INTERNATIONAL INSTITUTE OF FOREIGN TRADE & RESEARCH, INDORE
“Export potential of processed foods from India to UAE”
Research project submitted in partial fulfillment of course code 606 of Bachelor of
Business Administration (Foreign Trade) Years as per the curriculum requirement of
BBA (FT) for DAVV, Indore (MP).
Under the supervision of Submitted by:
Prof. Gopal Singh Jadhav Himanshu Jain(Faculty Guide)
INDEX
S.N. CONTENTS PAGE NO.
I Certificate by the student
II Certificate by the supervisor
III Preface
IV Acknowledgement
V Rational
VI Review of literature
1 Introduction 1
2 Objective & methodology 2
3 Country profile of India Food processing industry in India־
3
4 Country profile of UAE 11
5 Product profile 15
6 Export figures 16
7 Government support APEDA ־ NHB־ Agri Export Zone־
36
8 WTO related issuesGlobal challenges־ Measures־
44
9 SWOT analysis 49
10 Conclusion 51
11 Recommendation 52
12 Bibliography 53
Certificate by the Student
I, Himanshu Jain hereby certify that the project titled “Export potential of
processed foods form India to UAE” has been undertaken under the supervision of
Prof. Gopal Singh Jadhav faculty of IIFTR, towards partial fulfillment of Degree
of Bachelor of Business Administration (Specialization).
It is further certified that the project report compiled by me is my own work and to the
best of my knowledge, it does not contain any part of any work, which has been
submitted for the award of degree in this University, or any other University/ Deemed
University without proper citation.
Place: Indore
Date: (Himanshu Jain)
Certificate by the Supervisor
This is to certify that the project titled “Export potential of processed foods from India
to UAE” is a piece of research work has been done by Himanshu Jain under my guidance
and supervision towards partial fulfillment of Degree of Bachelor of Business
Administration (Specialization). I recommend that the project to be submitted to Devi
Ahilya University, Indore.
It is further certified that the project report compiled by his own work and I recommend
that the project to be submitted to D.A. University.
(Project Guide) (Director/ Principal)
Prof. Gopal Singh Jadhav
Date:
PREFACE
Working on things which are of your interest always gives pleasure.
I am very much pleased with the things going on my research project as it suited to the field which I like most. Processed food sector and UAE both attracted my way of approaching in completing the project. When I choose the topic-Export Potential of processed foods to UAE, as my research project, the first thing that came in my mind was that I am working on that topic in which INDIA almost rules the world.
As being student of Foreign Trade, I felt that this is the topic where in-depth study could be possible. The Processed food industry is at transition stage, where we can say it is reaching towards mature stage from growing stage. Our exports are getting increased and many emerging markets are coming up. UAE along with other countries is becoming our major market. This fact attracted me to relate my research on processed food industry with UAE.
At the completion stage of my project, I feel that ocean is vast entity on earth and for human beings; it’s not possible to have a complete picture within a short span of time.
Place-INDORE Himanshu JainDated- B.B.A (F.T) 3y.r.s SEM-Vl th IIFTR, INDORE (M.P.)
ACKNOWLEDGEMENT
Knowledge is an expression of experience gained in life. It is the choosiest possession,
which should not be shelved but showed, be shared with others. In this respect, I am
extremely fortunate in having Prof. Gopal Singh Jadhav project guide on this
research work. I have a debt of gratitude to him for his valuable guidance, supervision
and encouragement.
I would like to thanks Mr. library in-charge for providing me books according to my
needs and Mr. DEVENDRA SINGH THAKUR for allowing and giving appropriate help
during computer operations. Besides this, I would be happy to extend my deepest regards
to my family and friends for their strong support during the preparation of this project.
Further more, I would also like to extend my thanks to director of I.I.F.T.R. for helping
me to give my desirable subject for research project.
Thanking you
Himanshu Jain
RATIONAL
During the graduate program of BBA (FT) from IIFTR INDORE, area of my interest is
Logistics & International Marketing – thanks to the programmed because it has
contributed a lot to my thrust of international marketing. As I am in the sixth semester of
the programmed I would like to utilize the knowledge gained so far in my research
project of export potential of processed foods from India to UAE.
REVIEW OF LITERATURE
Books are a resource of knowledge. Knowledge is a vital substance for success. To keep ourselves updated with the changes in the world modern age books are right resource and a proper means to acquire knowledge. Following books are used by me for the preparation of this project.
1. Export Statistics - Agro and Food Products Title: Export statistics for agro and food products: India 2006-10Pub. Details: Agricultural and Processed Food Products Export Development Authority (APEDA), New Delhi, 2010Notes: This handbook provides an overview of India's agro exports with graphical depiction of major product groups and major destinations along with other useful information on online facilities available at APEDA website; gives details of exports of major product groups, country wise; and presents specific country profile showing major products exported to particular country
Keywords: Export statistics, Agricultural and processed food products, Agriculture and food products
2. TRADE AND INVESTMENT Title: Trade, investment, industry: an Indian perspectiveAuthor: Kamal NathPub. Details: Confederation of Indian Industry, New Delhi, 2010Summary: Since his appointment as India's Minister of Commerce & Industry, Kamal Nath has delivered scores of speeches on a variety of economic issues, particularly trade and investment. He has spoken at gathering of nations, inter-governmental conclaves, international business meets and to groups of parliamentarians, students and journalists.This collection of statements is a virtual record of the process of change that India has witnessed in recent years. It is a fascinating account of the evolution of modern Indian economic power.
Keywords : Indian Industry, Indian economy, Economic growth, WTO and Multilateral trade concerns, Bilateral and regional trade, Investment Promotion, Globalisation, Emerging markets, Sector specific concerns
3. International Competitiveness & Knowledge-based Industries in India This book analyses the international competitiveness of India’s exports through an empirical analysis covering a sample of more than 4000 enterprises. The focus is on corporate strategies such as scale of operations, technological dynamism, multinational affiliation, and outward investments. The volume advocates a strategic approach to enhance export competitiveness of enterprises in India and outlines policy lessons for the government, industry bodies, and enterprises.
Published in 2009by:
OXFORD UNIVERSITY PRESS INDIAC3 & C38, Sector 59,Gautam Buddha NagarNoida 201301Phones: 0091 120 2587738/42/43/45Fax: 2587741 www:oup.co.in
4. WORLD TRADE AND DEVELOPMENT REPORT 2009 Building a Development-Friendly World Trading System
The World Trade and Development Report is an invaluable resource for policymakers, development economists, civil society organizations, and all others concerned about making globalization and trade work for development.
Published by:
RISResearch and Information Systemfor Developing Countries Core IV-B, Fourth Floor, India Habitat Centre,Lodhi Road, New Delhi-110 003, India.Ph. 91-11-24682177-80 Fax: 91-11-24682173-74Email: [email protected]
INTRODUCTION
India has very diverse agro-climatic conditions which are conductive for growing a large
variety of horticultural crops such as fruits, vegetables, ornamental crops, medicinal and
aromatic plants, spices and plantation crops. India has maintained leadership in the
production of many commodities like mango, banana, coconut, areca nut, cashew, ginger,
turmeric and black pepper and India is presently the second largest producer of fruits and
vegetables in the world.
In this project I have put in concerted efforts to study the food processing industry in
India and tried to find the export potential of processed food items from India to U.A.E.
by analyzing the export trends of items such as mango pulp, processed guava, processed
pineapple from India. The data is collected from secondary sources like APEDA
magazines etc.
The major forms in which processed fruits and vegetables items are exported from India
to U.A.E. are in the form of pulp, juices and dehydrated. Mainly vegetable products are
exported in the dehydrated form. Dehydrated vegetables are prepared using the method of
dehydration. Dehydration is a method of food preservation in which moisture (primarily
water) is removed from the food item. It inhibits the growth of microorganisms and often
reduces the bulk of food. With present technologies, moisture levels have been reduced to
2% or 3%.
