final banana project

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PROJECT REPORT ON “DEMAND ANALYSIS AND OPPORTUNITIES TO EXPORT BANANA FROM MAHARASHTRA TO EUROPE” MAHARASHTRA STATE AGRICULTURE MARKETING BOARD MAHARASHTRA STATE AGRICULTURE MARKETING BOARD (MSAMB) Submitted By, MR. YOGESH NARHARI WAGH Roll No- 256 POST GRADUATE DIPLOMA IN AGRI BUSINEES MANAGEMENT, 2 nd SEMESTER University of Mumbai’s Garware Institute of Career Education and Development, Vidyanagari Campus, Kalina, Santacruz (E) Mumbai - 400 098 January 2011 1

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Page 1: final banana project

PROJECT REPORTON

“DEMAND ANALYSIS AND OPPORTUNITIES TO EXPORT BANANA FROM

MAHARASHTRA TO EUROPE”

MAHARASHTRA STATE AGRICULTURE MARKETING BOARDMAHARASHTRA STATE AGRICULTURE MARKETING BOARD(MSAMB)

Submitted By,

MR. YOGESH NARHARI WAGH

Roll No- 256

POST GRADUATE DIPLOMA IN AGRI BUSINEES MANAGEMENT, 2nd SEMESTER

University of Mumbai’s

Garware Institute of Career Education and Development,

Vidyanagari Campus, Kalina, Santacruz (E) Mumbai - 400 098

January 2011

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Certificate of msamb

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DECLARATION

I herby state that the present project report entitled “Demand Analysis and

Opportunities to Export Banana from Maharashtra to Europe” is my original

contribution and same has not been submitted on any previous occasion. To the best of

my knowledge, the present study is the first comprehensive work of its kind from the

area mentioned.

This project would be organisation’s property and the project details kept

private and confidential.

Place- Pune Yogesh Narhari Wagh

Date- 17/02/2011 (PGDABM, 2nd Semester,

Roll No- 256)

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CERTIFICATE OF APPROVAL

It is certified that this project report entitled “Demand

Analysis and Opportunities to Export Banana from

Maharashtra to Europe” is a record of project work done

independently by Mr. Wagh Yogesh Narhari under my

guidance and supervision in the partial fulfilment of his Post

Graduate Diploma in Agri-Business Management

(PGDABM), submitted to Maharashtra State Agricultural

Marketing Board Pune and Garware Institute of Career

Education & Development, Mumbai University and that it has

not previously formed the basis for the award of any degree,

fellowship or associate to him.

Mr. Ashok Govande

Placement Officer,

PGDABM

GICED, University of

Mumbai

Santacruz (E), Mumbai

Mr. Shirish

Patil

Course

Coordinator, PGDABM

GICED, University of

Mumbai

Santacruz (E),

Mumbai

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ACKNOWLEDGEMENT

I would like to extend my gratitude to Maharashtra State Agricultural

Marketing Board, Pune and Garware Institute of Career Education and Development,

Mumbai for giving me opportunity to do the project.

It is with great sense of satisfaction, I present this study titled “Demand Analysis

and Opportunities to Export Banana form Maharashtra to Europe” is my original

contribution and which I successfully completed as per the guidelines of the college &

MSAMB, Pune.

I am very grateful to the Director Mr. Arun Kshirsagar, the Course Coordinator

Mr. Shirish Patil, Faculty Guide Mr. Ashok Govande and Project Guide Mr. Bhaskar Patil,

Manager (Public Relation & Publicity) for motivation and their valuable guidance. I am

extremely indebted to my mentor Mr. Bhaskar Patil (Manager Public Relation & Publicity)

for their support, motivation, guidance & encouragement and also their expert and timely

advice towards the completion of the study. I would like to convey my gratitude towards

them for being so appreciative.

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EXECUTIVE SUMMARY

Importance of Study-

India is a second largest producer of fruit in the world . There has been significant

increase in the export of fresh fruits during the past few years.Banana is the most

important fruit crop of India having great socio-economic significance. It contributed

31% of the total food production in India. World production of banana is estimated at

48.9 million tonnes out of which 10.4 million tonnes, is contributed by India. India ranks

No.1 in production followed by Brazil (5.5 million tonnes), Indonesia (2.3 million

tonnes), Philippines (3.8 million tonnes), China (1.9 million tonnes) and Australia (1.8

million tonnes). In India, Maharashtra state is the largest banana producing state

followed by Tamil Nadu, Gujarat, Assam, Andhra Pradesh and others. In Tamil Nadu

banana is cultivated in 83,308 ha with an annual production of 2,782 million tonnes.

The productivity in Tamil Nadu is 33.39 tonnes/ha compared to 38.1 tonnes/ha in

Gujarat. In spite of being one the largest productions of fruits & vegetable in the world,

the export & marketing competitiveness among the Indian producer remains low. India

is still lagging behind in actual export of these produces.

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By considering this fact, market research was conducted with the objective to study,

how to enter in foreign market, reducing the competition & getting maximum price for

our banana in International market. Also there are huge opportunities to export banana

from Maharashtra to Europe which are focused here.

Primary data was collected from MSAMB’s Banana Export Facility Center, Baramati. And

secondary data collected was collected from different sources like reports, journals,

articles, books etc from different sources like institutes/offices/libraries/internet.

Objectives of study-

The specific objectives of the study are:

To study market analysis for banana in Europe.

To study procedure & requirements for export of banana to Europe.

To explore the potential of Maharashtra for banana export.

Findings of study-

About Market Research

-The global production of banana is around 76,436 thousand tons of which India

contributes 24.5%. Besides India, other major banana producing countries are Brazil,

China, Philippines, Costa Rica and Ecuador. Globally, India is biggest exporter to

European Union and, trading 60-70% of the total world exports. So, the Philippine is our

most important competitor in world. . In India, its peak production is in all around a

year. Thus, India can export bananas in all months when there will be more demand and

less supply we can export bananas to Europe as compare to other countries.

Marketing channel: The banana grower’s use following marketing channels.

Export channel: Producer – Commission Agent – Exporter.

Domestic market channels: Producer - Commission Agent – Wholesaler –

Retailer – Consumer.

Marketing problems: Banana farmer has following marketing problems.

1) Viral disease.

2) Unavailability of transportation facilities.

3) Cheating by commission agent.

4) Lack of market information.

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Conclusion-

1) It is found that majority of banana grower prefer the Grade 9 variety due to its

export demand.

2) Most of the producers preferred Dubai market for export, because-

It is convenient for transportation,

There is a good demand for Indian fruits during Muslim festivals.

The quality control & restrictions are not so stringent

The time required for destination is less UK market.

Table of contents-

SR. No.

Title Page No.

Acknowledgement 5Executive Summary 6-7Table of contents 8-9

1. Introduction 111.1 Overview 101.2 Banana 10

1.2.1 General 101.2.2 Botany 101.2.3 Taxonomy 101.2.4 Morphology 101.2.5 Cultivation 121.2.6 Alternative uses 131.2.7 Medicinal Importance 13

1.3 Global Scenario of banana 141.4 Indian Scenario of banana 15

1.4.1 Productivity of banana in India 161.4.2 Harvesting Pattern in India 17

1.5 Maharashtra Scenario of banana 171.5.1 Major banana Producing Area 181.5.2 Varieties Grown in Maharashtra 181.5.3 Arrival patterns & Bahar treatment 20

1.6 Objectives 201.7 Introduction of MSAMB 21

2. Methodology2.1 Data Collection

2.2.1 Primary data

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2.2.2 Secondary data2.3 Analysis of data

Sr. No.

Title Page No.

