Critical analysis of exports: Mango and processed mango products by Indian mango

processing industry

* Purushottam Bung & ** A.H.Chachadi

Abstract
India ranks first in the world (production of 10.5 mmt) when it comes to mango production. India
contributes 45% of the total mango production of the world. In spite of the India’s strong hold on the
production of mango it is alarming to know that India processes just 2% of the total mango production
with an alarming loss of around 40%. Only 20% of the production of processed mango products is being
exported. India’s share of global exports of fresh mangoes and processed mango products is quite meager
when we compare the same with other major mango producers of the world, i.e., China, Thailand,
Mexico, Pakistan, Phillipines, Brazil, Indonesia, and Nigeria.(in the same order).
The research undertaken is purely secondary in nature. The critical analysis of the exports
undertaken by the Indian mango processing industry has been made using secondary data. The data is
analyzed to know the per cent contribution and CGR of exports of each processed mango product to
aggregate (total) exports of processed mango products and region / country wise contribution towards
exports of every processed mango product including fresh mangoes. The effort was made to know the
causes for the particular export pattern found in this industry along with recommendations on policy front
to strengthen Indian mango processing industry.
Indian mango processors should manufacture high value added processed mango products and
export them to rich countries like; USA, UK, Canada, Australia, other European countries so that value
realization will be much higher. To achieve this Indian mango processors need to improve their quality
standards and bring in lot of innovation to meet the stringent quality standards set by importing countries
(like FDA standards of US). Indian mango processors must also utilize the byproducts like mango kernels
to manufacture innovative products like; mango margarine, facial cream, other cosmetic products, piggery
feed ingredient, etc., so that total processing loss will be curtailed and profitability of the processors will
be strengthened.

Key words
Exports, Mango processing industry, India, processed mango products

* Prof. Purushottam Bung, Professor and Director, KLS IMER, Belgaum, Karnataka, India
**Prof. A.H.Chachadi, Dean and Director, KIMS, Karnatak University, Dharwad, Karnataka, India
Introduction

It becomes evident from the table-1 (displayed on the following page) that India, an
emerging economy, is predominantly a agriculture based economy where-in 18.60% of the GDP
comes from agriculture sector and which employs 60% of labor force. Of the total arable land of
1703000 sq kms, 100000 sq kms is covered by permanent crops and 22.80% of the total land
area is covered by forests. India is one of those few countries that enjoy tropical and temperate
climatic conditions, which is quite ideal for fruit cultivation in general and mango cultivation in
particular. Almost all varieties of fruits are being grown in India. This is the reason India ranks
second in the world (production of 45.91 mmt), next only to China (production of 72 mmt),
when it comes to fruit production. India contributes 9.54% of the total fruit production of the
world.

India ranks first in the world (production of 10.5 mmt) when it comes to mango
production. India contributes 45% of the total mango production of the world. In spite of the
India’s strong hold on the production of mango it is alarming to know that India processes just
2% of the total mango production with an alarming loss of around 40%. Only 20% of the
production of processed mango products is being exported. India’s share of global exports of
fresh mangoes and processed mango products is quite meager when we compare the same with
other major mango producers of the world, i.e., China, Thailand, Mexico, Pakistan, Philippines,
Brazil, Indonesia, and Nigeria.(in the same order).

Indian Mango Processing Industry seems to be in its infancy stage and growing at a very
slow pace. In year 1998-99 there exist over 4000 Fruit Processing units in India with an
aggregate capacity of 1.2 million metric tons which was less than 4% of total fruit production.
This industry is growing at around 20% every year. Moreover the industry is dominated by large
no of smaller units (cottage scale / home scale / small scale) having small capacities ranging
from 20 tons to 250 tons per year.

Hence there is a strong need for a critical analysis of exports of mango and processed
mango products by Indian mango processing industry.
 TABLE-1

Key recent economic, agronomic, demographic, and agriculture related parameters of India

Key recent parameters India

Total area in sq km 3287590
Total land area in sq km 2973190
Total area covered by water in sq km 314400

Climate Tropical in south to temperate in north

Total arable land in sq km (2008) 1703000
Total arable land under permanent crops in sq km 100000
Total non arable land in sq km 1270190
total irrigated land in sq km 558080
Total forest area (%) 22.80%
Total forest cover in sq km 677010
Total population (2008) in million 1110
population growth rate 1.70%
Urban population (%) (2008) 84.70%
GNI (PPP) (2008) in USD billion 2726
GDP (Official exchange rate) (2008)in USD billion 911.8
GDP per capita (2008) in USD 821
GNI Per Capita (PPP) (2008) in USD 2726
GDP real growth rate (2008) 9.20%
% of GDP from agriculture sector (2005) 18.60%
% of GDP from industry sector (2005) 27.60%
% of GDP from services sector(2005) 53.80%
Country status Under developing
Total labor force (2005) 496.4 million
% of labor force in agriculture 60%
% of labor force in industry sector 17%
% of labor force in service sector 23%
Unemployment rate 8.90%
Population below poverty line (2008) 29%
Total exports f.o.b.(2005)in USD billion 99.45
Total imports f.o.b.(2005) in USD billion 138.09
Net exports f.o.b.(2005) in USD billion -38.64
Total Investment (gross fixed) (2005) 28.1% GDP
Industrial production growth rate (2005) 7.90%
Forex reserves and gold USD 136 billion
Official exchange rate(2005) Rs.44.1011 per USD
No. of airports 341
Internet users 60.0 million
Constitution of the government Federal republic

History Was Portuguese colony & got independence in 1822

Coal, iron ore, manganese, mica, bauxite, NG,

Natural resources limestone, diamond, Petroleum, arable land

Source: The little green and red book series of world bank and FAO statistical year book series of UN publications
Literature review

Literature discussed in this chapter, which throws light on the contributions made by
some of the prominent researchers in this study area, will set the guidelines for this particular
research project and indicate the tremendous scope for the further research in this particular area.
Literature available pertaining to subject matter of this research work is being discussed in brief.