The processed food industry faces many problems and challenges in India. Like plethora
of laws (lack of integrated food laws), lack of modern techniques of farming/processing
and lack of good cold chain & storage systems. Due to these problems fruits, pulses,
vegetables and grains worth Rs.58000 crore get wasted of every year. Also the worst part
is that only 2% of fruits & vegetables are processed in India, against 80% in Malaysia,
78% in the Philippines, 70% in Brazil and 30%in Thailand.
But there is no dearth of opportunities in this sector. With global supermarket majors
such as Wal-Mart, Tesco and Carrefour among others increasing sourcing of processed
foods from the country it makes monetary sense for local companies to enter/expand in
this arena.
OBJECTIVE AND METHODOLOGY
The objective is to study the export potential of processed food items from India to
U.A.E. It is a promising sector with high potential of growth. Given a wide variety of
soils and agro-climate regions, India has a tremendous potential in agriculture and
horticultural based products.
My objective is to study the export trends of these various items as also the position of
production of processed foods from India to U.A.E. so as to analyze the export potential
of processed foods items from India.
Methodology adopted in this study is to collect data from secondary sources.
COUNTRY PROFILE OF INDIA
India is one of the world’s major food producers but accounts for less than 1.5 per
cent of international food trade. This indicates vast scope for both investors and
exporters. Food exports in 1998 stood at US $5.8 billion whereas the world total
was US $438 billion.
The Indian food industry’s sales turnover was Rs 140,000 crore in the year 2008.
The industry requires about Rs 29,000 crore in investment over the next five years
to 2010 to create necessary infrastructure, expand production facilities and state-
of-the-art-technology to match the international quality and standards.
The office of the Agricultural Affairs of the USDA / Foreign Agricultural
Services in New Delhi says that one of India’s proudest accomplishments has
been achieving a tenuous self-sufficiency in food production and that the country
produces a wide variety of agricultural products at prices that are at or below
world values in most cases.
The Indian palate is accustomed to traditional foods, mostly wheat and rice-based,
rather than potato and corn-based western palate. In marketing perspective, this is
considered an important factor for foreign marketers.
The USDA report says initially consumer-ready food products may have to be
tailored to include Indian spices and traditional ingredients. In addition to
traditional tastes, there are other social factors which affect consumption in India.
Hindus account for approximately 80 per cent of India’s population, and while
only 25 or 30 per cent are strict vegetarians, beef slaughter is prohibited in all but
two states (Kerala and West Bengal) and consumption of other meats is limited.
Incidentally, India is the only country where the US-based McDonalds sells its
burgers without any beef content and even offers purely vegetarian burgers.
India’s middle class segment will hold the key to success or failure of the
processed food market in India. Of the country’s total population of one billion,
the middle class segments account for about 350-370 million. Though a majority
of families in this segment have non-working housewives or can afford hired
domestic help and thus prepare foods of their taste in their own kitchens, the
profile of the middle class is changing steadily and hired domestic help is
becoming costlier. This is conducive to an expansion in demand for ready-to-eat
Indian-style foods.
India’s food processing sector covers fruit and vegetables; meat and poultry; milk
and milk products, alcoholic beverages, fisheries, plantation, grain processing and
other consumer product groups like confectionery, chocolates and cocoa products,
Soya-based products, mineral water, high protein foods etc.
According to latest official statistics, India exported processed fruits and
vegetables worth Rs 5240 million in 1997-98. The horticulture production is
around 102 million tones. Foreign investment since 1991, when economic
liberalization started, stood at Rs 8,800 crore. Products that have growing
demand, especially in the Middle East countries include pickles, chutneys, fruit
pulps, canned fruits, and vegetables, concentrated pulps and juices, dehydrated
vegetables and frozen fruits and vegetables.
Another potential processed food product is meat and poultry products. India
ranks first in world cattle population, 50 per cent of buffalo population and one-
sixth of total goat population of the world. Buffalo meat is surplus in India. There
is vast scope to set up modern slaughter facilities and cold store chains in meat
and poultry processing sector. India’s current level of meat and meat-based
exports is around Rs 8,000 million. In last six years foreign investment in this
segment stood at Rs 5,000 million which is more than 50 per cent of the total
investment made in this sector.
Compared with meat, poultry industry has registered significant growth. India
ranks fifth in the world with annual egg production of 1.61 million tones. Both
poultry and egg processing units have come in a very big way in the country.
India is exporting egg powder, frozen egg yolk and albumin powder to Europe,
Japan and other countries. Poultry exports are mostly to Maldives and Oman.
Indian poultry meat products have good markets in Japan, Malaysia, Indonesia
and Singapore. While meat products registered a growth of 10 per cent, eggs and
broilers registered 16-20 per cent growth.
There are about 15 pure line and grand parent franchise projects in India. There
are 115 layer and 280 broiler hatcheries producing 1.3 million layer parents and
280 million broiler parents. They in turn supply 95 million hybrid layer and 275
million broilers, day-old chick. Presently there are only five egg powder plants in
India which is considered insufficient in view of growing export demand for
different kind of powder - whole egg, yolk and albumen. The scope of foreign
investment and state-of-the-art technology in this field is therefore tremendous.
Milk and milk products is rated as one of the most promising sectors which
deserves foreign investment in a big way. When the world milk production
registered a negative growth of 2 per cent, India performed much better with 4 per
cent growth. The total milk production is around 72 million tonnes and the
demand for milk is estimated at around 80 million tonnes.
By 2007, the value of Indian dairy produce is Rs 1,000,000 million. In last six
years foreign investment in this sector stood at Rs 3600 million which is about
one-forth of total investment made in this sector. Manufacture of casein and
lactose, largely being imported presently, has good scope. Exports of milk
products have been decanalised.
Grains could emerge as a major export earner for India in coming years. India’s
food grains production is now at around 225-230 million tones. These include
rice, jawar, bajra, maize, wheat, gram and pulses. Indian basmati rice enjoys
command in the international market. Besides growing Middle East market for
basmati rice, many other countries are showing interest for this food grain. In
2008-09, export of basmati and non-basmati rice stood at Rs62000 million. There
is a total rice milling capacity of 186 million tones in the country.
Among plantation, tea emerged as major foreign exchange earner. India is the
largest producer and exporter of black tea. However, the most worrying factor for
Indian tea industry is that from early next year with the implementation of tea
imports into the country, India tea may face a stiff competition within the country
as well; specially threat of Sri Lanka’s presence in the Indian market is looming
large.
The current year’s tea export prospect is not that very good in terms of forex
earnings because international prices have fallen significantly this year. India
exports between 150-170 million kilogram’s of tea per annum. Of course, the
scope of foreign investment in this sector is good and the multinational tea
companies would either be trying for marketing joint ventures with the Indian
producers or acquire stakes in Indian tea companies. There is a strong possibility
of third country exports through such joint venture as quality wise still Indian teas
are ruling the international market.
Alcoholic beverages are another where India witnessed substantial foreign
investment. Foreign investment in this sector stood at Rs 7000 million which
about 70 percent of the total investment made so far. The IMFL (Indian Made
Foreign Liquor) primarily comprises wine, vodka, gin, whisky, rum and brandy.
Draught beer is a comparatively recent introduction in the Indian market. The
Indian beer market is estimated at Rs7000 million a year. One of the major
advantages for any investor eyeing the Indian liquor market is that India offers
enough raw materials like molasses, barely, maize, potatoes, grapes, yeast and
hops for the industry.
Yet another catchy investment sector is fisheries. There is growing canned and
processed fishes from India. The marine fish include prawns, shrimps, tuna,
cuttlefish, squids, octopus, red snappers, ribbon fish, mackerel, lobsters, cat fish
etc. In last six years there was substantial investment in fisheries to the tune of Rs
30,000 million of which foreign investments were of the order of Rs 7000 million.