3 To Study Market Analysis for Banana in Europe 25-393.1 PEST Analysis of Europe 25

3.1.1 Europe: Political Overview 273.1.2 Europe: Economic Overview 313.1.3 Europe: Social Overview 323.1.4 Europe: Technology Overview 35

3.2 Consumer Behaviours in Europe 373.3 Demand Analysis for banana in Europe 39

4 Export Procedure & Requirements 374.1 Export Procedure 384.2 Requirements for Export 44.3 EUROGAP Certificate 46

5 Potential of Maharashtra for Banana Export 456 Findings, Suggestions & Suggestions 50

6.1 Findings of Study 466.2 Suggestions 486.3 ConclusionReferences 53

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CHAPTER-1

INTRODUCTION

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BANANA

 

INTRODUCTION

Banana (Musa sp.) is the second most important fruit crop in India next to mango. Its

year round availability, affordability, varietal range, taste, nutritive and medicinal value

makes it the favorite fruit among all classes of people. It has also good export potential.

Origin

Banana evolved in the humid tropical regions of S.E.Asia with India as one of its centers

of origin.

Economic Importance

Banana is a very popular fruit due to its low price and high nutritive value. It is

consumed in fresh or cooked form both as ripe and raw fruit. Banana is a rich source of

carbohydrate and is rich in vitamins particularly vitamin B. It is also a good source of

potassium, phosphorus, calcium and magnesium. The fruit is easy to digest, free from fat

and cholesterol. Banana powder is used as the first baby food. It helps in reducing risk

of heart diseases when used regularly and is recommended for patients suffering from

high blood pressure, arthritis, ulcer, gastroenteritis and kidney disorders. Processed

products, such as chips, banana puree, jam, jelly, juice, wine and halwa can be made

from the fruit. Banana fiber is used to make items like bags, pots and wall hangers. Rope

and good quality paper can be prepared from banana waste. Banana leaves are used as

healthy and hygienic eating plates. 

Cultivation of banana-

 Agro-climatic requirements

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 Banana, basically a tropical crop, grows well in a temperature range of 150C – 350C

with relative humidity of 75-85%. It prefers tropical humid lowlands and is grown

from the sea level to an elevation of 2000m above m.s.l. Deep, rich loamy soil with pH

between 6.5–7.5 is most preferred for banana cultivation. Soil for banana should have

good drainage, adequate fertility and moisture. Saline solid, calcareous soils are not

suitable for banana cultivation. A soil which is neither too acidic nor too alkaline, rich in

organic material with high nitrogen content, adequate phosphorus level and plenty of

potash is good for banana.

Varieties Cultivated

Showing the varietal characteristics of commercially grown banana varieties

Variety Description

Grand

Naine

It is most accepted international variety. It is a tall statured plant and a

heavy yielder with long cylindrical bunch. On an average it produces a

bunch weighing 25 kg and may go up to 32-35 kg, with 8-10 hands with

200-220 fruits/bunch. The length of the fruit is 15-21 cm and girth is

12-13 cm.

Robusta It is normal statured with black brown blotches on the stem, bunches

weigh around 20 kg having 8-10 hands/bunch. The length of the fruit is

15-20 cm and girth is 12 cm with thick fruit skin

Dwarf

Cavendish

The plant stature is dwarf. Dark black brown blotches appear all along

the stem. Bunches are large with compactly arranged 8-10 hands

weighing about 20kg. Length of fruit is 13-14 cm and girth 8-10 cm. Skin

is thick and the fruit tapers gradually towards the tip. It is not fit for

export.

Red banana The plant is tall and robust statured. The colour of the fruit, pseudo

stem, petiole and midrib is purplish red. The bunch weight is 20-25 kg

with 6-7 hands and 80 fruits/bunch. The length of the fruit is 16-18 cm.

Nendran There is considerable diversity in plant stature. Bunch has 5-6 hands

weighing about 6-12 kg. Fruits have a distinct neck with thick green skin

turning buff yellow on ripening. Fruits remain starchy even on ripening.

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Land Preparation

Prior to planting banana, green manuring crop like daincha, cowpea etc. may be grown.

The land can be ploughed 2-4 times and leveled. Ratovator or harrow is used to break

the clod and bring the soil to a fine tilt. During soil preparation basal dose of FYM (about

50 tonnes/ha. before last harrowing) is added and thoroughly mixed into the soil.

Planting Material

About 70% of the farmers are using suckers as planting material while the rest 30% of

the farmers are using tissue culture seedlings. Sword suckers with well develop

rhizome, conical or spherical in shape having actively growing conical bud and

weighing approximately 450-700 gm are commonly used as propagating material.

Treatment of planting material

The roots and base of the planting material may be removed. The suckers are dipped

in a solution of 0.5 % monocrotophos and bavistin (0.1%) before planting.

Planting season

State Planting time

Maharashtra ·         Kharif - June – July

·         Rabi - October – November

Tamil Nadu ·         February – April

·         November – December

Kerala ·         Rainfed- April-May

·         Irrigated crop- August- September

5.5.4 Spacing

 

 

Season Spacing

Kharif 1.5 x 1.5 m., 2 x 2 m. or 2.5 x 2.5 m.

Rabi 1.5 x 1.2 m., 1.5 x 1.37 m.

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Irrigation

 Banana being a succulent, evergreen and shallow rooted crop requires large quantity

of water for increasing productivity. In winter, irrigation is provided at an interval of 7-

8 days while in summer it should be given at an interval of 4-5 days.

Drip Irrigation

Application of irrigation through drip system helps to maintain the proportion of soil air

and soil water which results in early and vigorous growth of bunches. Raw bunch gets

matured earlier by 30-45 days and yield is increased by 15-30 % and 58-60 % of water

is saved on irrigation, weed is less, cost on intercultural operations is saved and water

soluble fertilizers can be applied. Drip irrigation may be given @ 15 lit/plant/day from

planting to 4th month, 20lit/plant/day from 5th month till shooting stage and 25

lit/plant/day from shooting till 15 days prior to harvest.

De-suckering

Removal of unwanted suckers is a critical operation in banana for reducing internal

competition with the main plant. Small suckers are removed on regular basis up to 7-8

months.

Harvesting and Yield

 Banana is harvested when the fruit is slightly or fully mature depending on the market

preferences. For long distance transportation, harvesting is done at 75-80 % maturity.

The fruit is climacteric and can reach consumption stage after ripening operation.

Variety-wise average yield of banana (tonnes/ha.)

Varieties Average yield

(tones/ha.)

Basrai, Rasthali 40-50

Shrimanti 70

Grand Naine 65

Ardhapuri , Meanyham 55

Hirsal, Safed Velchi, Red banana, Lal Velchi 45

Poovan 40-50

Monthan 30-40

Dwarf Cavendish , Robusta Champa & Chini desi 50-60

Nendran 30-35

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Global Scenario

1.2.1 World Banana Production Overview

World banana production has been concentrated in developing countries. Around 98

per cent of banana production is contributed only by developing countries and are the

exporters of bananas. Developed countries are the usual destination for export of

bananas. Though, in the year 2008, 130 countries were identified as banana producer,

the production was highly concentrated in few countries viz., India, China, Philippines,

Brazil and Ecuador. These countries alone contributed more than 60 per cent of world’s

total banana production. In year 2008, total production of banana was 97.37 million MT

and total area under banana cultivation was 8.25 million hectare o. India ranks 1st in

world in production with 21.8 million MT annual production from 0.62 million ha area.

India’s share in world banana production in 2007 was 26.8 per cent & productivity of

banana in India was 35 Tons per ha. Whereas the world banana productivity is only 14

MT per ha.

Major Banana Producing Countries

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Source: FAO STAT, 2008

World wide Area, Production and Productivity of banana

Source: FAO STAT, 2007-08

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World Banana Exports

The export of bananas is also concentrated in developing countries. The four leading

banana exporting countries in 2006 were Ecuador, Costa Rica, Philippines and Colombia

accounted for 64 per cent of world exports. In which Ecuador alone exported more than

30 per cent of global banana exports.

