vegetables data

8/7/2019 vegetables data

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Overview

Food Processing is a highly diverse industry sector comprising ten major sub-sectors:

Fruits and vegetables, Grains, Milk and milk products, Fisheries, Meat and poultry,

Plantation products, Alcoholic and non-alcoholic beverages, Confectionary,

Packaged/Convenience foods and Health foods and supplements.

The growth of the sector is dependent upon high per capita disposable incomes, urban

lifestyles and consumer tastes and preferences in favour of ready to eat, easy to prepare

and hygienically prepared foods. As such, growth of the sector has been the highest in

developed economies, especially across Western Europe, North America, Japan and

Australia.

Even in respect to developing economies, the growth of food processing sector has

accelerated with increases in GDP, per capita income and the resultant changes in

lifestyle. Organized retailing and availability of better processing technologies too have

contributed to the accelerated growth of the sector.

India endowed with diverse agro-climatic conditions and large irrigated area, ranks as

the worlds second largest food producer, next only to China. From high dependence on

external sources to self-sufficiency in 60 years, India has achieved several distinctions in

food production. The countrys world ranking as a producer vis--vis other nations

improved considerably with respect to major products, as indicated in table.

Indias World Ranking as Producer of Major Agri-productsSl,No

Indias Production(Million tonnes)

Indias Rank

1 Wheat 72 2

2 Rice, Paddy 124 2

3 Coarse grains (including maize) 29 3

4 Milk 91 1

5 Fruits 47 26 Vegetables 82 2

7 Edible Oilseeds 25 3

8 Pulses 15 1

9 Sugarcane 245 2

10 Tea 0.85 1


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The size of the Indian food industry is estimated at US$ 200 billion (2008) and expected

to grow to over US $ 310 billion (2015). India like China and Latin America is rising high

on world food demand curve as a mass market for processed fruits, dairy and meat

products as could be viewed from the following graph.

Evolution of Global Food Demand

Notwithstanding its inherent advantages of possessing a large and diverse production

base and presence of a sizeable domestic and export markets, the growth of Indias food

processing sector remained small at least till the mid-1990s. Thereafter, with sustained

economic growth rates, rising urbanization and changing lifestyles, countrys food

processing sector has witnessed 7% CAGR. Fruits and vegetables have recorded the

highest growth, around 20% followed by meat processing (13%) and dairy processing

(4%). The trend is expected to continue into the future and the factors supporting the

view are:

- rapid urbanization;- increasing participation of women in urban jobs and less time available for

kitchen chores;

- rising family disposable incomes;

- growing diet consciousness among the educated and affluent;

Africa(Sub- Saharan)

India , China,

Latin America

EasternEurope

North America,Japan, WesternEurope, Australia

Surviving Mass

Market

Convenience

Food Service

Snacking

Quality

Hygiene

High Technology

Diet /Functional /

CConvenienc

Foods

Snacks /Prepared

Meals

Dairy, meat,

Fresh fruitsFruit juices,

Beverages

CarbohydrateStaples


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- rising exposure of Indians to developed economies leading to theirexperiencing and adopting new lifestyles and

- increased availability of branded processed foods driven by high propensityto consume by youngsters.

To ensure the sustained growth of the sector, Vision 2015 of MoFPI envisages:

- a three fold growth in the size of countrys processed foods sector;

- increasing the level of processing of perishables from 6% to 20%;

- raising value addition from 20% to 35% and

- enhancing Indias share in global food trade from 1.5% to 3%.

Further, to realize the vision, MoFPI has initiated several measures, the most important

one being the establishment of 30 Mega Food Parks during the Eleventh Plan.

As a result of these initiatives, Indias processed foods output is likely to touch US $ 90

billion level while packaged foods will record sales of US $ 22 billion by 2012. On per

capita basis, it would imply US $ 18 by 2012.

Fruits and Vegetables Sub-sector

Global Scenario

Fruits and vegetables is one of the most important and fast growing sub-sectors of the

food processing sector, as fruits and vegetables form an indispensable part of healthy

diet. Medical research has established that intake of fruits and vegetables in the

requisite measure help prevent cardio vascular disease and obesity.

a) Production of Fruits

Global production of fruits has been hovering around 500 million tonnes level during the

last three years as could be seen from the data presented in Table.


