Abstract
Introduction
Please consider these facts about India:
- Population of 1.14 billion growing at about 1.5 per cent per annum
- Economy growing at 7-9 per cent per annum
- More than 90 per cent of the population has at least 10 pure vegetarian
meals per week.
There can be no doubt that India is the largest collection of consumers of
fruits and vegetables. One may also add that Indian fruits and vegetables
market is the fastest growing market in the world.
Combine this with the fact that India is the second-largest producer of fruits
and vegetables. Looking at this gigantic market can be truly mind-boggling.
The variety of fruits and vegetables produced in India is enormous. India buys
a vast variety and ships an even larger variety of fruits and vegetables.
The first challenge in a study of imports into and exports from India of
fruits and vegetables was to identify key products. From Harmonized System of
Classification (HS Code) chapters 7, 8 and 20 were identified as containing
the complete range of fruits, vegetables and products made from them. From
these three chapters, 29 products were selected as important in the imports
basket of India, while number of key items selected from exports basket was
47. The selected products cover more than 95 per cent of the total quantity
and value of imports and exports of India under the above three chapters of HS
Code.
Major segments covered in the report are:
- Vegetables, fresh
- Vegetables, frozen
- Vegetables, prepared / preserved
- Vegetables, dehydrated
- Fruits, fresh
- Nuts
- Dry fruits
- Fruit / vegetable products
- Pulses
Pulses are a major item of consumption in India and also form a large part of
the import / export trade of India. Traditionally in India, pulses are not
considered part of fruits and vegetables. However, keeping in line with
international practice, we have included pulses as part of this report.
Growing population and rising incomes have led to increased consumption of
fruits and vegetables in India. Domestic agricultural and horticultural
production is rising at less than 3 per cent per annum. This is grossly
inadequate to keep pace with the growth in demand. Hence, imports are rising,
while exports growth is stagnating. The following table of exports and imports
of products selected in this study illustrates this.
Increasing import of fruits and vegetables by India is an opportunity for
companies across the world. Some Indian companies active in the space may need
to realign their export-oriented strategies with the new emerging scenario.
On the other hand, it is interesting to note the emerging maturity of Indian
food industry. Imports of commodities are rising but imports of value-added
products are not rising in the same way. Indian industry is able to emerge as
a global processing centre - importing commodities and exporting value added
goods. Exports of commodities are stagnating, while export of valueadded
products is increasing.
This report is focused on data of imports and exports. However, we look
forward to working with you to conduct studies with sharply defined objectives
to help you make use of the opportunities emerging in India. Kindly do contact
us.
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