The potential could be gauged by the fact that against fish production potential in
the Exclusive Economic Zone of 3.9 million tones, actual catch is to the tune of
2.87 million tones. Harvesting from inland sources is around 2.7 million tones.
The biggest bottleneck in expanding the food processing sector, in terms of both
investment and exports, is lack of adequate infrastructure.
Without a strong and dependable cold chain vital sector like food processing
industry which is based mostly on perishable products cannot survive and grow.
Even at current level of production, farm produce valued at Rs 70,000 million is
being wasted every year only because there is no adequate storage, transportation,
cold chain facilities and other infrastructure supports. Cold chain facilities are
miserably inadequate to meet the increasing production of various perishable
products like milk, fruits, vegetables, poultry, fisheries etc.
Prevention of Food Adulteration laws is not only stringent one but time
consuming also. It is considered as an archaic and no industry friendly food law.
It substantial varies from Codex standard. Harmonization of multiple food laws is
an urgent necessity.
FOOD PROCESSING INDUSTRY IN INDIA
FOOD PROCESSING
Food processing involves any type of value addition to agricultural or horticultural
produce and also includes processes such as grading, sorting and packaging which
enhance shelf life of food products.
FOOD PROCESSING INDUSTRY IN INDIA
The food processing industry provides vital linkages and synergies between industry and
agriculture. The food processing industry sector in India is one of the largest in terms of
production, consumption, export and growth prospects. The food processing industry is
both nascent and highly fragmented. It employs over 1.6 million people, or nearly a fifth
of the country’s industrial workforce. The output from the sector is estimated at $65-70
billion or about Rs.300000 crore. The sector has been growing at about 8% of the year.
With rising incomes and demographic pressure, growth may soon register 10%. India’s
processed food industry accounts for 14% of total industrial output and 6.5% of gross
domestic product.
SECTORAL OVERVIEW
India has arable land of 184 million hectares and produces annually 90 million tones of
milk (highest in the world), 150 million tones of fruits and vegetables (second largest),
485 million livestock (largest), 204 million tones food grain (third largest), 6.3 million
tones fish (third largest), 489 million poultry and 45200 million eggs. India’s agricultural
production base is huge. However, processing level is very low i.e. around 2% in fruits
and vegetables, 26% for marine, 6% for poultry and 20% for buffalo meat. The share of
India’s export of processed food in global trade is only 1.5%. Hence, there is immense
potential for investment in this sector.
PRODUCT RANGE
India’s food processing sector covers a wide range of products like fruit pulps
particularly of mangoes & tomatoes, ready to serve juices, canned fruits, jam, fruit juice
concentrate, pickles, frozen fruits, dehydrated & freeze dried vegetables, canned
mushrooms, squashes, meat and poultry, milk and milk products, alcoholic beverages,
fisheries, plantation, grain processing and other consumer product groups like
confectionery, chocolates and cocoa products, Soya-based products, mineral water, high
protein foods, etc.
EXPORT DESTINATIONS
The major export destinations of processed food items are U.A.E., UK, Sri Lanka,
Malaysia, Singapore, USA, Russia, Netherlands and France.
EXPORT OF PROCESSED FOOD PRODUCTS
In the year 2009-10 the total export of processed food products were in the order of
1905519 MT valued at Rs.7539.43 crore. The detail product list is shown in the table
below.
Items Quantity in MT Value in Rs.
Crore
Processed fruits and vegetables
Dried and preserved vegetables 124496 364.11
Mango Pulp 134613 364.24
Pickle and Chutney 135382 260.98
Other Processed fruits and vegetables 107335 370.21
Total for processed fruits and vegetables 501826 1359.54
Animal Products
Buffalo Meat 459938 2629.57
Sheep/Goat meat 7177.51 80.37
Poultry Products 145889 167.58
Dairy products 76515 668.50
Animal casings 1125.82 17.51
Processed meat 256.04 2.43
Total for animal products 690901 3566.96
Other Processed foods
Groundnuts 190053 513.69
Guar gum 186718 1049.23
Jiggery and confectionary 107197 227.57
Cocoa products 2147.09 21.83
Cereal preparations 76880.6 393.96
Alcoholic and non alcoholic beverages 49587.9 117.20
Miscellaneous preparations 49606.7 225.77
Milled products 50901.5 64.68
Total for other processed food 713092 2613.93
Grand total 1905519 7539.43
COUNTRY PROFILE OF U.A.E. (UNITED ARAB EMIRATES)
HISTORY-
Prior to independence, the U.A.E. was Trucial Oman, also known as the Trucial States,
and the component sheikhdoms of the territory were under British protection.
Although, from 1892, the United Kingdom assumed responsibility for the Sheikhdoms
defense and external relations, they were otherwise autonomous and followed the
traditional form of Arab monarchy, with each ruler having virtually absolute power over
his subjects. In 1952 a local body, the Trucial council, comprising the rulers of the seven
Sheikhdoms, was established. The object of the council was to encourage the adoption of
common policies in administrative matters, possibly leading to a federation of the states.
Petroleum, the basis of the area’s modern prosperity, was first discovered in 1958, when
deposits were located beneath the coastal waters of Abu Dhabi, the largest of the
sheikhdoms.
Onshore petroleum was found in Abu Dhabi in 1960. Commercial exploitation of
petroleum began there in 1962, providing the state with greatly increased revenue.
However, Sheikh Shakhbut bin sultan annahyan, the ruler of Abu Dhabi since 1928,
failed to use the income from petroleum royalties to develop his domain. In Jan.1968 the
United Kingdom announced its intention of withdrawing British military forces from the
area by 1971. In March 1968 the Trucial States joined nearby Bahrain and Quatar (which
were also under British protection) in what was named the Federation of Arab Emirates.
It was intended that the federation should become fully independent, but the interests of
Bahrain and Quatar proved to be incompatible with those of the smaller sheikhdoms, and
both seceded from the federation in August 1971 to become separate independent states.
In July six of the Trucial States (Abu Dhabi, Dubai, Sharjah, Umm al Qaiwain, Ajman
and Fujairah) had agreed on a Federal Constitution for achieving independence as the
UAE’s. the U.K. accordingly terminated its special treaty relationship with the states, and
the U.A.E. became independent on 2 December 1971. The remaining sheikhdom, Ras al-
khaimah, joined the U.A.Es in February 1972. At independence Sheikh Zayed of Abu
Dhabi took office as the first president of the U.A.Es Sheikh Rashid bin said al-maktoum,
the Ruler of Dubai since 1958, became vice-president, whiles his eldest son, Sheikh
maktoum bin Rashid al-maktoum (crown prince of Dubai), became prime minister in the
federal council of ministers.
In October 1990, upon the death of his father, Sheikh Maktoum acceded to the positions
of ruler of Dubai and vice-president and prime minister of the U.A.Es.
The U.A.E. was a founder member of the GCC of the Gulf (generally known as the Gulf
Cooperation Council) in May 1981. The GCC aims to achieve greater political and
economic integration between Gulf countries, and from 1983 onwards, the U.A.Es took
part in joint military exercises with the other member states.
Since the Arab-Israeli war of October 1973, in which it strongly supported the Arab
cause, the UAE has contributed large sums of aid to Arab countries. Despite giving aid to
Iraq in the Iran-Iraq war (1980-88), diplomatic relations with Iran were maintained, and
the UAEs offered to mediate between the two countries.
In common with the other Arab states, the UAE’s condemned the 1979 Camp David
agreements between Egypt and Israel, and diplomatic relations with Egypt was severed.
Full diplomatic relations were restored in November 1987. Commercial links have since
been fastered by the two countries.
COUNTRY OVERVIEW-
President: - Sheikh Zayed bin Saltan Al Nahayan.
Prime Minister; - Sheikh Maktoum bin Rashid al-Maktoum.