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Estimated Global Production of Fruits

Sl.No Year Production( Million Tonnes)

1. 2005 516.6

2 2006 496.3

3 2007 499.7

Apple, apricot, banana, grape, grapefruit, kiwi, lemon, mango, orange, peach, pear,

plum, pineapple, pomegranate and tangerine are the major fruit varieties grown. Citrus

varieties, account for more than 20% of total world fruit production.

China, India, Brazil, USA, Italy, Spain, Mexico, Iran the Philippines and France are the

top ten aggregate fruit producers in the world.


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Worlds Leading Fruit Producing Nations


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b) Production of Vegetables

World production of vegetables has been hovering around 890 million tonnes, as could

be noted from the data contained in table.

Estimated Global Production of Vegetables

Sl.No Year Production( Million Tonnes)

1 2005 891.2

2 2006 889.7

3 2007 893.4

Over a hundred types of vegetables are grown across the world. Beans, beet, broccoli,

cabbage, capsicum, carrot, cauliflower, corn, cucumbers, onion, peas, potato and

tomatoes are the major vegetable varieties grown.

Asia dominates the world vegetables scene accounting for nearly 60% of global

production, with China and India ranking as 1st and 2nd. European Union and U.S.A

follow next.

c) World Trade in Fruits and Vegetables

The value of world trade in fresh fruits and vegetables has quadrupled in the last two

decades. World imports and export estimates of fruits and vegetables are presented in

table.

World Trade in Fruits and Vegetables

U.S $ billion

Year World Imports World Exports

2004 110.6 101.4

2005 118.9 112.8

2006 132.6 124.1

(source: FAO)


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Fruit and vegetable products (both fresh and processed) accounted for 22% of total

agricultural exports from developing countries. Fruit trade is heavily concentrated in

Bananas, Citrus, Grapes and Apples.

Fresh produce comprising citrus, pears, peaches, nectarines, plums and kiwi fruit, andprocessed produce comprising tomato based products, fruit juices and concentrates,

packed vegetables as well as tinned and frozen fruits are mostly certified under

Protected Geographical Indication status.

Over the last quarter of a century (1980-2004), the fruit and vegetable market has been

one of the fastest growing of all agricultural markets as could be observed from the data

presented in table.

Evolution of World Fruit and Vegetable Markets (million tonnes)

3 Year Average Production Consumption

1982 84 691 -

1992 94 899 782

2002 04 1342 1189

Global fruit and vegetables consumption increased by an average of 4.5% per annum

between 1990 and 2004. This was higher than the world population growth rate,

meaning that the global per capita consumption of fruit and vegetables has also

increased. According to World Health Organization, for the prevention of chronic

diseases such as heart diseases, cancer, diabetes and obesity, fruit and vegetable

consumption should be at least 400g per day per capita. If in 1992-94 only 40% of the

countries reached this level, almost half of them did so in 2002 04.

The quantity of fruit and vegetables traded as fresh products is more than 5% of the total

production, with fruit exports heading for the 10% mark, while the trade in vegetables

stagnates around 3%. In 2002-04, exports of fresh fruit and vegetables averaged 73

million tonnes, whereas exports of fruits and vegetables products (e.g. juices, dried,preserved and prepared products) amounted to 30 million tonnes.


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The list of large exportersof fresh fruits and vegetables starts with the USA. Mexico is

2nd, having overtaken EU in the past decade. Other big exporters are China, Chile,

Ecuador and South Africa. In total, the top 10 exporters account for 66% of the world's

fresh fruits and vegetables exports. On the import side, the EU is the world's largest

importer. The US follows closely behind, while other countries, like Canada, Japan and

China have significantly smaller imports. The top 2 importers (EU and USA) take in 50%.

Indian Scenario

India is the second largest producer of fruits and vegetables in the world, accounting for

about 16% of global vegetable production and 10% of world fruit production. India is a

front runner in many fruits and vegetables with share in world production as follows:

41% of mango

23% of banana

24 % of cashew nut

10% of onion

30% of cauliflower

36% of green peas


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The trends in Indias fruits and vegetables production are presented in table.

