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Unlocking the potential of the Indian banana trade Building tomorrow’s markets: India banana case study

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Page 1: Building tomorrow’s markets: India banana case study ...assets.fsnforumhlpe.fao.org.s3-eu-west-1.amazonaws.com/public/fil… · Building tomorrow’s markets: India banana case

Unlocking the potential of the Indian banana trade

Building tomorrow’s markets: India banana case study

Page 2: Building tomorrow’s markets: India banana case study ...assets.fsnforumhlpe.fao.org.s3-eu-west-1.amazonaws.com/public/fil… · Building tomorrow’s markets: India banana case

Building tomorrow’s markets

Maersk Line is a key partner to Indian export industries and an important stakeholder in the emerging banana export trade.

This case study summarises the findings from research carried out in 2011 by members of Maersk Line’s Sustainability team, alongside external consultants. The group visited India to learn first-hand about the Indian banana export model, its growth potential and the contribution it can make to India’s social and economic development.

About this case study

India: A world of opportunities

28%India’s share of world banana

production, making it the world’s

largest banana producer.

<1% The proportion of Indian bananas

that are currently exported.

This represents just 0.3% of all

internationally traded bananas.

20 – 30%The proportion of Indian fruits

and vegetables estimated to go to

waste in India due to the absence

of an effective cold chain. This

amount is equivalent to the total

annual consumption of fruit and

vegetables in Great Britain.

3,000The number of containers

currently exported from India to

markets in the Middle East.

25m tons The amount of bananas that

could theoretically be freed up

for consumption if the emerging

export productivity gains were

achieved across the entire Indian

banana sector.

190,000The potential number of

containers if India was to realize

its growth potential.

As this summary will show, the study found that: • Increasing banana exports has the potential

to bring significant economic, social and environmental advantages to India

• To expand the export trade, major investment is needed, along with close collaboration between domestic and international stakeholders in the industry

• Critical upgrades in India’s cold chain infrastructure will be key to unlocking future growth potential.

Middle East Current market East Asia

Potential future market?

Black Sea Region

Potential future market?

North and Central Europe Potential future

market?

MumbaiJebel Ali

“ Everybody is looking for the next big sourcing location.” Retailer interview

UK

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Building tomorrow’s markets 1

The Indian banana industry

Yet less than 0.1% of current Indian banana

production is exported, which represents

less than 0.3% of the international banana

trade. India’s social and economic

development potential is closely linked

to its ability to bring in new investments,

technologies and know-how to its huge

agricultural sector. India’s affinity to Middle

Eastern markets, where there is growing

demand for bananas, offers significant

potential for boosting its exports. India also

offers an alternative to the region’s current

supply from more remote sources.

Unlike the rest of the world’s major banana

growing areas, which are dominated by

large-scale commercial farms, the Indian

banana industry is based on large numbers

of small, independent farmers, typically

cultivating less than 3 acres.

Our study has looked closely at the

emerging Indian banana export model and

the wider social and economic implications

of the future growth of the trade.

Importantly, when considering exporting

food from a hungry nation like India –

where an estimated 231 million

people (24% of the population) are

undernourished – the impact on domestic

consumers and any possible political

implications are important considerations.

For an export model to thrive under these

conditions, it must offer clear benefits,

not just to new customers abroad, but

also to the local economy and the growing

local communities.

The Indian banana trade is therefore a good

example of the potential opportunities,

and the challenges, involved in boosting

export production in emerging economies.

We hope that the lessons learnt in this

study could aid discussions regarding how

the export of bananas and other similar

commodities can be increased in India

and the role of an effective cold chain

in enabling that growth.

Bananas are the world’s favourite fruit and the fourth most important food crop after rice, wheat and maize. India is the world’s largest producer of bananas, with 28% of world production.

“ India in the next 5–10 years, will become the world’s largest grape and banana exporter so there is big potential in the business.” Tata Chemicals

Freshinfo News

shutterstock image

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Building tomorrow’s markets 2

Due to the structure of landholding in

India there are limits to how much land

a company or individual can own. The

contract farming model allows agribusiness

firms to gain access to bananas produced

across a larger area than legal constraints

on ownership would otherwise permit.

