AGRI EXPORTS - INDIA

By

A.Arputha Selvaraj APMP IIM Calcutta

INTRODUCTION

INDIA - A SNAP SHOT

INDIA’S AGRO EXPORTS

INDIA A GRAND PROCESSED FOOD

BAZAR

CONCLUSION

STRUCTURE OF THE PRESENTATION

GDP Growth Rate 6 %Inflation 6.0 %Foreign Reserves 45 Billion USD

Agro sector contributes one third of GDP

Overview of Indian Economy

Growing Economy

GDP Growth Rate 6 %

Inflation 2.02%(Oct. 99)

Foreign Reserves 45 Billion USD

Export Growth 5% (Apr-Aug.)

INDIA - A Snapshot

By far the most richly endowed agricultural nation in Asia

Has more aerable land than China and almost as much as East & South Asia 169 million ha aerable land

12 month sunshine, variable soil texture & good irrigation system.

6 Agro climatic zones covering tropical, sub-temperate & temperate climates.

Agro- Sector contributes one third of GDP.

INDIA - A Snapshot

Product World Position Production % World India Share

(In Mill. M.T) Tea I 2.9 0.87 30.0 Milk I 546.00 68.00 12.5 Cattle Population* I 1318.00 209.00 15.8 Cashew II 0.9 0.40 44.4 Sugar II 124.00 14.23 11.4 Fruits II 434.70 043.00 9.8 Vegetables II 606.05 070.00 11.5 Rice (Paddy) II 563.00 122.00 21.6 Wheat II 588.84 66 .00 11.2 Emerging Products:

Cut Flowers Eggs & its Products Alcoholic Beverages Source : Fao 98, NHB Frozen / Freezed Dried Vegetable & fruits *(In Mill.nos.)

Production Of Major Items In India

Agro Sector

Qualified manpowerExcellent extension and R&D network

20 Agriculture UniversityICAR, IARI, IHRI, CFTRI

Fruits & Vegetables production 116 million MTS:48 million MTs of Fruit and 68 milliom MtS of Vegetables

3rd largest producer of food grain production 191 million MTs million MTs of Rice and 65 million tonnes of Wheat

INDIA- A Snapshot

India - one of the world’s largest food factories

Produces as much as USA

Crop out put China 856 MT

USA 608 MT

India 601 MT

Aspires to be number ONE

Food Industry In India

95-96 to 01-026027

68406400 6100

54045800

0

2000

4000

6000

8000

95-96 96-97 97-98 98-99 '00-01

'01-02

VALUE in Mill USD

India’s Agro Export Performance

01-02

VALUE 5800 Mill USD

India‘s Agro Export Basket

Slice 70%

Marine25%

Rw Cotton1%

APEDA33%

Tea8%

Cashew7%

Tobacoo3%

Spices6%

Coffee5%

O il meal12%

America USA, Canada

Europe UK, Germany, France, Switzerland, Spain, Netherlands, Belgium, Sweden

Middle East Saudi Arabia, UAE, Kuwait, Bahrain, Qatar, Oman, Yemen, Jordan, Lebanon

Asia Malaysia, Singapore, Maldives, Bangladesh,

Srilanka, Hong Kong, Indonesia, Nepal

Africa Mauritius, South Africa, Kenya, Egypt

Others Russia, CIS, Poland

DESTINATIONS

Pickles

chutneys

Papads

Curries

Spices Based Ethnic Products

Ethnic SnacksBhujiaSavouriesVegetarian Instant MixesSweets

NutsPea nutsCashew nutsWalnuts

Traditional Basket

Integrated units

Introduction of state of the art technology

International packaging

Quality Assurance System in place

Processed Foods a New Chapter

USD 7,000 million industry

Accounts for 28% of GDP AND 61% of employment

Food processing is By far largest than the entire manufacturing sector - is expected to grow from 21.4 Bn $ to 62.5 Bn $ by 2005

Food Industry In India

Blending of Continental flavours IQF: fruits & vegetables - Baby corn , Bell

pepper,Lettuce Alcoholic spirit & beverages -Wines, Beer European pickles

Gherkins in brine or vinegarGreen peppers in brine

Export destinations -Frozen & Preserved vegetables : UAE, Saudi Arabia Kuwait, Bahrain,

Singapore,

Russia, Canada, UK, USA,Switzerland. Belgium, Singapore, Malaysia, Germany,

Netherland, UK, Spain, France, Denmark, USA

Processed Foods

Pepsi Inc

Kellog Co.

Nestle Ltd.

Alfa Laval

Dalsem

Agrolimen

Ovobell Ltd.

Mc Dowell Corp.

Coca Cola

Cadbury

Fosters Brewing

Cargil

Conagra

Food Industry In India

Foreign Direct Investments

Total Investments

(Jan.’91 - Apr. 99) 56.2 USD Billion

Food Processing 2.4 USD Billion

Agro Sector 0.77 USD Billion

Government policy

13 13.1 14.912.2

20.9

16.5

0

5

10

15

20

25

95-96 96-97 97-98

QTY 000 MtsVAL Mill $

Export Destinations : U.A.E.,U.K.,U.S.A.,SAU,Netherlands,Germany,

Canada,Russia,Kuwait,Australia,Singapore,Belgium

Export of Chutneys (95-96 To 97-98)

2.5 2.4

3.43.8

3.4 3.6

0

0.5

1

1.5

2

2.5

3

3.5

4

QTY 000 MtsVAL Mill $

Export Destinations : U.A.E.,U.K.,U.S.A.,SAU,Netherlands, Oman,

Canada,Kuwait

Export Of Pickles

(95-96 To 97-98)