NFI Archive Report (2003), reported that the fruits and vegetables that are grown only on
6-7 percent of gross cropped area have contributed more than 18.8 percent of the gross value of
agricultural output and 52% export earnings out of total agricultural produce. They further
opined that during the last few years considerable emphasis has been given to this sector.
Accordingly, areas under fruit production has increased by 172 percent from 1961-1993,
productivity per hectare was nearly doubled leading to an increase in production to the tune of
320 percent. The average labor requirement for fruit production is 860 man-days per hectare per
annum as against 143 man-days for cereals crops. Crops like grapes, bananas, and pineapple
generates much larger employment roughly from 1000 to 2500 man-days per hectare per annum,
the researcher added.

MOFPI (Ministry of Food Processing Industries) Report, (1999), reported that India is the
largest producer of fruits (41.5 mmt) and second largest producer of vegetables (67.28 mmt) in
the world. The country tops in production of banana, mango, potato, tomato, onion, green peas
and coconut. Only 2% of the fruits/vegetables produced are being processed at present. The
installed capacity of fruits and vegetables processing industries has increased to 21 lakh tons in
1999 with 4589 fruit/ vegetables processing units. Exports during 1998-99 were worth Rs. 678
crores.

TIFAC Report (2003), the task force on Agro food processing of TIFAC on the sub group
on fruits and vegetables, has given the technology status and future vision for India. The report
states that the total production of fruits in the world is around 370 mmt. India ranks first in the
world with an annual output of 32mmt. Further while discussing about the future trends, the
report highlighted that fruits and vegetables would continue to be harvested manually in the
future. While small land holdings and non availability of good quality planting material have
been the major issues of concern, it is expected that quality of planting material would improve
in the long run due to right selection, hybridization, proper breeding and adoption of tissue
culture.

MOFPI (Ministry of Food Processing Industries) in its annual report (2000-01), reported
that the country’s share in the world trade of processed fruits and vegetables is still less than one
per cent. As such, abundant investment opportunities are there in the expanding domestic market
and export arena. An increasing acceptance of new products together with innovative market
development efforts is seen.

Manish Jain (2002), in his article noted the trend that out of the horticultural crops
produced in the country, approximately 60% is consumed by the local population or marketed in
the nearby market yards and only about 40% of the produce is channeled through the regulated
markets for the consumption of urban population in the cities. Export markets account for less
than 5% of the total production except in some commodities like cashew, spices, onion, etc. He
noted further that the bare minimum infrastructural facilities are lacking even in the regulated
markets. The horticulture produce suffer significant post harvest losses due to lack of adequate
post harvest and marketing infrastructure viz. Processing units, packaging and grading facilities,
cold storage facility, refrigerated transport vehicles/ containers, storage and phytosanitary
facilities, etc.

Researcher strongly recommends for an integrated development of horticulture industry

in order to meet not only the requirements/ demand of the domestic market but also to exploit the
export potential to maximum extent. Emphasis on quality production needs to be strengthened
together with sound post harvest management of the highly perishable horticultural commodities.

MOFPI Report, (1998), in their documentation on fruit processing submitted to Ministry

of Food Processing Industry, highlighted that fruit and vegetable processing industry in India is
highly decentralized. A large number of units are in home scale sector, cottage scale sector and
small scale sector having installed capacity of 50 tons to 250 tons a year, where as a smaller
number of large scale Indian and multinational companies have larger installed capacities in the
range of 05 to 30 tons per hour. Due to effective liberalization policies and withdrawal of excise
duty on fruit and vegetable products there has been significant rise in the growth rate of
production of this industry.

Katar Singh et al. (2002), in their study on role of Banks in promoting India’s export of
fruits and vegetables, explained that banks have played an important role in extending finance
for agricultural exports since nationalization, i.e.1969. In 1969 commercial banks provided only
14.6 percent of their total credit to the priority sector and the same had gone up to 43.00 percent
in 2001. Similarly the percentage of credit disbursed to agriculture sector has gone up from 5.4
percent to 18 percent over the same period. They further opined that, to achieve substantial
increase in exports of fruits and vegetables we require continuous flow of better eco friendly
technologies, easy availability of institutional finance for production and post production
operations and higher level of investment in creating basic infrastructure such as roads, markets,
power, airports, etc.

Research methodology
The research undertaken is purely secondary in nature. To begin with, secondary research
on global mango production is made. Then macro level study about exports of mango and
processed mango products within the mango processing industry of India is made using
secondary data that was available. This data is then analyzed to know the pattern of exports of
mango and processed mango products by Indian fruit processing industry along with suggestions
on the policy front to strengthen this industry.

