Confederation of Indian Industry Opportunities in FRUITS & VEGETABLES Sector in India Ministry of Food Processing Industries Government of India
Advantage India One of the fastest growing economies in the world Largest producer of several agri commodities Second largest Consumer market Significant investments in world class ports, logistics & supply chain infrastructure Proactive Government policies Investor friendly incentives Highly skilled manpower pool Why India for F&V Processing? India is the second largest producer of the Fruits and Vegetables in the world with a production of 259 million MT. India is the world's largest producer of bananas, papaya, mangoes and guavas, second largest producer of potatoes, green peas, tomatoes, cabbage and cauliflower. The production volumes for major fruits & vegetables are: Commodity Production Volume (Mn MT) Commodity Production Volume (Mn MT) Banana 29.1 Potato 43.4 Mango 18.6 Onion 20.9 Citrus 11.6 Tomato 18.7 Papaya 5.7 Brinjal 12.5 Guava 4.0 Cabbage 8.8 Source: Department of Agriculture and Cooperation
India witnesses nearly 4.6-15.9% wastage in fruits and vegetables annually, due to lack of modern harvesting practices and inadequate cold chain infrastructure. Processing levels in F&V currently stand at close to 2%. Opportunity to invest in initiatives that help reduce wastage levels including adequate infrastructure (cold chain, processing infrastructure), R&D for processed food & packaging, innovative on farm preservation systems and skill development. India's location gives it the unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand, Malaysia and Korea.
Major States Uttar, Andhra, Maharashtra, Gujarat and Karnataka are the leading producers of fruits in India, having a combined share of around 51% in the total fruits production. For vegetables, major producers include Uttar, West Bengal, Madhya, Bihar, and Gujarat, together accounting for around 55% of the national production. Top 5 fruits Producing States (Production figures in Mn MT) Jammu and Kashmir 10.3 Himachal 10.1 Punjab 9.7 Chandigarh Uttarakhand Haryana 8.5 Delhi Arunachal Sikkim 7.0 Uttar Rajasthan Bihar Nagaland Assam Meghalaya Manipur Tripura Jharkhand Madhya Gujarat West Bengal Mizoram Chhattisgarh Odisha Diu Dadra and Nagar Haveli Daman Telangana Maharashtra Goa UTTAR PRADESH MAHARASHTRA ANDHRA PRADESH KARNATAKA Andhra Karnataka Lakshadweep Islands Puducherry TamilNadu Kerala Source: Department of Agriculture Cooperation and Farmers Welfare Top 5 Vegetables Producing States (Production figures in Mn MT) Jammu and Kashmir 26.3 22.8 Himachal Punjab Chandigarh Uttarakhand Haryana Delhi 15.6 14.4 Uttar Rajasthan 13.4 Arunachal Sikkim Bihar Assam Meghalaya Manipur Madhya Gujarat Tripura Jharkhand Mizoram Chhattisgarh Odisha Diu Dadra and Nagar Haveli Daman West Bengal Maharashtra Telangana Goa UTTAR PRADESH WEST BENGAL MADHYA PRADESH BIHAR Karnataka Andhra Source: Department of Agriculture Cooperation and Farmers Welfare Nagaland Lakshadweep Islands Tamil Nadu Kerala Puducherry
Top 5 states contributing to processed Fruits and Vegetables State Number of Registered Units Output (USD Bn) Karnataka 78 0.6 Maharashtra 164 0.3 Andhra 131 0.3 Punjab 158 0.2 Gujarat 95 0.2 Source: Annual Survey of Industries, 2014-15 Indicative Processing Opportunities Commodity Major producing states Green Peas Uttar /Uttarakhand, Madhya, Jharkhand, Himachal, Punjab Tomato Madhya Andhra, Karnataka, Odisha, Gujarat Potato Uttar, West Bengal, Madhya, Bihar, Gujarat Onion (white onion) Maharashtra, Karnataka, Madhya, Gujarat Mango Andhra, Uttar, Karnataka, Bihar, Gujarat, Telangana Pineapples Kerela, West Bengal, Assam, Karnataka, Tripura Grapes Maharashtra, Karnataka, Tamil Nadu, Andhra, Telangana, Mizoram Banana Andhra, Karnataka, Gujarat, Tamil Nadu, Maharashtra Citrus fruits Andhra, Telangana, Maharashtra, Madhya, Punjab Pomegranate Maharashtra, Karnataka, Gujarat, Andhra Processing Opportunity Frozen (IQF), canning, pulp, puree, paste, sauces, snacks, dressings, flakes, dices, dehydration, pickles, juices, slices, chips, jams, jelly, RTS drinks
Opportunities in Fruits & Vegetables Processing at a Glance Equipment & Technology Suppliers New technology in F&V processing Cold chain & packhouses- Farm level, logistics, end product storage and at point of retail Packaging technology Food testing labs with latest equipment and technology F&V Processors New product development - Health food, traditional food, nutraceuticals and dehydrated F&V Convenience foods Beverages-Indian traditional beverages like nimbu paani, coconut water etc. Processed ingredients for ice creams, yogurt, beverages etc. Exports During 2016-17, India exported fresh fruits and vegetables worth USD 1.6 Bn. Mangoes, Grapes, Bananas and Pomegranates account for bulk of the fruits exported from the country while Onions, Leguminous vegetables, Potato, Tomato and Garlic contribute largely to the vegetable export basket. The major destinations for Indian fresh fruits and vegetables are UAE, USA, Saudi Arabia, Netherlands, UK and Malaysia. India s exports of Processed Fruits and Vegetables was around USD 1.1 Bn in 2016-17, which majorly included Dried and Preserved Vegetables and Mango Pulp.
