 0.25 (27.47) 0.66 (72.53)

Medium 0.68 (33.50) 1.35 (66.50)

Large 1.19 (18.62) 5.20 (81.38)

Overall 0.57 (25.00) 1.71 (75.00)

Note: Figures in parentheses are percentages.Source: Singh (2004)

Page 11: Marketing and Export of Fruits and Vegetables in Punjab

Price spread of fruits for sale in Delhi market (Channel: Producer-pre- harvest -Contractor-retailer (through commission agent) - consumer.

(Rs/qtl)

Sr.No

Particulars/fruit Kinnow (January, 2003)

Pear(August, 2004)

Litchi(June, 2003)

i. Producer’s sale price/contractor’s purchase price

794.78(41.73) 603.84(37.74) 1257.90(43.05)

ii. Contractor’s cost 317.33(16.70) 318.05(19.88) 452.44(15.49)

iii. Contractor’s margin 527.89(27.79) 320.11(20.01) 554.08(18.96)

iv. Contractor’s sale price/retailer’s purchase price

1640.00(86.32) 1242.00(77.63) 2264.42(77.50)

v. Retailer’s cost 84.18(4.43) 88.35(5.52) 301.26(10.30)

vi. Retailer’s margin 175.82(9.25) 269.65(16.85) 356.41(12.20)

vii Retailer’s sale price/consumer’s purchase price

1900.00(100.00) 1600.00(100.00) 2922.09(100.00)

Note: Figures in parentheses indicate percentages to consumer’s price.Source: i) Singh and Sidhu (2005); ii) Sekhon, Bhullar and Sidhu (2006); iii) Anchal (2005)

Page 12: Marketing and Export of Fruits and Vegetables in Punjab

Sale pattern of vegetables in Punjab, 2009-10. (Figures in parentages)

Sr.No Particulars/crop

Potato Tomato Green peas

Brinjal Okra

I Sale at the farm/village

9.05 6.65 8.66 7.51 10.55

ii. Sale in the wholesale market

83.40 92.03 89.15 88.69 85.61

iii. Sale in the distant market

5.15 - - - -

iv. Sale in the Apni Mandi

2.40 1.32 2.19 3.80 3.84

Total 100.00 100.00 100.00 100.00 100.00

Source: Sidhu, Sidhu and Singh (2010)

Page 13: Marketing and Export of Fruits and Vegetables in Punjab

Sr.No Particular Rs/qtl. %age share in consumer’s rupee

i. Producer’s sale price/wholesaler’s purchase price

300.00 50.00

ii. Expenses borne by the producer 67.00 11.17

iii. Net price received by the producer 233.00 38.83

iv. Expenses borne by the wholesaler 34.00 5.67

v. Margin of the wholesaler 66.00 11.00

vi. Wholesaler’s sale price/retailer’s purchase price

400.00 66.67

vii Expenses borne by the retailer 35.50 5.92

viii Margin of the retailer 164.50 27.41

ix Retailer’s sale price/consumer’s purchase price

600.00 100.00

Price spread of potato in Jalandhar market (Punjab) (Channel: Producer- wholesaler- retailer- consumer), February, 2010.

Source: Sidhu and Singh (2011)

Page 14: Marketing and Export of Fruits and Vegetables in Punjab

Sr.No Particular Rs/qtl. %age share in consumer’s rupee

i. Producer’s sale price/retailer’s purchase price

500.00 62.50

ii. Expenses borne by the producer 228.25 28.53

iii. Net price received by the producer 271.25 33.97

iv. Expenses borne by the retailer 71.50 8.94

v. Margin of the retailer 228.50 28.56

vi. Retailer’s sale price/consumer’s purchase price

800.00 100.00

Price spread of potato in Jalandhar market (Punjab) (Channel: Producer-retailer-consumer), September, 2010.

Source: Sidhu and Singh ( 2011)

Page 15: Marketing and Export of Fruits and Vegetables in Punjab

Year Export of agri.& allied products

Export of fresh fruits

Column 3 as %age of column 2

Export of fresh vegetables

Column 5 as %age of column 2.

