Can Horticulture be a Success Story For India
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India is the second largest producer of fruits and vegetables in the world after China. Since the 1980s, the international trade in fruits and vegetables has expanded rapidly. The number of commodities as well as the number of varieties produced and traded have increased manifold during the past 25 years. There is an overall increase in the demand for fruits and vegetables for consumption both in the fresh and the processed form. Also there is a wide diversification in production pattern globally. Income in this sector is increasing which is indeed driving the supply. In spite of being one of the largest producers of fruits and vegetables in the world, the export competitiveness among the Indian producers remains low. But with new marketing initiatives, the post-harvest losses and the wastage due to poor infrastructure facilities, such as storage and transportation, have been reduced to a considerable extent. Yet a lot needs to be done in this sector. In an effort to overcome some of the problems associated with this sector, the case study of the successful SAFAL Market is presented in the paper. The study has observed a shift in cropping pattern in favour of horticulture in India in the past one-and-a-half decades. Analysis of the economic feasibility of this shift away from cereals to fruits and vegetable shows that its economically viable and beneficial to shift towards horticulture production, but this diversification needs to be planned in a systematic manner. Certain strategies and policies are also suggested in this regards. The study confirms the changing consumption patterns and diversification, along with the outlook for the next 15-20 years in the light of shortage of supply to increased domestic demand. The major exports from India are mango, grapes, orange, apple, banana, mosambi, onion, potato, tomato and pumpkins. The major share of Indias exports of fresh fruits and vegetables go to Bangladesh, Nepal, UAE, UK and Malaysia. The supply constraints, yield gaps and huge logistic costs affect our competitive and comparative advantage in world trade market. In this study the nominal protection coefficient and revealed comparative advantage are computed to check on the existing status. Study also identifies the potential states for the fruits and vegetables, for which India is globally competitive and has comparative advantage in production. These states should be targeted for enhancing the export potential of the country. The potential competing countries are also identified. Lessons from other developing countries focus on the growth of the horticulture sector through increased participation of small and marginal farmers in an organized manner and farmers being trained with entrepreneurial skills.Keywords:
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India ranks second in the world (production of 45.91 mmt), next only to China (production of 72 mmt), when it comes to fruit production. India contributes 9.54% of the total fruit production of the world. In spite of the India’s strong hold on the production of fruits it is alarming to know that India processes just 2% of the total fruit production with an alarming loss of around 35%. Only 20% of the production of processed fruits is being exported. India’s share of global exports of fresh fruits and processed fruit products is quite meager when we compare the same with other major fruit producers of the world, i.e., China, Brazil, USA, Italy, Spain, Mexico, Iran, Philippines, Turkey and Thailand (in the same order). The imports and exports analysis of this particular industry in India has been made using secondary data that was available. This data is then analyzed to know the per cent contribution of each fruit and each processed fruit product towards total imports and exports and CGR of the imports and exports of the same. The effort was made to know the causes for the particular pattern of imports and exports along with recommendations on policy front to elevate Indian fruit processing industry to international standards. A coordinated, integrated and strategic effort of all the stake holders, i.e., fruit growers, fruit processors, channel members, nodal bodies (Governmental and Non Governmental), and end users is must to turnaround this industry. Fruit Processing Industry of India has to undergo a radical shift to address all the constraints and reap the enormous advantages/benefits/profits which this sector is to offer and be the world’s largest fruit processing factory. Problems/constraints have to be studied in wholesome, integrated and strategic manner rather than adopting piecemeal approach.