The primary objectives of this exploratory research are;

1. To study the production pattern of mango across the world over the past years and to know
their relative share and CGR (Compound Growth Rate).
2. To study the export pattern of mango and processed mango products, i.e. complete product
line (country wise per cent contribution and CGR) by the MPI (Mango Processing Industry) of
India over the past years.
3. To locate disparities across the product line (various processed mango products) and trace
causes for the same.
4. To make recommendations on policy front to strengthen Indian mango processing industry.

Sources of secondary data collection include; FAO commodity year books, International
trade statistics from www.trademap.com, FAO Production year books, FAO statistical year
books, the little green and red data book series of WB (World Bank), etc. have all been explored
to get the required information. Nevertheless, official websites of UNCTAD, ITC, DGFT
(Directorate General of Foreign Trade of India), WB, FAO, etc., have been explored deeply to
get hands on the required information. Tabulation techniques are used for collecting secondary
information.

Various statistical, mathematical and computational tools and techniques including

Average per cent increase or decrease analysis, Average per cent contribution analysis, CGR
(Compound Growth Rate) analysis, etc. using MS-EXCEL (2007 version) are used to analyze
the secondary information.

Important research findings and discussion:

I. Avg. % contribution of major countries producing mango towards total mango

production of the world and CGR of each country:

Graph-I(a): Production of the major mango producing countries as percentage of the

total world mango production
60.00
% contribution
40.00

20.00

0.00
India China Mexico Thailand Pakistan Indonesia Philippines Nigeria Brazil Egypt Others

Source: Export Import Data Bank from the official website of DGFT (2008)
 The graph [i(a)] shown above, undisputedly, rank India as the top most producer of
mango in the world, contributing to nearly 46% of the total world production. China, Mexico,
Thailand and Pakistan together account for nearly 28% of the total world production. Brazil
stands at ninth position with a contribution of 2.63%.

India has an edge over other countries when it comes to mango production. India has the
right soil, climatic condition and other required resources to produce mango. In fact the Indian
‘Alphonso’ is the most sought after fruit in the world – known popularly as the ‘king of all
fruits’. There is a great demand for Indian mangoes and also the processed mango products,
especially the mango pulp, pickles, chutneys, juices, jams, slices in brine, etc, in the international
markets. This should be seen as a great opportunity to be exploited by Indian mango processors.

Graph-I(b): CGR of the Production of the major mango producing countries

15

CGR
10

0
China Philippines Brazil Egypt Indonesia Pakistan Nigeria Thailand Mexico India Others Total

-5

Source: Export Import Data Bank from the official website of DGFT (2008)

The graph [i(b)] depicted above reveals that China and Philippines have experienced
highest growth rate, even in the mango production also. This clearly indicates the fact that China
has realized the tremendous potential that is being hidden in this specialized sector, i.e. mango
processing industry, and is trying to exploit the same before any other country does. Brazil,
Egypt, Indonesia, Pakistan and Nigeria are the countries that are experiencing significant growth
between 4 and 6%.

India, unfortunately, is the only country that has experienced a negative growth of -
0.86%, in spite of her being the topmost producer of mango. This indeed is a matter of grave
concern for India, which needs to be addressed.
II. Exports of particular processed mango product as percentage of total exports of processed
mango products (all) and CGR of each: India

Graph-II(a): Exports of particular processed mango product as percentage of total

100.00 exports of mango processed products (all)
80.00
60.00
40.00 % contribution Quantity
20.00 % contribution Value

0.00

Source: Export Import Data Bank from the official website of DGFT (2008)
From the graph [ii(a)] shown above, it is clear that nearly 79% of the exports of
processed mango products are constituted of mango pulp. Jams, chutney, mango slices in brine,
and juice account for 3 to 6% each towards total exports. Huge and growing demand for mango
pulp (especially the pulp of Alphonso and Totapairi varieties of mango) in the international
markets is the reason production of mango pulp has grown many fold. Many big companies like;
Jain group of companies, Godrej, Vadilal, etc., have entered in to pulp manufacturing, in a big
way. Earlier this sector was primarily composed of numerous Small and Medium scale
Enterprises mushroomed around mango growing areas. But now the equations have changed.
There appears to be a promising and super natural growth for pulp manufacturing industry of
India. Hence all the big food processing companies have focused their attention on this sector.
Graph-II(b): CGR of major processed mango products
100.00
50.00 CGR (Quantity) CGR (Value)

0.00
-50.00
-100.00

Source: Export Import Data Bank from the official website of DGFT (2008)
 It is clear from the graph [ii(b)] shown above that exports of mango kernel with nut
broken and mango squash have experienced a very high compound growth of around 79% and
58% respectively. Mango sliced and dried, jams, juice and pulp have experienced a double digit
compound growth ranging from 37% to 14%, in their respective order. Except mango kernel oil,
all the other prominent processed mango products, naming; flour of mango, mango chutney,
mango slices in brine and mango pickles, have experienced a significant positive growth.

Different applications of byproducts of mango have been emerged, like; mango kernel is
being used to extract oil from it, which is primarily used in manufacturing feed for piggery
industry in western countries like US. Pigs will put on weight very fast, if we add substances like
mango kernel oil in their feed.

Mango processing industry is a promising and fast growing industry. This was primarily
composed of numerous Small and Medium scale Enterprises mushroomed around mango
growing areas. But now, it is dominated by big companies like; Jain group of companies, etc.

