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April - May 2002 
 
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India must emulate China if it wants to become competitive in the global processed fruit market, says Arvind Sinha

 




The global processed food industry has just touched the $10-billion mark, and is growing at a decent pace — well ahead of other manufacturing sectors.

By contrast, India, boasting a population of almost a fifth that of the world, is reported to have a ‘marketed’ food business worth only Rs 700 crore, if the value of output by primary processing sector with very low value-addition is also taken into consideration. The size of the Indian food industry is estimated at 70,000 to 80,000 units that are involved in some form of processing of one material or the other.

India is the second largest producer of fruit and vegetables in the world. Both in fruit and vegetable, 30% of total production is lost at various post-harvest stages.

In India, only 2 to 3 per cent of the fruits are processed as against 78 per cent in Brazil, 76 per cent in Argentina, 65 per cent in the US and 54 per cent in China. More than half the units in the country's processed food industry sector are already closed, more than 20 per cent are at the stage of closure, while the rest are just limping along. Most of the process industry operates only for 120 days to 150 days in India. The rest of the time, it is idle. Idling cost is very high, as the fruit processing industry has not yet been provided seasonal industry status.

The estimated product-wise break-up is as follows:
Fruit
Tonnes
Mango
60,000
Banana
6,000
Guava
5,000
Papaya
1,000
Others
4,000

Indian fruit basket

The fruit juice and pulp industry has made considerable progress in the last decade. The industry has started contributing significantly towards global trade in tropicals. Although no precise data is available on domestic production of processed tropical fruits, it is estimated that the total production of fruit juices and concentrates annually is around 80,000 tonnes. The figures for processed food are negligible compared to the total world market. When India is the second largest food producer in the world, why is that its share in the international food processing industry is not increasing?

Even the Indian mango is losing its position as South Africa, Mexico, Argentina, Brazil and even Kenya have recognised the fruit's potential and have gone actively into mango cultivation and processing.

The world market for processed fruit is largely divided as under:
Orange
76 per cent
Pineapple
10 per cent
Apple
7 per cent
Banana
6 per cent
Strawberry, mango and other foods
2 per cent.
Indian share of mango falls in this last 2 per cent.

Problems uncanned

There are some common problems between buyers and sellers. Importers of mango pulp and mango concentrate from the international market have consistently expressed their concern about the following:

  • High fluctuation in the pricing of pulp and concentrates year by year.
  • Failure of Indian exporters to adhere to commitments, either asking for revised pricing or going on short supplies.
  • Failure to maintain hygienic and sanitary conditions at international standards.
  • Wide fluctuation in the quality of different exporters.
  • High cost of products due to high cost of inputs.
 

 


 

 

 

 





 

 

 

 

 

 

 

 

The Indian fruit juice and pulp industry has made considreable progress in the last decade

 

 

 

 

 

 

 

 

 


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