Fruits & veg status.pramod

Pramod Tambade

CONTENTCONTENT The food processing sector in India an overview Industry segment Introduction to fruits & vegetable sector Indian Fruit and vegetable industry Global Fruit and vegetable industry Production share of horticultural crops Revolutions of agriculture products India's production of fruits & vegetables, Exports Processed Fruits & Vegetables Competition in market SWOT Analysis References

THE FOOD PROCESSING SECTOR IN THE FOOD PROCESSING SECTOR IN INDIA INDIA AN OVERVIEWAN OVERVIEW

The food processing sector is critical to India’s development, for it establishes a vital linkage and synergy between the two pillars of the economy—Industry and Agriculture.

The enormous growth potential of this sector can be understood from the fact that food production in the country is expected to double in the next 10 years,

while the consumption of value-added food products will also correspondingly grow.

The growth of this industry will bring immense benefits to the economy, raising agricultural yields, enhancing productivity, creating employment and raising life-standards of a large number of people across the country, especially those in rural areas.

INDUSTRY SEGMENTATIONINDUSTRY SEGMENTATION

The Indian Food and Food Processing industry (FPI) primarily

Fruits & Vegetables (F&V) Dairy Meat, Poultry and Marine Grains and Seeds Packaged Foods including beverages

Relative Share of Various Food Segments in Food Processing

Status of Food Processing Industry in India

01 Rank of Industry 5th

02 Employment in lakhs 16

03 % of total Industrial Labor Force 19

04 Total Industry Output in percentage 14

05 Output as % of GDP 5.50(26%)

06 Estimated Turnover (rupees in crores) 2,50,000

07 Unorganized Sector (rupees in crores) 1,11,200

INTRODUCTIONINTRODUCTION

Fruits and vegetables typically constitute an essential part of the daily diet in India.

India ranks second in fruits and vegetables production in the world, after China.

It has the distinction of producing almost all-tropical and exotic fruits and vegetables.

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As per National Horticulture Database published by National Horticulture Board, during 2014-15 India produced 86.602 million metric tonnes of fruits and 169.478 million metric tonnes of vegetables.

The area under cultivation of fruits stood at 6.110 million hectares while vegetables were cultivated at 9.542 million hectares.

India is the largest producer of ginger and okra amongst vegetables. Second largest producers of potatoes, onion, cauliflowers, brinjals etc.

Of Amongst fruits, the country ranks first in production of Bananas (22.94%), Papayas (44.03%) and Mangoes (37.57%).

INTRODUCTIONINTRODUCTION

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INDIAN INDIAN FRUIT AND VEGETABLE INDUSTRYFRUIT AND VEGETABLE INDUSTRY

•India with its current production of around 86 million MT of fruit about 8% of the world’s fruit production.

•Growth rate:-The fruit production : 3.9% per annumfruit processing sector : 20% per annum.frozen fruits & vegetables : 121% per annum.dehydrated fruits & vegetables : 24%. per annum.

•15% of the world’s production of vegetables.

•The current production level is over 170 million MT for vegetables

•The total area under vegetable cultivation is around 9.5 million hectares , which is 3% of the total area under cultivation in the country.

•In case of vegetables, potato, tomato, onion, cabbage and cauliflower account for around 60% of the total vegetable production in the country.

GLOBLE GLOBLE FRUIT AND VEGETABLE INDUSTRYFRUIT AND VEGETABLE INDUSTRY

Diverse climate ensures availability of all varieties of fresh F&V

The total production of F&V in the world is around 410 MT.

While there are almost 180 families of fruits that are grown all over the world, citrus fruits constitute around 20% of world’s total fruit production.

On average of 40% in developing & 70% in developed countries against India only 2.0-2.5%

The value addition inChina 23%, Philippines 40%, UK 200% India 20%

Sr.no. Country % of F&V processing

01 China 40

02 Thailand 30

03 Brazil 70

04 Philippines 78

05 Malaysia 80

06 India 02

PRODUCTION SHARE OF HORTICULTURAL CROPS

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REVOLUTIONS OF AGRICULTURE REVOLUTIONS OF AGRICULTURE PRODUCTSPRODUCTS

Sr. no. Revolutions Productions

01. White Milk

02. Golden Honey

03 Golden Fiber Jute

04. Blue Fish

05. Green Food grains (Cereals, Wheat, Leguminous plant)

06. Grey Fertilizer

07. Red Meat & Tomato

08. Round Potato

09. Silver Fiber Cotton

10. Silver Egg/Poultry

11. Yellow Oil seeds

The horticultural crops in the country presently covers 17.19 million hectares of land.