Figure: World banana exports (average of the 2002-2006 periods)

Source: UNCTAD Secretariat from FAO statistics

World Banana Imports

The main banana importing countries are the European Union, the United States of

America and Japan, which together accounted for more than 70 per cent of world’s total

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imports in 2006. The first ten banana importing countries accounted more than 80 per

cent from an historical perspective, banana imports are relatively concentrated. The

main importing areas are the European Union, the United States of America and Japan,

which together accounted for more than 70% of world total imports in 2006, while the

first ten banana importing countries represented more than 80% of total imports

(considering the EU as a whole).

Distribution of the world Banana importsAverage on the 2002 - 2006 periods

Source: UNCTAD Secretariat from FAO statistics

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Source: FAO STAT, 2007

Banana Trade Patterns

South America on an open market basis, that is, with no tariff or quantitative

Concerning the direction of trade in bananas, it is important to note that, due to the

importance of the different banana import regimes in the consuming countries, the

banana world trade has a clear regional character. They have led to a differentiation

among preferential markets and open markets for bananas, although this picture has

been changing somehow in the nineties. Transportation costs and time in banana

distribution also play a role in the regional fragmentation of the market. North

American banana imports come mainly from Central and restrictions.

Geographical distribution of USA banana imports, 1990-2007

Source: UNCTAD Secretariat from COMTRADE statistics

Indian Scenario

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In India banana ranks 1st in production & 3rd in area after mango and citrus. Indian

banana productivity is also reasonably better than many banana producing countries.

India produces export quality fruits but lagging in handling and maintaining the quality

after harvest. Therefore, India’s presence in international market is insignificant since

decades. India hardly exports 0.1 million MT every year. In year 2007-2008, India's

banana production was 232 lakh metric tons. The major banana growing states are

Tamilnadu, Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Bihar, West Bengal,

Madhya Pradesh, Assam and Kerala. (NHB-2008)

1.3.1 Banana production in India

In India, area and production share of banana is 12 per cent and 32 percent of the total

area under fruit crops and total fruit production respectively. Average productivity of

banana in India is 35 Tons per ha. In year 2007-08 the 20 major top ten banana growing

states were Tamilnadu, Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Bihar, Bihar,

West Bengal, Madhya Pradesh, Assam and Kerala

State wise production of banana in India

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Source: National Horticulture Board-2008

Total banana production in India in the year 2007-08 was 23205 thousand MT. In India

Tamilnadu ranks 1st in production i.e. 6116.50 thousand MT and share in total banana

production was 26.36 per cent. Maharashtra ranks 2nd in banana production it

produces 4962.90 thousand MT & share was 21.39 per cent.

1.3.2 Exports of banana from India

Indian bananas are mainly exported to Gulf countries which are the nearest market.

India’s export share in total world banana export is only 0.1 percent. India hardly

exports 0.1 million MT every year. Total export of banana from India in 2007-08 was

166.62 lakh MT. In year 2007-08 Indian bananas were mainly exported to UAE, Nepal,

Saudi Arebia, Baharin, Kuwait, Maldives, Qatar, Oman, UK, Bangladesh, etc.

Exports of banana from India

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Source: DGCIS Annual report 07-08

Total export of banana from India in 2007-08 was 166.62 lakh tons. Out of the total

exports 52.65 lakh MT bananas exported to United Arab Emirate (UAE), 48.67 lakh MT

to Nepal, 19.11 lakh MT to Saudi Arabia, 10.11 lakh MT to Baharin & 9.16 lakh MT

banana to Kuwait.

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Harvesting season of crop in leading states

Harvest season of banana is depicted below (in 12 months).

STATES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECTamil NaduMaharashtraAndhra PradeshKarnatakaBiharAssam

STATES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECGujaratMadhya PradeshWest Bengal

Figure- The above graph showing harvest pattern in leading banana growing states.

1.3.3 Banana Production & export overview Maharashtra

In Maharashtra major banana growing area are Jalgaon, Dhule, Latur, Hingoli, Nanded.

The area under banana crop during 2007-08 was 72200 ha. With an annual production

of 49.62 lakh MT. Maharashtra ranks second in the country in respect of area & also

second in respect of the production. The productivity was 62.9 MT per ha. Which was

the highest in the country? Maharashtra occupies the 14 per cent area of the country

under banana but contributes 28 per cent in banana production. Commercial

production is undertaken in Maharashtra state and the same is marketed all over the

country. MSAMB is taking keen efforts to promote banana exports from Maharashtra by

encouraging contract farming and the use of modern technologies. Maharashtra is

gearing up to take a share in the international banana market. MSAMB has taken

initiative to set up three export facilitation centers one is at Savada, Tal- Raver, Dist-

Jalgaon,Shivleela nagar Tal-Indapur,Dis-pune and another is at Basmat (Hingoli). Akluj

area is important banana growing zone, farmers in this area are much aware about

quality production and export of banana. Three major export companies are active in

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this area viz., Unifrutti, Mother Dairy, Krushi Vikas Export. These companies purchase

the bananas directly from farmers and export it to Dubai and Saudi Arebia. Also due to

the conversion of onion export facility centre in to ‘Banana export facility centre’ at

Indapur and availability of this centre, facilitated Unifrutti company to start their

second pack house unit for export of banana from Akluj area.

Objectives of study-

The specific objectives of the study are:

To study market analysis for banana in Europe.

To study procedure & requirements for export of banana to Europe.

To explore the potential of Maharashtra for banana export.

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Introduction of MSAMB

The Maharashtra State Agricultural Marketing Board (MSAMB), Pune was established

on 23rd, March 1984, under section 39A of Maharashtra Agricultural Produce

Marketing (Development & Regulation) Act, 1963. MSAMB has done pioneering work in

the field of Agricultural Marketing in the State and achieved success in various areas.

MSAMB is having an important role in developing and coordinating agricultural

marketing system in the State of Maharashtra.

Contact- Managing Director/General Manager

Maharashtra State Agricultural Marketing Board

R-7, Market Yard, Gultekadi,

Pune 411 037.

Maharashtra, India

Tel: 020 2426 1190, 2426 8297

Fax: 020 2427 2095

E-Mail: [email protected]

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CHAPTER-2

Research

Methodology

Introduction-

Banana is an important fruit crop of Maharashtra. It is cultivated in an area of 43,151 ha

with a total production of 4, 31,510 tonnes producing about 85% of the total Indian

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production, thereby leading in Banana production in the country. Within Maharashtra,

production of Banana is mainly concentrated in the Western Maharashtra region and

the Marathwada region & this area is very close to Mumbai, which reduces the

transportation cost. The variety Ganesh, Bhagwa (Red Ruby) cultivated in Maharashtra

is suitable for export purposes. At present fair amounts of exports of Banana takes place

from the state in Reefer containers by sea. So, there is huge scope to export banana from

Maharashtra to Europe.

Design of study-

The study was conducted in 3 major steps;

i. Survey & data collection,

ii. Analysis of the data,

iii. Preparation of Project Report

International Market Research Process-

Marketing research is a systematic analysis of information relevant to the identification

& solution of any problem in the field of marketing. The marketing research process

begins with the recognition of a marketing related problems, followed collecting the

information of objective of the study & methodology, finally analyze that information

take output in form of conclusion. PEST is well know & widely applied tool for

international market research, which is used here to study the European market.

Location of study- European Market,

Data Collection-

1) Primary Data- Primary data is collected by the face to face interviews of

officers of different organizations, like-

Maharashtra State Agricultural Marketing Board, Pune

Banana Export Facility Center, Baramati

MCCIA, Pune

KVK, Baramati

2 ) Secondary Data- Secondary data is collected from different like, web sites of

MSAMB, APEDA, MAHAANAR, MCCIA & MPKV Rahuri. Several other magazines

like Krishi Panan Mitra, Dalimb Vrutt and other search engines like Google.

