Bananas

Banana, a US$ 500 Million Opportunity for India!!

India is the largest producer of bananas in the world, yet is ranked 20th in exports and has a meager 0.6% share in the global banana trade. If India adopts an export-oriented strategy to upgrade the value chain, create better agricultural practices, take a systematic approach to cultivation, better post-harvest handling, improve phytosanitary standards, and invest in product and packaging innovations the country can increase its exports four-fold and grab a spot among the top ten exporters.

India’s exports of bananas in FY22 were US$160.52 million against global exports of US$14.5 billion. Even, the world’s fifth largest producer Ecuador has a 24% share. India can easily reach export trade of US$500 million with better policies and execution. The UAE, Iran, and Saudi Arabia together contributed 80% of India’s banana trade during 2021-22 with huge potential within these markets and many untapped markets globally especially European Union and Russia.

A further shot in the arm for India is the fact that there is a decline both in quantity and quality from some of the top exporters of bananas globally in general and South America in particular giving India the best possible opportunity to tap into new markets which were predominantly controlled by South American peers.

We also need to start creating brands that are local with international aspirations, Dole, Bonita or Favorite are great brands because of efforts put in by the stakeholders to make them quality gold standards. Indian brands must aspire to replace or substitute their international peers by leveraging Indian strengths including geological location, multiple agro-climatic zones, low-cost manpower, and access to capital.

India has the potential to be the top export destination for bananas, but we need a quick push.