Fruit and Vegetables Market in India

1 January 2017

The fruit and vegetable market is taken to be the sale to consumers of fresh fruit and fresh vegetables, including potatoes. Fresh fruit and fresh vegetables are the two main sectors of the market. Fresh fruit includes products such as apples and pears, bananas, berries, grapes, tropical fruits, stone fruits and citrus fruits. The vegetables sector includes products such as salad vegetables, potatoes, root vegetables, etc. This industry comprises establishments primarily engaged in retailing fresh fruits and vegetables.

The fruit and vegetable industry is highly decentralized in India. The diverse agro-climatic zones make it possible to grow almost all varieties of fresh fruits and green vegetables in India. Fig 1. World Fruit and Vegetable Production India is the second largest producer of fresh vegetables in the world (ranks next to China) and accounts for about 15% of the world’s production of vegetables and nearly 12% of world fruit production. The major fruits grown are banana, mango, citrus, guava, grapes, apple and pineapple which constituted nearly 80 per cent of the total fruit production in the country.

Banana has the largest share of 31. 7 per cent in total fruit production, followed by mango with 28 per cent. Since liberalization and withdrawal of excise duty on fruit and vegetable products there has been significant rise in the growth rate of the industry. The growth can also be accounted for an increase in the area under cultivation. The total area under vegetable and fruit cultivation rose by 4 per cent to 14. 84 million hectares in 2010-11 from 14. 31 million hectares in the year-ago period. Year2009 – 20102010 – 2011Percent increase Fruits (million tonnes)71. 5175. 826% Vegetables (million tonnes)133. 3137. 683% Fig 2. Increase in production of fruits and vegetables Volumes are calculated from per capita availability and mid-year populations, where ‘availability’ denotes the quantities sold (or otherwise available) to consumers without regard to whether the produce is physically consumed or not. Values are calculated from the total volume consumed and the retail price per kg. The turnover of the total food market (fruits & vegetables) is approximately Rs. 250,000 crores (US$ 69. 4 billion). **Note: Processed and preserved fruit and vegetables, including juices, frozen and canned products, are excluded.

The demand for processed fruits and vegetables comes from both the domestic and export markets. In the domestic market, a substantial share is contributed by defence, hotels and restaurants. Household consumption accounts for less than 50 per cent of the production. The sector can be mainly divided into two categories, namely, •Unorganised Sector: Markets where fruits & vegetables are sold in open spaces, like, mandis, bazaars, etc. •Organised Sector: Markets where fruits and vegetables are sold in establishments, like, shops, retails stores, etc.

The major fruit producing states are Andhra Pradesh, Maharashtra, Karnataka, Bihar, Uttar Pradesh, Tamil Nadu, Kerala and Gujarat. These eight states account for 70 per cent of the area under fruit cultivation and 78 per cent of the total fruit production. **Note: The share for the unorganised sector is 98-99%, leaving only 1-2% for the organised sector. Fruits & Vegetable Market in India India being one of the leading countries in terms of production & consumption has certain characteristics which are different from other countries.

India is the second largest producer of fruits and vegetables in the world next only to China and accounts for about 16% of the world’s production of vegetables and 10% of world’s fruits production. Some of the characteristics related to fruits and vegetable markets are as follows- •Perishable nature of products: Fruits & vegetables are perishable in nature and it cannot be stored for a long time. Some items like potato, onion, ginger etc are semi perishable but mostly all vegetables need to store in cold storage even for its short life. Seasons of production: The production depends on whether conditions, soil conditions and many other factors like timely seed plantation, plant protection etc. So production is highly unpredictable in nature •Bulkiness of products: The bulkiness of the fresh produce adds to the transportation, handling and packaging charges. Along with makes it prone to pre and post harvest damages in the supply chain accounting up to the extent of 20-40 percent. •Quality variation of products: Quality maintenance is quite difficult as farmers are dependent on soil condition & less aware of the guidelines to maintain uniformity. Irregular supply of products: Season and non-planned insufficient production creates gluts and shortages in the market.

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