The model centers on a strong local

exporter who provides support throughout

the growing phase and assumes full

responsibility for quality control,

distribution and marketing in line with the

needs of the global markets. In turn, large

numbers of smallholder farmers agree

to sell their produce to the exporter at

a minimum guaranteed price. The contract

farming model can hold important benefits

for the farmer. In addition to significant

productivity improvements, which provide

the farmer with more value for each

invested rupee, farmers can also benefit

from increased access to credit, reduced

input costs, access to capital, equipment

and technical support. Most importantly,

the provision of a guaranteed minimum

price, negotiated on an annual or long-term

basis, reduces the farmer’s risk. This makes

export-orientated farmers less prone to the

kind of big price fluctuations found in the

domestic market.

The dominant farming model for export-quality bananas in India is contract farming.

Connecting smallholder farmers to global value chains through contract farming

1.Contract farmer plants banana tissue

2.

Contract farmer attends banana plants

3.

Merchant exporter harvests bananas

10.

Containers shipped to markets in the Middle East

9.

Containers loaded onto ship

8.

Customs clearance at terminal

Container trucked to terminal

4.

Bananas are trucked to packing station

11.

Bananas in ripening rooms

12.

Bananas sold at wholesale markets and retailers in the Middle East

6.

Bananas packed into boxes and then a container for export

5.

Bananas are washed, sorted and quality-assured

The journey of the Indian banana

7.

Under the export model, banana bunches are color-coded and covered with bags to control ripening and protect against diseases.

Pack-houses ensure the consistency in supply, quality and volumes required by global buyers.

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Building tomorrow’s markets 3

• Improved yields. The average domestic

productivity for Indian bananas is 15 tons

per acre. This compares to 25 tons per

acre under the export model, meaning

that farmers serving the export market

currently get a better return from the

money they have invested. According

to Indian exporters interviewed, there

is potential to increase yields even

further through adapting modern

growing techniques, such as those

used in the Philippines.

• Improved quality. Under the export

model, smallholder farmers have

been able to increase their share of

export-quality bananas, which generally

generate a higher market price. With

improved harvesting techniques, an

additional 10% of the farmers’ crops

could be converted into export-quality

bananas according to some exporters.

• Less waste. Currently, 20–30% of

India’s banana production is estimated

to go to waste, lost in India’s domestic

infrastructure. By establishing an

unbroken cold chain from pack-house to

origin, the export model has managed to

reduce post-harvest waste levels during

transportation to 1–2%, representing a

significant productivity gain.

The study has suggested that if yield and

waste levels in the domestic banana

industry and cold chain infrastructure could

be raised to the level of the emerging export

model, up to 25 million tons of bananas

could be made available for domestic and

global consumption.

In the study, three key benefits from accelerating the growth of the export model became apparent.

Key productivity gains from the export model

1– 2%is the share of bananas lost during

transit in the export model.

Up to 25 mtons more bananas could make

it to consumers if the export

productivity gains were

applied to the domestic sector.

Banana waste during domestic transit

47% Farm gate to local mandi 21% Wastage within district 16% Wastage within State 16% Wastage outside the State

Source: enRoute, Transport Corporation of India Ltd.

The advantages of temperature controlled distribution Transporting fresh produce like bananas

over long distances is an essential

element of global food distribution.

Most food waste in the supply chain

comes directly or indirectly from poor

temperature control. To minimize these

losses and extend the shelf life of fresh

produce, an uninterrupted series of

storage and distribution activities, a cold

chain, is a critical component. Recent

innovations in container technology, such

as Maersk Line’s StarCare™, mean that

bananas can now potentially travel up

to 50 days with minimal losses and their

freshness retained. Technologies such as

these are creating new opportunities for

banana growers all over the world to reach

more distant markets without eroding

the quality of their products. For India,

StarCare™ could thereby also offer an

opportunity to advance into markets

beyond the Middle East in the future.

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Building tomorrow’s markets 4

In 2010, the value of Indian banana

exports was estimated to be US$79 million,

with around US$28 million of this value

accrued to India and the rest going to

foreign actors in the export value chain.

The study found that the potential for

further growth is strong.

