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Wednesday, August 01, 2001

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Fruit, vegetable losses alarmingly high

By Our Special Correspondent

HYDERABAD, JULY 31. A staggering 50 per cent of production of fruits and vegetables in India is lost due to wastage and value destruction, according to a joint study conducted by Mc Kinsey & Co and Confederation of Indian Industry (CII) recently. In monetary terms, the loss is estimated at over Rs. 23,000 crores per year.

This was revealed at a four-day workshop on ``Post- harvest handling & Technologies for fresh market agricultural produce'' which began here on Tuesday under the aegis of the State Horticulture Department and BHC Agro (India) Pvt Limited, promoted by the Israel-based multinational--BHC Manufacturing Company.

India ranks first few positions globally in the production of fruits and vegetables. It accounts for 8 per cent of the world's production of fruits and leads in mango, banana, cauliflower and greenpeas. But this premier position in production is not reflected in processing, value addition and exports.

Value added processed food in India accounts for only 2 per cent by volume and 10 per cent by value of the total production. Only 0.5 per cent to 1 per cent of the fruit and vegetable raw materials is processed in India compared to countries like Brazil and the U.S. with 70 per cent utilisation.

According to the conservative estimates of a working group of the Government of India, the projected investment requirement in the food processing industry up to the end of the current financial year is of the order of Rs. 28,250 crores. Of this, the fruits and vegetable processing industry alone requires Rs. 10,370 crores.

But the investments in this sector are so far minimal. It accounts for a dismal 1.3 per cent of the 77,000-odd crore food processing industry in the country.

Speakers at the workshop underlined the vast opportunities that existed for investment in fruits and vegetable processing units. It is established that fresh agri-produce loss reduction is cheaper than equivalent increase in production so far as economy, energy and impact on environment is concerned. Theoretically, one per cent post-harvest loss reduction of horticulture produce is expected to save Rs 230 crores annually.

Andhra Pradesh, the second largest producer of fruits, vegetables and flowers in the country next to Uttar Pradesh, is expected to take the lead, says its Agriculture Minister, Mr. Vadde Sobhandreeswara Rao. The State accounts for 11.5 per cent and 4.84 per cent of India's fruit and vegetables production respectively. Last year, the horticultural crops production in the State was estimated at over 9.42 million tonnes. The projection by 2020 is 33.11 million tonnes.

If the consumption level shoots up from the current 100 gm of fruit and 200 gm of vegetables per capita per day to at least the recommended dietary level of 140 gm and 270 gm respectively by 2010, the domestic market for fresh fruits and vegetables could be as large as Rs 50,000 crores at today's price structure, the Minister said.

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