7.4

11.5

7.7

12.6

6.4

10

0

2

4

6

8

10

12

14

95-96 96-97 97-98

QTY 000 MtsVAL Mill $

Export Destinations : U.K.,Singapore,Malaysia,U.S.A.,SAU,

U.A.E.,Canada,Kuwait,Australia, South Africa,Germany,Oman Etc

Export Of Papads(95-96 TO 97-98)

Mangoes

Guavas

Lychees

Papaya

Banana

TROPICANA TROVE Fruit Pulps & Concentrates

Item Production Share of India India’s (in ‘000MT) in the world Position

India World

Mangoes 12,000 23,455 51.1 1 Bananas 10,200 58,618 17.4 1 Pineapples 1,100 12,100 9.0 3 Guava 620 7,786 3.0 4 Oranges 2,000 66,212 4.0 Apples 1,200 53,672 2.4 9 Grapes 700 57,397 1.2 15 All Fruits 43,000 4,13,932 9.8 2Source : FAO Total Fruit Production : 43Million MT, NHB 99

Production of Major Fruits in India

PRODUCTION OF MAJOR

VEGETABLES IN INDIA Item Production Share of India India’s (in ‘000MT) in the world Position

India World

Potato 17,942 2,94,834 6.08 5 Onion 4,058 35,644 11.38 2 Tomato 4,800 84,873 5.65 5 Cauliflower 4,800 12,725 37.72 1 Cabbages 3,300 46,656 7.00 3 Green Peas 270 5,214 5.17 2 All Vegs. 64,672 5,65,523 11.43 2 Source FAO

Export according to EU quality standards

Diverse Variety of Bee Flora like organic,Lychee,Karanj and Orange Blossom

No pesticide residue in Indian consignments

Production / Packaging standards notified and sent to EU commission

Procedures formulated to ensure any possible presence of pesticide residue.

Honey

19.522

29.5

0

5

10

15

20

25

30

Qunntity in Mill Tons

Spices Production

Chillies23%

Celery2%

Coriander5%

Spice oils25%

Curry Powder4%

Turmeric14%

Fennel2%

Cumin7%

Misc Spices8%

Pepper1%

Ginger5%

Fuengreek4%

Total Exports : 234 Mill USD

Spices Exports

“We believe in Quality and work for it”

Movement For Quality

Quality Building

Standardization of pre & post harvest practices

QM & QA for processed food sector (HACCP, ISO 9000 ISO 140000

Information data bases Human resource

development Quality improvement

projets(VHT,X-Ray,CA Containers etc.)

Quality Assurance

Upgradation & recognition of test labs

Assisting Exporters establish In-House QC Labs

Certifying Exporters as premium quality Exporters

Suppliers QA Programme

Movement For Quality

Extending the shelf life of mangoes, shipment of two consignments of mangoes - from India to U.K. using controlled atmosphere (CA Technology).

Pre harvest management practices, followed in the orchards ,with modification to suit local conditions.

Export products selected directly from selected orchards

Trans shipment period - 23 days, total period from harvesting till it was sold, approximately 32-35 days.

shelf life of mangoes from 30 to 40 days has been achieved in this year’s experiment .

It is proposed to conduct further trials for both stationery and commercial consignments during the next mango season.

CA Container Experiment

Production & Packaging standards already under application

Bar code system followed

Complete Labelling system describing all contents, nutritional value and additives

Natural additives used in packaged foods

Packaging & Labelling

Organic Food Products - Advantage India

Organic farming practiced since centuries

Cattle fed on natural fodder

Biomass & Cowdung applied as natural manure

Processed Foods a New Chapter

India : a large producer and exporter of agricultural and horticulture products both in fresh and processed forms.

Organic Foods Current Situation in India

(Figures in 000 MT)

Items Production Exports % ageRice 81700 2511.97 3.07

Wheat 69400 1145.89 1.65Coarse G. 18000 71.03 0.39

Pulses 14200 55.00 0.38

Fruits & V.116000 716.61 0.61Honey N.A. 581.00 --

(Source : DGCIS, Economic survey)

Organic-Foods Production & Export From India

Organic Rice : Organic rice ,Sugarcane grown in a 3000-4000 hec Certified organic farms

Other certified organic farms are small in size ranging from 100 to 150 ha.

There are organic farms certified by Ecotropic of UK. The total area 2.8 hec. And production 19 MT.

STATUS OF ORGANIC CULTIVATION

Organic Wheat : Small farms measuring total area of 2600 ha. Producing 645 MT of organic wheat annually.

Organic Coarse Grains : Great international Demand for organic maize and millet

Organic Pulses : Organic farms. The total area 302 ha. And production 2935 mts. Certification by Ecotropic.

Organic oilseeds : Organic soya produced. The total area 444 ha. Certified by Ecotropic UK.

Organic Fruits & Vegetables : Non-Certified organic farms producing fruit and vegetables exist all over the country. A farm was producing and exporting certified organic fruits and vegetables in dehyderated form.

Indian National Organic Standards based on IFOAM and EU Standards and operating Manuals drawn up for selected Agro Products

“Indian Organic “ Logo developed for certified organic products from India.

Proposal for assistance to set up Model Organic Farms for selected Agri-Horti Products in North Eastern part of the country

assisting setting up of Organic Farm for production of peanuts in Western India

Ethnic Products

Exotic Fruits

High Value Vegetables

Organic Products

Spices

CONCLUSION

Thanks

Email me : arputhaselvaraj@gmail.com