The graph below outlines a possible growth

scenario for the export sector, with key

milestones along the way. It shows the

additional economic value that would be

gained by India as the number of container

loads of bananas exported is increased.

The growth trajectory is based on

progressive improvements in productivity

and reductions in waste on the smallholder

farms dedicated to export-quality

banana production.

It also presumes a gradual increase in the

acreage dedicated to export banana

production in India. This could be achieved

through banana farmers in identified export

production ‘clusters’ switching to the

export model, or through the conversion of

farmland in those areas to export banana

cultivation from alternative crops. The use

of virgin land could offer further increases.

Based on interviews with exporters and local authorities, the study quantified the growth potential of the Indian banana export trade and the economic impact that growth could bring.

A scenario for growth in the Indian banana exports

1 Baseline: 3,000 containers per year represents the 2010 baseline. Today, only 0.15% of the total Indian banana acreage is dedicated to exports and the Indian export is equivalent to just 0.3% of the global trade.

2 15,000 containers per year: This is the short- medium-term export ambition of Indian stakeholders and would bring Indian exports up to around 2% of the current global trade; about the same as Honduras or Côte d’Ivoire. This level of exports would make use of 0.5% of total banana acreage in India.

3 50,000 containers per year: This is the medium-term export ambition of the Indian trade and is equivalent to around 5% of the current global trade, a level achieved by Guatemala and Panama. It would require 1.5% of the total Indian banana acreage.

4 100,000 containers per year: This level represents the long-term ambition of the Indian export sector. At this point, India would provide around 10% of the world’s banana exports, about the same as the Philippines, whilst still only making use of 3% of its total banana acreage for exports.

5 190,000 containers per year: This is the estimated volume of exports that would be achieved if the production capacity of the banana clusters currently identified was fully realized. Using up 5% of Indian banana acreage, this level of exports would represent 17% of the current global total, about the same as Colombia or Costa Rica.

Given the volume increases and level of

productivity improvements needed,

increasing exports to 190,000 containers

per year is an ambitious milestone to aim

for. However, the level of ambition in the

industry is high and the study estimated

that, with a 4% annual increase in yields

and a 27% annual increase in acreage

dedicated to export-quality bananas, this

could be achievable as soon as 2025.

Reaching this level would make bananas a

key export industry for India. The economic

impact of this would be significant. The

export industry would generate US$4,646

million each year, of which US$1,612 million

would accrue to India and the rest to foreign

stakeholders. This would add more fuel to

the continuing growth and development

of the Indian national economy.

There would also be significant localized

social and economic impacts in the

banana-growing clusters. These are

discussed in the next section.

Value US$ created to

India from export

growth

US$m

2,000

1,500

1,000

500

0 3,000

containers15,000

containers50,000

containers100,000

containers190,000

containers

5

1 2

3

4

Source: Maersk Line

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Building tomorrow’s markets 5

The social and economic impact perspective

The socio-economic impacts of expanding the Indian banana export model could be significant. The current export of approximately 3,000 containers is estimated to employ 2,250 people, directly or indirectly, including 1,000 farmers.

Should India manage to realize its full

potential and increase its volumes to

190,000 containers, this could increase

to 96,000 jobs in total. They, in turn, would

support 405,000 dependants. 34,600

smallholder farmers would be among

those to benefit.

Increased productivity as a result of

improved produce quality and know-how

from exports would generate around 60%

more income for farmers and 106% for

workers. This would allow for improved

access to basic utilities, education and

healthcare for them and their families.

However, the study also found that there

are limits to how much a smallholder

farmer with only around 2.5 acres can earn

and thus the extent to which he and his

family would be able to escape poverty.

Once the benefits of increased yields

flatten out, further rises in income levels are

still possible if individual farmers are able

to increase their acreage. As well as

increasing production capacity, the study

found that five and even 10-acre farms are

much less vulnerable to natural hazards

and crop failures compared with smaller

farms. However, increasing average farm

size would require significant land reform.

The vulnerability of smallholders and

workers, detailed in the box to the right,

raises an important question about the

economic value distribution of the global

banana trade. In this respect, the Indian

export model looks very similar to the global

model, with approximately 10% of the

economic value going back to farmers and

less than 2% of this to the farm workers.

