India builds its export business

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India builds its banana export business

Traditionally a small player on the international market, one of the world’s largest banana producers has quickly developed its export presence.

by Liam O’Callaghan

@liamfruitnet

NAVIGATING COVID-19

Although these long-term trends are assisting the growth of India’s banana exports Khandelwal says the industry has not been able to escape the eff ects of the Covid-19 pandemic. Logistics disruption saw exports drop in the April-June quarter of 2020, before volumes recovered to match those of 2019, but 2021 is a new story. “Overall the uncertainties have been high during 2021, which has impacted all players in the supply chain,” says Khandelwal.

CAPITALISING ON GROWTH

In the space of a few years bananas have become one of India’s most prominent export categories.

INI Farms is one of the companies helping to drive this export growth, working with 3,000 banana growers and shipping 30,000 tonnes to the Middle East in the 2020 calendar year.

“As the production system developed along with postharvest infrastructure, the markets also responded. In 2019-20, India exported 196,000 tonnes and exports have increased at a compound annual growth rate (CAGR) of more than 70 per cent over the last 5 years,” says chief executive Purnima Khandelwal.

“Organisations like INI have made a huge diff erence with extensive farmer training, adapting world-class production system to the Indian reality of small-hold farmers, building postharvest infrastructure and building markets.”

A MARKET OPENING

Khandelwal says structural shi s in the global banana trade are also favouring India as traditional growing locations such as the

RIGHT—INI Farms works with around 3,000 banana growers in India

PHOTO—INI Farms Philippines and Ecuador are facing challenges with disease and weather, so customers are looking to diversify.

“Simultaneously demand from China has led to signifi cant shi with Philippines production increasingly moving to China as fi rst preference, leaving a vacuum in a low production period in the Middle East,” explains Khandelwal.

“India fi ts in well with these changing macro situations as two major advantages of Indian bananas are lower production costs and a logistical proximity to Middle Eastern markets.” Looking forward, Khandelwal says the export opportunities for the country’s industry are humongous but signifi cant investment is still required to capitalise on them.

“Organising farmers and standardising production systems in a small landholding country are central to developing large industry,” explains Khandelwal. “INI has proven that this can be done through Public Private Partnership models, which have enabled large scale farmer mobilisation, training and value chain development.”

Khandelwal also identifi es the importance of building brands – like its Kimaye brand – focusing on marketing and building a diff erentiated value proposition. INI has responded to growing demand for non-Cavendish varieties of banana – like Yellaki, Nendran and Red banana. It is working on market development to provide an outlet as the production of these varieties develops. _