India is the largest producer of mango and banana in the world and has fifth position in the production of pineapple and sixth in the production of orange, tenth in the production of apple.

India is the largest producer of ginger and okra amongst vegetables and ranks 2nd in potatoes, onions, cauliflowers, brinjal, Cabbages etc.

INDIA’S PRODUCTIONINDIA’S PRODUCTION

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Fruits/Vegetables Quantity produced per annum 2013-14 (000’ Tonnes)

Ranking in world

Banana 24,871.63 01

Papaya 5,154.12 01

Mango 16,310.31 01

Pineapple 1,511.32 05

Orange 1,198.20 06

Apple 1915.37 10

Peas 3,723.28 -

Okra 5,665.08 01

Cauliflower 6,860.15 02

Brinjal 12,271.14 02

Cabbage 7,456.28 02

Potato 42,602.36 02

INDIA’S PRODUCTIONINDIA’S PRODUCTION

Source: APEDA

Source: Report of Planning Commission Working Group on Horticulture and Plantation Crops for XIIth Plan

GROWTHGROWTH

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PROJECTION OF PRODUCTION, AREA PROJECTION OF PRODUCTION, AREA & PRODUCTIVITY& PRODUCTIVITY

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PROJECTION REGARDING PER PROJECTION REGARDING PER CAPITA AVAILABILITYCAPITA AVAILABILITY

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CLASSIFICATIONS OF VEG.CLASSIFICATIONS OF VEG.

Sr. no. Type of vegetable Examples

1. Earth vegetables Sweet potato, Carrots

2. Modified Stem, Tubers Potato

3. Modified buds, bulbs Onion, Garlic

4. Leafy vegetables Cabbage, Spinach, Lettuce

5. Flower/flower buds Cauliflower

6. Fruit vegetables Legumes, Beans

7. cereals Sweet corn

Sr. no.

Types of Fruits Examples

1. Fleshy Fruits Apple, Apricot, Cherry, Dragon Fruit, Lychee, Mango, Papaya, Peach

2. Dried Fruits Almond, Cashew, Hazelnut, Walnut

3. Citrus Fruits Grapefruit, Lemon, Lime, Orange

4. Melons Watermelon

5. Berries Blackberries, Blueberries, Grapes, Raspberry, Red Currant, Strawberry

6. Miscellaneous Fruits Banana, Blackcurrant, Coconut, Crowberry

CLASSIFICATIONS OF FRUITSCLASSIFICATIONS OF FRUITS

TRENDS IN FRUITS AND TRENDS IN FRUITS AND VEGETABLES PRODUCTIONVEGETABLES PRODUCTION

81.28

Source: APEDA

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The vast production base offers India tremendous opportunities for export. During 2015-16, India exported fruits and vegetables worth Rs. 8,391.41 crores which comprised of fruits worth Rs. 3,524.50 crores and vegetables worth Rs. 4,866.91 cores.

Mangoes, Walnuts, Grapes, Bananas, Pomegranates account for larger portion of fruits exported from the country while Onions, Okra, Bitter Gourd, Green Chilles, Mushrooms and Potatoes contribute largely to the vegetable export basket.

The major destinations for Indian fruits and vegetables are UAE, Bangladesh, Malaysia, Netherland, Sri Lanka, Nepal, UK, Saudi Arabia, Pakistan and Qatar.

EXPORTSEXPORTS

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Source: APEDA

EXPORTS FROM INDIAEXPORTS FROM INDIA

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Horticulture accounts for 30% of India’s agricultural GDP from 8.5% of the cropped area.

India’s major exports include onion, mango pulp, fresh mangoes, dried walnuts, fresh grapes.

