India, despite its position as a top producer of various crops, encounters barriers in capitalizing on the global market for high-demand convenience foods and premium tropical fruits. The nation's agricultural exports have consistently generated approximately $50 billion annually over the last three fiscal years, predominantly driven by staple crops like rice and sugar. This focus highlights a need for diversification in the export portfolio, potentially enabling India to meet its 2030 government-set export targets and tap into the latent potential of high-value fresh produce.
In response, the Union Government has projected an ambitious $100 billion target for agri-exports by 2030. The Agricultural and Processed Food Products Export Development Authority (APEDA), under the Commerce Ministry, is tasked with doubling its contribution to $50 billion from $25 billion. In collaboration with the Indian Council for Research on International Economic Relations (ICRIER), APEDA is executing a two-phase strategy to address these challenges.
The initial phase concentrates on bananas, mangoes, mango pulp, and potatoes, while the subsequent phase will include oranges, juices and pulps, chillies, grapes, okra, baby corn, honey, milk products, table eggs, and groundnut. A report by ICRIER, "Strategy to boost India's agri-exports: Banana, mango, mango pulp and potato and its value-added products," explores barriers to exports and suggests strategic solutions.
Data shows India's bananas account for 25.4% of global production but only 1.2% of exports, despite exports increasing from $25 million in 2010 to $250.6 million in 2023. Similarly, India contributes 44% to global mango production but exports just 0.6%, hindered by high local prices, perishability, and reliance on air freight. Mango pulp exports show promise, with the global market expected to grow to $2.11 billion by 2026. India's share in global potato production is 14.2%, yet its export of potatoes and related products was only 2.8% in 2022, whereas the processed potato market might expand from $29 billion in 2021 to $47 billion by 2030.
The report stresses establishing integrated export hubs and clusters, enhancing value chains, and improving infrastructure. It recommends APEDA collaborate with ICAR and State agencies for trial shipments and core logistics development. Managing and branding horticultural products are also proposed, along with adopting technology for traceability, logistics optimization, and crop monitoring to streamline efficiency.
Danda Raji Reddy of Telangana Horticultural University advocates for crop-specific SOPs to meet international requirements, while highlighting the role of blockchain, AI, and best practices in boosting export efficiency and quality assurance.
Source: Business Line