III: Avg % contribution of each country w.r.t. exports of fresh mangoes and country wise CGR:
India

60.00
Graph-III(a): Percentage contribution of each country (both quantity wise and value
40.00 wise) w.r.t. exports of fresh mangoes
% contribution (Quantity)
20.00 % contribution (value)

0.00

Source: Export Import Data Bank from the official website of DGFT (2008)

It is clear from the graph [iii(a)] depicted above that Bangladesh, UAE and Saudi Arabia,
collectively, account for nearly 80% of the total exports of fresh mangoes. But it can be noticed
that Bangladesh which accounts for nearly 40% (quantity wise) of total exports yield value
contribution of just 20%, whereas UK which accounts for 3.16% (quantity wise) of total exports
yield a value contribution of 6.66%.

So, Indian exporters will be better off, if they export to those countries which yield higher
value contribution, like UK than Bangladesh. The other alternative could be to process fresh
mango in to high value added processed mango products like mango pulp and then export. The
second alternative yields multifold benefits to India like; higher FOREX earnings, higher local
employment, higher profits, etc.

150.00 Graph-III(b):CGR of each country (both quantity wise and value wise) w.r.t. exports of
fresh mangoes
100.00
CGR (Qty) CGR (value)

50.00

0.00

-50.00

Source: Export Import Data Bank from the official website of DGFT (2008)

It is clear from the graph [iii(b)] depicted above that export of fresh fruits to Nepal is
growing at a phenomenal rate, i.e. 106%. Next in the list are Russia, Bangladesh and Oman,
which are growing at 27%, 20% and 19% respectively.

Many countries like; Malaysia, Singapore, UK, Bahrain, USA, Saudi Arabia and Kuwait
have all experienced negative growth. This is primarily due to stringent standards set by
importing countries (like FDA standards of US) against quality parameters of fresh fruits like;
percentage of pesticide residue, percentage of deceased fruits, nutritional values, pulp content,
etc.
So it has become must for India; to grow fruits in an organic environment, to have the
necessary infrastructure to preserve the freshness of fruits for a very long time, to grade and pack
the fruits very neatly and properly, and to have facilities like cold chain, air cargo, etc. for
enabling quick shipment of fruits.
IV: Avg. % contribution of each major country w.r.t. exports of mango pulp and country wise
CGR:

Graph-IV(a):Percentage contribution of each country (both quantity wise and value

40 wise) w.r.t. exports of mango pulp
% contribution (Quantity)
20 % contribution (value)

Source: Export Import Data Bank from the official website of DGFT (2008)
 It is clear from the above graph [iv(a)] that Saudi Arabia accounts for nearly 31% of total
exports of mango pulp. UAE, Yemen Republic, Netherlands and Kuwait account for 12%, 10%,
7% and 6% respectively. Other countries like; UK, USA, Lebanon, Oman, Germany, etc.
account for the rest. It can be noticed that value wise contribution of exports are less than
quantity wise contribution for major importing countries like; Saudi Arabia, UAE and Yemen.
Whereas for some countries like; UK, USA, Netherlands, etc., value contribution is higher than
volume wise contribution. This indicates that developed countries, like; US and UK fetch better
prices than the Middle East countries. So Indian mango processors should focus on the quality
requirements of developed countries like US and UK, and meet those requirements by improving
their existing quality standards. The quality standards of developed countries are definitely much
stringent than the ME countries, but simultaneously they are much rewarding.

Graph-IV(b):CGR of each country (both quantity wise and value wise) w.r.t. exports of
mango pulp
50
CGR (Qty)

CGR (value)
0

-50

-100

Source: Export Import Data Bank from the official website of DGFT (2008)

As reflected in the above graph [iv(b)]; Yemen republic has experienced the highest
growth as far as exports of mango pulp are considered. Saudi Arabia, Netherlands, Oman,
Lebanon and Canada have all experienced double digit growth ranging from 18% to 11% in their
respective order. Overall, exports of mango pulp have evidenced highest growth (14%),
indicating great export demand for Indian mango pulp.

This is the reason production of mango pulp has grown many fold. Many big companies
like; Marico, Godrej, Parle, Pepsico, etc., have entered in to mango pulp manufacturing, in a big
way. This sector was primarily composed of numerous Small and Medium scale Enterprises
mushroomed around mango growing areas. There lies a promising and super natural growth for
mango pulp manufacturing industry of India. Hence all big food processing companies, even
MNCs have set their attention on this sector.
V: Average % contribution of each major country towards exports of mango slices in brine and
country wise CGR: India

40 Graph-V(a):Percentage contribution of each country (both quantity wise and value

wise) w.r.t. exports of mango slices in brine
% contribution (Quantity)
20 % contribution (value)

Source: Export Import Data Bank from the official website of DGFT (2008)

It can be noted from the above graph [v(a)] that UK and Saudi Arabia are the major
importing countries, accounting for nearly 64% of total exports of mango slices in brine from
India. USA, Netherlands and UAE together account for nearly 17 % of the total exports.
Remaining countries account for the rest.

