India is one of the world's largest producers of fruits and vegetables, ranking second in production after China. However, India has not been able to capitalise on this massive production through exports and instead remains a marginal player in the global fruit and vegetable market with a 1% share. For example, while India produces half of the world's mangoes, Thailand and Mexico dominate the export market. Similarly, India is the largest producer of bananas but does not even rank among the top 10 exporters of fruit. The international trade of fresh fruit and vegetables represents a small fraction of total global production, but it is still one of the most valuable commodity groups. In 2018, the global export value of fresh fruit and vegetables was $138 billion, second only to meat.
According to the Agriculture and Processed Food Products Export Development Authority (APEDA), in this fiscal year, India exported fruits and vegetables worth US$14.2 billion. Whereas the processed fruits and vegetables including pulses stood at US$16.2 billion. Notably, in the second quarter of this year India exported fresh fruits and vegetables worth US$ 6.8 billion which is 8.6 percent more in comparison to the same period last year.
Indian Market Overview
The majority of fruits exported from India are grapes, pomegranates, mangoes, bananas and oranges, while the main vegetables exported are onions, mixed vegetables, potatoes, tomatoes and green chilies. The major destinations for exports of Indian fresh fruit and vegetable exports are Bangladesh, the United Arab Emirates, Nepal, the Netherlands and the United Kingdom. This demonstrates that most of India's fresh fruit and vegetable exports are to neighbouring countries or those that are nearby. The global fruit and vegetable trade has more than doubled between 2000 and 2018, however, India failed to capitalise on the given opportunity.
The quality and freshness of fruits and vegetables is essential for the trade. In order to process and export fruits and vegetables, a world-class logistics and infrastructure ecosystem must be in place, including pre-harvest and post-harvest measures. However, India is still catching up in developing a robust and extensive network of cold chains and storage along with refrigerated transportation. Therefore, post-harvest losses still remain high for India’s fresh fruits and vegetables.
Fortunately, India’s cold chain facilities are rapidly growing to accommodate the needs of the perishable goods sector. By 2023, India’s cold storage capacity is likely to reach 40.7 million metric tonnes. As per Colliers' forecast* there has been a rise of 8.2 percent in cold chain facilities in India from 2020. Colliers forecasts the Indian cold chain sector to grow at 14% CAGR during next three years driven by growth of online grocery, pharmaceutical sales and the ongoing Covid-19 vaccination drive in the country.
Conclusion
Though the Indian fresh vegetables and fruits market is trailing behind, from the aforementioned data, it is clear that, with some minor developments, India could tap into its true potential. Each and every factor is in India’s favour. The scope for international trade of Indian fresh vegetables and fruits has started showing its colours and would very likely grow further. If you’re a fruit and vegetable trader and looking to expand your business globally, this is the right time.
The question is, how to get into international trade and more importantly, how to do that successfully? One can go the traditional way about this, by reaching out to existing players to get buyers. Or one can go about it in a modern and efficient way by registering your business in a reputable online B2B platform like Tradologie. By registering on the World’s 1st Digital Trade Hub, you can increase your reach in the global market exponentially.