Population: - 4.7 million
Location/Size: - Persian Gulf between Oman and Saudi Arabia/30,000 square miles.
Major Cities: - Abu-Dhabi (capital), Dubai, Sharjah, Al-Ain.
Languages: - Arab (official), Persian, English, Hindi, Urdu.
Ethnic Groups: - Arab (UAE citizens) (19%), other Arab and Iranian (23%), South Asian
(50%), other expatriate (Western & East Asian) (8%).
Religion: - Muslim 96% (shi’a 16%), Christians, Hindu, other 4%.
Government Structure-
The UAE is a federation of seven emirates – Abu Dhabi, Dubai, Sharjah, Ajman,
Fujairah, Ras al-Khaimah, and Umm al-Qaiwain. Political power is concentrated in Abu
Dhabi, which controls the vast majority of the UAE’s economic and resource wealth. The
two largest emirates – Abu Dhabi and Dubai – provide over 80% of the UAE’s income.
In June 1996, the UAE’s Federal National Council approved a permanent constitution for
the country. This replaced a provisional document which had been renewed every five
years since the country’s creation in 1971. The establishment of Abu Dhabi as the UAE’s
permanent capital was one of the new framework’s main provisions.
Economic Overview-
Currency: - Dirham (AED)
Gross Domestic Product: - $85.8 billion
GDP Growth Rate: - 4.2%
Major Trading Partners: - Japan, UK, USA, Singapore, Germany, South Korea, Iran,
India.
Merchandise Exports: - $50.2 billion
Merchandise Imports: - $39.7 billion
Major Export Products; - Crude oil, Natural gas, Re-exports, aluminum, dried fish, Dates.
Major Import Products: - Manufactured goods, Machinery, and Transportation
equipment, Food products.
UAE Economic Review-
The UAE has one of the highest per capita income in the Arab world, due in part to the
fact that it claims the world’s third largest proven oil deposits. In the past several
decades, however, the UAE has introduced new industries, and by 2005 oil-based
industry accounted for only one-third of the UAE’s GDP. This diversification has helped
to cushion the impact of oil price volatility over the past several years and continued
stable investment policies generated real GDP growth through 2005 despite a drop in oil
revenues.
To encourage continued economic growth, the UAE is in the midst of a 20 years
economic diversification plan, and the govt. has allotted roughly $13 billion towards the
development of the non oil economy. Since 1992, the UAE has tightened intellectual
property laws as part of an effort to improve standards, although the current regulations
are not WTO compliant. Work is underway to rectify this of further note; the UAE
revised its commercial code to clearly layout bankruptcy rules.
The emirates are pursuing economic liberalization in various sectors including
hydrocarbons, petrochemicals, tourism, aviation and airports, power generation and
telecommunications. Free Trade Zones have been quite significant in contributing to
economic growth, with Dubai becoming a central hub for regional trade and finance,
accounting for about 70% of the emirates non-oil trade while Abu Dhabi has lead the
privatization drive.
PRODUCT PROFILE
COMMODITY NAME ITC (HS) CODE
1. MANGO PULP 08129002
2. MANGO PICKLES 20019003
3. MANGO CHUTNEYS 20019004
4. MANGO JUICE 20098001
5. MANGO SQUASH 20089901
6. MANGO SLICES IN BRINE 08129010
7. MANGOES SLICED DRIED 08045003
8. FLOUR OF MANGO 11063001
9. APPLES DRIED 08133000
10. ORANGE JUIC FROZN 20091100
11. ORANGE SQUASH 20089903
12. PINEAPPLE 20079903
13. PINE APPLES PREPARED OR PRESERVED 20082000
14. CHERRIES PROVSNLY PRSVD 08121000
15. GUAVA 20079902
16. LEMON SQUASH 20089912
17. STRAWBERRIES PREPARED OR PRESERVED 20088000
18. OTHER FRUIT SQUASH 20089919
EXPORT FIGURES
1. MANGO PULP
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 2,772.78
2. Total export of
commodity
29,701.07
3. %Share of country 9.34
4. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
5. %Growth 46.26 40.17 15.22 43.13
6. %Share of commodity 0.17
Mango pulp is the commodity which was exported in the 2002-03. In this year the
percentage share of the commodity was 0.17%. The value was 2,772.78 Rs. Lacs and the
total export of the mango pulp of India was 29,701.07 Rs. Lacs.
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
value in Rs.Lack (2007-
09)
Total exportof
commodity
% share ofcountry
% share ofcommodity
value in Rs. Lack
2. MANGO PICKLES
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacks 182.79
2. %Growth
3. Total export of
commodity
1,071.91
4. %Growth
5. %Share of country 17.05
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.01
Mango pickles were exported in 2007-09. The above graph showing that the total export
of mango pickles from India was 1,071.97 Rs. Lacs in 2007-09 and the export value to
0
200
400
600
800
1000
1200
value inRs.Lacs
(2007-09)
Total exportof
commodity
%share ofcountry
%share ofcommodity
value in Rs.Lacs
UAE was 182.79 Rs. Lacs. 0.01% share of India including the mango pickles export to
UAE.
3. MANGO CHUTNEYS
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacks 7.91
2. %Growth
3. Total export of
commodity
2,398.68
4. %Growth
5. %Share of country 0.33
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00
Mango chutneys were exported to UAE in 2007-09 the above graph showing that the
total export of mango chutneys from India was 2,398.68 Rs. Lacs in 2007-09 and the
0
500
1000
1500
2000
2500
3000
value inRs.Lacs
(2007-09)
Total exportof
commodity
%share ofcountry
%share ofcommodity
value in Rs.Lacs
export value to UAE was 7.91 Rs. Lacs. 0.33% share of India including the mango
chutneys export to UAE.
4. MANGO JUICE
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 101.53
2. %Growth
3. Total export of
commodity
1,635.19
4. %Growth
5. %Share of country 6.21
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.01
Mango juice was exported to UAE in 2007-09 the above graph showing that the total
export of mango juice from India was 1,635.19 Rs. Lacs in 2007-09 and the export value
to UAE was 101.53 Rs. Lacs. 0.01% share of India including the mango juice export to
UAE.
5. MANGO SQUASH
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 11.03
2. %Growth
3. Total export of
commodity
105.20
4. %Growth
5. %Share of country 10.49
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00
0
200
400
600
800
1000
1200
1400
1600
1800
value inRs.Lacs(2007-09)
Total exportof
commodity
%share ofcountry
%share ofcommodity
value in Rs.Lacs
Mango squash was exported to UAE in 2007-09 the above graph showing that the total
export of mango squash from India was 105.2 Rs. Lacs in 2009-10 and the export value
to UAE was 11.03 Rs. Lacs.
6. MANGO SLICES IN BRINE
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 105.64 93.46 94.18 78.10
2. %Growth -11.53 0.77 -17.07
3. Total export of
commodity
2,370.79 2,410.73 1,113.56 2,064.46
4. %Growth 1.68 -53.81 85.39
5. %Share of country 4.46 3.88 8.46 3.78
0
20
40
60
80
100
120
value inRs.Lacs(2007-09)
Total exportof commodity
%share ofcountry
%share ofcommodity
value in Rs.Lacs
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00 0.00 0.00 0.00
Mango slices is the commodity which are continuously exported to the UAE because of
the higher demand. In 2006 the value of export was 105.64 Rs. Lacs. In 2007 the value of
export decreased and was 93.46 Rs. Lacs. In 2008 the value of export was 94.18 Rs. Lacs
and in 2009 the value of export was 78.10 Rs. Lacs.