India’s biggest export markets are South Asian & Middle east Countries.

India’s share in the global market is insignificant – it accounts for 1.7% of the global trade in vegetables and 0.5% in fruits

Though India's share in the global market is still nearly 1% only

There is increasing acceptance of horticulture produce from the country.

This has occurred due to concurrent developments in the areas of state-of-the-art cold chain infrastructure and quality assurance measures.

GDP OF FRUIT & VEGETABLEGDP OF FRUIT & VEGETABLE

FOLLOWING F & V ARE COMMONLY FOLLOWING F & V ARE COMMONLY PROCESSEDPROCESSED

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FOLLOWING F & V ARE COMMONLY FOLLOWING F & V ARE COMMONLY PROCESSEDPROCESSED

Processed forms of fruits & vegetables in India include jams,

juices, pickles, chutney, and fruit concentrates.

While the fresh fruits & vegetables market in highly unorganized

with local farmers, wholesalers, and intermediaries selling

directly to customers, the processed F&V market is somewhat

organized with presence of national and international players.

COMPETITION IN FRUITS & COMPETITION IN FRUITS & VEGETABLES INDUSTRYVEGETABLES INDUSTRY

Company name (Brand) Major products

HUL (Kissan) Jams, ketchup, sauces, spreads, fruit juices

Mother Dairy (Safal) Frozen F&V (peas, carrots, etc)

Priya Foods (Priya) Pickles, chutney, fruit pulp

Cremica Sauces, condiments, spreads, dips, syrups

Namdhari Fresh Packaged fruits and vegetables, exotic vegetables



Reliance Fresh Fresh fruits & Vegetables

Parle agro RTS, Juice

Mapro Jam, Squash, Cordial

Godrej Agrovet Fresh fruits & Vegetables

Bharti Retail Fresh fruits & Vegetables



Adani Agri Fresh Fresh and processed fruits

Heinz Ketchup

Mysore Fruit Products Pvt. Ltd.

Fruit Pulps, Fruit Concentrates, Fruit Compounds and Fruit Juices.

ITC Choupal Fresh fruits & Vegetables

Big Apple Fresh fruits & Vegetables


SWOT ANALYSISSWOT ANALYSIS

StrengthsStrengths

Major areas of the State are blessed with natural resources like

ample rainfall, suitable soil, topography surface and ground

water resources and good climate for production of variety of

Fruits & Vegetables crops.

Round the year availability of raw materials.

Vast network of manufacturing facilities all over the country.

Vast domestic consumption market.

• 52% cultivable land compared to 11% world average

• All 15 major climates in the world exist in India

• 46 out of 60 soil types exist in India

• 20 agri-climatic regions

• Second-largest fruit and vegetable producer

• Among the top five producers worldwide of rice, wheat, groundnuts, tea, coffee, tobacco, spices, sugar and oilseeds.

• Sunshine hours and day length are ideally suited for round the year cultivation


WeaknessesWeaknesses

Inadequate infrastructure facilities.

High upfront capital investments.

Lack of adequate quality control & testing protocols.

Large number of intermediaries resulting in inefficient supply chain

and increase in prices.

Low packaging aesthetics.

Huge wastage across the supply chain leads to lower level of

processing and hence low value addition.


OpportunitiesOpportunities

Government incentives (priority sector, tax relief, R&D support, etc.)

Increasing western influence on Indian palate (cheese, pasta, sauces,

cereals, aerated drinks, juices, yoghurt, etc.) which is driving the

demand for processed foods.

Raising income levels and changing consumption patterns.

People prefer ready-to-use food items.


ThreatsThreats

Traditional preference for fresh food especially in rural areas.

Affordability.

High supply chain costs.

High inventory carrying cost and high packaging cost.

Competition from global players.


1. www.apeda.gov.in

2. www.mofpi.org.in

3. Retailing And Branding Of Vegetables And Fruits: An Exploratory Study By Hemant Kumar P. Bulsara and Manita Matharu

4. Report of Planning Commission Working Group on Horticulture and Plantation Crops for 11th Plan

REFERENCESREFERENCES

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http://www.apeda.gov.in/

THANK YOU

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Fruits & veg status.pramod