final banana project
TRANSCRIPT
PROJECT REPORTON
“DEMAND ANALYSIS AND OPPORTUNITIES TO EXPORT BANANA FROM
MAHARASHTRA TO EUROPE”
MAHARASHTRA STATE AGRICULTURE MARKETING BOARDMAHARASHTRA STATE AGRICULTURE MARKETING BOARD(MSAMB)
Submitted By,
MR. YOGESH NARHARI WAGH
Roll No- 256
POST GRADUATE DIPLOMA IN AGRI BUSINEES MANAGEMENT, 2nd SEMESTER
University of Mumbai’s
Garware Institute of Career Education and Development,
Vidyanagari Campus, Kalina, Santacruz (E) Mumbai - 400 098
January 2011
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Certificate of msamb
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DECLARATION
I herby state that the present project report entitled “Demand Analysis and
Opportunities to Export Banana from Maharashtra to Europe” is my original
contribution and same has not been submitted on any previous occasion. To the best of
my knowledge, the present study is the first comprehensive work of its kind from the
area mentioned.
This project would be organisation’s property and the project details kept
private and confidential.
Place- Pune Yogesh Narhari Wagh
Date- 17/02/2011 (PGDABM, 2nd Semester,
Roll No- 256)
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CERTIFICATE OF APPROVAL
It is certified that this project report entitled “Demand
Analysis and Opportunities to Export Banana from
Maharashtra to Europe” is a record of project work done
independently by Mr. Wagh Yogesh Narhari under my
guidance and supervision in the partial fulfilment of his Post
Graduate Diploma in Agri-Business Management
(PGDABM), submitted to Maharashtra State Agricultural
Marketing Board Pune and Garware Institute of Career
Education & Development, Mumbai University and that it has
not previously formed the basis for the award of any degree,
fellowship or associate to him.
Mr. Ashok Govande
Placement Officer,
PGDABM
GICED, University of
Mumbai
Santacruz (E), Mumbai
Mr. Shirish
Patil
Course
Coordinator, PGDABM
GICED, University of
Mumbai
Santacruz (E),
Mumbai
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ACKNOWLEDGEMENT
I would like to extend my gratitude to Maharashtra State Agricultural
Marketing Board, Pune and Garware Institute of Career Education and Development,
Mumbai for giving me opportunity to do the project.
It is with great sense of satisfaction, I present this study titled “Demand Analysis
and Opportunities to Export Banana form Maharashtra to Europe” is my original
contribution and which I successfully completed as per the guidelines of the college &
MSAMB, Pune.
I am very grateful to the Director Mr. Arun Kshirsagar, the Course Coordinator
Mr. Shirish Patil, Faculty Guide Mr. Ashok Govande and Project Guide Mr. Bhaskar Patil,
Manager (Public Relation & Publicity) for motivation and their valuable guidance. I am
extremely indebted to my mentor Mr. Bhaskar Patil (Manager Public Relation & Publicity)
for their support, motivation, guidance & encouragement and also their expert and timely
advice towards the completion of the study. I would like to convey my gratitude towards
them for being so appreciative.
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EXECUTIVE SUMMARY
Importance of Study-
India is a second largest producer of fruit in the world . There has been significant
increase in the export of fresh fruits during the past few years.Banana is the most
important fruit crop of India having great socio-economic significance. It contributed
31% of the total food production in India. World production of banana is estimated at
48.9 million tonnes out of which 10.4 million tonnes, is contributed by India. India ranks
No.1 in production followed by Brazil (5.5 million tonnes), Indonesia (2.3 million
tonnes), Philippines (3.8 million tonnes), China (1.9 million tonnes) and Australia (1.8
million tonnes). In India, Maharashtra state is the largest banana producing state
followed by Tamil Nadu, Gujarat, Assam, Andhra Pradesh and others. In Tamil Nadu
banana is cultivated in 83,308 ha with an annual production of 2,782 million tonnes.
The productivity in Tamil Nadu is 33.39 tonnes/ha compared to 38.1 tonnes/ha in
Gujarat. In spite of being one the largest productions of fruits & vegetable in the world,
the export & marketing competitiveness among the Indian producer remains low. India
is still lagging behind in actual export of these produces.
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By considering this fact, market research was conducted with the objective to study,
how to enter in foreign market, reducing the competition & getting maximum price for
our banana in International market. Also there are huge opportunities to export banana
from Maharashtra to Europe which are focused here.
Primary data was collected from MSAMB’s Banana Export Facility Center, Baramati. And
secondary data collected was collected from different sources like reports, journals,
articles, books etc from different sources like institutes/offices/libraries/internet.
Objectives of study-
The specific objectives of the study are:
To study market analysis for banana in Europe.
To study procedure & requirements for export of banana to Europe.
To explore the potential of Maharashtra for banana export.
Findings of study-
About Market Research
-The global production of banana is around 76,436 thousand tons of which India
contributes 24.5%. Besides India, other major banana producing countries are Brazil,
China, Philippines, Costa Rica and Ecuador. Globally, India is biggest exporter to
European Union and, trading 60-70% of the total world exports. So, the Philippine is our
most important competitor in world. . In India, its peak production is in all around a
year. Thus, India can export bananas in all months when there will be more demand and
less supply we can export bananas to Europe as compare to other countries.
Marketing channel: The banana grower’s use following marketing channels.
Export channel: Producer – Commission Agent – Exporter.
Domestic market channels: Producer - Commission Agent – Wholesaler –
Retailer – Consumer.
Marketing problems: Banana farmer has following marketing problems.
1) Viral disease.
2) Unavailability of transportation facilities.
3) Cheating by commission agent.
4) Lack of market information.
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Conclusion-
1) It is found that majority of banana grower prefer the Grade 9 variety due to its
export demand.
2) Most of the producers preferred Dubai market for export, because-
It is convenient for transportation,
There is a good demand for Indian fruits during Muslim festivals.
The quality control & restrictions are not so stringent
The time required for destination is less UK market.
Table of contents-
SR. No.
Title Page No.
Acknowledgement 5Executive Summary 6-7Table of contents 8-9
1. Introduction 111.1 Overview 101.2 Banana 10
1.2.1 General 101.2.2 Botany 101.2.3 Taxonomy 101.2.4 Morphology 101.2.5 Cultivation 121.2.6 Alternative uses 131.2.7 Medicinal Importance 13
1.3 Global Scenario of banana 141.4 Indian Scenario of banana 15
1.4.1 Productivity of banana in India 161.4.2 Harvesting Pattern in India 17
1.5 Maharashtra Scenario of banana 171.5.1 Major banana Producing Area 181.5.2 Varieties Grown in Maharashtra 181.5.3 Arrival patterns & Bahar treatment 20
1.6 Objectives 201.7 Introduction of MSAMB 21
2. Methodology2.1 Data Collection
2.2.1 Primary data
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2.2.2 Secondary data2.3 Analysis of data
Sr. No.
Title Page No.
3 To Study Market Analysis for Banana in Europe 25-393.1 PEST Analysis of Europe 25
3.1.1 Europe: Political Overview 273.1.2 Europe: Economic Overview 313.1.3 Europe: Social Overview 323.1.4 Europe: Technology Overview 35
3.2 Consumer Behaviours in Europe 373.3 Demand Analysis for banana in Europe 39
4 Export Procedure & Requirements 374.1 Export Procedure 384.2 Requirements for Export 44.3 EUROGAP Certificate 46
5 Potential of Maharashtra for Banana Export 456 Findings, Suggestions & Suggestions 50
6.1 Findings of Study 466.2 Suggestions 486.3 ConclusionReferences 53
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CHAPTER-1
INTRODUCTION
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BANANA
INTRODUCTION
Banana (Musa sp.) is the second most important fruit crop in India next to mango. Its
year round availability, affordability, varietal range, taste, nutritive and medicinal value
makes it the favorite fruit among all classes of people. It has also good export potential.