Production of Fruits and Vegetables in India

[Source: NHB]

The leading fruits grown in India are presented in table.

Leading Fruits Produced in India

Category Major Fruits

Tropical Mango, Banana, Pineapple, Citrus and

Grapes

Sub- tropical Papaya, Guava, Litchi, Pomegranate

Temperate Apple, Strawberry, Peach, Plum

The leading vegetables grown in India are presented in table.

Leading Vegetables Produced in India

Category Major Vegetables

Leafy Vegetables Cabbage, Cauliflower, Lettuce, Mustard andSpinach

Fruit and Flower vegetables Capsicum ,Cucumber, Gherkin, Parwal,Pumpkin , Snake guard, Tinda and Tomato

Root and Tubers Beetroot, Carrot, Celery, Onion, Potato,

Radish, Sweet Potato, Turnip and YamPodded vegetables Broad bean, Chickpea, Drumstick, Frenchbean, Indian pea, Okra and Sweet corn

Fungi vegetables Cultivated Mushrooms, Oyster mushroomsand Straw mushrooms

India is not a major exporter of fruits and vegetables, as it has a very large domestic

market. Details of exports of fruits and vegetables from India are presented in table.

Fruits Vegetables

Year Area(Million Ha)

Production(Million tonnes)

Area(Million Ha)

Production(Milliontonnes)

2002-03 4.8 49.2 5.9 84.8

2003-04 5.1 49.8 6.7 101.4

2004-05 5.3 52.8 7.1 108.2

2005-06 5.3 55.4 7.2 111.4

2006-07 5.6 59.6 7.5 115. 0

2007-08 5.8 63.5 7.8 125.9


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Exports of Fruits and Vegetables from India

( Rs. Lakhs)Fruits & Vegetables 2004-05 2005-06 2006-07

I. Fresh Fruits

Fresh onions 64411.9 70815.88 116330.57

Other fresh vegetables 23376.54 217280.54 43002.06

Walnuts 9621.92 11447.33 11803.06

Fresh Mangoes 8901.06 12811.12 14193.95

Fresh Grapes 12844.57 21460.85 30192.45

Other Fresh Fruits 17155.36 22567.29 25643.64

Sub-Total 136311.35 356383.01 241165.73

II. Processed FruitsDried & PreservedVegetables

22736.78 36411.26 42406.20

Mango Pulp 31571.94 134613.2 50582.79

Pickles & Chutneys 12934.7 26098.14 29359.48

Other Processed fruits& vegetables

28899.85 37021.34 50814.71

Sub-Total 96143.27 234143.94 173163.18

Total232454.62 590526.95 414328.91


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a) Status of Fruit and Vegetable Processing Sub- sector

Only 2.2 % of the total produce is processed and the rest marketed as fresh fruits and

vegetables. It is estimated that 20 to 25 % of the produce is lost due to lack of

processing facilities (in flush season) and inadequate infrastructure for post-harvest

treatment, packing, storage and transportation.

In the budget of 2004-05, the Government has allowed under Income Tax Act, a

deduction of 100% of profit for five years and 25% of profits for the next five years in

case of new agro processing industries set up to process, preserve and package fruits

and vegetables. In the budget of 2006-07, food processing sector was declared as a

priority sector for bank credit and was decided that would create a refinancing window

with a corpus of Rs.1,000 crore, especially for agro-processing infrastructure and market

development.

b) Growth of Fruit and Vegetable Processing Sub-sector

The installed capacity of fruits and vegetables processing industry has increased from

11.08 lakh tonnes in 1993 to 24.74 lakh tonnes by 2007. Over the last few years, there

has been a positive growth in ready to serve beverages, fruit juices and pulps,

dehydrated and frozen fruits and vegetable products, tomato products, pickles,

convenience veg-spice pastes, processed mushrooms and curried vegetables.

