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Latha Venkatraman

Mumbai , Nov. 10

OPENING up of Indian markets for fruit exports has inadvertently helped to improve the quality of produce in this country, according to Mr John Hey, Editor, Asia Fruit.

``The grower is taking it as a challenge to improve quality standards of farm produce as imports could render him uncompetitive,'' Mr Hey said. Asia Fruit, the magazine for Asia's fresh produce buyers, has been organising the Asia Fruit Congress, currently being held in Mumbai.

It may have been SARS that prompted Asia Fruit to look at India as the venue for the Congress. But Mr Hey says that South Asia is emerging as an important destination for importing fruit.

In India, much of the import of fruit into the country happens during off season so as not to pose competition to the domestic industry, he said. However, imports into the country are faced with tariff barriers, duties sometimes ranging as high as 56 per cent, Mr Hey said.

As yet, imports of fruit into the country are not at a worrisome level either for the grower or at the phyto-sanitary levels. India accounts for only one per cent share of the world trade of processed fruit and vegetables and fresh fruit and vegetables.

However, there is a view that India will have to put phyto-sanitary controls in place as imports of fresh fruit and vegetables grow. Primarily because there is a possibility of importing new pests into the country. Besides, India's exports elsewhere in the world are faced with non-tariff barriers such as phyto-sanitary controls.

India will also have to impose non-tariff barriers as tariffs are in the process of coming down.

Currently, out of the 370 million tonnes of fruit production in the world, India accounts for 30 mt. Of the 456 mt of vegetable produced in the world, India's share is 59 mt. India's share in the global vegetable market is 17 per cent, according to estimates by Rabo India Finance Pvt Ltd.

In terms of exports, India continues to be faced with issues such as low productivity, quality of produce, inadequate infrastructure and a good pricing mechanism. That fact that agriculture is a State Government subject also acts as a dampener. Besides, India's fruit and vegetable processing industry is highly fragmented.

``However, India does have a strong position in some fruits - India is the largest producer of mangoes in the world accounting for 45 per cent of world production,'' Rabo India said. Mango accounts for 42 per cent of land under fruit crop in India and harvest is around 12 mt.

India has also been able to edge up its exports of fruits and vegetables by 28.5 per cent to Rs 1,087 crore during 2003/2003 from the previous year. ``This has been achieved through strong backward linkages as well as adoption of latest technical know-how at the field level,'' Mr K.S. Money, Chairman, Apeda, said.

According to Rabo India, auction based wholesale markets are better tools to reduce handling losses, match demand and supply and ensure more transparent pricing mechanism.

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