Business

G-9 For Breakfast?

India strives to carve a niche for its bananas in the export market

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G-9 For Breakfast?
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Banana Republic

  • India is the world’s largest banana producer, accounting for over 26 per cent global production.
  • From just 0.01 per cent share,, India hopes to capture 2 per cent of global banana trade in five years.
  • Exports have risen nearly five times from Rs 11.7 crore in 2003-04 to Rs 55 crore in 2008-09
  • Productivity per plant has risen from the low levels of 15-20 kg to around 70 kg in many farms.
  • In two years flat, banana acreage has gone up 30 per cent to 7,80,000 hectares.

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Banana Varieties Being Produced in India

There are more than 200 kinds of bananas produced in the country.

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Grand Naine, G9

A global favourite for its good shelf life, attractive yellow colour on maturity and taste

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Red Banana
Smaller, plumper, sweeter than traditional Cavendish banana, has red-purple skin.

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Nanjangud Bale
Grown in Karnataka, this banana has been patented under GI status for flavour

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Nendran Banana

Big-sized southern banana, used for cooking, making snacks and desserts

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Poovan Banana

Small-sized, expensive Kerala-TN variety that has 100-150 fruit in a bunch
 

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It's a paradox difficult to digest: India is the largest producer of the world’s most popular fruit, the banana, churning out over a quarter of the global production. Delectable and nutritious, the humble banana is consumed in vast quantities all over the country (disclosure: I do too). But India’s not-so-humble (considering the current high prices) Grand Naine or G9 banana, with its bright yellow appearance when ripe, is a minnow on the world stage: its share in the $9.6-billion global trade is just 0.01 per cent. The top global player is Ecuador with 25 per cent market share. India wants a leg-up here.

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Buoyed by booming all-year-round domestic production, Indian banana producers are seeking to challenge their global counterparts and take on brands like Chiquita, Dole, Del Monte, Noboa and Fyffes. Through an investment injection in post-harvest infrastructure, and technology support at the farm level, the government and private sector have been striving to look to export markets. That is, beyond the ‘mini Indias’ abroad, like West Asia, where homesick Indians seek out plantain (raw banana used for cooking) from their home state.

The initial results have been encouraging. From just Rs 11 crore four years ago, banana exports touched Rs 26 crore in 2007-08 and crossed Rs 55 crore last year, according to provisional data by the Agricultural and Processed Food Products Export Development Authority (APEDA). Experts say India may never become a major banana exporter—given the assured domestic demand—but efforts are afoot to garner at least 2 per cent share in the next five years.

“The Indian banana is slowly creating an identity and winning favour for its taste. In quality, it is comparable to the highland banana of the Philippines,” says Ajit Desai, CMD, Desai Fruits and Vegetables. Thanks to overseas collaboration and investment, this farmer-entrepreneur is spearheading a major production initiative in Gujarat and has emerged as the country’s top banana exporter. Guiding thousands of farmers in four districts of Gujarat with his team of Filipino experts, Desai has expanded his captive banana plantation area to 1,400 acres in three years. This year, he hopes to extend the G9 plantation to around 4,000 acres. With a quality audit under the belt, Desai plans on shipping the first container of Real Fresh brand banana to Europe in October.

APEDA is playing a big role here. The government body is helping set up dedicated banana export infrastructure to serve clusters in Gujarat and Maharashtra; a similar facility is planned in Tamil Nadu, the largest banana-producing state. Engaged in promoting the brand image of Indian produce, APEDA hopes to repeat the success story of Indian grapes, pomegranate, mango and sapota. Currently, the focus is only on increasing the volume of the ubiquitous G9 banana variety, before looking at others like Tall William from the Cavendish family.

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Though the banana is originally not native to India, several varieties, brought by travellers, have been flourishing here since at least as far back as the 6th century. The popularity of varieties like Nendran, Rasthali, Puvan, Robusta, Chini Champa and Red banana varies from state to state. The fruit is an intrinsic part of the Indian diet, while every part of the plant (or, as some prefer to call it, the largest herb) is of some use.

The investment in technology at the farm level to improve yield and quality is turning the fortunes of a growing number of farmers in Gujarat, Maharashtra and Tamil Nadu. Why, some exporters are paying 25 per cent over the predetermined purchase price for high-quality fruits. “Today, there is more interest among farmers to improve banana quality as the income is quite good. Moreover, unlike wheat and paddy, farmers are able to get cash credit on banana crop from banks,” avers Bhagwat V. Patil, president, All India Banana Growers Association.

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Thanks to the government’s national horticulture mission, banana acreage and productivity is witnessing an annual rise of 10-15 per cent. From 6,04,000 hectares (yielding 21 million tonnes of fruit) plantation in 2006-07, in just two years the acreage reached 7,80,000 ha (the yield crossed 27 mt). “New technology, including better planting material and farm practices being promoted by the National Research Centre for Banana, is helping to increase the yield per plant,” says horticulture commissioner Gorakh Singh. From 15-20 kg fruit per plant, the productivity has risen to around 70 kg per plant in many farms.

The improvement in Indian banana yield and quality has started attracting the attention of MNCs like Unifruti, says A.S. Rawat, general manager, APEDA. “Many players, including MNCs, are waiting to enter the fray with firm ‘contact’ (purchase deal) farming arrangements,” he reveals. The big hope is the proposed dilution of preferential zero duty tariff for the ACP (Africa, Caribbean and Pacific) Group of states by 2010. “If the zero duty advantage to ACP goes, then our banana will be equally competitive in the European market,” says T.S. Vishwanath, a global trade expert.

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That said, Kaushal Khakhar of Kay Bee Exports, a big player in the fruit and vegetable segment though not bananas, feels there is still much to learn about the banana business “as it is a big volume, small margin” game. Despite the challenges (experts feel it’ll take at least five years for Indian banana exports to stabilise), the benefits are many. While the domestic market will get better quality fruit, healthy competition between farmers is sure to improve yield and cash reward. It just might pay to go bananas.

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