The domestic consumption of value added fruits and vegetable products however

continuous to be low compared to the primary processed food in general and fresh fruits

and vegetables in particular which is attributed to higher incidence of tax and duties

including that on packaging material, lower capacity utilization, non-adoption of cost

effective technology, high cost of finance, infrastructural constraints, inadequate farmers-

processors linkage leading to dependence upon intermediaries. The smallness of units

and their inability to market end products also is a constraint for expansion of the

domestic market.With a view to accelerating the growth of fruit and vegetable processing sub-

sector, Govt. of India has initiated several measures. These measures, besides

encouraging fresh investment in-flows focus on strengthening critical infrastructure

development essential for value addition, quality assurance and post-harvest losses

minimisation.


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Investment to be Channelised into Fruits and Vegetables Sub-Sector

Capacity Required Investment Required

CurrentCapa

city

(Tonnes/Day

)&

Utilization(%

)

NewCapacity

required(200

5

10)Tonnes/D

ay

NewCapacity

required(200

5

15)Tonnes/D

ay

Investment(2005

10)INRMillion

Investment(2005

15)INRMillion

TotalInvestm

ent

(200510)IN

R

Million

Organized 11333 79778 51746 69889 40159 110048

Packedfresh F&V

6667 60000 28571 60000 28571 88571

Otherprocessed

4667 19778 23175 9889 11587 21476

Capacityutilization 50% 60% 70%

State Scenario

Andhra Pradesh is a major fruit and vegetable producing States of India. A variety of

tropical and sub-tropical fruits and vegetables are grown in the state. The state occupies

a distinct place in the national scenario in respect of some fruits and vegetables as

indicated in table.

Share of Andhra Pradesh in Production of Major Fruits and Vegetables

Sl.No Fruit/Vegetable %Share in IndiasProduction

National Rank

I. Fruits

1. Mango 28 1

2. Papaya 39 1

3 Sapota ( Chikku) 15 4

4 Citrus 42 2

5 Banana 10 5

II .Vegetables

1 Tomato 14 2


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2 Tapioca 5 4

3 Brinjal 4 6

4 Okra 11 4

5 Onions 5 6

Details of production of major fruits and vegetables in the state are given in table.

Production of Major Fruits and Vegetables in Andhra Pradesh[Area: Ha production: M.Ts]

2004-05 2005-06 2006-07A. FRUITS A P A P A PMango 256149 2049192 280669 2163416 285504 2341133Banana 53465 1229695 65046 1626149 72444 2173320Orange 109316 1421108 134157 1477917 168076 2218603

Sapota 13973 136935 15117 151170 18112 181120Guava 10064 120763 10420 135465 9120 136800Total Fruits 652042 7735445 782603 8696360 818068 10495989B. VEGETABLESTomato 69502 1251036 84287 1601453 81069 1540311Potato 3787 60592 4310 73270 4417 88340Brinjal 24662 493240 29255 614355 28548 428220Bendi 24094 301175 29533 383929 28269 424035Chillies 224474 538738 122992 307480 208585 573609Total Vegetables 258445 3861900 266904 4374090 251433 4210129(Source: AP Horticulture Board)

There are 157 fruit and vegetable processing units in the state mainly in the small and

medium sector. Fruit processing activity is largely concentrated in Chittoor district. There

are 67 processing units with an aggregate installed capacity to produce about 2 lakh

tonnes of mango and other fruit pulps. Contract manufacturing for leading exporters and

food retail majors is most common. Own account production is low. 90% of the

production by these units is exported in the form of canned pulp or aseptic concentrate.

The remainder finds way to domestic markets in the form of RTS fruit juices and nectars,

jams and jellies and de-hydrated fruit bits.

Though the states fruit processing sector has attained a reasonable growth, it calls for

interventions to ensure a more planned and accelerated growth. Development of the

sector in the state assumes importance as it would:


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- facilitate minimization of post-harvest losses (estimated to be around Rs.2500 croresin the state);

- create sustainable employment especially in rural areas with relatively low per-capitainvestment;

- improve net returns to farmers andz- generate new demand on farm sector for the production of those varieties of fruits

and vegetables more suitable for processing.