7. MANGOES SLICED DRIED
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 10.07
2. %Growth
3. Total export of
commodity
113.11
4. %Growth
-500
0
500
1000
1500
2000
2500
3000
2005-
2006-
2007-
2008-
2009-
Values in Rs. Lacs
%Growth
Total export of commodity
%share of country
5. %Share of country 8.90
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00
Mangos sliced dried was exported to UAE in 2007-09 the above graph showing that the
total export of mangos sliced dried from India was 113.11 Rs. Lacs in 2007-09 and the
export value to UAE was 10.07 Rs. Lacs.
8. FLOUR OF MANGO
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 2.08
2. %Growth
3. Total export of
commodity
32.61
4. %Growth
0
20
40
60
80
100
120
value inRs.Lacs(2007-09)
Total exportof commodity
%share ofcountry
%share ofcommodity
value in Rs.Lacs
5. %Share of country 6.38
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00
Flour of mango was exported to UAE in 2007-09 the above graph showing that the total
export of flour of mango from India was 32.61 Rs. Lacs in 2002-03 and the export value
to UAE was 2.08 Rs. Lacs.
9. APPLES DRIED
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 0.23
2. %Growth
0
5
10
15
20
25
30
35
value inRs.Lacs(2007-09)
Total exportof commodity
%share ofcountry
%share ofcommodity
value in Rs.Lacs
3. Total export of
commodity
0.83 2.44 9.51 79.89 12.77
4. %Growth 194.37 290.14 739.87 -84.01
5. %Share of country 27.56
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00
Dried apples was exported to UAE in 2005-06 the above graph showing that the total
export of dried apples from India was 0.83 Rs. Lacs in 2009-10 and the export value to
UAE was 0.23 Rs. Lacs. 0.0% share of India including the dried apples export to UAE.
The total export of dried apples from India in 2009-10 was 79.89 Rs. Lacs and in 2007-09
it was 12.77 Rs. Lacs.
10. ORANGE JUIC FROZN
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 4.75
2009-2010
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Values in Rs. Lacs Total export ofcommodity
2009-2010
2. %Growth
3. Total export of
commodity
44.73 80.97 120.94 7.39 16.21
4. %Growth 81.02 49.38 -93.89 119.42
5. %Share of country 3.92
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00
2
Orange juice frozen was exported to UAE in 2004-05. The above graph showing that the
total export of orange juice frozen from India was 120.94 Rs. Lacs in 2009 and the export
value to UAE was 4.75 Rs. Lacs. The total export of orange juice frozen from India in
2007 was 7.39 Rs. Lacs and in 2009 it was 16.21 Rs. Lacs.
11. ORANGE SQUASH
-150
-100
-50
0
50
100
150
2004
2005
2006-
2007-2008 2009
Values in Rs. Lacs
Total export of commodity
%Growth
%share of country
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 20.35 1.16 2.61
2. %Growth -94.32 125.93 -100.00
3. Total export of
commodity
346.35 14.41 83.65 5.03
4. %Growth -95.84 480.48 -93.99
5. %Share of country 5.87 8.02 3.12
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00 0.00 0.00
Orange squash was exported to UAE in 2009-10. The above graph showing that the total
export of orange squash from India was 346.35 Rs. Lacs in 2009-07 and the export value
to UAE was 20.35 Rs. Lacs. The total export of orange squash from India in 2009 was
83.65 Rs. Lacs and exported value in UAE was 2.61 Rs. Lacs and in 2009-10 the total
export from India was 5.03 Rs. Lacs.
12. PINEAPPLE
-200
-100
0
100
200
300
400
2009-10 2009-2007 2007-2006 2006-2005
%share of country
Total export of commodity
%Growth
Values in Rs. Lacs
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 7.51
2. %Growth
3. Total export of
commodity
52.35
4. %Growth
5. %Share of country 14.34
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00
Pineapple was exported to UAE in 2009-10 the above graph showing that the total export
of pineapple from India was 52.53 Rs. Lacs in 2009-10 and the export value to UAE was
7.51 Rs. Lacs.
13. PINEAPPLES PREPARED OR PRESERVED
0
10
20
30
40
50
60
value in Rs.Lacs(2009-10)
Total export ofcommodity
%share of country
value in Rs.Lacs
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 23.37 1.73 8.00
2. %Growth -92.60 362.84
3. Total export of
commodity
1.18 0.22 31.26 1.93 20.99
4. %Growth -81.26 14,085.35 -93.83 988.21
5. %Share of country 74.76 89.66 38.14
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00 0.00 0.00
Pineapple prepared or preserved was exported to UAE in 2009-10. The above graph
showing that the total export of pineapple prepared or preserved from India was 31.26 Rs.
Lacs in 2004-05 and the export value to UAE was 23.37 Rs. Lacs. The total export of
pineapple prepared or preserved from India in 2007-09 was 1.93 Rs. Lacs and exported
value in UAE was 1.73 Rs. Lacs. in 2006-07 the total export from India was 20.99 Rs.
Lacs.and the export value in UAE was 8.00 Rs. Lacs.
0
5
10
15
20
25
30
35
2004-
2005-
2006-
2007-
2009
2009-
2010
Values in Rs. Lacs
Total export of commodity
14. CHERRIES PROVSNLY PRSVD
S.No. \Year 2004-2005 2005-2006 2006-2007 2007-2009 2009-2010
1. Values in Rs. Lacs 3.77 30.56
2. %Growth -100.00
3. Total export of
commodity
15.07 51.19 30.56 1.43
4. %Growth 239.70 -95.33
5. %Share of country 25.02 100.00
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00 0.00
0 20 40 60
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
Total export of commodity
Values in Rs. Lacs
Cherries preserved were exported to UAE in 2005-06. The above graph showing that the
total export of cherries preserved from India was 15.07 Rs. Lacs in 2002-03 and the
export value to UAE was 3.77 Rs. Lacs. In 2005-06 the total export of cherries preserved
was 30.56 Rs. Lacs and the export value to UAE was 30.56 Rs. Lacs.
15. GUAVA
S.No. \Year 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
1. Values in Rs. Lacs 9.41
2. %Growth
3. Total export of
commodity
273.59
4. %Growth
5. %Share of country 3.44
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00
2002-2003
0
50
100
150
200
250
300
Values in Rs. Lacs Total export of commodity
2002-2003
Guava was exported to UAE in 2002-03 .the above graph showing that the total export of
guava from India was 273.59 Rs. Lacs in 2002-03 and the export value to UAE was 9.41
Rs. Lacs.
16. LEMON SQUASH
S.No. \Year 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
1. Values in Rs. Lacs 5.81 6.61 0.55 5.48
2. %Growth 13.85 -91.62 888.80
3. Total export of
commodity
65.50 40.09 7.04 59.57
4. %Growth -38.79 -82.45 746.78
5. %Share of country 8.87 16.50 7.88 9.20
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00 0.00 0.00 0.0
-500 0 500 1000
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
Total export ofcommodity
%Grow th
Values in Rs. Lacs
Lemon squash was exported to UAE in 2006-07. The above graph showing that the total
export of lemon squash from India was 65.50 Rs. Lacs in 2003-04 and the export value to
UAE was 5.81 Rs. Lacs. The total export of lemon squash from India in 2004-05 was
40.09 Rs. Lacs and exported value in UAE was 6.61 Rs. Lacs. In 2005-06 the total export
from India was 7.04 Rs. Lacs.and the export value in UAE was 0.55 Rs. Lacs. In 2006-07
the India’s total export of lemon squash was 59.57 Rs. Lacs and the export value to UAE
was 5.48 Rs. Lacs.
17. STRAWBERRIES PREPARED OR PRESERVED
S.No. \Year 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
1. Values in Rs. Lacs 6.68
2. %Growth
3. Total export of
commodity
0.12 0.80 2.46 13.26 37.41
4. %Growth 538.95 209.44 438.46 182.08
5. %Share of country 17.86
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.00
0
100
200
300
400
500
600
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
Values in Rs. Lacs
Total export ofcommodity
%Grow th
%share of country
Strawberries prepared or preserved was exported to UAE in 2006-07 .the above graph
showing that the total export of strawberries prepared or preserved from India was 37.41
Rs. Lacs in 2006-07 and the export value to UAE was 6.68 Rs. Lacs. 0.0% share of India
including the strawberries prepared or preserved export to UAE.