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cHAPTER-3

MARKET RESEARCH

3.1. PEST Analysis-

PEST is well know & widely applied tool for international market research, which is

used here to study the European market.

3.1.1 Europe- Political overview-

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The EU & EFTA: An Introduction-

The EU and EFTA together consist of 31 European countries, which subsequently form a

market of more than 510 million potential consumers.

EU (European Union)-

The European Union (EU) is a group of European countries, committed to working

together. Its Member States have set up common institutions in which they share some

of their decision-making so that specific matters of joint interest can be made at

European level. The idea for a European Union was conceived in 1950 with a co-

operation between 6 Member States, which was mainly concerned with trade and the

economy. Nowadays, in 2010, the EU embraces 27 Member States and almost half a

billion people, and it covers a wide range of issues that are significantly important in

everyday life.

This has been advantageous to the Member States of the EU in terms of:

• Trade between EU countries

• Removing technical barriers to trade

• Opening new markets for public contracts etc.

• Eliminating queues at border crossings.

Since it’s founding nearly 60 years ago, the EU has been likea magnet, attracting a

constant stream of new members, achieving its historic and successful expansion from

15 to 25 Member States in May 2004. The last two Member States joined in 2007,

making the current number of Member States 27.

Member States

• Belgium, France, Germany, Italy, Luxembourg, The Netherlands (joined 1952)

• Denmark, Ireland, United Kingdom (joined 1973)

• Greece (joined 1981)

• Portugal, Spain (joined 1986)

• Austria, Finland, Sweden (joined 1995)• Cyprus, Czech Republic, Estonia, Hungary,

Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia (joined2004).

• Bulgaria, Romania (joined 2007)

EFTA (European Free Trade Association)-

The European Free Trade Association (EFTA) is an intergovernmental organization set

up for the promotion of free trade and economic integration to the benefit of its four

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Member States. EFTA was formed in 1960 as a response to the formation of what we

today know as the EU. Some countries which did not participate in the EU formed EFTA

and took similar steps towards a better trade climate between the Member States. EFTA

has seen several changes in its members, with several countries joining to later leave to

join the EU.

Member States

• Norway and Switzerland (joined 1960)

• Iceland (joined 1970)

• Liechtenstein (joined 1991)

Figure: EU and EFTA Member States

- EU

- EFTA

Single Market & Customs Union-

The EEA, European Economic Area, combines the 27 EU Member States and the EFTA

states (except for Switzerland) in an internal, or single, market, where the participating

countries follow the same basic rules. This entails the free movement of goods, services,

people and capital. In other words: products accepted on one EEA market are also

granted access to the other EEA markets. The Customs Union is an important aspect of

the single market. It means that there is a general application of common rules at the

external borders of the single market. Custom duties and tariffs are the same in all

countries when a product enters from outside the area. Switzerland does not belong to

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the EEA, but it does have a number of bilateral agreements with the EU. Switzerland

largely follows EU legislation with impact on international trade, including product

legislation.

Taxes

The EU tax system is not harmonized between the Member States (meaning each EU

country has its own tax system), but there are certain common rules that must be

respected. VAT (Value Added Tax) rates have been partially aligned, but there are still

differences between Member States.

Trade rules & Agreements (WTO - Trade rules and Agreements)-

The EU and EFTA are part of the global trade environment, and trade practices

introduced and handled by the EU and EFTA must be in line with international

practices. The World Trade Organisation (WTO) is the main organisation that deals with

international trade rules. These rules include WTO trade agreements such as the GATT,

GATS, TRIPS, SPS and TBT as well as individual countries’ commitments to lower

customs tariffs. The WTO is composed of governments and political entities (such as the

EU). Today, in 2010, the WTO includes 153 members. A vast majority of these members

are developing countries.

The Doha Development Agenda started in 2001, and it provides a platform where global

trade can be discussed between the members, and where developing country needs

are given special attention.

Internationally accepted standards-

1. Codex Alimentarius: This is the most important international organisation

which establishes internationally recognized standards related to food safety.

Although the Codex standards are not mandatory, the EU uses them as a basis for

the development of its own food policy and standards. EU legislation frequently

refers to the Codex as the basis for the established requirements.

2. ISO (International Organisation for Standardizations)-

The ISO has set up technical regulations for a number of product groups.

These are widely used and often requested by (European) buyers.

Legislation-

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Consumer safety is the main driver behind legal product requirements. In addition,

reducing the negative impact products might have on the environment has increasingly

Become an important factor when setting product legislation. One of the aspects of the

single market is the freedom of movement for goods. This means that a product

accepted in

One country is also granted access to another country within the single market. For this

to function optimally, legal product requirements must be harmonized. This is also what

the EU/EEA is aiming at, and the countries have come a long way in terms of

harmonisation. Switzerland, though not a Member of the EU/EEA, has also taken steps

to keep in line with EU/EEA legal requirements.

Agriculture: General food safety has been outlined in the framework General Food

Legislation, and in accordance, all food must be safe. To guarantee this, the general

principle of only checking the product entering the EU/EFTA region has in practice been

Extended to include hygiene and traceability measures throughout the chain. Norway

and the other EFTA countries participating in the EEA are in line with EU food

legislation. In Switzerland, different legal acts form a legal environment which

corresponds to that of

The EU, and products accepted in the EU or one of the EFTA Member States have access

in all of the EU/EFTA countries.

What does this mean for you as an exporter?

Legal requirements form the minimum set of requirements for all products entering the

market. Products which fail to meet these requirements are not allowed market entry!

In developing countries.

Europe- Economic Overview:

The European Central Bank (ECB) was established in 1998 to guide the monetary and

fiscal activities of the participating Member States. These EU Member States have gone

further

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In their cooperation than the Customs Union and single market and participate in the

European Monetary Union, or EMU. In 1999, the participating Member States fixed the

exchange rates of their currencies to the Euro, giving birth to the “Euro-zone”. The euro

(€) is probably the EU’s most visible achievement. It is the single currency, now shared

by 16 Member States, representing over two thirds of the EU population. These 16

countries make up the Euro-zone, where the euro is used as common currency.

Economic performance

The EU and EFTA countries experienced years of continued economic growth, until the

financial crisis brought an end to it in 2009. The economy is expected to begin to

recover

With growth forecasted already for 2010.

Figure: GDP per capita in Purchasing Power Standards compared to EU-27 (=100)

International trade

The EU is the major player in world trade, and it is ahead of the United States and China.

The most important trading partners are the United States, China and Russia. After

years of growth, both imports and exports saw a decrease in 2009 as a result of the

financial crisis. In September 2010, the EU reported that the European economy was

recovering faster than expected. The EFTA states, with Switzerland and Norway as main

markets, show similar developments.

What does it mean for you as an exporter?

Economic growth leads to an overall increase in demand. At the same time, exchange

rates will have an influence on trade: a strong currency means that imports will become

attractive as these are relatively cheap, whereas a weak currency will make imported

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goods relatively expensive. Exchange rates also give rise for uncertainties in

international trade. The Euro-zone helps to eliminate these uncertainties among the

participating countries.

Europe- Social Overview-

For over half a century, the European Union (EU) has brought political stability and

economic prosperity to its citizens. It has created a frontier-free single market and a

single currency, the euro. EU membership has grown from 6 to 27 nations, combined

with the four EFTA countries (Switzerland, Norway, Iceland and Liechtenstein) this

brings the total population of Europe to over half a billion. If you are prepared and

willing to explore new markets, then this should create opportunities for you as an

exporter. The EU alone is the major exporter in the world and the second largest

importer. The European Union is also an important trading partner for less developed

countries, most of whose exports enter the EU duty-free or at reduced rates of duty.

Population-

The population profile is expected to age in basically all of the European regions.