Indian Food Processing Sector Opportunities & Challenges

Opportunities

Indias humungous market size ravenous appetite for food, with growing incomesand changing life styles create incredible market opportunities for food producers,

machinery makers, and food technology and service providers.

The Indian food sector estimated to be worth over $200 billion, expected to grow to$310 billion by 2015. It also contributes to a major part of the retail basket. The$6.1- billion Indian food retail chain is also growing a 9% and has invited FDI to thetune of over $3 billion. India is emerging as major player in global food trade.

Size of the semi-processed and ready to eat packaged food industry is over Rs.4,000 crore (US$1 billion), growing at over 20%.

Increased urbanization, improved standards of living and the convenience needs of

dual income families point to major market potential in the food processing andmarketing sectors. This is also evident from the presence of several global foodsgiants and leading Indian MNCs in the country's food processing sector (--eg,)Nestle India Ltd, Cadbury's India, Kelloggs India, Hindustan Lever Ltd, ITC-Agro,Godrej Foods and R Foods etc.,

The segments with the largest growth potential have been identified as dairy,wheat, fruits and vegetables, and poultry.

Technological and human resources related to food industry are available aplentyin the country. Recent initiatives taken to give a special focus to this industry in abid to provide logistics management and technology for increasing exports of fruits,

vegetables and processed foods as the next areas of growth for exports. Theproposed food parks would be equipped with facilities to sort and grade agricultureproduce for export.

The surplus food production, as well as the increasing preference for Indian foodsin several regions of the world can be leveraged through exports.


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Post liberalization, (1991) the government has taken various steps to encouragethe sectoral growth like removal of price controls, dereservation from small scaleand reduction in import controls. The Government is also providing a fillip tologistics and food retail, customs duty on refrigerated motor vehicles has beenreduced from 10% to zero and the excise duty/countervailing duty from 16% to 8%.

Challenges

The accomplishments of the green and white revolutions have, however, not been

matched by concurrent developments in supply chain management, and in new

technologies for better processing, preservation, and storage of food. Pockets of

shortages and near starvation, substantial wastages due to spoilage, quality

deficiencies, and inadequate returns to the farmer are still very much in evidence.

The challenges for the food preservation, distribution and processing sectors are diverse

and demanding, and need to be addressed on several fronts to derive maximum market

benefits. Presently, the organizations addressing the educational and R & D

requirements are too few, and there is a pressing need for supplementing their efforts.

Some of the major challenges are:

Disintegrated value chain

Inequitable price to farmers

Lack of sufficient warehousing and cold chain facilities

Inadequate dissemination of benefits of modern technology

Low price-elasticity for processed food products

Poor distribution network

Checkered backward-forward integration from farm to consumers

Development of sustainable and viable marketing channels

Development of linkages between industry, government and institutions

Low awareness on food laws


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Conclusions

Unprocessed foods are susceptible to spoilage by biochemical processes, microbialattack and infestation.

The right post-harvest practices such as good processing techniques, and properpackaging, transportation and storage (of even processed foods) can play asignificant role in reducing spoilage and extending shelf life.

The challenges in processing lie in retaining the nutritional value, flavour, aroma, andtexture of foods, and presenting them in near natural form with added convenience.However, such qualities cannot be readily quantified and correlated with physic-chemical parameters, sensory evaluations providing the only means ofbenchmarking. Besides, processed foods need to be offered to the consumer inhygienic and attractive packaging, and at low incremental costs.

There is an urgent need to develop strong supply and value chain mechanisms toreduce the production and supply costs and to mitigate the exploitation by some of

the actors across the chain and to boost the exports.

There is an urgent need to identify and map the major horticulture/ agriculturecultivated areas in the country, create a mechanism to strengthen the farmer-trader-exporter-end user link like hub and spoke model with a Central Processing Centre ashub and collection/ primary processing centres as spokes, provide post-harvestfacilities like grading, sorting, washing, cold storage, wear houses, creating valueadded facilities like IQF, ascetic packaging etc.

One of the major tools in addressing the above issues is establishment of food parksin selected locations and equips them with all the facilities which can be used by allthe stakeholders like farmers, traders, entrepreneurs, exporters etc.

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