Origin
Banana evolved in the humid tropical regions of S.E.Asia with India as one of its centers
of origin.
Economic Importance
Banana is a very popular fruit due to its low price and high nutritive value. It is
consumed in fresh or cooked form both as ripe and raw fruit. Banana is a rich source of
carbohydrate and is rich in vitamins particularly vitamin B. It is also a good source of
potassium, phosphorus, calcium and magnesium. The fruit is easy to digest, free from fat
and cholesterol. Banana powder is used as the first baby food. It helps in reducing risk
of heart diseases when used regularly and is recommended for patients suffering from
high blood pressure, arthritis, ulcer, gastroenteritis and kidney disorders. Processed
products, such as chips, banana puree, jam, jelly, juice, wine and halwa can be made
from the fruit. Banana fiber is used to make items like bags, pots and wall hangers. Rope
and good quality paper can be prepared from banana waste. Banana leaves are used as
healthy and hygienic eating plates.
Cultivation of banana-
Agro-climatic requirements
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Banana, basically a tropical crop, grows well in a temperature range of 150C – 350C
with relative humidity of 75-85%. It prefers tropical humid lowlands and is grown
from the sea level to an elevation of 2000m above m.s.l. Deep, rich loamy soil with pH
between 6.5–7.5 is most preferred for banana cultivation. Soil for banana should have
good drainage, adequate fertility and moisture. Saline solid, calcareous soils are not
suitable for banana cultivation. A soil which is neither too acidic nor too alkaline, rich in
organic material with high nitrogen content, adequate phosphorus level and plenty of
potash is good for banana.
Varieties Cultivated
Showing the varietal characteristics of commercially grown banana varieties
Variety Description
Grand
Naine
It is most accepted international variety. It is a tall statured plant and a
heavy yielder with long cylindrical bunch. On an average it produces a
bunch weighing 25 kg and may go up to 32-35 kg, with 8-10 hands with
200-220 fruits/bunch. The length of the fruit is 15-21 cm and girth is
12-13 cm.
Robusta It is normal statured with black brown blotches on the stem, bunches
weigh around 20 kg having 8-10 hands/bunch. The length of the fruit is
15-20 cm and girth is 12 cm with thick fruit skin
Dwarf
Cavendish
The plant stature is dwarf. Dark black brown blotches appear all along
the stem. Bunches are large with compactly arranged 8-10 hands
weighing about 20kg. Length of fruit is 13-14 cm and girth 8-10 cm. Skin
is thick and the fruit tapers gradually towards the tip. It is not fit for
export.
Red banana The plant is tall and robust statured. The colour of the fruit, pseudo
stem, petiole and midrib is purplish red. The bunch weight is 20-25 kg
with 6-7 hands and 80 fruits/bunch. The length of the fruit is 16-18 cm.
Nendran There is considerable diversity in plant stature. Bunch has 5-6 hands
weighing about 6-12 kg. Fruits have a distinct neck with thick green skin
turning buff yellow on ripening. Fruits remain starchy even on ripening.
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Land Preparation
Prior to planting banana, green manuring crop like daincha, cowpea etc. may be grown.
The land can be ploughed 2-4 times and leveled. Ratovator or harrow is used to break
the clod and bring the soil to a fine tilt. During soil preparation basal dose of FYM (about
50 tonnes/ha. before last harrowing) is added and thoroughly mixed into the soil.
Planting Material
About 70% of the farmers are using suckers as planting material while the rest 30% of
the farmers are using tissue culture seedlings. Sword suckers with well develop
rhizome, conical or spherical in shape having actively growing conical bud and
weighing approximately 450-700 gm are commonly used as propagating material.
Treatment of planting material
The roots and base of the planting material may be removed. The suckers are dipped
in a solution of 0.5 % monocrotophos and bavistin (0.1%) before planting.
Planting season
State Planting time
Maharashtra · Kharif - June – July
· Rabi - October – November
Tamil Nadu · February – April
· November – December
Kerala · Rainfed- April-May
· Irrigated crop- August- September
5.5.4 Spacing
Season Spacing
Kharif 1.5 x 1.5 m., 2 x 2 m. or 2.5 x 2.5 m.
Rabi 1.5 x 1.2 m., 1.5 x 1.37 m.
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Irrigation
Banana being a succulent, evergreen and shallow rooted crop requires large quantity
of water for increasing productivity. In winter, irrigation is provided at an interval of 7-
8 days while in summer it should be given at an interval of 4-5 days.
Drip Irrigation
Application of irrigation through drip system helps to maintain the proportion of soil air
and soil water which results in early and vigorous growth of bunches. Raw bunch gets
matured earlier by 30-45 days and yield is increased by 15-30 % and 58-60 % of water
is saved on irrigation, weed is less, cost on intercultural operations is saved and water
soluble fertilizers can be applied. Drip irrigation may be given @ 15 lit/plant/day from
planting to 4th month, 20lit/plant/day from 5th month till shooting stage and 25
lit/plant/day from shooting till 15 days prior to harvest.
De-suckering
Removal of unwanted suckers is a critical operation in banana for reducing internal
competition with the main plant. Small suckers are removed on regular basis up to 7-8
months.
Harvesting and Yield
Banana is harvested when the fruit is slightly or fully mature depending on the market
preferences. For long distance transportation, harvesting is done at 75-80 % maturity.
The fruit is climacteric and can reach consumption stage after ripening operation.
Variety-wise average yield of banana (tonnes/ha.)
Varieties Average yield
(tones/ha.)
Basrai, Rasthali 40-50
Shrimanti 70
Grand Naine 65
Ardhapuri , Meanyham 55
Hirsal, Safed Velchi, Red banana, Lal Velchi 45
Poovan 40-50
Monthan 30-40
Dwarf Cavendish , Robusta Champa & Chini desi 50-60
Nendran 30-35
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Global Scenario
1.2.1 World Banana Production Overview
World banana production has been concentrated in developing countries. Around 98
per cent of banana production is contributed only by developing countries and are the
exporters of bananas. Developed countries are the usual destination for export of
bananas. Though, in the year 2008, 130 countries were identified as banana producer,
the production was highly concentrated in few countries viz., India, China, Philippines,
Brazil and Ecuador. These countries alone contributed more than 60 per cent of world’s
total banana production. In year 2008, total production of banana was 97.37 million MT
and total area under banana cultivation was 8.25 million hectare o. India ranks 1st in
world in production with 21.8 million MT annual production from 0.62 million ha area.
India’s share in world banana production in 2007 was 26.8 per cent & productivity of
banana in India was 35 Tons per ha. Whereas the world banana productivity is only 14
MT per ha.
Major Banana Producing Countries
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Source: FAO STAT, 2008
World wide Area, Production and Productivity of banana
Source: FAO STAT, 2007-08
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World Banana Exports
The export of bananas is also concentrated in developing countries. The four leading
banana exporting countries in 2006 were Ecuador, Costa Rica, Philippines and Colombia
accounted for 64 per cent of world exports. In which Ecuador alone exported more than
30 per cent of global banana exports.
Figure: World banana exports (average of the 2002-2006 periods)
Source: UNCTAD Secretariat from FAO statistics
World Banana Imports
The main banana importing countries are the European Union, the United States of
America and Japan, which together accounted for more than 70 per cent of world’s total
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imports in 2006. The first ten banana importing countries accounted more than 80 per
cent from an historical perspective, banana imports are relatively concentrated. The
main importing areas are the European Union, the United States of America and Japan,
which together accounted for more than 70% of world total imports in 2006, while the
first ten banana importing countries represented more than 80% of total imports
(considering the EU as a whole).