Between 1960 and 2008, the proportion of older people (65 years and older) in the EU-

27 population has risen from 10 % to 17 %. According to Euro stat’s projections, this

trend will continue. The largest percentages of elderly people in 2060 are expected to

be found in Poland (36.2 %), Slovakia (36.1 %), Romania (35.0 %), Lithuania (34.7 %),

Latvia (34.4 %) and Bulgaria (34.2 %), and the lowest in Luxembourg (23.6 %), the

United Kingdom

(24.7 %) and Denmark (25.0 %).

Population Density

The population of Europe is not very evenly distributed, some countries are more

densely populated than others, and all of the countries contain both rural and urban

areas. This is partly determined by geographical factors, in the far north it is very cold

and dark in the winter, and access to the sea for transport is at a great distance;

likewise, many cities have grown in places where possibilities for commerce are

geographically favourable.

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Figure: Population Density in Europe

Changing life styles

However, it is not only the population profile that is changing. The number of

households, women working and education levels is also changing. To start with the

education level, the European-wide trend is that the level of education is becoming

higher. More and more people have a university degree or have graduated from other

higher education institutes. Women are well-represented in higher education, with

more women enrolling than men.

In addition, women are increasingly employed, thus making them more and more

financially independent.

What does this mean for you as an exporter?

• Ageing population: the opportunities for selling products that offer comfort, that

have an ergonomic design and that can be used during leisure time will increase. The

same is true of products designed to meet the demands of the elderly.

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• Immigrants: This segment of the population can serve as a gateway for introducing

new flavours, tastes and styles from different parts of the world. They are already

familiar with what is new to Europeans and they can thus act as ambassadors.

Moreover, as Europeans are confronted with new and different cultures, their interest

and willingness to try out new things will increase.

• Rising number of small households: The demand for one-person packages is on the

rise and what is generally required for setting up a household.

• Working women: As women become more financially independent, they spend their

money on products that appeal to them (fashion, home design). A side effect of this is

that time tends to become scarcer, which in turn gives rise to an increasing demand for

convenience products.

Europe- Technology overview-

Infrastructure-

The functioning of the European internal market & the close trade relations between

member states are supported by a dense & diverse transport infrastructure. Road

transport is the most important mean of transportation for goods within the Europe

accounting almost half of all transport, maritime transport comes second, & railway

third. 2000-2006 was € 859 billion. There are several entry points into Europe. The

single

Market and customs union mean that entering goods will follow the same procedure

regardless of entry point. Sea

transport is by far the largest

mode of transport for goods

entering Europe. Europe has

some 1200 ports, the Port of

Rotterdam, the Netherlands,

being the largest one, followed by Antwerp, Belgium. The function of ports has

developed through the years to become logistics centres, offering services such as

storage, cool-chain services and processing of materials and goods. Air transport is the

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second most important means of transportation for exporting to Europe (in value). In

trade between European countries, air transport is very small. Frankfurt (Main),

Germany, is the largest European airport by in terms of freight traffic, followed by

Amsterdam, the Netherlands and London/Heathrow, the UK.

Transportation Details-

What does it mean for you as an exporter?

• Transport: Transport by sea is the most common mode of transport and the most

important one for exporters from developing countries. In some cases air transport may

be more relevant, e.g. in case of fresh produce. The point of entry may not be your final

destination, in most cases additional means of transportation will be needed for intra-

European transportation to the final destination.

• Investment in infrastructure: In addition to ensuring smooth transport between the

European countries, investments in infrastructure will mean increased demand from

the construction sector.

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CHAPTER-4

EXPORT PROCEDURE & REQUIREMENTS

EXPORT PROCEDURE OF BANANA

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An attempt has been made in this chapter to provide brief information regarding

Banana export procedure, export related issues and SWOT analysis.

Figure: Flow of Export Process-

A) Harvesting: Banana is harvested when the fruit is slightly or fully mature depending

on the market preferences. For long distance transportation, harvesting is done at 75-80

% maturity. The fruit is climacteric and can reach consumption stage after ripening

operation.

B) Weighing: According to the need of the export parameters weighing of fruits should

be done. The overweight and underweight fruits should be marked through domestic

channel.

C) Sorting: After proper harvesting and weighing fruits should be sorted according to

the export parameters preferred by the country. Sorting should be done according to

weight, colour, quality, size etc.

D) Cleaning and Brushing: After selecting the fruits for export, these fruits should be

properly cleaned to remove any dirt or unwanted waste. For better look of the fruits

brushing is done to enhance appearance and luster.

E) Drying: these selected fruits should be dried to expel extra moisture on surface to

avoid fungal diseases, packing of these fruits become easy and attractive.

F) Grading: By weight seizer: International grading based on size and color.

8. Criteria and description of grades

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According to Agmark standards banana is classified into following classes:

Table 7.7: Showing grade designation of banana as per AGMARK standards

Grade

designationGrade requirements Grade tolerances

Extra class Bananas shall be of superior quality.

They must be characteristics of the

variety and/or commercial type. The

fingers must be free of defects, with the

exception of very slight superficial

defects, provided these do not affect the

general appearance of the produce,

quality, the keeping quality and

presentation in the package.

5% by number or weight of

bananas not satisfying the

requirements of the grade,

but meeting those of for

Class I grade or,

exceptionally, coming within

the tolerances for that class.

Class I Bananas shall be of good quality. They

must be characteristics of the variety

and/or commercial type. The following

slight defects of the fingers, however,

may be allowed, provided these do not

affect the general appearance of the

produce, quality, the keeping quality and

presentation in the package. - slight

defects in shape and colour; - slight

defects due to rubbing and other

superficial defects not exceeding 2 sq.cm.

of the total surface area

10% number or weight of

bananas not satisfying the

requirements of the grade

but meeting those of Class II

or, exceptionally, coming

within the tolerances of that

grade.

  The defects must not affect the flesh of the fruit.  

Class

II

This includes bananas which do not qualify for

inclusion in the higher classes, but satisfy the

minimum requirements. The following defects

may be there, provided the bananas retain their

essential characteristics as regards the quality,

the keeping quality and presentation. - defects in

shape and colour provided the product remains

10% by number or weight

of bananas not satisfying

the requirements of the

grade, but meeting the

minimum requirements.

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the normal characteristics of bananas; - skin

defects due to scrapping, scabs, rubbing,

blemishes or other causes not exceeding 4 sq.cm.

of the total surface area; The defects must not

affect the flesh of the fruit

G) Packing

Provisions concerning sizing

(i) For the purposes of sizing bananas, the length of the fingers is determined

along the outside curve from the blossom end to the base of the pedicel where

the edible pulp ends and the diameter is defined as the thickness of a

transverse section between the lateral faces. The reference fruit for

measurement of the length and grade is:

- for hands, the median finger on the outer row of the hand,

- For clusters, the finger next to the cut section of the hand, on the outer row of

the cluster.

(ii) The minimum length should not be less than 14.0 cm and the minimum

grade not less than 2.7 cm.

(iii) For all classes, 10% by number or weight of bananas not satisfying the

sizing characteristics, up to a limit of 1 cm for the minimum length of 14 cm.

. Packaging and its details

(a) For export

41

Country Middle EastVariety

Grand Naine Cavendish

Colour  : Green

Weight of Bunch :2.5 Kg

Fruits preferably straightPacking 13 KgStorage 13-14 °CTransport By Sea

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For packaging bananas, telescopic boxes of 5 ply strength and of the following

dimensions need to be used-

Telescopic card board fibre boxes and other materials-

Top = 48.25cm X 31.75cm X 20.25cm -5 ply

Bottom= 47.50 X 31.25cm X 19.75cm -5ply

Gap plate= 3 ply

Foam sheet or foam pad= 20mm thick, 38cm X 25cm

size with 10 mm holes

Weight of final packed box is approximately 13.0 Kg

Source: Kay Bee Exports, Mumbai and Mahabanana, Jalgaon.

