Export potential Indian farm products not fully tapped: EXIM

According to Exim Bank''s new study titled, Fresh Fruits, Vegetables and Dairy Products: India''s Potential for Exports to Other Asian Countries the export potential of fresh fruits, vegetables and dairy sector in India has not been fully tapped considering the size and diversity of these sectors.

It calls for a "paradigm shift so that the future development in these sectors brings in better balance between production and other sub-systems." Citing FAO data, it says that world trade of fresh fruits and vegetable was estimated to be $40 billion in 2003 while the Asian region accounted for nearly 15 per cent share of the global trade of fruits and vegetable imports. Growth in intra-regional trade was the main contributor of growth in trade in this region.

The study notes that India is the second largest producer for both fruits and vegetables, next only to China. Major vegetables include potato, eggplants, tomatoes, cassava, cabbage, dry onions, cauliflower, pumpkin, okra and green peas, while fruits include mangoes, oranges, apples, grapes, pineapples and papaya.

India''s exports of fruits including edible nuts in 2003-04 was $166 million vegetable exports $205 million. The direction of India''s exports, were oriented towards the Asian region, which. accounted for about 75 per cent of India''s total fruits and vegetables exports in 2003-04 and for many countries, India was one of the top five sourcing partners for imports of fruits and vegetables.

However, India has a negligible share in imports of fruits and vegetables by countries like Australia, Hong Kong, Indonesia, Iran, Japan, Jordan, Republic of Korea, Lebanon, Mongolia, New Zealand, Pakistan, Philippines, Singapore, Syria and Thailand.

Considering the level of imports in Asian countries, the study noted that India has a high potential in many Asian markets. Potential fruits identified by the study for increasing the exports include apples, oranges, bananas, watermelon, mandarin, pineapple, mangoes and guavas. Potential vegetables identified by the study include garlic, cauliflower, tomatoes, potatoes, cucumbers, peas, mushrooms, onions and eggplants.