Distribution of the world Banana importsAverage on the 2002 - 2006 periods
Source: UNCTAD Secretariat from FAO statistics
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Source: FAO STAT, 2007
Banana Trade Patterns
South America on an open market basis, that is, with no tariff or quantitative
Concerning the direction of trade in bananas, it is important to note that, due to the
importance of the different banana import regimes in the consuming countries, the
banana world trade has a clear regional character. They have led to a differentiation
among preferential markets and open markets for bananas, although this picture has
been changing somehow in the nineties. Transportation costs and time in banana
distribution also play a role in the regional fragmentation of the market. North
American banana imports come mainly from Central and restrictions.
Geographical distribution of USA banana imports, 1990-2007
Source: UNCTAD Secretariat from COMTRADE statistics
Indian Scenario
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In India banana ranks 1st in production & 3rd in area after mango and citrus. Indian
banana productivity is also reasonably better than many banana producing countries.
India produces export quality fruits but lagging in handling and maintaining the quality
after harvest. Therefore, India’s presence in international market is insignificant since
decades. India hardly exports 0.1 million MT every year. In year 2007-2008, India's
banana production was 232 lakh metric tons. The major banana growing states are
Tamilnadu, Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Bihar, West Bengal,
Madhya Pradesh, Assam and Kerala. (NHB-2008)
1.3.1 Banana production in India
In India, area and production share of banana is 12 per cent and 32 percent of the total
area under fruit crops and total fruit production respectively. Average productivity of
banana in India is 35 Tons per ha. In year 2007-08 the 20 major top ten banana growing
states were Tamilnadu, Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Bihar, Bihar,
West Bengal, Madhya Pradesh, Assam and Kerala
State wise production of banana in India
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Source: National Horticulture Board-2008
Total banana production in India in the year 2007-08 was 23205 thousand MT. In India
Tamilnadu ranks 1st in production i.e. 6116.50 thousand MT and share in total banana
production was 26.36 per cent. Maharashtra ranks 2nd in banana production it
produces 4962.90 thousand MT & share was 21.39 per cent.
1.3.2 Exports of banana from India
Indian bananas are mainly exported to Gulf countries which are the nearest market.
India’s export share in total world banana export is only 0.1 percent. India hardly
exports 0.1 million MT every year. Total export of banana from India in 2007-08 was
166.62 lakh MT. In year 2007-08 Indian bananas were mainly exported to UAE, Nepal,
Saudi Arebia, Baharin, Kuwait, Maldives, Qatar, Oman, UK, Bangladesh, etc.
Exports of banana from India
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Source: DGCIS Annual report 07-08
Total export of banana from India in 2007-08 was 166.62 lakh tons. Out of the total
exports 52.65 lakh MT bananas exported to United Arab Emirate (UAE), 48.67 lakh MT
to Nepal, 19.11 lakh MT to Saudi Arabia, 10.11 lakh MT to Baharin & 9.16 lakh MT
banana to Kuwait.
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Harvesting season of crop in leading states
Harvest season of banana is depicted below (in 12 months).
STATES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECTamil NaduMaharashtraAndhra PradeshKarnatakaBiharAssam
STATES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECGujaratMadhya PradeshWest Bengal
Figure- The above graph showing harvest pattern in leading banana growing states.
1.3.3 Banana Production & export overview Maharashtra
In Maharashtra major banana growing area are Jalgaon, Dhule, Latur, Hingoli, Nanded.
The area under banana crop during 2007-08 was 72200 ha. With an annual production
of 49.62 lakh MT. Maharashtra ranks second in the country in respect of area & also
second in respect of the production. The productivity was 62.9 MT per ha. Which was
the highest in the country? Maharashtra occupies the 14 per cent area of the country
under banana but contributes 28 per cent in banana production. Commercial
production is undertaken in Maharashtra state and the same is marketed all over the
country. MSAMB is taking keen efforts to promote banana exports from Maharashtra by
encouraging contract farming and the use of modern technologies. Maharashtra is
gearing up to take a share in the international banana market. MSAMB has taken
initiative to set up three export facilitation centers one is at Savada, Tal- Raver, Dist-
Jalgaon,Shivleela nagar Tal-Indapur,Dis-pune and another is at Basmat (Hingoli). Akluj
area is important banana growing zone, farmers in this area are much aware about
quality production and export of banana. Three major export companies are active in
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this area viz., Unifrutti, Mother Dairy, Krushi Vikas Export. These companies purchase
the bananas directly from farmers and export it to Dubai and Saudi Arebia. Also due to
the conversion of onion export facility centre in to ‘Banana export facility centre’ at
Indapur and availability of this centre, facilitated Unifrutti company to start their
second pack house unit for export of banana from Akluj area.
Objectives of study-
The specific objectives of the study are:
To study market analysis for banana in Europe.
To study procedure & requirements for export of banana to Europe.
To explore the potential of Maharashtra for banana export.
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Introduction of MSAMB
The Maharashtra State Agricultural Marketing Board (MSAMB), Pune was established
on 23rd, March 1984, under section 39A of Maharashtra Agricultural Produce
Marketing (Development & Regulation) Act, 1963. MSAMB has done pioneering work in
the field of Agricultural Marketing in the State and achieved success in various areas.
MSAMB is having an important role in developing and coordinating agricultural
marketing system in the State of Maharashtra.
Contact- Managing Director/General Manager
Maharashtra State Agricultural Marketing Board
R-7, Market Yard, Gultekadi,
Pune 411 037.
Maharashtra, India
Tel: 020 2426 1190, 2426 8297
Fax: 020 2427 2095
E-Mail: [email protected]
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CHAPTER-2
Research
Methodology
Introduction-
Banana is an important fruit crop of Maharashtra. It is cultivated in an area of 43,151 ha
with a total production of 4, 31,510 tonnes producing about 85% of the total Indian
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production, thereby leading in Banana production in the country. Within Maharashtra,
production of Banana is mainly concentrated in the Western Maharashtra region and
the Marathwada region & this area is very close to Mumbai, which reduces the
transportation cost. The variety Ganesh, Bhagwa (Red Ruby) cultivated in Maharashtra
is suitable for export purposes. At present fair amounts of exports of Banana takes place
from the state in Reefer containers by sea. So, there is huge scope to export banana from
Maharashtra to Europe.
Design of study-
The study was conducted in 3 major steps;
i. Survey & data collection,
ii. Analysis of the data,
iii. Preparation of Project Report
International Market Research Process-
Marketing research is a systematic analysis of information relevant to the identification
& solution of any problem in the field of marketing. The marketing research process
begins with the recognition of a marketing related problems, followed collecting the
information of objective of the study & methodology, finally analyze that information
take output in form of conclusion. PEST is well know & widely applied tool for
international market research, which is used here to study the European market.
Location of study- European Market,
Data Collection-
1) Primary Data- Primary data is collected by the face to face interviews of
officers of different organizations, like-
Maharashtra State Agricultural Marketing Board, Pune
Banana Export Facility Center, Baramati
MCCIA, Pune
KVK, Baramati
2 ) Secondary Data- Secondary data is collected from different like, web sites of
MSAMB, APEDA, MAHAANAR, MCCIA & MPKV Rahuri. Several other magazines
like Krishi Panan Mitra, Dalimb Vrutt and other search engines like Google.
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cHAPTER-3
MARKET RESEARCH
3.1. PEST Analysis-
PEST is well know & widely applied tool for international market research, which is
used here to study the European market.
3.1.1 Europe- Political overview-
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The EU & EFTA: An Introduction-
The EU and EFTA together consist of 31 European countries, which subsequently form a
market of more than 510 million potential consumers.