18. OTHER FRUIT SQUASH
S.No. \Year 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
1. Values in Rs. Lacs 262.36 258.79 147.79 6.65 95.73
2. %Growth -1.36 -42.89 -95.50 1,339.70
3. Total export of
commodity
783.09 831.58 1,138.46 597.56 637.71
4. %Growth 6.19 36.90 -47.51 6.72
5. %Share of country 33.50 31.12 12.98 1.11 15.01
6. Total export to country 1,610,342.88 2,355,285.25 3,301,512.00 3,803,884.75 5,444,497.50
7. %Growth 46.26 40.17 15.22 43.13
8. %Share of commodity 0.02 0.01 0.00 0.00 0.00
-500 0 500 1000 1500
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007 %Share of country (1of 3)
Total export ofcommodity
%Grow th
Values in Rs. Lacs
Other fruit squash are the commodities which are continuously exported to the UAE
because of the higher demand. In 2002-03 the value of export was 783.09 Rs. Lacs and
the export value to UAE was 262.36 Rs. Lacs. In 2003-04 the value of export to UAE
decreased and was 258.79 Rs. Lacs. In 2004-05 the value of export to UAE was 147.79
Rs. Lacs and in 2005-06 the value of export to UAE was 6.65 Rs. Lacs. In 2006-07 the
total export of India was 637.71 Rs. Lacs and export value to UAE was 95.73 Rs. Lacs.
OVERALL EXPORT PERFORMANCE OF INDIA TO UAE IN THE
CASE OF PROCESSED FOOD ITEMS
Values in Rs. Lacs
S.No. Country 2008-2009 %Share 2007-2008 %Share %Growth
1. U ARAB EMTS 3,803,884.75 8.3342 5,444,497.50 9.5220 43.13
India's Total Export 45,641,788.00 57,177,928.00 25.28
0.00
10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
70,000,000.00
U ARAB EMTS
India's Total Export
2005-2006
3,803,884.75, 8%
45,641,788, 92%
U ARAB EMTS
India's Total Export
2006-2007
5,444,497.50, 9%
57,177,928.00, 91%
U ARAB EMTS
India's Total Export
The above graph and pie chart showing that the total export of processed food items from
India in 2005-06 was 45,641,788.00 Rs. Lacs and the export value to the UAE was
3,803,884.75 Rs. Lacs.the percentage share of India’s export to UAE was 8.3342%.in
2006-07 the total export was 57,177,928.00 Rs. Lacs and the export value to the UAE
was 5,444,497.50 Rs. Lacs. The percentage share of India’s export to UAE was 9.5220.
GOVERNMENT SUPPORT
1. APEDA
APEDA stand for the Agriculture and Processed food products Export Development
Authority. APEDA is an autonomous organization attached to the Ministry of Commerce
of the government of India. The main function of APEDA is to build links between
Indian producers and the global markets. APEDA undertakes the briefing of potential
sources on government policy and procedures along with providing referred services and
suggesting suitable partners for joint ventures besides arranging buyer seller meets.
THE SIX ELEMENTS OF SUCCES
The universe is composed of five elements wind, water, earth, fire, and sky, since
APEDA draws. Its strength from these five elements, it has involved in to the sixth
element. If you use the sixth elements APEDA judiciously you magically find the
harmony you need for success.
DEVELOPMENT PROGRAMME OF APEDA
APEDA undertakes the following development programmes –
1. Development of data eases on products, markets and services.
2. Publicity and information dissemination.
3. Inviting official and business delegations from abroad.
4. Organizing the product promotions abroad and visits of official and trade delegation
abroad.
5. Participation in international trade fairs in India and abroad.
6. Organization of buyer seller meets and other business interactions.
7. Information dissemination through APEDA’S news letter, feedback series and library.
8. Distribution of annual APEDA awards.
9. Provides recommendatory, advisory and other support service to the trade and
industry.
10. Problem solving in government agencies and organizations, RBI, customs,
import/export procedures, problems with importers through Indian missions abroad.
APEDA offers financial assistance under various schemes, which seek to promote and
develop agro exports financial government agencies. Some of the activities which are
eligible for financial assistance are:-
- Strengthening of market intelligence and data base through studies and surveys.
- Quality up gradation.
- Research and development.
- Development of packing quality.
- Up gradation of meat processing facilities.
Objective to promote integrated development of horticulture in the country by:-
-coordinating.
-stimulating.
-sustaining.
: - production and processing of fruits and vegetables.
: - establishment of sound infrastructure and
: - focus on post-harvest management to reduce losses.
List of publication of APEDA
1. Indian export directory Agriculture and processed food products – 1997.
2. Export statistics of agro and processed food products for 1997-98.
3. Guidelines for the export of fresh fruits to EU market.
4. Quality assurance manual for export of grapes.
5. Quality assurance manual for export of management.
6. Quality assurance manual for export of leeches.
7. Quality assurance manual for export of kin now.
8. Quality assurance manual for export of mangoes (Tamil).
2. NATIONAL HORTI CULTURE BOARD (NHB)
National horticulture board (NHB) was set up by the government of India in 1984 as an
autonomous society under the Societies Registration Act 1860. The various scheme of
NHB are:-
1. Development of commercial horticulture through production and post-harvest
management.
(A) Name of the Scheme/Project-
a. Production related.
b. PHM/ processing related.
(B) Components-
- High quality commercial horticulture crops.
- Indigenous crops/produce, herbs.
- Aromatic and medicinal plants.
- Seeds and nursery.
- Biotechnology, tissue culture.
- Biopesticides.
- Organic foods.
- Primary processing of products.
- Est. Of horti. Health clinics/laboratory(for Agri/Horti unemployed graduates)
- Consultancy services.
- Bee – keeping.
- Grading/washing/sorting/drying packaging centers.
- Pre-cooling unit/cool stores.
- Refer van/containers special transport vehicle
- Ripening curing chamber.
- Hort ancillary industry e.g. tools, equipment, plastics, packaging etc.
(C) Pattern of Assistance-
Back – ended capital subsidy not exceeding 20% of the project cost with a
maximum limit of Rs.25 lakh per project for the North-Eastern/Tribal/Hilly
Areas, maximum limit of subsidy would be Rs. 30 lakh per project.
The subsidy to be released to the leading participating leading financial institution
on the completion of project as in the case of cold storage project approved by the
government.
For projects in the cooperative sector founded by the NCDC, the subsidy would
by through NCDC.
2. Benefits-
- Impetus to the farmers to grow more.
- Shelf life to the producers will increase.
- Losses shall be reduced.
- Consumer shall be able to relish the producer in a Farm-Fresh state.
3. Market Information Service for Horticulture crops -
- Generate information on whole sale prices, arrivals and trends in various markets
for horticulture producer.
- Dissemination of information through media and publications.
Pattern of Assistance-
To assist farmer, exporter, dealers, research organization.
4. Horticulture Promotion Service -
- Techno- economic feasibility studies to review the present status for horticulture
development in particular area/state.
- Identify constraints and suggest remedial measures.
- Develop short term and long term strategies.
- Provide consultancy service and export service.
Pattern of Assistance-
- Studies through professional consultants.
- 100% financial assistance.
3. AGRI-EXPORT ZONES
In a momentous move to push India’s exports aggressively, the government announced
several measures aimed at augmenting exports of farm goods.
Removal of Quantitative Restrictions (QRs) on exports save a few sensitive items, a
major thrust to agricultural exports, permission for setting up Overseas Banking Units
(OBUs) in Special Economic Zones (SEZ), retention of duty-neutralization instruments
including Duty Entitlement Pass Book (DEPB) and other export promotion schemes, an
incentive package for hardware sector and broadened market access initiative (MAI)
scheme constitute the kernel of the new five year Exim policy (2004-09).