.

After the packing is done

Net weight

Fruit count inside the carton.

The cold storage where it is being sent.

Stamp impression.

For example if the impression shows 005970420, 0059 stands for the farmer code

given by the company, 7 stands for the year 2007, 04 stands for the month April and the

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last two digits 20 stand for the date. This helps in tracing back the produce of a

particular carton, to know the field from which it was brought.

Pallet: A pallet is made of 200 cartons packed together in20 layers of 10 cartons each.

Pallets helps in retaining the structure of the cartons and also protects the fruits from

getting damaged while transportation.

Pre-cooling: After packing and palletization of fruits, these pallets are kept in the pre-

cooling chamber at 130C to reduce the respiration rate and to increase shelf life.

Cold storage: For getting better price these fruits are kept in the cold storage at 130 C-

14oC.

Export destination: According to the demand place by the importing countries the ship

are unloaded.

BE AN EXPORTER

Establishment of Firm

For import or export of any item, Import - Export Code (IEC) is mandatory. For availing

IEC, establishment needs to be registered with appropriate authorities viz.

Proprietorship / Partnership / Private Limited Company / Public Limited Company /

Co-operative Society / Trust etc. IEC can be availed on individual name also. Current

Account in any Nationalized / Scheduled Cooperative / Multinational Bank, having a

foreign exchange facility, is required in the name of establishment.

Import - Export Code (IEC)

IEC can be obtained on submission of information in prescribed formats (Part A & Part

D) completed filled and signed addressed to “The Joint Director General of Foreign

Trade” (JDGFT), Pune / Mumbai.

Following SELF CERTIFIED documents should be enclosed with application.

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1. Firm / Establishment registration certificate - Photo copy

2. Permanent Account Number (PAN) from Income Tax Department - Photo copy

3. Banker's certificate in Part ‘B’

4. Two Passport size photographs of the Chairperson / Proprietor of the establishment.

Photos pasted on the Bank Certificate should be endorsed by the bankers.

5. Demand Draft for Rs. 1000/- favouring “Joint Director General of Foreign Trade”

payable at Pune or Mumbai as per the jurisdiction.

6. Declaration (As per the formats)

7. Memorandum and Articles of Association for Pvt Ltd Companies, Partner Ship Deed

for Partnership Companies etc.

8. A4 Size Envelope & Rs. 30/- Postal Stamp.

The forms completely filled in all respects to be submitted in ONE copy to The Joint

Director General of Foreign Trade at the addresses given below, by hand or by post

(Registered AD).

How to locate Importer?

An importer can be located through various searches. Following sources will be helpful

to find such importers.

Agricultural and Processed Food Products Export Development Authority

(APEDA),

Indian Trade Promotion Organisation (ITPO)

Mahratta Chamber of Commerce, Industries and Agriculture (MCCI & A)

After getting this information, exporter can directly approach to the importer

with the details of product, rate, packing etc through fax / email and negotiate

further to finalize the order. If necessary samples should be forwarded to the

importer and it should represent the material.

Mode of payment

Normally in the trade of agro exports (except onion, rice, other cereals, mango pulp),

importer normally don’t provide Letter of Credit (L/C). Such export is done on

consignment basis (payment as per actual sales). Exporters get the payment after

deducting port charges, transportation and commission etc. of the importing country. In

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certain countries export is undertaken on fixed rates. Market Credit of the importer

should be checked before entering into the trade. Importer's credit can be checked by

international credit organizations viz. Dun and Bradstreet. Export Credit Guarantee

Corporation of India (www.ecgc.in) ECGC also undertakes such type of credit

certification work along with Credit Insurance.

Trade for products like onion, rice, cereals, processed products is done through

Irrevocable 100% Letter of Credit (L/C) at site. Onion commodity is Canalized (i.e.

export allowed through designated agencies).

Customs / Excise Formalities and charges

For agro exports, excise duty is not applicable. Customs duty @ 1% with respect to the

cost of invoice is charged while processing the documents.

Understand the importers need

Quality parameters such as size, packing, temperature requirements should be obtained

from the importer before packing of the product. It is better to get requirement from the

importer in writing. Pack the material strictly as per the samples provided to the

importer. Confirm the standards of raw material, packaging material with the

importer’s requirement.

Procedure of shipment

Services of Customs House Agents (CHAs) to be booked to carry out necessary logistics

and paperwork required for export. Job like space booking for air exports, order for the

container, custom clearance, certificate of origin etc. is carried out by CHA. An efficient

and competent CHA should be appointed. Following is the list of documents required to

be provided to CHA.

Letter of Credit (If available)

Invoice

Packing List (If items are more)

Certificate of origin.

Phytosanitary certificate–Can be availed from Directorate of Plant Protection,

Quarantine and Storage, Ministry of Agriculture.

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Air transport charges are normally five times costlier than sea transport.

Perishable commodities like Banana, Mango, Orange, Grapes can be exported

through sea using 40 feet / 20 feet reefer containers. In certain commodities like

mangoes, Controlled Atmosphere (CA) / Modified Atmosphere (MA) containers

are also being used to enhance the shelf life of the product. Non-perishable and

semi-perishable items are exported through dry containers. Incase of onion

export, regular dry containers are used but their door left open when they gets

loaded on vessel.

Sales Proceed:

Sales proceed gets deposited in the bank in foreign currency. Exporter gets the

amount in Indian rupees after conversion of the foreign currency. Bank also

deducts the commission from the converted rupees. Bank also intimated the

exporter about the arrival of Foreign Exchange and generates Bank Realization

Certificate (BRC). Export documents including Shipping Bills, Export Promotion

(EP) copy should be retained by exporter. Credit worthiness of the importer is of

most importance. If by any chance the amount gets stuck by any chance, the issue

can be followed up with the help of ECGC or any private Debt Collection Agency

(DCA). Such agencies are available worldwide. D&B is also working as DCA. s

5.2 EUREPGAP CERTIFICATION FOR GOOD AGRICULTURAL PRACTICES:

Due to global expansion in food trade, the World Trade Organization (WTO) has set as

one of their objectives the opening up of trade between countries and aims to address

restrictive trade barriers. Sanitary and phyto-sanitary (SPS) issues have always been

important in global trade and have become one of the most important potential

Technical Barriers to Trade (TBT). Pests or pathogens may exist in one country but not

in another, thus ultimately resulting in restrictive TBT. In addition, food safety has

become one of the most important minimum requirements for future trade with

developed countries. The rapid increase in newly reported cases of outbreaks of food-

borne diseases particularly associated with fresh produce has been the primary drive

towards establishing minimum food safety standards. To be part of global trade in fresh

produce and food related products it will in future require compliance to some kind of

food safety assurance system.

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What is EUREPGAP CERTIFICATION?

EUREPGAP started as a retailer initiative in 1997 with major inputs and support from

the chemical companies. EUREPGAP was established by the Euro-Retailer Produce

Working Group (EUREP) with the aim of setting standard and procedures for the

development of Good Agricultural Practices (GAP).

What are the Objectives of EUREPGAP?

The main objective of EUREPGAP is, to lead the system to an EN 45011-based

accredited certification system, referring to the scope of "EUREPGAP Fruits and

Vegetables". Partners from the entire food chain for fruit and vegetable production have

agreed upon the EUREPGAP certification document and procedures, which were

achieved after extensive consultation over a three-year period.

Benefits -

Certification to EUREPGAP will become mandatory as from March 2003 for farms

growing produce for export to Europe, although the EC may allow some latitude in this

regard. At this point in time different certification systems could be required for export

to other countries such as the USA, and Australia. As Europe is our largest export

destination, EUREPGAP certification will in all likelihood become a minimum

requirement for entry into the EU market. However, it should be kept in mind that

additional retailer requirements will still have to be met. Discussions are already

underway to ensure harmonization between the different food safety schemes and

benchmarking will be essential to link the various systems. While certification to

EUREPGAP will result in additional costs to growers, there will be numerous benefits.