Key States for Top 5 Fruits in India Banana TAMIL NADU 4332 Mango UTTAR PRADESH 4513 4186 ANDHRA PRADESH 2804 ANDHRA PRADESH 3571 TELANGANA 1778 UTTAR PRADESH 3061 KARNATAKA 1726 MAHARASHTRA 3025 BIHAR 1465 Citrus ANDHRA PRADESH 1829 Papaya 1241 TELANGANA 1726 ANDHRA PRADESH 988 MAHARASHTRA 1662 KARNATAKA 508 MADHYA PRADESH 1332 MADHYA PRADESH 465 PUNJAB 1169 TAMIL NADU 428 Guava MADHYA PRADESH 990 UTTAR PRADESH BIHAR WEST BENGAL PUNJAB 914 370 199 182
Sources: National Sample Survey Office, National Horticulture Board, Department of Agriculture Cooperation and Farmers Welfare, State Government Portals The above MAP depicts only pictorial representation of India and the States of India and does not purport to be the political map of India or its states and are not drawn to scale and are only impression of Mega Food Parks in India.
Key States for Top 5 Vegetables in India Potato UTTAR PRADESH 13852 Onion MAHARASHTRA 6529 WEST BENGAL 8427 MADHYA PRADESH 2848 BIHAR 6346 KARNATAKA 2696 3549 RAJASTHAN 1435 MADHYA PRADESH 3161 1356 Tomato MADHYA PRADESH 2286 Brinjal WEST BENGAL 3004 ANDHRA PRADESH 2237 ODISHA 2011 KARNATAKA 2046 1471 TELANGANA 1475 MADHYA PRADESH 1161 1319 BIHAR 1138 Cabbage WEST BENGAL ODISHA ASSAM BIHAR 2258 1058 755 720 608
Sources: National Sample Survey Office, National Horticulture Board, Department of Agriculture Cooperation and Farmers Welfare, State Government Portals The above MAP depicts only pictorial representation of India and the States of India and does not purport to be the political map of India or its states and are not drawn to scale and are only impression of Mega Food Parks in India.
Policy Support and Key Fiscal Incentives 100% FDI in trading, including through e-commerce, for food products produced and/or manufactured in India. 100% FDI permitted through automatic route in food processing sector. Food processing units can avail preferential rates under Priority Sector Lending. Special fund of INR 2,000 crore (USD 300 million) with NABARD for designated food parks and processing units. Food Safety Standards harmonized with international standards. GST implementation to harmonize the tax regime-seamless operations across states. 100 % Income Tax Deductions on: o Capital expenditure for cold chain / warehouse o Profit for new food processing, preservation and packaging units Basic Custom Duty reduced on Refrigerated Containers from 10% to 5% Concessional Customs Duty on imported equipment Schemes of Ministry of Food Processing Industries Scheme for Mega Food Park (MFP) Government of India has approved setting up of 42 MFPs in the country, out of which 41 have been sanctioned by MoFPI. Of the 41 MFPs, 9 have already commenced operations. The parks have more than 1,200 developed plots (of approximately 1 acre each) with basic infrastructure enabled, that entrepreneurs can lease for the setting up of food processing and ancillary units. Scheme for Integrated Cold Chain and Value Addition Infrastructure Scheme for Food Safety and Quality Assurance Infrastructure Scheme for Infrastructure for Agro-processing Clusters Scheme for Creation of Backward and Forward Linkages Scheme for Creation/Expansion of Food Processing and Preservation Capacities Scheme for Human Resources and Institutions
Contact Ministry of Food Processing Industries, Govt. of India Tel: +91-11-26492216/ 26492174/ 26493227/ 26490933 Email: miiweekfpi@gov.in Web: www.mofpi.nic.in YES BANK Ltd. Tel: +91-11-46029071 Email: fasar@yesbank.in Web: www.yesbank.in Confederation of Indian Industry Confederation of Indian Industry (CII) Tel: +91-11-46344614 Email: miiw.fpi@cii.in Web: www.cii.in Source: Ministry of Food Processing Industries (MoFPI), National Horticulture Board, Agricultural and Processed Food Products Export Development Authority (APEDA), Central Institute of Post-Harvest Engineering and Technology (CIPHET), Annual Survey of Industries and other relevant websites