The concept of agri export zones developed by APEDA aims to improve the levels of
food processing to reduce waste, increases marketability and help farmers to enjoy higher
value of realization. It takes a comprehensive look at a particular produce/product located
in a contiguous area for the purpose of developing and sourcing the raw materials, their
processing/packaging, leading to final exports.
Thus, the entire effort is centered on the cluster approach of identifying the potential
products, the geographical region in which these products are grown and adopting an
end-to-end approach of integrating the entire process right from the stage of production
till it reaches the market. It will also identify/enlist difficulties/problems encountered at
each stage. These difficulties could be procedural in nature or may relate to a particular
quality standard. A package needs to be developed to suggest solutions to these problems.
Measures envisaged promoting exports from such zone –
1. Financial Assistance :-
Both central as well as state government and their agencies are providing a variety
of financial assistance to various agri export related activities. These extend from
providing financial assistance for training and extension, R&D, Quality up
gradation, infrastructure and marketing etc. thus, whereas central government
agencies like APEDA, NHB, and Diptt. Of Food Processing Industries, Ministry
of Agriculture provide assistance, a number of state governments have also
extended to promote agri exports from the proposed zones in a coordinated
manner, some additional features like providing grants from market access
initiative fund could also be considered by the state government.
2. Fiscal Incentives :-
The benefits under Export Promotion Capital Scheme, which were hitherto
available only to direct exporters, have now been extended to service exporters in
the agri export zones. Thus, even service to ultimate exports will be eligible for
import of capital goods at a concessional duty for setting up of common facilities.
They shell fulfill their export obligation through receipt of foreign exchange from
ultimate exporters who shall make the payments from there EEFC account.
Exporters of value added agri products will be eligible for sourcing duty free fuel
for generation of power, provided the cost component of power in the ultimate
product is 10% or more and the input-output norms are fixed by the advance
licensing committee of the Directed General of Foreign Trade (DGFT). In the
view of the power intensive nature of most of the value addition almost all the
exporters of value added agriculture produce will become eligible for such
facility; similarly, input-output norms can also be fixed for sourcing other inputs,
like fertilizers, pesticides etc. duty free for cultivation purpose.
ANTICIPATED BENEFITS-
- Strengthening of backward linkages with a market oriented approach.
- Product acceptability and its competitiveness abroad as well as in the domestic
market.
- Value addition to basic agricultural produce.
- Bring down cost of production through economy of scale.
- Better price for agricultural produce.
- Improvement in product quality and packaging.
- Promote trade related research and development.
- Increase employment opportunities.
Guidelines for State Governments-
The proposal of the state govt. for developing an agri export zone would need to take into
account all activities necessary to set up projects in such a zone some basic guidelines for
developing such projects are detailed below-
- Identification of an agriculture produce (cash crops) which would be developed
for export through a cluster approach. This would, obviously, be based on
concentration of a given product or a set of products in a particular area which
would be promoted as an agri export zones.
- The zone could be a block/group of blocks or a district/group of districts.
- An agricultural university would need to be identified which will assist in the
R&D work related to development of the project. Such university should
preferably be in the vicinity of the zone.
- In case of horticulture based projects, an exporter should be identified who would
source produce from 100-200 orchards in a contiguous area. In case there are
move exporters/farmers interested in exporters, then a single pack house operator
or a processing unit to serve the exporters/farmers may be identified.
- Efforts should be made to ensure enough production crops to enable the unit to
run round the year
.
- The proposal should indicate the entire range of activities involved in the process,
list out interventions being provided by the state governments at different levels
and also suggest the facilitation that can be provided by the central government.
Interventions from the centre could be, inter-alias in area of feasibility studies,
setting up backward linkages, training and extension, pre and post harvest
activity, packaging, transportation, market promotion, etc.
Responsibilities of the State Governments-
To enable the agri export zone achieve the objectives of the to make the projects viable it
is necessary that the central and state governments work closely with each other, this
would imply certain pro-active steps to be taken by the states with regard to the
followings-
- Identifications of a state government institution/agency, which will be responsible
for implementation, and coordination of the entire activity.
- Single window problem solving desks should be created in the offices promoting
zonal approach to agriculture exports.
- Adequate availability of infrastructure, inputs, electricity, etc.
- Redeployment of extension officers in the exports zones who would iterate
regularly with APEDA and organizes training/activity on a regular basis with a
definite action programme.
STUDY ON WTO RELATED ISSUES
The Study on WTO related Issues had the following components:
(i) Global Challenges for Indian Food Processing Sector; and
(ii) (ii) Measures for Fair Protection and Promotion of Indian Food
Processing Sector.
The Study was undertaken on behalf of Ministry of Food Processing with the following
objectives.
• Identification of import sensitive agro products;
• Analysis of the modalities for tariff reduction and their implications for India;
• Analysis of the global trends in agricultural subsidies and their import trade
implications for India;
• Identification of export potential agro and processed food products;
• Analysis of the export competitiveness of the identified products;
• Analysis of the external constrains for export growth in terms of market access issues,
domestic and export subsidies on products of export interest to India;
• Analysis of the domestic constraints for export growth;
• Analysis of export promotion measures.
i) Global Challenges for Indian Food Processing Sector
The Indian agri export sector is poised for growth. The medium term projections of
global agricultural trade clearly highlight the trade opportunities particularly in Beef,
Vegetable Oils and Rice. Fruits & Vegetables (both fresh & processed) are also another
area where international trade offers significant export opportunities. Exploiting these
opportunities requires an integrated approach to production and trade as world markets
are becoming increasingly competitive along with a multitude of standards to be met. The
challenge for India is to retain the production cost advantages even while seeking to
upgrade the quality and marketing systems.
Changes in consumption patterns is leading to increased demand for “high value”
products such as vegetable oils & meat in developing countries and fresh fruits &
vegetables and organic products in developed countries. At the same time, food scares
and health concerns have challenged the confidence in food quality. As such, consumers
expect retailers to ensure food safety measures through their purchasing practices.
Therefore, competition among retailers increasingly involves food safety aspects.
Consumers are also demanding more transparency, traceability and assurance in the food
chain. Meeting these requirements is a significant challenge for entering global value
chains of food products.
The organization of commodity chains has also changed significantly. A few decades
ago, the dominance of large companies in world commodity economy was mostly in
terms of their marketing initiatives in international markets. Now, increasingly, these
companies are also influencing what is produced and how. Thus, at the international
level, there is a continuing concentration of trade and vertical integration of large firms.
At the level of commodity-exporting developing countries, trading networks (both for
domestic and export markets) are being appropriated by foreign firms. In the retail
markets of developed countries, the most important change has been the growth of
supermarkets, which has led to the near elimination of independent traders and increased
the importance of brand name.
Under these evolving production and marketing systems and considering the large
number of small farmers in agricultural production, the constraints that characterize
Indian exports fall in three broad areas: (i) access to information; (ii) access to finance;
and (iii) access to marketing and trade networks. This is under the assumption that
agricultural trade liberalization will progress subsequent to the ongoing negotiations.
India has also the potential to develop niche markets especially in fresh fruits &
vegetables. The approach could be either in developing producer-driven commodity
chains or buyer – driven chains. However, the challenge is that of the effective
governance of food chains. Especially in cases where the food retailers in developed
countries are sourcing from developing countries, it is important to close the gap between
producer capabilities and the requirements of the export markets. Secondly, considering
that food products have distinct marketing channels, it is important to monitor the
coordination between the producer and retailer, especially when the product quality is not
standardized.