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The article examines the results of the impact of the COVID-19 pandemic on the global economy and the economy of the Russian Federation at the end of 2020. The quarantine measures introduced by the countries continue to negatively affect the economic situation in the world and the economies of individual countries. There is an acute shortage of seasonal workers in the agricultural sector of the countries of the world. The introduction of restrictions on the export of goods reduced the volume of imports. In Russia, the growth rate of imports from non-CIS countries has decreased. In January 2021, compared to January 2020, imports for food products and raw materials for their production decreased by 4.2%, and for vegetables – by 11.5%. According to the Federal Customs Service, the export of vegetables increased 3 times in terms of physical volumes and only 11% in terms of value. The growth in the physical volumes of export of products of the agro-industrial complex of the Russian Federation did not lead to a corresponding increase in revenue. The prices for vegetables imported into the country were 2.5-3.4 times higher than the prices for exported ones. Despite some difficulties, losses in this area due to the pandemic were minimal. The gross harvest of vegetables in the country as a whole amounted to 13.8 million tons, which is 1.7% below the level of 2019. At the same time, the gross harvest of vegetables in open ground decreased by 3.1%, vegetables in protected ground increased by 6.6%. Difficulties encountered in implementation. During the crisis period due to the COVID-19 pandemic, the demand for vegetables fell by 30%. Consumers, in an effort to improve their immunity, began to buy more environmentally friendly and healthy products, including vegetables. The demand for organic products has grown by 15-20%. To accelerate the economic recovery, it was necessary to take additional measures on the part of states to support producers and consumers, restore purchasing power and help businesses, expand access to credit resources, stimulate investment activity, and reduce the tax burden on businesses and the population. In Russia, financial support for the main measures of state policy in the field of the agro-industrial complex is carried out within the framework of the implementation of the State Program for the Development of Agriculture and the regulation of markets for agricultural products, raw materials and food.
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Indian is one among top producers of agricultural commodities in the world. The number of commodities and varieties produced has increased during the past 25 years. The existing capacity is self reliant and capable of exporting surplus produce to South Asian and Middle East countries. Due to initiatives taken by government of India to meet the food needs of growing population, it is expected that the production will increase manifolds and consumption would be lower than the production in next two decades. India will be having advantage of excess agro-production and that is nullified by spoilage and poor harvest and processing system. Hence Indian farmers need an orientation on pesticides use, Post-harvest management, packaging systems and latest logistics technology for meeting the quality as per the standards of USDA and HACCP.
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Globalisation is having a major impact on the performance of Australian horticulture. Australia is highly vulnerable to cheap imports of many fresh and processed fruit and vegetable commodities. New and emerging crops may become increasingly important. Particularly threatened will be commodities that can be produced and/or stored all year round eg banana, apple, and pineapple. New postharvest storage and disinfestation techniques will exacerbate the problem. Imports from developing countries such as China, Chile and Brazil are cheaper because of their low costs of production. For example, labour costs in rural regions of China are about A$2 per day and a tray of stonefruit costs about A$3 to produce. Lower farm gates prices for Australian farmers are also being driven by consolidation in major Australian retail supermarket chains due to increasing pressure from international competitors. Farm share of the retail price has dropped from about 30% in the 1980s to less than 15-20% in 2003. Due to increasing costs of production, and falling or static returns, Australian farms are being forced to amalgamate to achieve economies of scale and to improve their efficiency of production. For example the number of potato farmers in the Fassifern Valley of Queensland has fallen from 480 to 50 in the past five years, while overall production has not changed. This trend is also well documented in the USA. Whilst globalisation poses a major threat, Australia also has opportunities to increase exports of counter-seasonal commodities such as low chill stonefruit, lychee, custard apple and sweet persimmon to Asia, where populations are becoming increasingly urbanised, and disposable incomes are increasing rapidly. Australian industries must become more organised, co-operative and competitive to access these markets. We suggest that this can be achieved through the formation of larger export clusters and companies, standardized packaging and QA systems, and an internationally recognised brand name e.g. Oz Brand. We discuss new strategies to improve the survival and competitiveness of Australian fruit and vegetable industries.
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With a population of 82.5 million, the German market is the largest in the EU and therefore of special interest for the trade partners. Despite an unsatisfying economic development in the last years (lowest GDP growth in the EU and rising unemployment, see Table 9 in the annex) Germany is still a very attractive market with well funded consumers. Although agriculture has a small and declining contribution to the country?s gross domestic product, in the wider definition of the agribusiness, it is still one of the most important sectors with regard to turnover and employment. Taking consumers? expenditure for food as a proxy for the total turnover of the agribusiness yields a figure of 240 billion – in 2003, nearly as much as the turnover of the car industry in Germany. In total, 4.5 million people are employed in the agribusiness, which is 11.6% of Germany?s total labour force. Among agricultural markets, the market of fruit and vegetables is of special interest for the trade with Mediterranean countries and also of special importance for the food industry and the food consumption. In 2003 consumers? expenditure for fresh fruit and vegetables were more than 10 billion ?. The processing industry of fruit and vegetables generated another 6.5 billion – turnover, demonstrating the importance of fruit and vegetables in Germany. Bearing in mind that the self sufficiency ratios for fruit and vegetables in Germany are low (13% respectively 50%), the extent of market opportunities for the Mediterranean countries become obvious. Against this background it is the objective of this report to analyse the supply chain of fresh fruit and vegetables in Germany. In the second chapter the current market situation is briefly presented with regard to production, consumption and trade in Germany. Other aspects covered in this chapter are the demographic structure in Germany, important consumer trends and food quality issues. The third chapter is devoted in depth to the analysis of the supply chains for both fruit and vegetables. In this chapter the different actors and market channels are described with regard to their task and importance in the supply chain. In the fourth chapter the overall institutional structure is analysed. After the conclusions in the fifth chapter extensive tables and figures can be found in the annex.
