In order to beat the stringent import quality norms set by West Asian and European countries and for better realization, India is shifting its focus from the export of fresh horticulture products to processed ones. Export of fresh vegetables showed a decline of over 15% and stood at to $581 million during April-December 2017, according to data compiled by the Agricultural and Processed Food Export Development Authority (APEDA). Export of fresh vegetables stood at $686 million in the year-ago period as per data. Though, export of processed vegetables rose 3.9% to $197 million during the period from $190 million in the same period last year. The government had levied a minimum export price of $850 a tonne on onion in November 2017, which contributes nearly half of India’s fresh vegetable exports.
Likewise, export of fresh fruits dropped by 4.3% to $391 million during April-December 2017 from $408 million a year ago. But, exports of processed fruits and juices surged 8.3% and stood at $460 million during first nine months of current fiscal. The demand for fresh fruits and vegetables from neighbouring countries, including Bangladesh and Nepal, has declined over the last few months.
The 18% goods and services tax (GST) on air freight of fresh vegetables, which was recently removed, also impacted exports during the first nine months of 2017-18. Apart from the increase in realisation, value-added products offer better shelf life and so the government has introduced mega food parks for converting fresh fruits and vegetables into value-added products. Increase in food processing will gradually reduce damage after harvest. In order to maintain quality, the European Union for all agricultural commodities, has released new pesticide residue limits which are difficult to meet at the farm level. South Korea has also issued a fresh inspection order for India’s drumstick exports.