In contrast, foreign economic stakeholders

capture 65% of the economic value of an

internationally-traded banana.

In recent years, Fairtrade has emerged as an

example of how market instruments can

seek to distribute a larger share of the

economic value back to producers. While

Fairtrade continues to represent only a

marginal share of the global banana

market, it does offer potential to test and

market alternative modes of production,

including those based on smallholdings,

for select global markets.

96,000represents the total number

of jobs of growing the exports

to 190,000 containers. This

would in turn create over

400,000 dependants

10%of the banana’s economic value

goes to the farmers and less than

2% of this goes to farm workers

Value distribution India 2010

23.1% Packing and shipping and forwarding

41.2% Importing income 24.0% Retailing income

10.3% Farm income 1.4% Farm workers, packing workers

and truckers income

The vulnerability of Indian banana farmers• Banana farms are typically

only 2–2.5 acres

• The majority of India’s

smallholder farmers live

below the international

and domestic poverty line

• There is no government

insurance for banana

farmers in case of crop

failure. However, Indian

farmers are

tax exempted

• Many have debt problems.

Farmers pay 36–40%

interest on black/grey

market loans, relative to

a bank rate of c.12%

• Rural depopulation

is causing an overall

shortage of rural workers,

further increasing

pressure on farmers

• The value of land is rising,

leading some farmers to

sell off their farms.Source: Maersk Line

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Building tomorrow’s markets 6

The environmental impact perspective

To ensure a sustainable growth trajectory for Indian banana exports, the potential economic and social benefits must be balanced against the environmental impacts of growing the trade. While the study did not include an explicit

environmental impact assessment, in the

longer term, environmental issues must

be considered alongside the economic

and social factors. Any degradation of

farmland and the natural environment will,

over time, have a critical impact on the

economic sustainability of the banana

sector and welfare of the local population

who rely on clean water, healthy soil and

pollutant-free air.

Based on the findings in this study, there

are indications that the expansion of

export-quality bananas in India can be

achieved without compromising the health

of the natural environment. As a matter of

fact, the improved quality and reduction of

waste necessary for a profitable export

model will in itself have a positive

environmental effect, allowing India to

produce the same amount of bananas with

fewer resources.

Furthermore, the expansion of the export

model could offer an opportunity to apply

modern, more environmentally sustainable

farming practices on a large scale. This

includes using farmer education and

support to drive improved management of

fertilizers and pesticides, more efficient use

of irrigation and the avoidance of surface

water pollution. As well as reducing any

potential negative environmental effects

from the export model’s more intensive

farming, better environmental

management could also help protect

the health of farm workers and

neighbouring communities.

Reducing water use in the banana sector In the global banana trade,

reducing environmental

impacts can play an

essential role in increasing

productivity and reducing

costs – water is just one area

of impact.

Water has three main uses

in banana packing houses.

Firstly, it is used as a natural

cleaning agent to remove

debris and insects.

Secondly, pools hold and

transport bananas prior

to selection. Finally, it is

used to remove latex.

In the past, over 150 liters

was needed per box. Water

recycling technologies have

been progressively

introduced since the 1990s,

with modern pack-houses

such as Dole’s New

Millennium Packing Plant

in Costa Rica now using

only 18 liters per box.

By moving most packing

activities into the banana

field, Dole not only saves

water, it cuts energy use

and protects aquifers.

Energy-efficiency through containerized banana transport Environmental impacts occur across the

entire Indian banana value chain, not just

at the production stages. For globally

traded bananas, a significant part of the

environmental footprint comes from

shipping and inland transportation at

origin and destination. Through

investments in container technologies

and innovations, Maersk Line is playing a

key role in reducing the environmental

footprint of internationally traded

bananas. As an example, shipping

bananas in a refrigerated container

from Maersk Line, going from Mumbai

to Dubai, will save exporters and

importers approximately 12% CO2

compared to the industry average.