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India is the second largest producer of fruits and vegetables in the world next only to China. Horticulture de-velopment is currently constrained by poor marketing arrangements. The gap between prices received by the farmers and those paid by urban consumers is large, reflecting inefficient marketing arrangements. The huge production base offers India immense opportunities for export.This study estimates production trends, market efficiency and export competitiveness of vegetables in India and suggest measures to improve production, marketing and exports of Indian vegetables. The study was conducted India as whole for production and export competitiveness and for marketing efficiency in the 8 states of Indiacovering 20 crops. The study found that area under total vegetables cultivation is grown at the rate of 4.12% and production growth rates was 6.48%. Indian vegetables production depicted glorious past and expected promising future. The most common marketing channel for majority of the crops is that Producer-Wholesaler-Retailer-Consumer. The resultsfurther showed that the producer share in consumer rupee was highest in Punjab, Tamil Nadu and Manipur compared to Andhra Pradesh, West Bengal and Rajasthan. It varies from 46% to 74% in Andhra Pradesh, 26% to 60% in West Bengal, 33% to 60% in Rajasthan, 85% to 88% in Manipur 91% to 95% in Tamil Nadu and 100% in Punjab. The study clearly shows that majority of the horticultural commodity markets are operating efficiently. The highest marketing efficiency found to be producer to consumer channel. Hence, government policies should promote direct marketing models for efficient horticultural marketing. The results showed that in most of the commodity cases marketing cost, marketing margin, transport cost, labour charges are adversely affecting marketing efficiency and open market price, volume of the produce handled and net price received are increasing marketing efficiency.The trends of fresh vegetables show that its export quantity increased 18.3% and 22.2% during two periods respectively. The results show that Indian vegetables are huge potential for exports.The results show that for all vegetables the Nominal Protection Coefficient is lessthan 1 indicating they are competitive in the international markets. The study suggests that Indian government should give priority to vegetable production, processing and exports.
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The current situation regarding imports of selected horticultural products from India into the European market in general, and the UK market in particular, is examined. The products selected for review are mango, melon, pomegranate, sapodilla, onion, and various Asian vegetables (okra, tindori, kantola and parval). The potential for either beginning or increasing volumes of sea-shipment is also investigated. In 1994, India exported about 3000 tonnes of mango to Europe, 1000 of which went to the UK There have already been some sea-shipments of mango to the UK, but it is noted that although mango has the most potential of all the products examined for increasing volumes of sea-freight, the very fragile Alphonso variety may not survive the long transit time. The Kesar and Pairi varieties may have some promise in this respect, but the low demand for the Rajapuri variety in the UK may limit its potential. Indian exports of melon to Europe are insignificant and accounted for only 0.001% of the European market in 1994. The market for melon in the UK is growing substantially, but few traders are optimistic about the possibility of sea-freighting Indian melon, partly because the Indian season coincides with that of Spain against which it has little chance of competing, and partly because many believe that the fruit could not be preserved for the 30 or so days of transit. There is some optimism about the development potential of papaya on European markets. The UK is attracted to good 'eating' papaya with good 'visual quality', but the sources are limited. The main suppliers are currently Brazil, Jamaica and Costa Rica. If the technical problems associated with importing papaya could be overcome, this could be a fast growth area. No disaggregated data are available on the supply of pomegranates to Europe, but small volumes are imported into the UK both by sea and by air. It is generally felt that the UK demand is too low for pomegranates to have much potential. An improvement in the visual quality of the fruit would probably have the greatest impact on its expansion in the UK market. Sapodilla is only traded by Asian wholesalers. It is a very low volume product in the UK and its extremely short shelf-life means that its potential for sea-shipment is not high. Speciality bananas occupy a niche market with small sales. Although there is some potential for market growth, traders feel that the process is unlikely to be rapid. There is little enthusiasm amongst traders for the import of Indian onions. Demand is very low and India would not be able to compete against the high domestic and European supply. There is also a low demand in the UK for the other Asian vegetables reviewed. Of them all, okra (ladies finger) has the most potential for expansion on the UK market, but there is strong competition from suppliers in Africa, particularly from Kenya. Many traders feel that vegetables are too perishable for successful sea-transport, and their relatively low value on the UK market may not justify increasing exports from India. Fruit and vegetable consumption in the UK is relatively low compared to the rest of Europe, but the UK market does appear to offer opportunities for expansion of horticultural export from India provided that Indian exporters can strengthen their competitive position.