It is evident from the above pattern that a few countries account for large chunk of
exports. Hence Indian processors should focus their attention on the quality requirements of
these countries like; UK, Saudi Arabia, US, and Netherlands and try to meet those requirements.
These countries in turn process the slices and make final products according to their
requirements.
Graph-V(b): CGR of each country (both quantity wise and value wise) w.r.t. exports of
200
mango slices in brine
CGR (Qty)
100 CGR (value)

-100

Source: Export Import Data Bank from the official website of DGFT (2008)
From the above graph [v(b)] it is clear that Yemen republic and France have experienced
super natural growth as far as imports of mango slices in brine from India are concerned.
Netherlands, Kuwait, Israel, Japan, Canada, UAE and Saudi Arabia have all experienced a
double digit growth ranging from 88% to 21% in their respective order. Whereas some countries
like US, UK, Jordan and Germany have experienced negative compound growth.
 Overall, the growth is significant (7.88%) and hence many new MNCs and SMEs have
entered in to this sector. There lies a guaranteed future for Indian fruit processors in this sector.
India has tremendous potential, waiting to be exploited, in this sector.
VI: Average % contribution of each major country w.r.t. exports of mango sliced and dried and
country wise CGR : India

100 Graph-VI(a):Percentage contribution of each country (both quantity wise and

value wise) w.r.t. exports of mango sliced and dried
% contribution (Quantity)
% contribution (value)

0
Bangladesh Soudi Arabia UK Netherlands Germany UAE USA Japan Others

Source: Export Import Data Bank from the official website of DGFT (2008)
It is clear from the above graph [vi(a)] that Bangladesh accounts for major portion of
exports of mango sliced and dried (62% quantity wise and 28% value wise). Saudi Arabia, UK
and Netherlands, collectively, account for nearly 26% of the total exports. It can be seen that
relatively few countries import this particular product than the conventional products like;
squash, juice and pulp.
Indian processors will be better off, if they export to those countries which yield higher
value contribution, like UK (volume wise contribution is 7% whereas value wise contribution is
double, i.e. 14%) than Bangladesh (value wise contribution – 28% is much lesser than volume
wise contribution -62%). The importing countries use this product as an intermediary product
and manufacture final product. The Indian processors can themselves process mango slices
further and manufacture end products and then export. This will yield multifold benefits to India
like; higher FOREX earnings, higher local employment, higher profits, etc.

500 Graph-VI(b):CGR of each country (both quantity wise and value wise) w.r.t. exports of
mango sliced and dried … CGR (Qty)
CGR (value)

0
Bangladesh Netherlands Japa Soudi Arabia USA Germany UAE UK Others Total

Source: Export Import Data Bank from the official website of DGFT (2008)
 It can be noted from the above graph [vi(b)] that the growth rate is phenomenal for some
countries like; Bangladesh (353%), Netherlands (240%) and Japan (172%) whereas, other major
countries have also experienced significant compound growth ranging from 15.5 to 71%.

The comparison of CGR of exports of different processed products of mango reveals that
the growth was highest for this particular product (aggregate CGR of 37%), which clearly
demonstrates the export demand for this particular product.
The ever increasing export demand for such processed mango products is one of the
reasons for the catastrophic growth of this sector and has lured the interests of many MNCs and
SMEs to enter in to this sector. This sector has lot more to offer to India in the days to come and
Indian fruit processors should realize this and plan accordingly.

VII: Avg. % contribution of each country w.r.t. exports of mango chutney and country wise
CGR: India

Graph-VII(a):Percentage contribution of each country (both quantity wise and value

80 wise) w.r.t. exports of mango chutney

% contribution (Quantity)
60
% contribution (value)
40

20

Source: Export Import Data Bank from the official website of DGFT (2008)

The history of exports of traditional Indian products like spices, go back to eighteenth
century, when India used to barter spices and curry powders for other goods like; textiles and
machinery with the countries like Great Britain.

These products, i.e., mango pickles and mango chutneys, generally, are consumed by
Indians. So countries where-in significant population of Indian origin resides, like UK and USA,
will import these traditional Indian products (as reflected in the above graph [vii(a)]). But due to
breaking of national boundaries and national cultures due to globalization, the demand for
traditional Indian products has also increased across the world.
 Graph-VII(b): CGR of each country (both quantity wise and value wise) w.r.t. exports of
400 mango chutney
CGR (Qty)
200 CGR (value)

-200

Source: Export Import Data Bank from the official website of DGFT (2008)
As reflected in the above graph [vii(b)]; UAE and Sweden have experienced exceptional
growth of 356% and 137% respectively. Whereas other countries like; Hong Kong, Canada, US,
Germany, Australia, Denmark, UK and Netherlands have experienced significant growth ranging
from 22% to 6% in their respective order, as shown above.
Overall, growth appears to be significant (8.86%) and hence acts as a catalyst to spur
growth in this sector in India. This sector is predominantly comprised of SMEs spread across
selected states of India, mainly in Andhra Pradesh, Maharashtra, Tamil Nadu, Karnataka and
Kerala.