EU (European Union)-
The European Union (EU) is a group of European countries, committed to working
together. Its Member States have set up common institutions in which they share some
of their decision-making so that specific matters of joint interest can be made at
European level. The idea for a European Union was conceived in 1950 with a co-
operation between 6 Member States, which was mainly concerned with trade and the
economy. Nowadays, in 2010, the EU embraces 27 Member States and almost half a
billion people, and it covers a wide range of issues that are significantly important in
everyday life.
This has been advantageous to the Member States of the EU in terms of:
• Trade between EU countries
• Removing technical barriers to trade
• Opening new markets for public contracts etc.
• Eliminating queues at border crossings.
Since it’s founding nearly 60 years ago, the EU has been likea magnet, attracting a
constant stream of new members, achieving its historic and successful expansion from
15 to 25 Member States in May 2004. The last two Member States joined in 2007,
making the current number of Member States 27.
Member States
• Belgium, France, Germany, Italy, Luxembourg, The Netherlands (joined 1952)
• Denmark, Ireland, United Kingdom (joined 1973)
• Greece (joined 1981)
• Portugal, Spain (joined 1986)
• Austria, Finland, Sweden (joined 1995)• Cyprus, Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia (joined2004).
• Bulgaria, Romania (joined 2007)
EFTA (European Free Trade Association)-
The European Free Trade Association (EFTA) is an intergovernmental organization set
up for the promotion of free trade and economic integration to the benefit of its four
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Member States. EFTA was formed in 1960 as a response to the formation of what we
today know as the EU. Some countries which did not participate in the EU formed EFTA
and took similar steps towards a better trade climate between the Member States. EFTA
has seen several changes in its members, with several countries joining to later leave to
join the EU.
Member States
• Norway and Switzerland (joined 1960)
• Iceland (joined 1970)
• Liechtenstein (joined 1991)
Figure: EU and EFTA Member States
- EU
- EFTA
Single Market & Customs Union-
The EEA, European Economic Area, combines the 27 EU Member States and the EFTA
states (except for Switzerland) in an internal, or single, market, where the participating
countries follow the same basic rules. This entails the free movement of goods, services,
people and capital. In other words: products accepted on one EEA market are also
granted access to the other EEA markets. The Customs Union is an important aspect of
the single market. It means that there is a general application of common rules at the
external borders of the single market. Custom duties and tariffs are the same in all
countries when a product enters from outside the area. Switzerland does not belong to
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the EEA, but it does have a number of bilateral agreements with the EU. Switzerland
largely follows EU legislation with impact on international trade, including product
legislation.
Taxes
The EU tax system is not harmonized between the Member States (meaning each EU
country has its own tax system), but there are certain common rules that must be
respected. VAT (Value Added Tax) rates have been partially aligned, but there are still
differences between Member States.
Trade rules & Agreements (WTO - Trade rules and Agreements)-
The EU and EFTA are part of the global trade environment, and trade practices
introduced and handled by the EU and EFTA must be in line with international
practices. The World Trade Organisation (WTO) is the main organisation that deals with
international trade rules. These rules include WTO trade agreements such as the GATT,
GATS, TRIPS, SPS and TBT as well as individual countries’ commitments to lower
customs tariffs. The WTO is composed of governments and political entities (such as the
EU). Today, in 2010, the WTO includes 153 members. A vast majority of these members
are developing countries.
The Doha Development Agenda started in 2001, and it provides a platform where global
trade can be discussed between the members, and where developing country needs
are given special attention.
Internationally accepted standards-
1. Codex Alimentarius: This is the most important international organisation
which establishes internationally recognized standards related to food safety.
Although the Codex standards are not mandatory, the EU uses them as a basis for
the development of its own food policy and standards. EU legislation frequently
refers to the Codex as the basis for the established requirements.
2. ISO (International Organisation for Standardizations)-
The ISO has set up technical regulations for a number of product groups.
These are widely used and often requested by (European) buyers.
Legislation-
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Consumer safety is the main driver behind legal product requirements. In addition,
reducing the negative impact products might have on the environment has increasingly
Become an important factor when setting product legislation. One of the aspects of the
single market is the freedom of movement for goods. This means that a product
accepted in
One country is also granted access to another country within the single market. For this
to function optimally, legal product requirements must be harmonized. This is also what
the EU/EEA is aiming at, and the countries have come a long way in terms of
harmonisation. Switzerland, though not a Member of the EU/EEA, has also taken steps
to keep in line with EU/EEA legal requirements.
Agriculture: General food safety has been outlined in the framework General Food
Legislation, and in accordance, all food must be safe. To guarantee this, the general
principle of only checking the product entering the EU/EFTA region has in practice been
Extended to include hygiene and traceability measures throughout the chain. Norway
and the other EFTA countries participating in the EEA are in line with EU food
legislation. In Switzerland, different legal acts form a legal environment which
corresponds to that of
The EU, and products accepted in the EU or one of the EFTA Member States have access
in all of the EU/EFTA countries.
What does this mean for you as an exporter?
Legal requirements form the minimum set of requirements for all products entering the
market. Products which fail to meet these requirements are not allowed market entry!
In developing countries.
Europe- Economic Overview:
The European Central Bank (ECB) was established in 1998 to guide the monetary and
fiscal activities of the participating Member States. These EU Member States have gone
further
32
In their cooperation than the Customs Union and single market and participate in the
European Monetary Union, or EMU. In 1999, the participating Member States fixed the
exchange rates of their currencies to the Euro, giving birth to the “Euro-zone”. The euro
(€) is probably the EU’s most visible achievement. It is the single currency, now shared
by 16 Member States, representing over two thirds of the EU population. These 16
countries make up the Euro-zone, where the euro is used as common currency.
Economic performance
The EU and EFTA countries experienced years of continued economic growth, until the
financial crisis brought an end to it in 2009. The economy is expected to begin to
recover
With growth forecasted already for 2010.
Figure: GDP per capita in Purchasing Power Standards compared to EU-27 (=100)
International trade
The EU is the major player in world trade, and it is ahead of the United States and China.
The most important trading partners are the United States, China and Russia. After
years of growth, both imports and exports saw a decrease in 2009 as a result of the
financial crisis. In September 2010, the EU reported that the European economy was
recovering faster than expected. The EFTA states, with Switzerland and Norway as main
markets, show similar developments.
What does it mean for you as an exporter?
Economic growth leads to an overall increase in demand. At the same time, exchange
rates will have an influence on trade: a strong currency means that imports will become
attractive as these are relatively cheap, whereas a weak currency will make imported
33
goods relatively expensive. Exchange rates also give rise for uncertainties in
international trade. The Euro-zone helps to eliminate these uncertainties among the
participating countries.
Europe- Social Overview-
For over half a century, the European Union (EU) has brought political stability and
economic prosperity to its citizens. It has created a frontier-free single market and a
single currency, the euro. EU membership has grown from 6 to 27 nations, combined
with the four EFTA countries (Switzerland, Norway, Iceland and Liechtenstein) this
brings the total population of Europe to over half a billion. If you are prepared and
willing to explore new markets, then this should create opportunities for you as an
exporter. The EU alone is the major exporter in the world and the second largest
importer. The European Union is also an important trading partner for less developed
countries, most of whose exports enter the EU duty-free or at reduced rates of duty.
Population-
The population profile is expected to age in basically all of the European regions.
Between 1960 and 2008, the proportion of older people (65 years and older) in the EU-
27 population has risen from 10 % to 17 %. According to Euro stat’s projections, this
trend will continue. The largest percentages of elderly people in 2060 are expected to
be found in Poland (36.2 %), Slovakia (36.1 %), Romania (35.0 %), Lithuania (34.7 %),
Latvia (34.4 %) and Bulgaria (34.2 %), and the lowest in Luxembourg (23.6 %), the
United Kingdom
(24.7 %) and Denmark (25.0 %).