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Although banana and plantain (Musa spp.) are crucial to food security in most countries of tropical Africa, the continent's role in the world banana economy has, at least until now, been relatively minor, as exports accounted for less than 4% of international banana trade in 2007, rising from 3% in 1985. This growth has been driven by just a few countries: Cameroon, Ivory Coast, and most recently, Ghana. However, the strong downward pressure on prices paid to the big multinational fruit companies like Dole, Chiquita and Fresh Del Monte from the large Northern retail markets - combined with low labor costs and tariff-free access to the EU-27 market - means that the three biggest global fruit companies have been actively prospecting for new production locations in the continent. Virtually all exports from Africa go to Europe, with France and the UK being the primary destinations. This is linked to geographical proximity and location of the shipping lines, but also to the fact that, as ex-colonies, African exporting countries have enjoyed substantial tariff preferences in the single European market since 1993 and are still enjoying bilateral agreements. Virtually all the 2007 export volume of >0.5 million t/year is accounted for by medium- and large-scale producers linked to one of the three major multinational fruit companies. Although banana plantations employ high levels of labor compared to any other export commodity, wages are low and have fallen in relation to the cost of living. Another key feature of industrial banana production is the high level of agrochemical inputs. Although overall levels of chemical application are lower than in Central America, African workers and neighboring communities report a number of health, safety and environmental problems related to these products. The potential expansion of export banana production in Africa comes at a time when the nature of demand in the world market is changing. As consumers, especially in Europe, have become increasingly more aware of the social and environmental consequences of industrial banana production, so the demand for fair trade and organic fruit has grown. By the end of 2007, an estimated one third of the UK market, Europe's second biggest, is accounted for by fair trade and organic banana imports. In Switzerland, this figure is over half the total market. Overall, the global market for fair trade certified bananas is now approaching 2% of world trade (nearly 5% in the EU), whilst world organic exports represent an estimated 2.2% in 2007. If African governments and civil society wish to attract the financial, social and environmental benefits inherent in fair trade and organic banana production, they will have to persuade investors to look beyond the traditional banana business model. In the African context, this likely growth in banana exports must not be at the expense of local food security. A 'business as usual' expansion model in Africa would simply reproduce the same model of poor labor conditions, occupational health and safety hazards, and long-term negative externalities for the natural environment. Nonetheless, there is growing evidence that the increasing focus by the big banana companies on sustainable development will be better reflected in new operations in Africa. This is an ideal opportunity to learn and apply the lessons from over a hundred years of banana export industry history in Latin America.
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India has one of the largest livestock sectors in the world and the largest livestock population with 520.6 million head. Of the world’s livestock population, cattle contribute 12.7%, Buffalo 56.7%, goats, 14.5% and sheep 5.9 % (FAOSTAT, 2008). Livestock constitutes a natural asset for the poor that can be liquidated when required. Hence, it is a store of wealth and an insurance substitute during times of crisis. India’s economy has not only grown but transformed. In the agriculture‐based economy, the agriculture sector’s share in total gross domestic product (GDP) declined. In 1980, the share of agriculture sector in total GDP was at 34 percent. It came down to only 16 percent in 2007‐08 (GOI, 2008). Between 1991 and 2008, the country’s total population increased by 1.6 percent annually, but the urban population grew at a faster rate of 2.4 percent. Real per capita income also rose by 4.8 percent annually. Throughout India’s economic transformation, the livestock sector consistently contributed to about five percent of total economic output (Figure-1). Between 1981 and 2006, the livestock sector grew at the rate of 3.9 percent annually much faster than crop sector growth of 2.8 percent. Both contributed to a growth rate of about three percent annually for agricultural value added during the same period (national accounts statistics). In 2007‐08, the livestock sector contributed to 26.5 percent of agriculture GDP increasing from 14 percent in 1980‐81 (GOI, 2008). During 2009-10 the contribution of livestock sector in agricultural GDP was 29.64% (GoI, 2010). There has been uneven growth in the livestock sector in India, leading to an unequal distribution of benefits and the need to differentiate approaches to further development. For example Operation Flood-revolutionized smallholder dairy development in the country, and overtime laid the ground for private sector participation in the dairy industry. However, most of the investments, and consequently the impacts, occurred in only few states.