Long-term benefits include more motivated farm workers due to improved facilities,

training and better working conditions with a subsequent increase in living standards.

This would obviously also result in better productivity and outputs to the ultimate

benefit for the grower.

Other benefits include -

• More environmentally sound farming practices

• More judicious use of chemicals and

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• Most importantly a cost benefit to the grower due to better management practices

enforced by the standard.

Maharashtra State Agricultural Marketing Board the autonomous apex body has been

working effortlessly for Export Promotion M.S.A.M.B. helps to boost exports of farmers

by setting up of the Infrastructural facilities required for exports. For exporting certain

fruits to some European countries the farmers require to have Eurepgap (European

Retailer Parties for Good Agricultural Practices) certificate for exporting their produce.

M.S.A.M.B. by realizing the need of time has taken the initiative under the project of

FICCI and NORAD

organization to issue the Eurepgap certificates to the farmers. This has helped the

farmers from Maharashtra State in getting their Eurepgap certificates which will pave

the path to

capture the European markets for Mangoes & Bananas in the near future.

EXPORT SPECIFICATIONS FOR BANANA

Grand Naine

Varieties grown in Maharashtra Grand Naine, Shreemanti, Dwarf Cavendish, Basrai, Robusta, Lal Velchi, Safed Velchi, Rajeli Nendran, Red Banana

Availability Round the year

Major export potential UAE, Gulf countries

Varieties in demand Internationally Grand Naine, Cavendish

Area under Cultivation (Mah.) 57,000 Ha.

Production 36,07,590 MTs

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Table 7.9: Showing the annual average price range of banana in EU and GCC markets

Country Annual Average price range (2003-08) Currency

European UnionUSD/kg 0.64 to 0.67INR/kg 29.1 to 30.26

GCCUSD/kg 0.31 to 0.37INR/kg 14.17 to 17.01

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CHAPTER-5

EXPORT OPPORTUNITIES

5.1 Potential of Maharashtra to Export Banana

C. Export potential

Export potential of banana is presented and discussed region wise as below:

EU countries 

EU countries imported 7,149,513 tons of banana during 2006. Although India

exported 200 tons of banana to EU including Ukraine and Russia, however, there

is not much scope as large quantities of banana are exported by countries like

Ecuador, Costa Rica and Colombia in Central and South America and Cameroon in

Africa. Moreover, EU has special preferential agreement with African, Caribbean

and Pacific countries. Other countries exporting to EU have to pay tariff duties

and thus are not able to compete with them. There is some scope of exporting

banana to Russia and Ukraine provided we have some preferential arrangement

with these countries. There is potential for export of 5-10 thousand tons of

banana.

D. Measures for enhancing competitiveness for exports

Countries like Philippines in South East Asia and Ecuador and Costa Rica in

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Central America are better organized and have large sized banana plantations

owned by International companies. Therefore, to enhance competitiveness,

following measures need to be taken for making available quality banana of

international standard:

Production technology on modern lines needs to be demonstrated to the

growers on a massive scale.

Farmers need to be educated about export requirements and international

quality standard

Protocol for post harvest handling of Grand Naine, Nendran and Red banana

need to be perfected/ standardized for shipping to Gulf countries by sea.

Most modern packhouse facilities need to be created, to begin within Jalgaon

area in Maharashtra and also in Gujarat.

Banana holdings in India are very small and it is not possible to install cable

ways for transporting bunches from field to packhouses to avoid bruises. Under

these circumstances, groups of farmers need to be encouraged to have system of

make shift packhouses, to cut hands from bunches in the field itself and send

these hands to central packhouse for further processing /treatment and packing.

It will be advisable to have some working arrangements for ripening of our

banana arrivals in importing countries on a regular basis. In the long run, India

need to have its own ripening facilities in one or two countries to begin with.

It is suggested that training to packhouse workers about post harvest handling

technology and also about international quality standards must be imparted.

Present Status

Govt. of Maharashtra has announced the creation of an Agri Export Zone for

Banana covering the Districts of Jalgaon, Dhule,Buldhana,Nanded.

The MSAMB has been named the nodal agency by the Govt. of Maharashtra.

MoU (memorandum of Understanding) signed between Govt of Maharashtra and

Govt of India on 9th June 2003. Maharashtra State Agricultural Marketing Board

in coordination with State agricultural department, Local APMC and cooperative

societies continuously arranging training and demonstration programs in rural

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area to increase export quality production. The training booklet prepared with

the help of experts covering pre and post harvest technology of concerned crop

is circulated freely among farmers likewise-

During the year 2003-04, 2032 farmers were trained in 34 one-day training

programs.

During the year 2005-06, 2458 farmers were trained in 32 training programs.

In the current year MSAMB has planned to conduct 60 one day training

programs for farmers.

Investment-

MSAMB with the help of APEDA, New Delhi has started the Banana export facility

center at Indapur Dist- Pune.

The facility has following different units-

Precooling = 5 Mts.

Cold storage= 60Mts.Mechanical Handling System= 1.5 Mts/hr.

5.2SWOT analysis for export of fresh banana-

Strengths-

India is largest producer of banana, producing about 50% of the total world

production.

Banana production is largely concentrated in Maharashtra & adjoining

Karnataka, TN state contributing more than 90% of production in India.

The advantage is that this banana producing area is quite close to Mumbai port.

Indian cultivar has high sugar & low acid as compare to other banana. This can

popularized in gulf countries, Europe, Canada, & Far East countries.

Indian banana is very nutritive.

There is abundant supply of banana from Maharashtra in all seasons because

possibility of taking crop in all season so Maharashtra can export through the

year.

There is additional demand from foreign countries.

There is scope to increase additional area under cultivation of banana in

Maharashtra.

India is already exporting banana to a number of countries in gulf countries.

Weaknesses-

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The productivity of banana in Maharashtra is very low as compare to other

states. Although many of the agro-techniques for obtaining high yield of qualited

fruits have been standardized, but still much more remains to done & needs to

be taken to the farmer.

Extensions & dissemination of technology for increasing productivity is the

main weak link. Above all weak points is due to non availability of post harvest

infrastructure like modern pack-houses, reefer vans, pre-cooling facilities etc.

right in the production areas.

With the results, there are ample post-harvest losses.

Another weak link is that farmer/ exporter have no access to update

information on export/ import price trends in various importing countries of

the world.

Although Maharashtra can produce bananas throughout the year but the

external fruit colour as well as fruit quqlity fades in the month of April to

September especially local cultivar because of intense heat & high humidity &

rainfall which need to be eliminated by better varieties & agro-techniques.

Opportunities-

India is the largest producer of banana in the world, but has a share of only 5% of

the world export.

India has good varieties with good fruit quality and can supply almost

throughout the year & thus can become good player in export of bananas if

required steps are taken & infrastructural are provided.

Philippines is the biggest exporter to EU & to some extent to Gulf countries also

thus cornering 12% of the total world export.

Maximum availability of banana from Spain is in September to December months

& thus supply from Spain tapers from January onwards, & we have golden

opportunity here.

Virtually there are no supplies of banana from Spain during April to July months.

Whereas, production of banana in India is peak in the month of December to

March & continue

More than 32% of total banana production takes place in Maharashtra and

Gujarat states.

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Rainfall and humidity are quite less particularly in Maharashtra and also to

some extent in Gujarat state, resulting in lesser incidence of insects, pests and

diseases compared to Central and South America and South East Asian

countries.

A superior cultivar namely Grand Naine, well accepted in international market is

being cultivated in sizeable area in Maharashtra and Gujarat states.

Red banana cultivar which is preferred in some countries can create a market

for itself with support of display, campaign etc.