Population Density
The population of Europe is not very evenly distributed, some countries are more
densely populated than others, and all of the countries contain both rural and urban
areas. This is partly determined by geographical factors, in the far north it is very cold
and dark in the winter, and access to the sea for transport is at a great distance;
likewise, many cities have grown in places where possibilities for commerce are
geographically favourable.
34
Figure: Population Density in Europe
Changing life styles
However, it is not only the population profile that is changing. The number of
households, women working and education levels is also changing. To start with the
education level, the European-wide trend is that the level of education is becoming
higher. More and more people have a university degree or have graduated from other
higher education institutes. Women are well-represented in higher education, with
more women enrolling than men.
In addition, women are increasingly employed, thus making them more and more
financially independent.
What does this mean for you as an exporter?
• Ageing population: the opportunities for selling products that offer comfort, that
have an ergonomic design and that can be used during leisure time will increase. The
same is true of products designed to meet the demands of the elderly.
35
• Immigrants: This segment of the population can serve as a gateway for introducing
new flavours, tastes and styles from different parts of the world. They are already
familiar with what is new to Europeans and they can thus act as ambassadors.
Moreover, as Europeans are confronted with new and different cultures, their interest
and willingness to try out new things will increase.
• Rising number of small households: The demand for one-person packages is on the
rise and what is generally required for setting up a household.
• Working women: As women become more financially independent, they spend their
money on products that appeal to them (fashion, home design). A side effect of this is
that time tends to become scarcer, which in turn gives rise to an increasing demand for
convenience products.
Europe- Technology overview-
Infrastructure-
The functioning of the European internal market & the close trade relations between
member states are supported by a dense & diverse transport infrastructure. Road
transport is the most important mean of transportation for goods within the Europe
accounting almost half of all transport, maritime transport comes second, & railway
third. 2000-2006 was € 859 billion. There are several entry points into Europe. The
single
Market and customs union mean that entering goods will follow the same procedure
regardless of entry point. Sea
transport is by far the largest
mode of transport for goods
entering Europe. Europe has
some 1200 ports, the Port of
Rotterdam, the Netherlands,
being the largest one, followed by Antwerp, Belgium. The function of ports has
developed through the years to become logistics centres, offering services such as
storage, cool-chain services and processing of materials and goods. Air transport is the
36
second most important means of transportation for exporting to Europe (in value). In
trade between European countries, air transport is very small. Frankfurt (Main),
Germany, is the largest European airport by in terms of freight traffic, followed by
Amsterdam, the Netherlands and London/Heathrow, the UK.
Transportation Details-
What does it mean for you as an exporter?
• Transport: Transport by sea is the most common mode of transport and the most
important one for exporters from developing countries. In some cases air transport may
be more relevant, e.g. in case of fresh produce. The point of entry may not be your final
destination, in most cases additional means of transportation will be needed for intra-
European transportation to the final destination.
• Investment in infrastructure: In addition to ensuring smooth transport between the
European countries, investments in infrastructure will mean increased demand from
the construction sector.
37
CHAPTER-4
EXPORT PROCEDURE & REQUIREMENTS
EXPORT PROCEDURE OF BANANA
38
An attempt has been made in this chapter to provide brief information regarding
Banana export procedure, export related issues and SWOT analysis.
Figure: Flow of Export Process-
A) Harvesting: Banana is harvested when the fruit is slightly or fully mature depending
on the market preferences. For long distance transportation, harvesting is done at 75-80
% maturity. The fruit is climacteric and can reach consumption stage after ripening
operation.
B) Weighing: According to the need of the export parameters weighing of fruits should
be done. The overweight and underweight fruits should be marked through domestic
channel.
C) Sorting: After proper harvesting and weighing fruits should be sorted according to
the export parameters preferred by the country. Sorting should be done according to
weight, colour, quality, size etc.
D) Cleaning and Brushing: After selecting the fruits for export, these fruits should be
properly cleaned to remove any dirt or unwanted waste. For better look of the fruits
brushing is done to enhance appearance and luster.
E) Drying: these selected fruits should be dried to expel extra moisture on surface to
avoid fungal diseases, packing of these fruits become easy and attractive.
F) Grading: By weight seizer: International grading based on size and color.
8. Criteria and description of grades
39
According to Agmark standards banana is classified into following classes:
Table 7.7: Showing grade designation of banana as per AGMARK standards
Grade
designationGrade requirements Grade tolerances
Extra class Bananas shall be of superior quality.
They must be characteristics of the
variety and/or commercial type. The
fingers must be free of defects, with the
exception of very slight superficial
defects, provided these do not affect the
general appearance of the produce,
quality, the keeping quality and
presentation in the package.
5% by number or weight of
bananas not satisfying the
requirements of the grade,
but meeting those of for
Class I grade or,
exceptionally, coming within
the tolerances for that class.
Class I Bananas shall be of good quality. They
must be characteristics of the variety
and/or commercial type. The following
slight defects of the fingers, however,
may be allowed, provided these do not
affect the general appearance of the
produce, quality, the keeping quality and
presentation in the package. - slight
defects in shape and colour; - slight
defects due to rubbing and other
superficial defects not exceeding 2 sq.cm.
of the total surface area
10% number or weight of
bananas not satisfying the
requirements of the grade
but meeting those of Class II
or, exceptionally, coming
within the tolerances of that
grade.
The defects must not affect the flesh of the fruit.
Class
II
This includes bananas which do not qualify for
inclusion in the higher classes, but satisfy the
minimum requirements. The following defects
may be there, provided the bananas retain their
essential characteristics as regards the quality,
the keeping quality and presentation. - defects in
shape and colour provided the product remains
10% by number or weight
of bananas not satisfying
the requirements of the
grade, but meeting the
minimum requirements.
40
the normal characteristics of bananas; - skin
defects due to scrapping, scabs, rubbing,
blemishes or other causes not exceeding 4 sq.cm.
of the total surface area; The defects must not
affect the flesh of the fruit
G) Packing
Provisions concerning sizing
(i) For the purposes of sizing bananas, the length of the fingers is determined
along the outside curve from the blossom end to the base of the pedicel where
the edible pulp ends and the diameter is defined as the thickness of a
transverse section between the lateral faces. The reference fruit for
measurement of the length and grade is:
- for hands, the median finger on the outer row of the hand,
- For clusters, the finger next to the cut section of the hand, on the outer row of
the cluster.
(ii) The minimum length should not be less than 14.0 cm and the minimum
grade not less than 2.7 cm.
(iii) For all classes, 10% by number or weight of bananas not satisfying the
sizing characteristics, up to a limit of 1 cm for the minimum length of 14 cm.
. Packaging and its details
(a) For export
41
Country Middle EastVariety
Grand Naine Cavendish
Colour : Green
Weight of Bunch :2.5 Kg
Fruits preferably straightPacking 13 KgStorage 13-14 °CTransport By Sea
For packaging bananas, telescopic boxes of 5 ply strength and of the following
dimensions need to be used-
Telescopic card board fibre boxes and other materials-
Top = 48.25cm X 31.75cm X 20.25cm -5 ply
Bottom= 47.50 X 31.25cm X 19.75cm -5ply
Gap plate= 3 ply
Foam sheet or foam pad= 20mm thick, 38cm X 25cm
size with 10 mm holes
Weight of final packed box is approximately 13.0 Kg
Source: Kay Bee Exports, Mumbai and Mahabanana, Jalgaon.
.
After the packing is done
Net weight
Fruit count inside the carton.
The cold storage where it is being sent.
Stamp impression.
