National Horticulture Conference NASC Complex, Pusa, New Delhi November 13 14, 2006

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National Horticulture ConferenceNASC Complex,
Pusa, New DelhiNovember 13 14, 2006
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Strategies for Promoting Horticultural Exports
Presentation by K.S. Money Chairman Agricultura
l and Processed Food Products Export Development
Authority (APEDA) Ministry of Commerce
Industry, Govt. of India, New Delhi E-mail
chairman_at_apeda.com
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Exports During X Plan
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Floriculture and Seeds Major Markets

• Floriculture USA, UK, Netherlands,
• Japan, German
• Fruits Vegetable USA, Bangladesh,
• Seeds Pakistan, China, Japan

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Fruits and VegetablesMajor Markets
Fresh Onions Bangladesh, Malaysia,
UAE, Sri Lanka, Bahrain Other Fresh
Vegs. UAE, USA, Nepal, Saudi Arabia, U.K.
Walnuts Spain, Germany, U.K.,
Egypt. Denmark Fresh Mangoes UAE,
Bangladesh, Saudi Arabia, UK,
Netherlands Fresh Grapes U.K., UAE,
Netherlands, Germany, Other Fresh
Fruits Bangladesh, UAE, Nepal, Saudi
Arabia, U.K.
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Processed Fruits and Vegetables Major Markets
Dried and Preserved. - Bangladesh, USA, Nepal,
UK, UAE Vegetables Mango Pulp - Saudi
Arabia, Netherlands, Yamen, UAE, Kuwait
Pickles Chutneys - Russia, USA, France,
Spain, Belgium Other Processed Fruits - USA,
UK, UAE, Netherlands, Saudi Arabia
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Constraints Affecting Export Performance

• Supply side issues
• Inconsistency in quality due to small and
  fragmented production
• Domestic prices higher than international prices

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Factors Eroding Benefit of Low Cost Production

• High transaction cost due to inefficient and
  insufficient infrastructure
• High sea and air freights
• Lack of market information

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Non Tariff Barriers

• MRLs of pesticides, antibiotics, drugs
• Delays in equivalence
• Lack of harmonisation with Codex
• Impractical approach to product testing
• Issues like traceability, environment and labour

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Measures and Action Plan
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To improve the competitiveness

• Market orientation of production
• Commercial interface of research
• Multi modal transportation
• Simplification of procedures

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Protocols for Pre and Post Harvest Management

• Standardized protocols are essential which should
  be harmonized with international standards
• Export standards finalised for 32 fruits and
  vegetables by APEDA for notification under AGMARK
  Act

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Pest and Disease Management Issues

• Institutional mechanism for creation of database
  on the situation of pests and diseases in major
  production areas of production for export
• Identification of pest/disease free areas

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Pack Houses

• More pack houses need to be created for common
  use
• Already created by APEDA
• for Mangoes and other fruits at Saharanpur,
  Lucknow, Malda, Fatehabad, Jalna, Vashi,
  Ratnagiri Sindhudurg (8)
• for Onions at Indapur
• for Pomegranate in Baramati
• for Ginger in Assam

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Wholesale market-cum- auction centres for
flowers

• Bangalore - power connection to be energised
• - auction clock tender in progress
• Noida
• - civil works started- target for completion
  8 months
• Mumbai
• - completion 6 months from sanction of addl
  grant of Rs 2.35 crore (Approval awaited)
• Kolkata (under ASIDE)
• - project monitoring committee constituted

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Centres for Perishable Cargo

• Under Implementation
• Amritsar, Ahmedabad, Kolkata, Cochin, Goa,
  Nashik, Haldia, Bagdogra
• Proposed
• Calicut, Coimbatore, Guwahati
• Already Implemented
• Delhi, Mumbai, Hyderabad, Chennai,
  Tthiruvananthapuram, Bangalore
• Walk in type cold storage Imphal, Aizwal,
  Dimapur, Bhubaneshwar
•  

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Strengthening of Laboratory Infrastructure

• All laboratories under AGMARK should be
  strengthened to be at international standards
  including accreditation
• Laboratory recognition and upgradation by APEDA
  6 each in public and private sectors

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IndiaGAP

• Draft for National Programme for Good
  Agricultural Practices submitted by APEDA to the
  Government.

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Logistics Corridor

• Support through incentives for introduction of
  regular services such as
• Amritsar to U.K. Chartered Flights
• Mumbai/Cochin/Kandla to Dubai fast reefer boats
  with container roll-on-roll-off facilities
• Air/sea transport assistance

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Capacity Building

• Improvement in the working of plant quarantine
  system, clearance of import export consignments
• Procedures in India should be be reviewed in
  comparison with current international practices

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Capacity Building

• Improvement of Technical Resources in
  Organisations like APEDA and NHB to foresee and
  help meet the emerging market requirements
  particularly on quality

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Crop Insurance

• Crop insurance to be available for horticulture
  corps
• Make available crop insurance at 50 concession
  in premium at least in identified clusters, say
  AEZs

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Credit for Crop Production and Processing

• Make available NABARD finance at 2-3 covering
  crop loans, processing facilities and
  export/packing credit
• May be experimented in AEZs to begin with

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Simplification of Export Procedures

• Single window clearance for perishable product
  exports - proposal to move for a Central
  Legislation
• Expected to bring down the transaction cost

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Incentivise Value Addition

• Consolidation and value addition is necessary to
  increase the export
• Incentives be given for value addition for
  direct to retail sales

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Market Intelligence

• Competence to be strengthened for meeting the
  increasing global competition and market dynamics
• Market facilitation centre for flowers in the
  Netherlands has helped in better price
  realisation, expansion of export window and
  reduction in rejections
• Proposal submitted for MFCs in other gateway
  markets viz Dubai and Tokyo

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Market Promotion

• Invest vigorously in market promotion both on a
  generic basis and for brand building
• Promotion for Direct to Retail sales

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• Evaluation of APEDA Financial Assistance Schemes
  has found that in fresh fruits and vegetable
  exports the average growth in turnover of the
  exporter after seeking assistance has been upto
  100.
• There has been improvement in quality of existing
  deliveries

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Budgetary Proposals for XI Plan
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• Thank you