The above approaches for revamping the food export systems, has clear implications for
Foreign Direct Investment (FDI) both in developing production systems and retailing. In
this regard, it is important to define the permissible role of FDI in developing these
networks. Although the various programmes/schemes for production enhancement,
infrastructure development and export promotion have highlighted the underlying issues,
the possible role of FDI in these areas has not been clearly defined.
The challenges for broadening the export base of Indian food products, thus, briefly, are:
(i) Developing national food standards and a strong certification system which is
harmonized with the internationally accepted CODEX or HACCP;
(ii) Negotiating for equivalence agreements with major trading partners;
(iii) providing appropriate support (regulatory and incentive systems) for the efficient
integration of production and marketing systems based on well defined government –
private sector partnership; and
(iv) Developing product – wise export promotion strategy through market studies,
support for upgrading existing export capabilities and developing effective governance
for monitoring and management of food value chains.
ii) Measures for Fair Protection and Promotion of Indian Food
Processing Sector
From the analysis of agri import trends, it is observed that besides the traditional
(general) imports, new items entered into India’s agri import basket due to trade
liberalization drive and the gradual phasing out of QRs. Considering the fact that higher
imports could have detrimental effects on the production base of the country and thereby
affect rural livelihood, the selection of import sensitive items was done on the basis of
average annual growth rates.
A closer examination of imports indicated that inspite of a lower flexibility in terms of
tariff protection; the threat of import growth is only for a few products. Import threat is
high for Food preparations, Edible oils, Spices, Fruits and vegetables. Further if QRs are
withdrawn, the import threat was particularly high for Spices, Oilseeds, Cereal
preparation and Edible Oils.
Further selection was done on the basis of comparison between bound rates and applied
rates. The identified import sensitive products were ranked on the basis of their livelihood
and food security dimensions including parameters like average import growth rate,
percentage share of area under cultivation under gross cropped area in major producing
state and percentage population dependent on the crop. Wheat, Soybean oil and Milk
Powder were identified as most sensitive imports followed by Fruits (chiefly Apples and
Grapes), Maize, Cheese, Vegetables and Orange juice.
The study reveals that AOA has opened a new horizon of opportunities for increased
access to imports from developed markets into India. The removal of QRs would further
endanger the livelihood systems of the poor farmers, as there is a possibility of further
import surge. The extent of domestic support to farming families is far below even the
WTO-prescribed ceiling. There are also no export subsidies in India. India has specific
duty only for a few items, and for items with NTBs, there are no specific duties. As a
result of this, Indian agriculture continues to need protection and support. Hence
immediate action to protect domestic industry lies in: (i) Adjustment of Tariffs within
bound levels; (ii) Special Agricultural Safeguard mechanism (SSM) and (iii) Non Tariff
Measures.
Further, creation of infrastructure, watershed development, increased availability of
subsidized inputs and greater thrust on research, extension and risk management is
required to compete with imports. Better integration across rural markets is necessary for
price signals from abroad to be fully effective in generating comparative advantages. A
danger posed by weak integration across rural markets is that the price depressing effects
of potential imports can be quicker and affect more regions and farmers.
Hence, India’s initial negotiating proposals should seek to protect the interest of Indian
agriculture especially on its concerns for food and livelihood security, demanding more
flexibility for protection from surge in imports and by conceding minimal market access.
These negotiating proposals with matching efforts of protection, support and market-
friendly domestic policy regime will take Indian farming to higher levels of growth and
prosperity.
SWOT ANALYSIS
S = STRENGTH
The strength of the project lies mainly in-
1. The abundance of exotic tropical fruits & vegetables available in India.
2. The matchless aroma and tests of Indian tropical fruits.
3. The diverse agro-climatic condition in the country, through which any raw
material can be effectively grown to meet the demand.
4. The availability of a very large pool of qualified and experienced technolocarts
and of the research and development laboratories dedicated to food processing
industry.
5. The experience in the export of dehydrated products.
6. The capability of design development and construction of process plant
machinery matching international standards.
W = WEAKNESS
The major weaknesses for India in the field of business are-
1. Poor availability of suitable processing variety of raw materials at present.
2. Lack of in-house quality control and testing facilities in conformity with the
international standards.
3. Existing technology obsolescence.
4. Poor infrastructure facilities such as irregular power supply, high inland
transportation cost and lack of cold chain facilities etc.
5. Lack of post harvest handling and long term storage facility.
6. The other major weakness in Indian food industry is the lack of coherence and
cooperation amongst the processors and exporters due to which the problems can
not be effectively addressed and tackled collectively.
O = OPPORTUNITIES
The opportunities available for these products as under reference are-
1. Based on exotic Indian raw materials the fruit salads, fruit bars, fruit based cereals
and baby foods are gaining in consumer preference.
2. The pre-prepared meal based on Indian vegetables for long Asian ethnic
population settled in developed countries is a very big opportunity for export of
these products.
3. For the region of emerging opportunity is the south-east Asia which is presently
being catered to, by USA and EU. India must benefit for its locational advantage
that offers economy in the cost of freight etc.
4. Dried tropical fruits going up in demand.
T = THREATS
The major threat to Indian dehydration industry is expected from the goods offered by the
neighboring countries such as china, Thailand, Indonesia and Philippines who have a
distinct price advantage accruing from the production cost which include the cost of
power, liquid fuels, rate of interest on loans for fixed and working capital, import duty
and export benefits, the cost advantage to these countries varies between 28 to 45%.
CONCLUSION
Simply achieving the status of largest producer in selected agro commodities is not
enough. To be a player in the global market we need to be competitive. Our products
have to stand competition in terms of cost and quality. In 2005-06 the total export of
processed food items from India was around 45,641,788.00 Rs. Lack of which processed
fruits and vegetables have a share 13,500,000 Rs. Lack The industry ranks fifth in terms
of production, consumption, export and expected growth in India.
The study of the various items into consideration during the project suggests that the
major export destination of processed food items from India are gulf countries or UAE.
The study of export trend of various items under study reveals a very good export
potential. the various items under study mango pulp, mango pickles, mango chutneys,
mango juice, mango squash, mango slice in brine, mangoes sliced dried, flour of mango,
apples dried, orange juice frozen, orange squash, pineapple, pineapples prepared or
preserved, cherries preserved, guava, lemon squash, strawberries prepared or preserved
and other fruit squash are the most important. They are continuously demanded in the
UAE market so they represent the potential for the Indian processed foods.
Processed guava, mango slice in brine, orange squash, pineapples prepared or preserved,
lemon squash, strawberries prepared or preserved, other fruit squash are the upcoming
item in the processed food items list and has a bright future in the U.A.E. market.
RECOMMENDATION
The following recommendations if implemented will boast the food processing industry
and its export:
► Focus should be given in building proper infrastructure in India like cold chain, cold
storage, power and roads.
►Supply chain should be improved to reduce wastage of food items during
transportation.
► Modern techniques of farming/processing should be implemented.
► Technology should be upgraded to cover a range of products.
► India should have integrated food laws.
► Non-tariff barriers and technical barriers to trade need to be reviewed.
► Application of fungicides/pesticides and chemical preservatives should be phased out.
They should be replaced by more environment friendly technologies to increase quality
of the crops and products.
► There should be extensive education and training for the crop growers on how to
increase yield per hectare of heir crops. Cooperative and contract farming can be a good
solution for small land holding for improving yield and quality of the crops.
BIBLIOGRAPHY
▪ MAGAZINE
► Indian Food Packer
► Modern Food Processing
► Pragati Path – House Journal of STC, Annual Number (April 10-March 10)
▪ INTERNET
► Website of Directed General of Foreign Trade
<http://dgftcom.nic.in>
► Website of National Horticulture Board of India
<http://www.nhb.gov.in>
► Website of Agriculture & Processed Food Export Development Authority
<http://www.apeda.com>
► Website of Ministry of Food Processing Industries
<www.mofpi.com>
► Website of Mother Dairy
<http://www.motherdiary.com>