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Building tomorrow’s markets

Poor transportation infrastructure wastes huge amounts of bananas

7

Required investments and enablers for export growth

Realizing the potential social and economic benefits of India’s banana exports will require a significant upgrade in banana production and cold chain distribution.Today, critical investments in the Indian

banana export industry are absorbed by a

handful of local exporters supported by a

range of incentives and initiatives from the

Indian Government and export authorities.

Meeting the full potential of the trade

would require the scale of these investments

to be increased many times over.

Cold chain The development of effective cold chain

storage and transportation services is

critical to growing India’s banana exports.

By allowing the bananas to be kept fresh

for longer, increased availability of cold

chain storage would enable far more

effective coordination of the supply of

India’s bananas with market demand,

boosting the reliability of the supply and

reducing wastage.

Cold chain transportation services, such

as refrigerated trucks and containers,

dramatically reduce waste in transit.

These services need to be supported by

an adequate power supply in rural areas.

To lower the cost of these services and at

the same time help to optimize transport

times, dedicated export corridors can be

established, with an unbroken cold chain

from pack-house to port.

Pack-houses The study estimated that around six fully

dedicated pack-houses are required to

handle the 3,000 container loads of

bananas currently exported. However, in

order to reach export volumes of 100,000

containers, around 200 pack-houses with

packing capacity for two containers per day

would be required.

Farmer education The current export model is dependent

on smallholder farmers dispersed over a

large agricultural area. This requires that

significant investments be made in

education and relevant support services

to give farmers the necessary skills and

knowledge to increase productivity,

improve the quality of their bananas and

reduce waste.

To reach the necessary level of investment

to make improvements in these three

areas, and to gain additional insights

and expertise, India could benefit from

cooperating with one of the large

multinational banana companies. However,

these companies have until now refrained

from major direct investments in India,

instead prioritising regions better suited

to larger-scale commercial farming.

The state of India’s rural infrastructure Over the last 60 years, poor planning and

investment has resulted in numerous

inefficiencies in Indian infrastructure. In

combination with unparalleled economic

growth, India’s inland infrastructure is

increasingly under pressure. One key

constraint on future growth and a

significant cost driver is the state of

India’s rural roads and the distance from

farm to ports. For instance, travelling the

300 kilometers from a banana pack-house

to the closest port can take up to three

days due to traffic congestion and the

poor state of roadway repair. This can

significantly challenge the economic and

environmental sustainability of export

growth. Capacity at major Indian seaports

is also a potential constraint to banana

export growth.

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8

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l eco

no

my

that

dep

end

s al

mo

st e

nti

rely

on

sm

allh

old

ers,

this

will

be

on

e o

f

the

mo

st s

ign

ifica

nt c

hal

len

ges

for t

he

futu

re s

ucc

ess

of I

nd

ia’s

ban

ana

exp

ort

ind

ust

ry.

Key

sta

keh

old

ers

Ind

ian

gro

wer

s an

d e

xpor

ters

Ind

ian

ban

ana

grow

ing

asso

ciat

ion

s

Ind

ian

agr

icu

ltu

ral a

nd

ban

ana

rese

arch

bod

ies

Man

agin

g ri

sks

and

op

por

tun

itie

s

in in

tern

atio

nal

trad

e

Ban

ana

tari

ffs

hav

e so

far p

laye

d a

cru

cial

role

in d

eter

min

ing

glo

bal

trad

e p

atter

ns

and

the

com

pet

itiv

enes

s o

f ban

ana

exp

ort

ing

regi

on

s. W

ith

the

WTO

’s g

rad

ual

rem

oval

of b

anan

a

tari

ff s

chem

es in

the

EU

, new

op

po

rtu

nit

ies

may

em

erge

for

Ind

ia, a

nd

new

thre

ats.

Fo

r in

stan

ce, W

TO ru

lings

on

imp

ort

tari

ffs

in In

dia

will

po

ten

tial

ly o

pen

the

Ind

ian

do

mes

tic

mar

ket u

p to

ch

eap

, hig

h-q

ual

ity im

po

rt b

anan

as, e

rod

ing

the

com

pet

itiv

enes

s o

f th

e d

om

esti

c b

anan

a se

cto

r. Th

is, h

owev

er,

cou

ld p

rovi

de

an e

xtra

ince

nti

ve to

focu

s o

n b

oo

stin

g In

dia

’s o

wn

exp

ort

mar

ket p

enet

rati

on

.