VIII: Average % contribution of each country w.r.t. exports of mango pickles and country wise
CGR: India

Graph-VIII(a):Percentage contribution of each country (both quantity wise and value

40 wise) w.r.t. exports of mango pickles
% contribution (Quantity)

20 % contribution (value)

Source: Export Import Data Bank from the official website of DGFT (2008)
As reflected in the above graph [viii(a)]; UK, USA, Saudi Arabia, and UAE together
account for nearly 67% of total exports. Other countries, collectively, account for the remaining
33% of total exports.
These products, generally, are consumed by Indians. So countries where-in significant
population of Indian origin resides, like UK and USA, will import these traditional Indian
products. So the percentage contribution of each country towards total exports is directly
proportional to the total population of Indian origin living in that particular country.
But because of breaking of national boundaries and national cultures due to globalization,
the demand for traditional Indian products has also increased across the world.
Graph-VIII(b): CGR of each country (both quantity wise and value wise) w.r.t. exports
100 of mango pickles
CGR (Qty)
CGR (value)
50

-50

Source: Export Import Data Bank from the official website of DGFT (2008)
As reflected in the above graph [viii(b)]; Bahrain, Netherlands and Australia have
experienced exceptional growth of 77%, 43% and 35% respectively. Whereas other countries
like; Qatar, Kuwait, Canada, USA, UAE, Saudi Arabia, and UK have experienced moderate
growth ranging from 8% to 1%, in their respective order, as shown above.
Overall, growth appears to be significant and hence acts as a catalyst to spur growth in
this sector in India. This sector was predominantly comprised of SMEs spread across selected
states of India, mainly in; Andhra Pradesh, Maharashtra, Tamil Nadu, Karnataka and Kerala.
The growth prospectus has lured big companies like; Hindustan Unilever Limited, Nestle, etc.
They have started making huge investments in this particular sector.

IX: Average % contribution of each country w.r.t. exports of jams, jellies and Marmdls and
country wise CGR: India
Graph-IX(a):Percentage contribution of each country (both quantity wise and value
50.00 wise) w.r.t. exports of mango jams, jelies and mrmdls.
% contribution (Quantity)
% contribution (value)

0.00

Source: Export Import Data Bank from the official website of DGFT (2008)
It is clear from the above graph [ix(a)] that Netherlands and UK account for nearly 39%
and 12% of the total exports of jams, jellies and Marmdls respectively. Other countries
including; USA, UAE, Saudi Arabia, Japan, Canada, Kuwait and Germany account for nearly
30% of total exports, collectively.
It can be seen from the above graph that the demand for these processed and high value
added products is wide spread across many countries. This is simply because of the fact that
many countries can’t grow mango, even if they want to, because of unfavorable climatic
conditions. This is a unique competitive advantage which India has in this sector.

500 Graph-IX(b): CGR of each country (both quantity wise and value wise) w.r.t. exports of
mango jams, jelies and mrmdls. CGR (Qty)
CGR (value)

Source: Export Import Data Bank from the official website of DGFT (2008)
It can be noted from the above graph [ix(b)] that many countries including Finland,
Japan, Singapore, Sweden, UK, and Canada have experienced phenomenal growth, ranging from
255% to 102% in their respective order, as far as imports of jams, jellies and Marmdls from India
is concerned. All the other countries also have experienced a double digit compound growth,
ranging from 91% to 13%, as shown above.
Overall growth appears to be very high (28%). Moreover all the major countries have
experienced a significant growth in their imports. Indian processors should capitalize on this
phenomenal global demand for the processed mango products and should re-direct or re-allocate
the resources to meet this ever increasing global demand.
X: Avg. % contribution of each country w.r.t. exports of mango squash and country wise
CGR: India
Graph-X(a):Percentage contribution of each country (both quantity wise and value
40
wise) w.r.t. exports of mango squash
30 % contribution (Quantity)
20 % contribution (value)
10
0

Source: Export Import Data Bank from the official website of DGFT (2008)
 As revealed from the above graph [x(a)]; UK and Nepal were the two major countries
importing mango squash. These two countries, together, account for nearly 52% of total exports
of mango squash from India. Other countries of interest include; Yemen republic, UAE, USA,
Bangladesh, and Netherlands, which collectively account for nearly 25% of total exports of
mango squash from India.

The demand for natural fruit drinks has increased dramatically across the globe. People,
in general, have become more health conscious and shifted their consumption from artificial
aerated drinks to natural fruit drinks. This is the reason demand for such natural fruit drinks is
wide spread across many countries and is growing at a very high rate.

Graph-X(b): CGR of each country (both quantity wise and value wise) w.r.t. exports of
200 mango squash

150 CGR (Qty)

CGR (value)
100

50

Source: Export Import Data Bank from the official website of DGFT (2008)
As reflected in the above graph [x(b)], many countries including UK, Nepal, Germany,
and Netherlands have experienced phenomenal three digit compound growth, ranging from
177% to 107% in their respective order, when we consider imports of mango squash from India.
All the other countries also have experienced a double digit compound growth, ranging from
97% to 21%, except Denmark, as shown above.
Overall growth (58%) appears to be much higher than jams, jellies and Marmdls (28%).
Moreover all the countries have experienced a significant growth in their imports. India should
re-position itself in the global market as a prime supplier of processed high value added mango
products like; squash and juices and should re-direct or re-allocate the resources to meet this ever
increasing global demand.
XI: Avg. % contribution of each country w.r.t. exports of mango juice and country wise CGR:
India

Graph-XI(a):Percentage contribution of each country (both quantity wise and value

50 wise) w.r.t. exports of mango juice
% contribution (Quantity)

Source: Export Import Data Bank from the official website of DGFT (2008)

It is clear from the above graph [xi(a)] that USA and Netherlands are the main countries
importing mango juice. These two countries, together, account for nearly 42% of total exports of
mango juice from India. Other countries of interest include; Saudi Arabia, UAE, Yemen
republic, Russia, Canada, UK and Japan which collectively account for nearly 36% of total
exports of mango juice from India.