For example if the impression shows 005970420, 0059 stands for the farmer code
given by the company, 7 stands for the year 2007, 04 stands for the month April and the
42
last two digits 20 stand for the date. This helps in tracing back the produce of a
particular carton, to know the field from which it was brought.
Pallet: A pallet is made of 200 cartons packed together in20 layers of 10 cartons each.
Pallets helps in retaining the structure of the cartons and also protects the fruits from
getting damaged while transportation.
Pre-cooling: After packing and palletization of fruits, these pallets are kept in the pre-
cooling chamber at 130C to reduce the respiration rate and to increase shelf life.
Cold storage: For getting better price these fruits are kept in the cold storage at 130 C-
14oC.
Export destination: According to the demand place by the importing countries the ship
are unloaded.
BE AN EXPORTER
Establishment of Firm
For import or export of any item, Import - Export Code (IEC) is mandatory. For availing
IEC, establishment needs to be registered with appropriate authorities viz.
Proprietorship / Partnership / Private Limited Company / Public Limited Company /
Co-operative Society / Trust etc. IEC can be availed on individual name also. Current
Account in any Nationalized / Scheduled Cooperative / Multinational Bank, having a
foreign exchange facility, is required in the name of establishment.
Import - Export Code (IEC)
IEC can be obtained on submission of information in prescribed formats (Part A & Part
D) completed filled and signed addressed to “The Joint Director General of Foreign
Trade” (JDGFT), Pune / Mumbai.
Following SELF CERTIFIED documents should be enclosed with application.
43
1. Firm / Establishment registration certificate - Photo copy
2. Permanent Account Number (PAN) from Income Tax Department - Photo copy
3. Banker's certificate in Part ‘B’
4. Two Passport size photographs of the Chairperson / Proprietor of the establishment.
Photos pasted on the Bank Certificate should be endorsed by the bankers.
5. Demand Draft for Rs. 1000/- favouring “Joint Director General of Foreign Trade”
payable at Pune or Mumbai as per the jurisdiction.
6. Declaration (As per the formats)
7. Memorandum and Articles of Association for Pvt Ltd Companies, Partner Ship Deed
for Partnership Companies etc.
8. A4 Size Envelope & Rs. 30/- Postal Stamp.
The forms completely filled in all respects to be submitted in ONE copy to The Joint
Director General of Foreign Trade at the addresses given below, by hand or by post
(Registered AD).
How to locate Importer?
An importer can be located through various searches. Following sources will be helpful
to find such importers.
Agricultural and Processed Food Products Export Development Authority
(APEDA),
Indian Trade Promotion Organisation (ITPO)
Mahratta Chamber of Commerce, Industries and Agriculture (MCCI & A)
After getting this information, exporter can directly approach to the importer
with the details of product, rate, packing etc through fax / email and negotiate
further to finalize the order. If necessary samples should be forwarded to the
importer and it should represent the material.
Mode of payment
Normally in the trade of agro exports (except onion, rice, other cereals, mango pulp),
importer normally don’t provide Letter of Credit (L/C). Such export is done on
consignment basis (payment as per actual sales). Exporters get the payment after
deducting port charges, transportation and commission etc. of the importing country. In
44
certain countries export is undertaken on fixed rates. Market Credit of the importer
should be checked before entering into the trade. Importer's credit can be checked by
international credit organizations viz. Dun and Bradstreet. Export Credit Guarantee
Corporation of India (www.ecgc.in) ECGC also undertakes such type of credit
certification work along with Credit Insurance.
Trade for products like onion, rice, cereals, processed products is done through
Irrevocable 100% Letter of Credit (L/C) at site. Onion commodity is Canalized (i.e.
export allowed through designated agencies).
Customs / Excise Formalities and charges
For agro exports, excise duty is not applicable. Customs duty @ 1% with respect to the
cost of invoice is charged while processing the documents.
Understand the importers need
Quality parameters such as size, packing, temperature requirements should be obtained
from the importer before packing of the product. It is better to get requirement from the
importer in writing. Pack the material strictly as per the samples provided to the
importer. Confirm the standards of raw material, packaging material with the
importer’s requirement.
Procedure of shipment
Services of Customs House Agents (CHAs) to be booked to carry out necessary logistics
and paperwork required for export. Job like space booking for air exports, order for the
container, custom clearance, certificate of origin etc. is carried out by CHA. An efficient
and competent CHA should be appointed. Following is the list of documents required to
be provided to CHA.
Letter of Credit (If available)
Invoice
Packing List (If items are more)
Certificate of origin.
Phytosanitary certificate–Can be availed from Directorate of Plant Protection,
Quarantine and Storage, Ministry of Agriculture.
45
Air transport charges are normally five times costlier than sea transport.
Perishable commodities like Banana, Mango, Orange, Grapes can be exported
through sea using 40 feet / 20 feet reefer containers. In certain commodities like
mangoes, Controlled Atmosphere (CA) / Modified Atmosphere (MA) containers
are also being used to enhance the shelf life of the product. Non-perishable and
semi-perishable items are exported through dry containers. Incase of onion
export, regular dry containers are used but their door left open when they gets
loaded on vessel.
Sales Proceed:
Sales proceed gets deposited in the bank in foreign currency. Exporter gets the
amount in Indian rupees after conversion of the foreign currency. Bank also
deducts the commission from the converted rupees. Bank also intimated the
exporter about the arrival of Foreign Exchange and generates Bank Realization
Certificate (BRC). Export documents including Shipping Bills, Export Promotion
(EP) copy should be retained by exporter. Credit worthiness of the importer is of
most importance. If by any chance the amount gets stuck by any chance, the issue
can be followed up with the help of ECGC or any private Debt Collection Agency
(DCA). Such agencies are available worldwide. D&B is also working as DCA. s
5.2 EUREPGAP CERTIFICATION FOR GOOD AGRICULTURAL PRACTICES:
Due to global expansion in food trade, the World Trade Organization (WTO) has set as
one of their objectives the opening up of trade between countries and aims to address
restrictive trade barriers. Sanitary and phyto-sanitary (SPS) issues have always been
important in global trade and have become one of the most important potential
Technical Barriers to Trade (TBT). Pests or pathogens may exist in one country but not
in another, thus ultimately resulting in restrictive TBT. In addition, food safety has
become one of the most important minimum requirements for future trade with
developed countries. The rapid increase in newly reported cases of outbreaks of food-
borne diseases particularly associated with fresh produce has been the primary drive
towards establishing minimum food safety standards. To be part of global trade in fresh
produce and food related products it will in future require compliance to some kind of
food safety assurance system.
46
What is EUREPGAP CERTIFICATION?
EUREPGAP started as a retailer initiative in 1997 with major inputs and support from
the chemical companies. EUREPGAP was established by the Euro-Retailer Produce
Working Group (EUREP) with the aim of setting standard and procedures for the
development of Good Agricultural Practices (GAP).
What are the Objectives of EUREPGAP?
The main objective of EUREPGAP is, to lead the system to an EN 45011-based
accredited certification system, referring to the scope of "EUREPGAP Fruits and
Vegetables". Partners from the entire food chain for fruit and vegetable production have
agreed upon the EUREPGAP certification document and procedures, which were
achieved after extensive consultation over a three-year period.
Benefits -
Certification to EUREPGAP will become mandatory as from March 2003 for farms
growing produce for export to Europe, although the EC may allow some latitude in this
regard. At this point in time different certification systems could be required for export
to other countries such as the USA, and Australia. As Europe is our largest export
destination, EUREPGAP certification will in all likelihood become a minimum
requirement for entry into the EU market. However, it should be kept in mind that
additional retailer requirements will still have to be met. Discussions are already
underway to ensure harmonization between the different food safety schemes and
benchmarking will be essential to link the various systems. While certification to
EUREPGAP will result in additional costs to growers, there will be numerous benefits.