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Jordan is divided into three main geographic areas with different climate: the Jordan Valley, the Highlands, and the Eastern Desert. The cultivated area is equivalent to 3.4% of the total land, mostly in the Jordan Valley. Although intensive irrigation and modernization processes are available, the local agriculture has to cope with the limited water resources. The contribution of the agricultural sector to the GDP is 3.8% in 2000 and currently it employs 5.7% of the workforce in Jordan. About 80% of local agricultural production consists of fruits, vegetables, and citrus. These constitute 70% of agricultural exports, where agricultural exports (mainly to the Gulf markets) are 10% of Jordan’s total export. The meat production in Jordan is limited, though the production of poultry is more active. The total national poultry production is about 120‐140000 tons per year, and it accounts for a small share in the region’s market. However, imported poultry from Brazil and Thailand contributes progressively in reducing the domestic production. The meat processing industry is active and it has specialized in frozen processed meat products, these products are exported to the neighboring countries. The major vegetables grown locally are tomatoes (representing about 31% of total production), potatoes (about 10%), and cucumber (about 9%). Among the fruit tree products, olives represent the most important production (see the special brief). As shown in figure 2, most importantly Jordan exports, tomatoes, cucumbers, eggplants, and curettes, while it mainly imports grain (wheat and barley). The Jordanian Government has signed a bilateral agreement with Syria, Lebanon, and Turkey, in order to import/export according to their respective needs. This sub‐sector covers the industry, which processes fruits and vegetables, namely tomatoes by companies specialized mainly in producing processing tomatoes and cooked vegetable products. Processed tomato is a large component of Jordan’s agro‐food sector. The industry produces a wide range of products coming from the local tomato crops (peeled tomatoes in cans, tomatoes cubes in cans, tomatoes concentrate, triple concentrate, ketchup, etc.). There are also other companies, which use Jordanian raw materials in the processing of ready cooked meals. There is scope for producing freeze and de‐hydrated dried fruits and vegetables, right now most of the freeze products are imported from Central and Eastern Europe. Dairy products With an output of 165 000 tons of fresh milk, Jordan produces 35 liters per capita while the domestic milk consumption is equivalent to 50 liters per capita. The country imports about 8000 tons of powder milk each year. Dairy products are generally yogurt and cheese (Halloumi type). Milk in bottles or pack is available on the local market but it is highly priced as pasteurized milk. Bakery products this sub‐sector, which includes mills, cereals and breads, is very dynamic and scattered, in fact it accounts for the greatest number of companies in the local food production. Statistics from Jordan Investment Board indicate that the grain milling firms represent 20 – 40% of total investments in the food sector. Cocoa, chocolate, and sugar product this sub‐sector is a traditional one in the Arab world, with all its industries representing the ethnic production (Halawa). The companies export to their traditional Arab and Gulf countries’ market and even to the US, for an amount of 2.184 million JD (15% of domestic production.
Microfinance has not served the poorest of the poor, that is, the individuals and households who require a loan the most. The very poor typically are unable to obtain any formal loans, as they do not possess collateral, nor can they join a borrowing group. Even with moderate improvements, interest rates on micro‐finance loans are still excessive, as opposed to commercial banks. Rates are also excessive, compared to the return on investment rates of projects typically found in rural areas, such as trading and husbandry. This is understandable, as no microfinance institution declared that it is in their mission statements to serve the poorest of the poor. Thus, it is imperative that stakeholders find other methods of poverty alleviation, such as grants, subsidies and other services production. Though the role of cooperative societies in development of MSMEs in Jordan remains small, this is not because of limited number of them and volunteer activity in the country. There are over 1,000 cooperative societies are registered, yet only 25% of them, mostly in rural areas, indicate such an aim. For example, the Jordan Hashemite Fund for Human Development (JOHUD) provides services in supporting MSMEs start up and growth.
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