The demand for natural fruit drinks, especially fruit squashes and juices, has increased
dramatically across the globe. People, in general, have become more health conscious and shifted
their consumption from artificial aerated drinks (e.g. ‘Coke’ and ‘Pepsi’) to natural fruit drinks.
This fundamental shift in demand is seen not only in developed countries but also in the
developing countries like; Bangladesh, Nepal, etc. This is the reason demand for such natural
fruit drinks is wide spread across many countries and is growing at a very high rate.

300 Graph-XI(b):CGR of each country (both quantity wise and value wise) w.r.t. exports of
mango juice
200
CGR (Qty)
CGR (value)
100

-100

Source: Export Import Data Bank from the official website of DGFT (2008)
 It can be noted from the above graph [xi(b)] that many countries including Yemen
republic, Saudi Arabia, Canada, and Germany have all experienced phenomenal three digit
compound growth, ranging from 274% to 120% in their respective order, when we consider
imports of mango juice from India. All the other countries also have experienced a double digit
compound growth, ranging from 92% to 16% except Malaysia, as shown above.

Overall growth appears to be very high (22%). Moreover all the countries have
experienced a significant growth in their imports. This clearly indicate that aerated soft drinks
like; ‘Pepsi’ and ‘Coke’, have experienced a falling trend and natural fruit drinks have taken over
the sales of aerated soft drinks. India has to strengthen its position in the global market as a
prime supplier of processed high value added mango products like; squash and juices through
increasing the production of the same and simultaneously maintaining international quality
standards.
XII: Avg. % contribution of each country w.r.t. exports of mango kernel with nuts broken and
country wise CGR: India
Graph-xii(a):Percentage contribution of each country (both quantity wise
and value wise) w.r.t. exports of mango kernel with nuts broken
40
35 % contribution (Quantity)
30 % contribution (value)
25
20
15
10
5
0

Source: Export Import Data Bank from the official website of DGFT (2008)
As revealed in the above graph [xii(a)]; Nepal and UK account for major portion of
exports of mango kernel with nuts broken, i.e., 37% and 32% respectively quantity wise and
27% and 14% value wise. Saudi Arabia, Korea, Malaysia, Sweden and USA, collectively,
account for nearly 26% of the total exports quantity wise and 50% value wise. It can be seen that
value wise contribution is much less for top of the list countries including; Nepal and UK than
the other countries in the list including; Saudi Arabia, Korea, Malaysia, Sweden and USA.
 So, India will be better off, if it exports to those countries which yield higher value
contribution. Other alternative could be to process these mango kernels further and turn them in
to still higher value added end products and then export.

Graph-xii(b):CGR of each country (both quantity wise and value wise)

100
w.r.t. exports of mango kernel with nuts broken
CGR (Qty)
50 CGR (value)

-50

Source: Export Import Data Bank from the official website of DGFT (2008)
It can be noted from the above graph [xii(b)] that many countries including Korea, Nepal,
Saudi Arabia, Belgium and UK have experienced a very high double digit compound growth,
ranging from 89% to 20% in their respective order, when we consider imports of mango kernel
with nut broken from India. Other countries including; Malaysia, Japan, Kuwait, Bangladesh,
Sweden, Singapore, USA, and Germany have experienced a zero growth or negative growth.

Overall growth appears to be very high (57% volume wise and 39% value wise). Indian
fruit processors should invest in R&D activities and try to reengineer the business processes
involved so that they can undertake vertical integration projects like processing kernels further in
to high value added end products like mango butter, which will have a great demand in the
global market and fetch higher value.

XIII: Avg. % contribution of each country w.r.t. exports of mango flours and country wise CGR:
India
Graph-xiii(a): Percentage contribution of each country (both quantity
40
wise and value wise) w.r.t. exports of mango flours
% contribution (Quantity)
20 % contribution (value)

Source: Export Import Data Bank from the official website of DGFT (2008)
 From the graph-xiii(a) it is clear that USA, Netherlands and UK account for major
portion of total exports of mango flours from India. These three countries account for nearly 57%
of the total exports. Other countries including; Canada, UAE, Indonesia, Japan, Australia and
South Africa, collectively, account for 22% of total exports.

Some countries like USA yield higher value contribution than countries like Netherlands.
So India has to choose those countries which yield higher value. In other words what is more
important for the exporting country is value wise contribution than volume wise contribution.

Simultaneously, Indian companies should think of producing high value added end
products like feed for the piggery industry, where-in these intermediary products are being used.
Graph-xiii(b): CGR of each country (both quantity wise and value wise)
100
w.r.t. exports of mango flours CGR (Qty)

CGR (value)

50

0
UK USA Australia Japan UAE Netherlands Indonesia Canada South Africa Nigeria Others Total

-50

Source: Export Import Data Bank from the official website of DGFT (2008)

From the graph-xiii(b) it is clear that many countries including; UK, USA, Australia and
Japan have experienced a double digit compound growth ranging from 25% to 12% in their
respective order, whereas, other countries except UAE, have experienced negative growth.

The difference between volume wise CGR and value wise CGR is worth noting. Value
wise growth is significantly less compared to quantity wise growth. This clearly means exports
are fetching lesser price. There is disparity with respect to quantity wise and value wise
contribution. So Indian companies have to be choosy while selecting countries, and should
choose those countries which yield higher value contribution.