Long-term benefits include more motivated farm workers due to improved facilities,
training and better working conditions with a subsequent increase in living standards.
This would obviously also result in better productivity and outputs to the ultimate
benefit for the grower.
Other benefits include -
• More environmentally sound farming practices
• More judicious use of chemicals and
47
• Most importantly a cost benefit to the grower due to better management practices
enforced by the standard.
Maharashtra State Agricultural Marketing Board the autonomous apex body has been
working effortlessly for Export Promotion M.S.A.M.B. helps to boost exports of farmers
by setting up of the Infrastructural facilities required for exports. For exporting certain
fruits to some European countries the farmers require to have Eurepgap (European
Retailer Parties for Good Agricultural Practices) certificate for exporting their produce.
M.S.A.M.B. by realizing the need of time has taken the initiative under the project of
FICCI and NORAD
organization to issue the Eurepgap certificates to the farmers. This has helped the
farmers from Maharashtra State in getting their Eurepgap certificates which will pave
the path to
capture the European markets for Mangoes & Bananas in the near future.
EXPORT SPECIFICATIONS FOR BANANA
Grand Naine
Varieties grown in Maharashtra Grand Naine, Shreemanti, Dwarf Cavendish, Basrai, Robusta, Lal Velchi, Safed Velchi, Rajeli Nendran, Red Banana
Availability Round the year
Major export potential UAE, Gulf countries
Varieties in demand Internationally Grand Naine, Cavendish
Area under Cultivation (Mah.) 57,000 Ha.
Production 36,07,590 MTs
48
Table 7.9: Showing the annual average price range of banana in EU and GCC markets
Country Annual Average price range (2003-08) Currency
European UnionUSD/kg 0.64 to 0.67INR/kg 29.1 to 30.26
GCCUSD/kg 0.31 to 0.37INR/kg 14.17 to 17.01
49
CHAPTER-5
EXPORT OPPORTUNITIES
5.1 Potential of Maharashtra to Export Banana
C. Export potential
Export potential of banana is presented and discussed region wise as below:
EU countries
EU countries imported 7,149,513 tons of banana during 2006. Although India
exported 200 tons of banana to EU including Ukraine and Russia, however, there
is not much scope as large quantities of banana are exported by countries like
Ecuador, Costa Rica and Colombia in Central and South America and Cameroon in
Africa. Moreover, EU has special preferential agreement with African, Caribbean
and Pacific countries. Other countries exporting to EU have to pay tariff duties
and thus are not able to compete with them. There is some scope of exporting
banana to Russia and Ukraine provided we have some preferential arrangement
with these countries. There is potential for export of 5-10 thousand tons of
banana.
D. Measures for enhancing competitiveness for exports
Countries like Philippines in South East Asia and Ecuador and Costa Rica in
50
Central America are better organized and have large sized banana plantations
owned by International companies. Therefore, to enhance competitiveness,
following measures need to be taken for making available quality banana of
international standard:
Production technology on modern lines needs to be demonstrated to the
growers on a massive scale.
Farmers need to be educated about export requirements and international
quality standard
Protocol for post harvest handling of Grand Naine, Nendran and Red banana
need to be perfected/ standardized for shipping to Gulf countries by sea.
Most modern packhouse facilities need to be created, to begin within Jalgaon
area in Maharashtra and also in Gujarat.
Banana holdings in India are very small and it is not possible to install cable
ways for transporting bunches from field to packhouses to avoid bruises. Under
these circumstances, groups of farmers need to be encouraged to have system of
make shift packhouses, to cut hands from bunches in the field itself and send
these hands to central packhouse for further processing /treatment and packing.
It will be advisable to have some working arrangements for ripening of our
banana arrivals in importing countries on a regular basis. In the long run, India
need to have its own ripening facilities in one or two countries to begin with.
It is suggested that training to packhouse workers about post harvest handling
technology and also about international quality standards must be imparted.
Present Status
Govt. of Maharashtra has announced the creation of an Agri Export Zone for
Banana covering the Districts of Jalgaon, Dhule,Buldhana,Nanded.
The MSAMB has been named the nodal agency by the Govt. of Maharashtra.
MoU (memorandum of Understanding) signed between Govt of Maharashtra and
Govt of India on 9th June 2003. Maharashtra State Agricultural Marketing Board
in coordination with State agricultural department, Local APMC and cooperative
societies continuously arranging training and demonstration programs in rural
51
area to increase export quality production. The training booklet prepared with
the help of experts covering pre and post harvest technology of concerned crop
is circulated freely among farmers likewise-
During the year 2003-04, 2032 farmers were trained in 34 one-day training
programs.
During the year 2005-06, 2458 farmers were trained in 32 training programs.
In the current year MSAMB has planned to conduct 60 one day training
programs for farmers.
Investment-
MSAMB with the help of APEDA, New Delhi has started the Banana export facility
center at Indapur Dist- Pune.
The facility has following different units-
Precooling = 5 Mts.
Cold storage= 60Mts.Mechanical Handling System= 1.5 Mts/hr.
5.2SWOT analysis for export of fresh banana-
Strengths-
India is largest producer of banana, producing about 50% of the total world
production.
Banana production is largely concentrated in Maharashtra & adjoining
Karnataka, TN state contributing more than 90% of production in India.
The advantage is that this banana producing area is quite close to Mumbai port.
Indian cultivar has high sugar & low acid as compare to other banana. This can
popularized in gulf countries, Europe, Canada, & Far East countries.
Indian banana is very nutritive.
There is abundant supply of banana from Maharashtra in all seasons because
possibility of taking crop in all season so Maharashtra can export through the
year.
There is additional demand from foreign countries.
There is scope to increase additional area under cultivation of banana in
Maharashtra.
India is already exporting banana to a number of countries in gulf countries.
Weaknesses-
52
The productivity of banana in Maharashtra is very low as compare to other
states. Although many of the agro-techniques for obtaining high yield of qualited
fruits have been standardized, but still much more remains to done & needs to
be taken to the farmer.
Extensions & dissemination of technology for increasing productivity is the
main weak link. Above all weak points is due to non availability of post harvest
infrastructure like modern pack-houses, reefer vans, pre-cooling facilities etc.
right in the production areas.
With the results, there are ample post-harvest losses.
Another weak link is that farmer/ exporter have no access to update
information on export/ import price trends in various importing countries of
the world.
Although Maharashtra can produce bananas throughout the year but the
external fruit colour as well as fruit quqlity fades in the month of April to
September especially local cultivar because of intense heat & high humidity &
rainfall which need to be eliminated by better varieties & agro-techniques.
Opportunities-
India is the largest producer of banana in the world, but has a share of only 5% of
the world export.
India has good varieties with good fruit quality and can supply almost
throughout the year & thus can become good player in export of bananas if
required steps are taken & infrastructural are provided.
Philippines is the biggest exporter to EU & to some extent to Gulf countries also
thus cornering 12% of the total world export.
Maximum availability of banana from Spain is in September to December months
& thus supply from Spain tapers from January onwards, & we have golden
opportunity here.
Virtually there are no supplies of banana from Spain during April to July months.
Whereas, production of banana in India is peak in the month of December to
March & continue
More than 32% of total banana production takes place in Maharashtra and
Gujarat states.
53
Rainfall and humidity are quite less particularly in Maharashtra and also to
some extent in Gujarat state, resulting in lesser incidence of insects, pests and
diseases compared to Central and South America and South East Asian
countries.
A superior cultivar namely Grand Naine, well accepted in international market is
being cultivated in sizeable area in Maharashtra and Gujarat states.
Red banana cultivar which is preferred in some countries can create a market
for itself with support of display, campaign etc.