Key

sta

keh

old

ers

Wor

ld T

rad

e O

rgan

izat

ion

(WTO

)

Nat

ion

al a

nd

tran

snat

ion

al tr

ade

bod

ies

Ind

ian

Gov

ern

men

t an

d tr

ade

bod

ies

Imp

rov

emen

ts in

Ind

ian

co

ld c

hai

n in

fras

tru

ctu

re

Do

mes

tic

infr

astr

uct

ure

is a

maj

or f

acto

r in

imp

edin

g In

dia

’s

futu

re g

row

th p

ote

nti

al. A

key

pro

ble

m is

the

po

or c

on

dit

ion

of

Ind

ia’s

rura

l ro

ads,

wit

h la

rge

dis

tan

ces

to p

ort

s fr

om

the

ban

ana

grow

ing

area

s. In

ad

dit

ion

, sig

nifi

can

t up

grad

es a

re re

qu

ired

in

cold

ch

ain

sto

rage

an

d lo

gist

ics

faci

litie

s to

bri

ng

do

wn

po

st-

har

vest

was

te le

vels

. Bu

ildin

g sp

ecifi

c in

lan

d tr

ansi

t co

rrid

ors

wh

ich

can

cat

er b

oth

to th

e d

om

esti

c an

d e

xpo

rt m

arke

t nee

ds

cou

ld b

e a

way

of f

ocu

sin

g in

vest

ing

mo

re e

ffec

tive

ly.

Key

sta

keh

old

ers

Col

d c

hai

n s

ervi

ce p

rovi

der

s

Tra

nsp

orta

tion

an

d s

hip

pin

g co

mp

anie

s

Ind

ian

exp

ort a

uth

orit

ies

Ind

ian

Gov

ern

men

t

Mee

tin

g d

omes

tic

mar

ket

dem

and

s

Sta

keh

old

ers

con

sult

ed fo

r th

is s

tud

y su

gges

ted

that

hig

h le

vels

of d

om

esti

c b

anan

a co

nsu

mp

tio

n w

ere

a fa

cto

r in

cre

atin

g le

ss

of a

n in

cen

tive

for e

xpo

rts.

Wit

h th

e ri

se o

f th

e In

dia

n m

idd

le

clas

s, th

e d

om

esti

c re

qu

irem

ent f

or e

xpo

rt-q

ual

ity b

anan

as

may

wel

l in

crea

se, a

dd

ing

furt

her

co

nst

rain

ts to

exp

ort

sec

tor

dev

elo

pm

ent.

Fo

r th

e ex

po

rts

to c

on

tin

ue

to g

row

ove

r th

e co

min

g

10

–2

0 y

ears

, it n

eed

s to

off

er e

xpo

rter

s ec

on

om

ic b

enefi

ts th

at

the

do

mes

tic

mar

ket c

ann

ot m

atch

.

Key

sta

keh

old

ers

Dom

esti

c w

hol

esal

ers

and

reta

ilers

Ind

ian

exp

orte

rs

Ind

ian

ban

ana

con

sum

ers

Exp

ort p

rom

otio

n p

olic

ies

and

ince

nti

ves

The

Ind

ian

Gov

ern

men

t pla

ys a

key

role

in p

rom

oti

ng

exp

ort

s

thro

ugh

su

bsi

die

s fo

r tar

gete

d c

om

mo

dit

ies,

incl

ud

ing

ban

anas

,

and

by

fun

nel

ing

infr

astr

uct

ure

inve

stm

ent i

nto

iden

tifi

ed e

xpo

rt

clu

ster

s. A

co

nd

uci

ve p

olic

y en

viro

nm

ent w

ill c

on

tin

ue

to p

lay

a

key

role

in a

dva

nci

ng

the

trad

e. A

n a

rea

wh

ich

may

sti

fle

Ind

ia’s

grow

th p

ote

nti

al is

that

the

curr

ent l

and

po

licie

s d

o n

ot s

up

po

rt

larg

er-s

cale

farm

ing,

wh

ich

is th

e p

refe

rred

mo

del

of t

he

glo

bal

ban

ana

com

pan

ies.

