The organised and traditional retail sector will ultimately drive the growth of the fruits and vegetable sector in the country, according to a study conducted by the YES Bank and the Confederation of Indian Industries (CII).
The study said that the organised retail chains were opening up huge opportunities for connecting up fruits and vegetables value chains to ultimate consumers with value addition. It called for appropriate policy support for the growth of retail chains in the country.
The YES Bank-CII study said, ?the fruits and vegetables (F&V) sector, given its very nature, is completely dependant on and driven by consumer choices and demand pull for fresh and processed products. Therefore, the sector’s growth will not be determined by production alone but by the extent of value addition and link up to the market.?
The growth of food processing industry was critical for the growth of F&V sector, it said and added initiative like setting up of mega food parks was a welcome step.
It noted that enormous potential of F&V based business has opened up in the country following the huge success of the National Horticulture Mission, Technology Mission for Integrated Development of Horticulture in the North-East and Himalayan States, National Horticulture Board.
A massive surge in production as well as the significant demand shift at global and domestic consumer segments from traditional to high value crops led by growth in disposal income and the growth of the middle class has collectively contributed to the demand for fruits and vegetables.
On the export front the study called for tackling issues like traceability norms, conformity with global standards and market access.
Despite different types of fruits and vegetables grown, India?s export of agriculture and food products was only 1.4% of the total global trade.
The study also called for minimizing pre and post harvest losses and setting up of adequate infrastructure.