Banana is cultivated in sufficient acreage and in different agro-climatic
conditions and thus is in a position to meet the large demands from importing
countries on a continuous basis, provided planting and cultivation is well
planned.
Transfer of technology is easy as growers have organized themselves by forming
cooperatives/ associations and have branded their product as “Mahabanana”.
Agri Export Zone for promoting exports of banana has been established in
Maharashtra in Jalgaon area.
Post harvest handling facilities are available at a small scale at Navsari and
Borsad in Gujarat state.
Banana Export Facility Center with mechanical handling system has been set up
at Saavada in Jalgaon and Basmantnagar in district Hingoli in aharashtra state
Geographically, India is better placed compared to South East Asian, Central and
South American countries for exports to Gulf countries.
.
Threats-
Major threats to Indian exports are from Philippine & colambia especially to
European countries, as both these countries are able to supply at cheaper price
because of low freight costs. Therefore, our efforts have to be towards lowering
production costs by increasing productivity in order to make our export
competitive.
54
‘Panama’ disease is most important threat for banana export, because it affects
the fruit of the plant.
Pesticides residues in fruit are also most important threat for banana export.
Most of the banana grown in the arid area where the surety of rain is very low
So the unsure rainfall is also important threat.
CHAPTER-5
55
RESULT &
DISCUSSION
5.1 Findings of Study-
About Market Research-
Globally, Philippine, Ecuador, Costa Rica and Colombia is biggest exporter to European
Union and, trading of the total 64% world exports. So, the Philippine is our most
important competitor in world. In India, its peak production is during all around a year
so as compare to another country India can export any time and can earn more profit by
exporting banana.
Verities Grown in Maharashtra:
The area under Grade Naine is the highest than other verities, due to export demand in
European Union. Dwarf Cavendish has potential for export to gulf countries rather than
European Union. Dwarf Cavendish is not suitable for export but area under banana is
56
increasing day by day. This may be due to the perception that Cavendish ,Grand Naine
variety is resistance for panama, Bunchy Top disease.
Marketing channel: The banana grower’s use following marketing channels.
Export channel: Producer – Commission Agent – Exporter.
Domestic market channels: Producer - Commission Agent – Wholesaler –
Retailer – Consumer.
Marketing problems: Banana farmer has following marketing problems.
1) Unavailability of transportation facilities.
2) Cheating by commission agent3) Lack of market information.
Conclusions-
1) It is found that majority of banana grower prefer the Grade Naine variety due to
its export demand.
2) Market channels- The banana grower’s use following marketing channels.
Export channel: Producer – Commission Agent – Exporter.
Domestic market channels: Producer - Commission Agent – Wholesaler –
Retailer -Consumer.
3) Most of the producers preferred Dubai market for export, because-
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It is convenient for transportation,
There is a good demand for Indian fruits during Muslim festivals.
The quality control & restrictions are not so stringent.
The time required for destination is less UK market.
4) UK market is more stringent for EU MRL (maximum residual limit) in banana, so
the produce, most of the times, doesn’t match that proper standard. Banana
farmer preferred UK market less than Dubai market.
5) Marketing problem: Banana farmer has following marketing problems.
Unavailability of transportation facility
Delay in payment
Lack of market information
Suggestions-
1. Pest / Diseases- Good Agricultural Practices should be promoted. Special
attention is needed on Viral diseases and mealy bug disease.
2. Awareness about pesticides- The banana farmers/traders and even exporters
are not aware about the pesticides. There is need to creating awareness about
the chemicals.
3. Awareness about harvesting & post harvest management- Awareness
generation on harvesting & post harvest management with due attention on
mechanized harvesting, sorting, grading, pre-cooling, waxing, packaging,
palletization etc.
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4. Awareness about EUROGAP certification & promotion of contact farming-
Awareness about EUROGAP certification & promotion of contact farming in
phased manner should be encouraged.
5. Export Promotion through AEZ- The AEZ on banana could to promote to
include export promotion of fresh banana as well as processed products.
6. Increase an exportable quality production- In long run, export of banana can
only be enhanced by increasing its exportable quality production. The measure
such as use of proper varieties, modern and highly improved cultivation
technology, efficient irrigation methods, optimum use of plant protection,
chemicals etc should be followed to produce required quality fruits in terms of
size, shape, colour, taste, chemical content etc.
7. Value addition through processing – Value addition through the processing of
banana and export of such products to other countries have enormous scope.
8. Training- Training programmes should be arrange for the banana farmers and
in these programmes give the training of exportable banana production and
show the demonstration of new technologies.
9. Mobile pack house- Mobile pack house are required, Mobile pack house means
a van or container which contains facility like washing, cleaning; drying, cooling,
packaging, etc. such mobile vans cater the need of small and scatter banana
growers.
10. Improved service for consistency in expert- Once we start the export,
consistency is necessary. Otherwise importers do not trust on us. Also through
improved service we can attract the customers toward our banana.
11.Online service- ‘Online Forms’ should be made available on MAHABANANA’S
through internet, international magazines and other possible means.
12.Packing and labeling – During export, packaging and labeling should be
attractive, economical and as per the need importer, size of boxes should in
different ranges according to the customers demand.
13.Residue testing system- It is recommended to strength then the residue
testing system especially, for export of banana to European countries.
14.Facilities of MSAMB- Growers should be take benefit from export facilities by
MSAMB for increasing export specification.
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15.Organic farming- Growers should carry organic farming because demand of
fresh organic banana fruits has increasing day by day.
REFERENCES-
www.msamb.com
www.cbi.nl.com
www.apeda.gov.in
www.wto.com
www.fao.com
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ANNEXURE-1 (Export Documents)
1. Invoice Format
Exporter: Address of the Exporter Phone Fax No.
Invoice No. Date
Exporters Ref.
Buyer’s Order No. Date Other reference(S)
Consignee : Address of the Importer Phone Fax No.
Buyer (If other than consignee) N.A.
Pre Carriage by Place of Receipt of per carrier
Country of Origin
Country of Final Destination
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of Goods
Vessel/Freight No. Port of Loading Terms of Delivery and Payment
Port of Discharge Final Destination
Marks No. Description Nos./cont. Goods
No. & Kind of package
Quantity Gr. Wt.
Rate US$ / carton
Amount US$
TOTAL NT WT : F O B
GR WT. : FREIGHT
AWB/B/L NO. :
C & F
Total
Amount Chargeable: (In words)
DeclarationWe declare that this invoice shows the actual price of the goods described and that all particulars are true and correct.
FOR <Name of the exporter>Signature & Date,
Authorized Signatory,
1. Packaging List-
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2. Certificate of Origin
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3.Global gap Certificate-
64
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5. Euro gap Certificate-
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ANNEXTURE-2
VISHESH KRISHI AND GRAM UDYOG YOJANA (VKGUY)-
(SPECIAL AGRICULTURE AND VILLAGE INDUSTRY SCHEME)
Objective
Objective of VKGUY is to promote exports of:
(i) Agricultural Produce and their value added products;
(ii) Minor Forest Produce and their value added variants;
(iii) Gram Udyog Products;
(iv) Forest Based Products;
(v) Other Products, as notified from time to time.
Entitlement
Duty Credit Scrip benefits are granted with an aim to compensate high transport costs,
and to offset other disadvantages. Exporters, of products notified in Appendix 37A of
HBPv1, shall be entitled for Duty Credit Scrip equivalent to 5% of FOB value of exports
(in free foreign exchange) for exports made from 27.8.2009 onwards, unless a specific
date of export / period is specified by public notice / notification. However, for exports
made w.e.f (with effect from) 27.8.2009, some Flowers, Fruits, Vegetables and other
products, as listed in Table 2 of Appendix 37A shall be entitled to an additional duty
credit scrip equivalent to 2% of FOB value of exports.
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