The Hindu Business Line : Exim Bank moots customised approach for plantation sector

WHAT should the plantation sector do to exploit the potential in the overseas markets? While researchers and industry watchers have been emphasising on quality enhancement and cost-effective methodologies, the suggestions put forth by the Exim Bank are more specific.

The Export-Import Bank of India (Exim Bank) has among others stressed the need for adoption of region-oriented approach for adding value to the plantation products, while targeting international markets.

The bank has, in a study conducted on the export potential, prospects and challenges of plantation sector, stated the sector has been passing through a bad phase with plummeting international prices and relatively low export realisation. The increasing costs squeezed the return on investments.

Suggesting strategies to tide over this situation, the study notes that the industry would have to devise customised proposal for each of the target markets, after taking into consideration the product preferences, quality aspects, promotion and competition. These include:

The need for focusing on quality products at competitive rates for the Russian and other East European markets, which are highly price and quality sensitive.

Ensuring continuous supply in the European Union, as these markets are supply driven.

Exporting plantation products in bulk to the UK for local packaging and branding.

Supermarkets and departmental stores carry out the retail trade in Germany, where branded products occupy 60 per cent of the market share.

The Exim Bank has suggested the need for building brand equity with packers and private labellers to consolidate the market position.

The prime strategy for the US would be through adoption of FDA standards. Entering into value-added segment of plantation products, especially through product development, would be another strategy to make a dent in the US market.

UAE, which is the hub for West Asian markets, should be targeted with quality plantation products.

Further, to sustain competition and build long-term relations, the country would need to improve its supply chain and warehousing services. "Stick to delivery schedule," the study underlined.

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