Simultaneously, Indian companies should think of producing high value added end
products like feed for the piggery industry, mango butter, mango margarine, cosmetics, etc.,
where-in these intermediary products are being used.
XIV: Avg. % contribution of each country w.r.t. exports of mango kernel oil and country wise
CGR: India
Graph-xiv(a) : Percentage contribution of each country (both quantity
60 wise and value wise) w.r.t. exports of mango kernel oil

% contribution (Quantity)
40
% contribution (value)

20

0
Japan Italy USA Denmark Korea Republic

Source: Export Import Data Bank from the official website of DGFT (2008)

From the above graph-xiv(a) it is clear that Japan and Italy together account for
significant portion of total exports of mango kernel oil from India. These two countries, together,
account for nearly 85% of the total exports. Other countries including; USA and Denmark
together account for 15% of total exports.

Relatively few countries (only five) import this particular class of product as it is used in
manufacturing very specific end products.

Even though the exports of this particular class of product is not so significant, it indeed
is an opportunity for Indian processors to strengthen their R&D wing so that the processors can
look for various applications of such intermediary or by products. There lies a most promising
scope for Indian processors to come out with different applications in different sectors like;
pharmaceutical, cosmetics, food, etc., for such intermediary products.

Graph-xiv(b) : CGR of each country (both quantity wise and value wise) w.r.t.
20 exports of mango kernel oil
CGR (Qty)
0
USA Italy Korea Republic Denmark Japan Total
-20

-40

-60

-80

-100

Source: Export Import Data Bank from the official website of DGFT (2008)
 As revealed in the above graph-xiv(b); except USA, all other countries have experienced
a zero or significant negative growth. Overall growth is unattractive and discouraging. Indian
processors have to look for different applications of this intermediary product. This calls for
possessing state of the art R&D facilities. Indian processors should invest heavily in building
necessary R&D facilities.

Higher value addition to existing products, strengthening the R&D base, and scouting for
various applications for the intermediary products are some of the important critical success
factors for Indian fruit processing industry.

Indian fruit processing industry should follow the footsteps of Brazilian fruit processing
industry in this regard and turn it in to the most vibrant and fast growing industry of India.

Conclusion
From the above findings following conclusions can be drawn.

1. Significant portion (nearly 80%) of the total exports undertaken by the mango processing

industry falls in to only one category, i.e. pulp.

2. The detailed analysis of the CGR of exports of other processed mango products reveal

that there is great demand for the value added products like; mango kernel nuts broken,

mango sliced and dried, mango squash, mango juice, jams jellies and marmalades’, etc.

(CGR ranges from 79% to 20%).

3. Indian mango processors have primarily targeted gulf countries (Middle East Asian

countries) for exports and as the findings reveal the value realized from the exports to such

countries is not very attractive.

Recommendations
1. Hence Indian mango processors should start manufacturing high value added processed
mango products and export them to rich countries like; USA, UK, Canada, Australia,
other European countries so that value realization will be much higher. To achieve this
Indian mango processors must improve their quality standards and bring in lot of
 innovation to meet the stringent quality standards set by importing countries (like FDA
standards of US). Indian fruit processors must also invest a lot in R and D facilities and
activities and come out with innovative products and technologies.

2. Indian mango processors should also think of utilizing the byproducts like mango kernels

so that total processing loss can be curtailed. Many innovative products like; mango

margarine, facial cream, other cosmetic products, piggery feed ingredient, etc. can be

produced using mango kernel oil and mango kernel flour. This will further strengthen the

profitability of the processors.

3. The ever increasing export demand for the specific processed mango products like;
natural mango juice or squash, jams, etc., is one of the reasons for the supernatural

growth of this sector in India and has lured the interests of many MNCs and SMEs to

enter in to this sector. Yet Indian mango processing industry is still miles apart when we

compare with the leading countries like Brazil and China. These countries have realized

the tremendous potential that is being hidden in this specialized sector, i.e. mango

processing industry, and are trying to exploit the same before any other country does.

Well coordinated and integrated effort by all the stake holders involved, i.e., cultivators,

processors, middle men, nodal bodies, Government Institutions, agriculture universities,

etc., is the need of the hour to exploit the huge potential which this sector has.

References

Government of India Report (1999): ‘Food Processing - Fact sheet’, MOFPI reports, 1999; p. 01
– 03.
Katar Singh and R.S.Pundir (2002): ‘The role of banks in promoting India’s export of fruits and
vegetables’, National Banks News Review; 2002, p. 31 – 38.

Manish Jain (2002): ‘Horticulture: A golden revolution on the anvil’, Agriculture Today;
December 2002, p. 17 -23.
Ministry Of Food Processing Industries report (2001): ‘Fruits and vegetables processing:
capacity and production”; MOFPI report.

MOFPI Report (1998): ‘Document in fruit and specific agriculture business sectors’, MOFPI;
1998.

NFI Archive Report (2003): ‘Horticulture is the future, Post harvest technology: Making the
most of what we grow’; NFI archives, 2003.

TIFAC Report (2000): ‘Agro-food processing: technology vision 2020: fruits and vegetables-
current status and vision’, TIFAC report; 2000.

Sources of secondary information

1. The little green and red data book series by World Bank publications.

2. FAO production year book series by UN publications.

3. International Trade Center statistics from www.itc.com, the official website of ITC
(International Trade Centre).

4. Official website of DGFT (Directorate General of Foreign Trade) of India.

******