Banana is cultivated in sufficient acreage and in different agro-climatic

conditions and thus is in a position to meet the large demands from importing

countries on a continuous basis, provided planting and cultivation is well

planned.

Transfer of technology is easy as growers have organized themselves by forming

cooperatives/ associations and have branded their product as “Mahabanana”.

Agri Export Zone for promoting exports of banana has been established in

Maharashtra in Jalgaon area.

Post harvest handling facilities are available at a small scale at Navsari and

Borsad in Gujarat state.

Banana Export Facility Center with mechanical handling system has been set up

at Saavada in Jalgaon and Basmantnagar in district Hingoli in aharashtra state

Geographically, India is better placed compared to South East Asian, Central and

South American countries for exports to Gulf countries.

.

Threats-

Major threats to Indian exports are from Philippine & colambia especially to

European countries, as both these countries are able to supply at cheaper price

because of low freight costs. Therefore, our efforts have to be towards lowering

production costs by increasing productivity in order to make our export

competitive.

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‘Panama’ disease is most important threat for banana export, because it affects

the fruit of the plant.

Pesticides residues in fruit are also most important threat for banana export.

Most of the banana grown in the arid area where the surety of rain is very low

So the unsure rainfall is also important threat.

CHAPTER-5

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RESULT &

DISCUSSION

5.1 Findings of Study-

About Market Research-

Globally, Philippine, Ecuador, Costa Rica and Colombia is biggest exporter to European

Union and, trading of the total 64% world exports. So, the Philippine is our most

important competitor in world. In India, its peak production is during all around a year

so as compare to another country India can export any time and can earn more profit by

exporting banana.

Verities Grown in Maharashtra:

The area under Grade Naine is the highest than other verities, due to export demand in

European Union. Dwarf Cavendish has potential for export to gulf countries rather than

European Union. Dwarf Cavendish is not suitable for export but area under banana is

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increasing day by day. This may be due to the perception that Cavendish ,Grand Naine

variety is resistance for panama, Bunchy Top disease.

Marketing channel: The banana grower’s use following marketing channels.

Export channel: Producer – Commission Agent – Exporter.

Domestic market channels: Producer - Commission Agent – Wholesaler –

Retailer – Consumer.

Marketing problems: Banana farmer has following marketing problems.

1) Unavailability of transportation facilities.

2) Cheating by commission agent3) Lack of market information.

Conclusions-

1) It is found that majority of banana grower prefer the Grade Naine variety due to

its export demand.

2) Market channels- The banana grower’s use following marketing channels.

Export channel: Producer – Commission Agent – Exporter.

Domestic market channels: Producer - Commission Agent – Wholesaler –

Retailer -Consumer.

3) Most of the producers preferred Dubai market for export, because-

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It is convenient for transportation,

There is a good demand for Indian fruits during Muslim festivals.

The quality control & restrictions are not so stringent.

The time required for destination is less UK market.

4) UK market is more stringent for EU MRL (maximum residual limit) in banana, so

the produce, most of the times, doesn’t match that proper standard. Banana

farmer preferred UK market less than Dubai market.

5) Marketing problem: Banana farmer has following marketing problems.

Unavailability of transportation facility

Delay in payment

Lack of market information

Suggestions-

1. Pest / Diseases- Good Agricultural Practices should be promoted. Special

attention is needed on Viral diseases and mealy bug disease.

2. Awareness about pesticides- The banana farmers/traders and even exporters

are not aware about the pesticides. There is need to creating awareness about

the chemicals.

3. Awareness about harvesting & post harvest management- Awareness

generation on harvesting & post harvest management with due attention on

mechanized harvesting, sorting, grading, pre-cooling, waxing, packaging,

palletization etc.

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4. Awareness about EUROGAP certification & promotion of contact farming-

Awareness about EUROGAP certification & promotion of contact farming in

phased manner should be encouraged.

5. Export Promotion through AEZ- The AEZ on banana could to promote to

include export promotion of fresh banana as well as processed products.

6. Increase an exportable quality production- In long run, export of banana can

only be enhanced by increasing its exportable quality production. The measure

such as use of proper varieties, modern and highly improved cultivation

technology, efficient irrigation methods, optimum use of plant protection,

chemicals etc should be followed to produce required quality fruits in terms of

size, shape, colour, taste, chemical content etc.

7. Value addition through processing – Value addition through the processing of

banana and export of such products to other countries have enormous scope.

8. Training- Training programmes should be arrange for the banana farmers and

in these programmes give the training of exportable banana production and

show the demonstration of new technologies.

9. Mobile pack house- Mobile pack house are required, Mobile pack house means

a van or container which contains facility like washing, cleaning; drying, cooling,

packaging, etc. such mobile vans cater the need of small and scatter banana

growers.

10. Improved service for consistency in expert- Once we start the export,

consistency is necessary. Otherwise importers do not trust on us. Also through

improved service we can attract the customers toward our banana.

11.Online service- ‘Online Forms’ should be made available on MAHABANANA’S

through internet, international magazines and other possible means.

12.Packing and labeling – During export, packaging and labeling should be

attractive, economical and as per the need importer, size of boxes should in

different ranges according to the customers demand.

13.Residue testing system- It is recommended to strength then the residue

testing system especially, for export of banana to European countries.

14.Facilities of MSAMB- Growers should be take benefit from export facilities by

MSAMB for increasing export specification.

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15.Organic farming- Growers should carry organic farming because demand of

fresh organic banana fruits has increasing day by day.

REFERENCES-

www.msamb.com

www.cbi.nl.com

www.apeda.gov.in

www.wto.com

www.fao.com

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ANNEXURE-1 (Export Documents)

1. Invoice Format

Exporter: Address of the Exporter Phone Fax No.

Invoice No. Date

Exporters Ref.

Buyer’s Order No. Date Other reference(S)

Consignee : Address of the Importer Phone Fax No.

Buyer (If other than consignee) N.A.

Pre Carriage by Place of Receipt of per carrier

Country of Origin

Country of Final Destination

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of Goods

Vessel/Freight No. Port of Loading Terms of Delivery and Payment

Port of Discharge Final Destination

Marks No. Description Nos./cont. Goods

No. & Kind of package

Quantity Gr. Wt.

Rate US$ / carton

Amount US$

TOTAL NT WT : F O B  

GR WT. : FREIGHT  

AWB/B/L NO. : 

C & F

     

Total  

Amount Chargeable: (In words)

DeclarationWe declare that this invoice shows the actual price of the goods described and that all particulars are true and correct.

FOR <Name of the exporter>Signature & Date,

Authorized Signatory,

1. Packaging List-

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2. Certificate of Origin

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3.Global gap Certificate-

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5. Euro gap Certificate-

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ANNEXTURE-2

VISHESH KRISHI AND GRAM UDYOG YOJANA (VKGUY)-

(SPECIAL AGRICULTURE AND VILLAGE INDUSTRY SCHEME)

Objective

Objective of VKGUY is to promote exports of:

(i) Agricultural Produce and their value added products;

(ii) Minor Forest Produce and their value added variants;

(iii) Gram Udyog Products;

(iv) Forest Based Products;

(v) Other Products, as notified from time to time.

Entitlement

Duty Credit Scrip benefits are granted with an aim to compensate high transport costs,

and to offset other disadvantages. Exporters, of products notified in Appendix 37A of

HBPv1, shall be entitled for Duty Credit Scrip equivalent to 5% of FOB value of exports

(in free foreign exchange) for exports made from 27.8.2009 onwards, unless a specific

date of export / period is specified by public notice / notification. However, for exports

made w.e.f (with effect from) 27.8.2009, some Flowers, Fruits, Vegetables and other

products, as listed in Table 2 of Appendix 37A shall be entitled to an additional duty

credit scrip equivalent to 2% of FOB value of exports.

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