Fresh and Processed Fruit & Vegetables: Growth in Production and Export from India

Abstract

The present study is an attempt to examine the status and growth in fruit & vegetables production, processing capacity and growth and instability in exports. The study is based on secondary data collected from several published and website sources. The production of fruit has grown at an annual compound growth rate of 3.76 and of vegetables at 3.34 per cent, respectively during 1980-2006. The growth of fruit production has been more in India than world production whereas in case of vegetables production it is reverse. Now, it's processing which has assumed paramount importance for commercial exploitation by creating time, form and space utilities. Production of processed fruit & vegetable products has increased at an annual compound growth rate of 11.25 per cent. Capacity of fruit & vegetable processing units increased by 8.5 per cent per annum still the industry has been able to utilize only half of the installed capacity. India witnessed substantial increase in export value of processed fruit & vegetables (16.85% CGR) during the period under study. Dried & processed vegetables ranked first in India's total export of processed fruit & vegetable products in value terms whereas in quantity terms pickles & chutneys occupied first position. The existence of relatively high instability in exports was also witnessed which has implications for promoting exports from the country. In spite of impressive growth in exports, our share in world exports is very low which needs to be increased by taking appropriate research and development policies and relaxing the constraints faced by the processing industry.