INDIA TO WITNESS: Exponential growth in flowers, fruits and vegetables demand

Chandigarh, December 5, 2012:India’s growing horticulture sector has currently entered a revolutionary phase.  On the one hand, small farmers are taking bigger risks and experimenting with diverse cash crops, and on the other, large corporate houses are taking to horticulture as a profitable business opportunity by bringing in investments and latest technologies. Corporate farming, contract farming and food retail boom having become the present day buzzwords, the entire horticulture landscape is set to witness a big change.

Riding this wave, Delhi will host the 5th International Horti Expo 2013, alongwith 8th International Flora Expo 2013 at NSIC Exhibition Complex, Okhla, New Delhi. This grand event is scheduled from January 11-13, 2013 and the Event's Theme Pavilion will be on Fresh Fruits and Vegetables, Farm Machineries and Equipment, Potato Products and Technologies, Cold Chain and Logistics, Seed, Agrochemical and Irrigation, Organic, Agri Finance and Insurance, Processing and Packaging, Medicinal Herbal products, Fresh Retailing, and Floriculture Wealth and Technology.

The expo, which has the Union Ministry of Agriculture as its Principal Sponsor, has a host of other departments including National Horticulture Mission, National Horticulture Board and Horticulture Mission for North East and Himalayan States. It is supported by the Ministry of Food Processing Industries, Agricultural and Processed Food Products Export Development Authority (APEDA), Food Processing and Packaging Machinery Industry Association, Irrigation Association of India, National Medicinal Plant Board, and Indian Flowers and Ornamental Plants Welfare Association.

With over 300 million middle and higher income population, India is the world's 2nd largest consumer base and fastest growing retail destination. Fresh fruits, vegetables & food intake are increasing and contribute to 13% of total organised retail that offers significant scope for investment in all related sectors. A huge domestic market supports high quality export oriented F and V production & value addition by providing a unique competitive edge. India, China and Pakistan along with other countries of the region make South Asia, the world's largest market. Therefore, 5th International Horti Expo 2013 will be an eye opener to the farmers and other stake-holders of every segment of agriculture and allied activities who want to expand and diversify their activities.

“Flowers are unique things. A person can refuse chocolate or pastry, but not flowers. And flowers are for every occasion, even death, “says by S. Jafar Naqvi President, President, Indian Flowers and Ornamental Plants Welfare Association (iFlora). He further added, “And due to rising income, aspirations of the new generation, globalisation and internet, people in India are willing to spend lavishly on floral decoration. So, this news can be music to the ears of anyone wanting booty out of bourgeoning Indian floral decoration markets through flowers and floral accessories”.  

Jafar further says, “iFlora and Flora Expo aim to increase per capita flower consumption even further to give more impetus to floriculture industry. We can’t have better time, and sky is the limit.”

India has unique culture of flower consumption in many forms like garlands, flower-carpets, floral rains and floral jewelry, to name a few. FLORA EXPO 2013 will bring not only conventional flower and gardening industry professionals but also mass buyers from new types of large industry retailers such as home centers, supermarkets, departmental stores and interior shops. FLORA EXPO 2013 is one and the only opportunity in India for international suppliers to meet and trade with all of them on one single platform! The Event's Theme Pavilion will be on Cold Chain & Logistics, Seed, Agrochemical & Irrigation, Medicinal Plants, Fresh Retailing, and Floriculture Wealth & Technology.

The Ministry of Agriculture is aiming to double the production of all horticulture crops through NHM, NHB, HMNEHS and disseminating latest and modern practices of production and post harvest care. Thereby, it is also creating opportunities of mass employment for people in rural Indian areas by encouraging them to diversify from traditional crops to high value horticulture crops. All this helps in long term economic development.

Under Ministry of Food Processing Industry, preservation and value addition at farm level is a focus area and it also ensures the supply of quality food products to end consumers. On the export front, APEDA is quite active. It is targeting agricultural and processed food exports to meet US $15-20 billion target in coming years.

India’s fresh fruit imports go up, China tops in apple supply

India’s fresh fruit imports are dominated by apples, which, in volume terms, account for more than 75 per cent of the total fruit imports. Import of apples grew to 122,878 tonnes in 2010, from 90,714 tonnes in the previous year – an increase of 35.5 per cent.

The apple imports into India rose further to 162,651 tonnes in 2011, as per provisional figures. As per trade sources,  the main suppliers of apple to India in 2010 were China 58,289 tonnes, United States 30,660 tonnes, and Chile 25,442 tonnes. Imports from China’s grew by 61 per cent compared to the previous year and  from  Chile by 21 per cent, while that from the United states  declined by 25 per cent.  India also imports apples from New Zealand (6,050 tonnes) and Australia (1,104 tonnes). 

Besides apples, other fruits coming into India include Pears (17,659 tonnes accounting for 10.9 per cent of the total share of fresh fruit imports), oranges 10,166 tonnes –6.3 per cent), Kiwifruit (3,238 tonnes – 2 per cent), grapes (2,664 tonnes –1.6 per cent), plums 673 tonnes – (0.4 per cent) and others (5,136 tonnes – 3.2 per cent).  A good quantity of high quality flowers are also coming from Thailand, China, Holland, etc for special occasions by event and marriage organisers.

“To synthesize the efforts of all concerned departments, we are organizing an International Conference / Workshop and Training Programme for progressive flower farmers and agri entrepreneurs. This will be held concurrently with the expo. It will help promote backward and forward linkages that will benefit the farming community”, elaborated Jafar.

FDI in Retail
In a bold move, which has triggered wide protests, the UPA government has taken a decisive step to open the retail sector for foreign direct investment. Prime Minister Manmohan singh has described the decision as one which would spur economic growth and generate more productive jobs for the country’s youth.  

The decision to allow 51 per cent FDI in multi-brand retail was among a slew of measures announced by the government, hoping get India’s sagging economy back on growth track.

Indian Cold Chain infrastructure is facing problems like lack of an integrated approach and efforts for effective policy formulation and information dissemination. Recently, Government of India have formed National Centre for Cold-Chain Development in Delhi to upgrade and enlarge the cold-chin sector in the country. 

Modern Retailing in India is now the world's hottest retail destination where true retail revolution is taking shape in the form of modern food retailing, super market chains, hyper market and cash & carry concepts.  All these are creating waves in the Indian corporate sector.  Organized Food & Grocery Retail requires direct sourcing of bulk produce from farmers and this ensures a great opportunity for them. Government of India is promoting modern marketing concepts and creating atmosphere in favour of Indian farmers, circumventing middlemen to increase the income of farmers.