Fu

ture

lan

d re

form

s w

hic

h w

ou

ld a

llow

for a

mix

bet

wee

n la

rge-

scal

e fa

rms

and

sm

alle

r far

mer

s co

uld

po

ten

tial

ly a

ttra

ct fo

reig

n in

vest

ors

, fu

rth

er im

pro

vin

g In

dia

’s

glo

bal

co

mp

etit

iven

ess.

Su

ch re

form

s w

ill h

owev

er n

eed

to b

e

bal

ance

d a

gain

st th

e ri

sks

of l

and

gra

bs

and

mar

gin

aliz

atio

n o

f

smal

ler f

arm

ers.

Key

sta

keh

old

ers

Ind

ian

Gov

ern

men

t

Ind

ian

exp

orte

rs a

nd

gro

wer

s

For

eign

inve

stor

s

Red

uci

ng

farm

er r

isk

an

d v

uln

erab

ility

D

esp

ite

the

soci

al a

nd

eco

no

mic

ben

efits

fro

m in

crea

sed

exp

ort

s,

the

stu

dy

also

hig

hlig

hts

the

eco

no

mic

vu

lner

abili

ty o

f th

e

smal

lho

lder

farm

er. P

rio

rity

sh

ou

ld b

e gi

ven

to m

arke

t-b

ased

an

d

po

licy

init

iati

ves

that

can

hel

p in

crea

se fa

rmer

ear

nin

g p

ote

nti

al

and

red

uce

vu

lner

abili

ty. Th

is c

ou

ld, f

or i

nst

ance

, be

by

crea

tin

g

add

itio

nal

pro

tect

ion

for b

anan

a gr

ower

s th

rou

gh c

rop

insu

ran

ce.

Ther

e m

ay a

lso

be

po

ten

tial

in e

xplo

rin

g F

airt

rad

e o

r org

anic

mo

del

s in

cer

tain

ban

ana

clu

ster

s to

cap

ture

hig

her

ear

nin

gs,

alth

ou

gh th

is is

un

likel

y to

be

scal

able

acr

oss

the

enti

re in

du

stry

.

Key

sta

keh

old

ers

Ind

ian

Gov

ern

men

t

Fai

trad

e/or

gan

ic b

odie

s an

d m

arke

ts

Ind

ian

ban

ana

grow

ers

and

exp

orte

rs

Ind

ian

ban

ana

grow

ing

asso

ciat

ion

s

Su

pp

lyD

eman

d

Pac

kin

g an

d lo

cal

tran

spor

tati

onG

row

ing

Ret

ail m

ark

etS

hip

pin

g

Building tomorrow’s markets

Page 11: Building tomorrow’s markets: India banana case study ...assets.fsnforumhlpe.fao.org.s3-eu-west-1.amazonaws.com/public/fil… · Building tomorrow’s markets: India banana case

Maersk Line’s instigation of this research stems from our desire to understand better the industries in which we play a direct and indirect role as enablers of global trade. We also wanted to learn about some of the opportunities and challenges in ensuring a sustainable and inclusive growth trajectory in the global agricultural value chains of tomorrow. As a world-class provider of refrigerated transportation services, we recognize that we have relevant knowledge and skills to offer to stakeholders across the Indian banana value chain.

We offer this study as one of many potential perspectives on the Indian banana trade. We share our observations in hope that the study can make a contribution to discussions among stakeholders up and downstream in the Indian banana industry who, like ourselves, can have an impact on future developments in the trade.

We will look forward to working closely with exporters, buyers and authorities in further maximizing the future impact potential of the Indian banana export.

For further information about the research presented in the folder and to share relevant insights and views in support of a sustainable growth trajectory for the Indian banana trade, please contact Maersk Line Sustainability via Mette Olsen ([email protected]).

This report has been developed together with Martha Emneus, AEHR, and Lars Scheving, FirstLine.

The role of Maersk Line ContactHeadquartersA.P. Møller – Mærsk A/S

Esplanaden 50

1098 Copenhagen K

Denmark

Tel +45 3363 3363

Fax +45 3363 4108

www.maerskline.com