1 2 3 4 5 6

2004-05 8471.21 191.83 2.26 191.99 2.27

2005-06 10212.30 253.09 2.48 207.73 2.03

2006-07 12674.92 312.27 2.46 341.55 2.69

2007-08 18441.61 359.49 1.95 367.27 1.99

2008-09 17562.92 423.62 2.41 534.44 3.04

2009-10 17746.53 478.61 2.70 620.49 3.50

2010-11 24695.83 470.55 1.91 555.37 2.25

Exports of fresh fruits and vegetables from India, 2004-05 to 2010-11 (US $ million)

Source: CMIE (2011)

Page 16: Marketing and Export of Fruits and Vegetables in Punjab

Country/year 2008-09 2009-10 2010-11

U.A.E 81.83 (19.32) 92.86 (19.40) 87.35 (18.56)

Saudi Arabia 57.61 (13.60) 66.38 (13.87) 61.47(13.06)

Netherlands 64.16 (15.15) 67.42 (14.09) 60.59 (12.88)

Bangladesh 45.26 (10.68) 39.53 (8.26) 44.34 (9.42)

U.K. 31.36 (7.40) 39.01(8.15) 33.63 (7.15)

Others* 143.40 (33.85) 173.41 (36.23) 183.17 (38.93)

Total 423.62 (100.00) 478.61(100.00) 470.55 (100.00)

Country-wise export of fresh fruits from India, 2008-09 to 2010-11 (US $ million)

*Other countries are Yemen, Kuwait, Egypt, Nepal, USA, etc. Note: Figures in parentheses are percentages to total export Source: CMIE (2011)

Page 17: Marketing and Export of Fruits and Vegetables in Punjab

Country/year 2008-09 2009-10 2010-11

Bangladesh 162.52 (30.41) 243.86 (39.30) 129.93 (23.40)

Malaysia 69.90 (13.08) 87.65 (14.13) 112.19(20.20 )

U.A.E 69.26 (12.96) 61.58 (9.92) 77.81 ( 14.01)

Sri Lanka 41.36 (7.74) 44.39 (7.15) 53.89 (9.70 )

Nepal 13.87 (2.60) 19.88 (3.20) 21.68 (3.90)

Others* 177.53 (33.21) 163.13 (26.30) 159.87 ( 28.79)

Total 534.44 (100.00) 620.49 (100.00) 555.37 (100.00)

Country-wise export of vegetables from India, 2008-09 to 2010-11

US $ million)

*Other countries are Indonesia, Saudi Arabia, U.K, etc.Source: CMIE (2011)

Page 18: Marketing and Export of Fruits and Vegetables in Punjab

Year Export of fresh fruits and vegetables*

2005-06 770

2006-07 429

2007-08 1057

2008-09 2118

2009-10 1038

Export of fresh fruits and vegetables from Punjab, 2005-06 to 2009-10 (qtls.)

*By rail and air Source: Statistical Abstract of Punjab, Various issues

Page 19: Marketing and Export of Fruits and Vegetables in Punjab

Conclusion and Suggestions

• Fruit and vegetable cultivation is one of the sustainable alternatives in place of water intensive crops like paddy.

• The production of fruits and vegetables is about five million tons in Punjab.

• The producer’s share in the consumer’s rupee is low in fruit and vegetable marketing.

• The share of fresh fruits in the agricultural and allied exports of the country is about two per cent.

• This figure for vegetable is around two to three per cent.

Page 20: Marketing and Export of Fruits and Vegetables in Punjab

• India exported the maximum fresh fruits to UAE followed by Saudi Arabia, Netherlands, Bangladesh and U.K. during the year 2010-11.

• The maximum exports of fresh vegetables were to Bangladesh followed by Malaysia, UAE, Sri Lanka and Nepal in 2010-11.

• Punjab is not a major exporter of fresh fruits and vegetables because the state is land-locked.

• The sea-ports like Mumbai, Kandla, etc. are far away from the state which make our export uncompetitive due to high freight charges and perishable nature of fresh fruits and vegetables.

• The state exported only 1038 quintals of fresh fruits and vegetables by rail and air during year 2009-10.

Page 21: Marketing and Export of Fruits and Vegetables in Punjab

Suggestions

• The farmers ay prefer group/cooperative marketing for sale of fruits and vegetables in the distant markets like Delhi, Mumbai, Kolkatta, Ahmedabad, Bangalore, Hyderabad, etc. There are 53 cities in India having a population of more than one million each.

• For export of fruits and vegetables also, the group/cooperative effort is better option.

• The need of the hour is public-private partnership to develop market infrastructure of international standard.

• The contract farming may be legalized in overall interest of Punjab agriculture.

• These measures will bring efficiency in the marketing of fruits and vegetables in the state.

Page 22: Marketing and Export of Fruits and Vegetables in Punjab