What is India's share in global veg & fruits market?

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What is India's share in global veg & fruits market?


NEW DELHI: India may be one of the largest producers and consumers of a variety of commodities in the world. But how much vegetables and fruits does India produce?

India produces around 111.77 million MTs of vegetables and 57.73 million MTs of fruits, which accounts for nearly 11.90 per cent and 10.90 per cent of country’s share in the world production of vegetables and fruits, respectively. While the India’s share in the global market in vegetable and fruits stands at 1.70 per cent and 0.50 per cent, respectively.

Most of the agricultural commodity markets in India generally operate under the normal forces of demand and supply. The buying and selling of agricultural produce takes place in the market yards where numbers of market functionaries are involved.

According to Lal Bhuria, Minister of State for Agriculture, the share of producer in consumers price depend upon the types of marketing channels followed in sales transactions by the farmers. "Studies indicate that the share of producers varies from 56 to 83 per cent in food grains and 79 to 95 per cent in pulses, 65-96 per cent in oilseeds and 33 to 75 per cent in case of fruit and vegetables," the Minister told the Parliament on Friday.

He said in order to provide the remunerative prices to the farmers, there is a need to eliminate the chain of middlemen etc., by introducing innovative marketing channels like direct marketing, contract farming, etc. and removal of controls on movement and storage of agricultural produce across the country which will facilitate functioning of common Indian market.

Keeping this in view, a Model Law on agricultural marketing has been formulated by the Ministry of Agriculture and circulated to all the States/Union Territories for making necessary amendment in their respective Agricultural Produce Market Committee (APMC) Act in order to guide them in removal of legal barriers, which introduce inefficiencies and monopoly controls in the functioning of agricultural markets.

The new law redefines the role of present Agricultural Produce Market Committee to promote alternative marketing system, contract farming, direct marketing and farmers/consumers markets. Most of the State Governments have since initiated the process of amendment of APMC Act on the lines suggested in the model law, which will facilitate competitive marketing.

Since agriculture marketing is a State subject, it is for the State Governments to amend the APMC Act, wherever required, to provide for alternate marketing channels to the farmers through direct marketing, contract farming and setting up of markets in cooperative and private sector to enable him to decide the channel which provide him the best remunerative price for his agricultural produce.

In addition, Ministry of Agriculture, Government of India is implementing two Centrally Sponsored Schemes namely “Technology Mission for Integrated Development of Horticulture in North Eastern States, Sikkim, Jammu and Kashmir, Himachal Pradesh and Uttaranchal” and “National Horticulture Mission” besides Schemes on (i) Development of Commercial Horticulture through production and post harvest management and (ii) capital investment subsidy or construction/expansion/modernization of cold storage of horticultural produce of National Horticulture Board. Under the above mentioned schemes, assistance is being provided to State Governments and entrepreneurs for development of infrastructure for post harvest management and marketing of horticulture produce, which is in turn help farmers in getting remunerative prices.

Ministry of Agriculture is also implementing Market Intervention Scheme (MIS) on the request of State Governments/Union Territories for procurement of agricultural and horticultural commodities including red chilly generally perishable in nature.

MIS is implemented in order to protect the growers of these commodities from making distress sale in the event of bumper crop when there is glut in the market and the prices tend to fall below economic levels/cost of production. Procurement is made by National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and State designated agencies.

Agricultural and Processed Food Products Export Development Authority (APEDA), Ministry of Commerce has established 60 Agri Export Zones in the country for promotion of export of agricultural produce including fruits and vegetables.