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Fruit Processing Industry in India: A Short Review

Chapter · January 2016

DOI: 10.13140/RG.2.1.2155.3047/1

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 Fruit Processing Industry in India: A Short Review

Aanchal Sharma1 Dr. Binod Kumar Singh2 Dr. Neeraj Anand3

E-mail: aanchslsharma7567@gmail.com Email: binodsingh@ddn.upes.ac.in Email:nanand@ddn.upes.ac.in

ABSTRACT

India is known to be a fruit basket of the world. After China, India has been considered as the
second largest producer of fruits. Due to skilled manpower deficiency, poor cold storage
facilities, inefficient post harvest management and minimal technological interventions, India is
the second largest producer contributes only 1% of the global market of the fruit processing
industry. In India, the wastage of fresh fruit, produce has been estimated to be of a very high
order, i.e. around 30-35% of the total production during harvest, storage, grading, transport,
packaging and distribution because of the challenges involved in the industry. With the creation
of adequate specialized cold storage facilities, logistics infrastructure, skilled manpower and
modern technological interventions, post harvest losses can be minimized resulting in higher
returns to the major stakeholders of the entire fruit supply chain i.e. farmers and the consumers.

The paper provides a short review on the status of the Indian fruit processing industry, fruit
processing technologies, supply chain of fruit processing industry, improper post harvest
management and inefficient cold storage facilities. The paper also shelters the global & the
Indian scenario of fruit processing industry, government schemes & policies related to the
industry. The authors have also emphasized on the challenges of the Indian fruit processing
industry. In this paper SWOT analysis and PEST analysis has also been conducted and key
potential areas i.e. economy, agricultural yield, development, productivity enhancement,
employment generation for the future generation have been identified in order to achieve a
greater role in the industry.

Keywords: Fruit Processing Industry; Post-harvest management; Cold Storage facilities

1. FRUIT PROCESSING INDUSTRY

Fruits comprise vitamins, proteins, minerals and dietary fibers. Fruits are perishable in nature and
there is a need to process fruits in order to increase their storage or shelf-life significantly. Fruit
processing is done to add value to the fresh fruits produce in a number of ways viz. canning,
drying, freezing and new ingredient creation. There are various forms of processed fruits:

• Pre- prepared fresh (includes fruit salads, having a shorter storage life as they include
added ingredients, such as sauces and flavorings)
• Canned (includes canned pineapple, peaches, apricots, pears and mixed fruits) Frozen
(includes Frozen mangoes, berries and pineapple having a longer shelf life,convenience,
easy storage)
• Dried (includes dried apricots, apples and prunes with shorter life cycles than fresh
fruits)
• Juiced (includes fresh fruit juices)
Central Food Technological Research Institute, Mysore proposed fruit processing process layout
for the production of fruit juice (as given below). It consists of four steps. In the first step,
washing, cleaning, grading and peeling of matured and fully ripe fruits is done. Thereafter, juice
is extracted from fruits and then it is filtered to remove seeds, fibers, etc. This juice is then
processed, sterilized and bottled after adding preservatives. In case of squash, syrup of sugar
along with preservatives is added to juice and this mixture is stirred till a uniform solution is
formed and then it is bottled. The process flow chart is as under:

Figure 1.1: Layout of fruit processing process

Receipt of Raw Material

Fresh Produce (Fruits) are washed,

graded and peeled

Juice is extracted and further filtered

Sterilization takes place

Packing

Storage & Distribution

(Source: Central Food Technological Research Institute, Mysore)

Processing in the fruit industry consists of three steps:

• Minimal Processing: It helps in increasing the functionality of fruits without changing

its fresh like appearance, texture and color by cleaning, sorting, grading and cutting.
• Primary Processing: It helps in retaining freshness, flavor, and texture. It can be done
through efficient storage of the product e.g.: slices, pulps, paste, preserved & flavored.
• Secondary Processing: It involves (involves heat preservation, refrigerated “ready to
eat”, dehydration, and fermentation, e.g.: ketchups, jam, juices, pickles, preserves,
candies, chips etc.
Figure 1.2: Layout of fruit processing process flow chart of pineapple

Raw Material Receipt

Grading and Sorting

Washing

Peeling

Dipping

Cutting into sizes

Dipping

Packing

Storage & Distribution

(Source: “Processing of fresh-cut tropical fruits and vegetables: A technical guide, RAP Publication)

The above process flow chart of fruit processing is for pineapple. There are various steps
involved in the processing of pineapple fruit. Primarily, the raw, fresh – cut fruits are received.
Secondly, grading and sorting are done for the wholesomeness of the fruit. Then, the fruit is
stored at room temperature until the fruit becomes all yellow or attain desired firmness.
Inspection is done when the whole fruit becomes adequately firm and further it is transferred to
washing tank and chlorinated at 200-500 ppm for five minutes. Then, peeling of skin with a
sharp knife is done and cutting the fruit into halves lengthwise. Once, the cutting is done, then
scoop out the seeds with a spoon and trims off the tissue underneath the seed. Packing is the
next step where the pieces are put in boxes with perforated sea lid and stored in a cool storage
area with five degrees centigrade. In the end, the boxes are ready for distribution to the end
consumer [13].
1.1 TYPES OF FRUIT PROCESSING TECHNOLOGIES

• Traditional Processing Technology: Basically, processing technologies which are

traditional in nature are implemented in the conservation of horticultural produce. Major
categories of processed products produced by these technologies are fruit preserves, fruit
juices. Freezing, thermal processing, dehydration, and drying technologies come under
this processing type only.
• Modern Processing Technology: Modern Processing Technology is applied in the
processing of trimmed and packed produce, prepared fruits. Minimal Processing and
Non- Thermal Processing Technologies are used.

2. SUPPLY CHAIN OF FRUIT PROCESSING INDUSTRY

Supply Chain process of fruit processing industry from the farm to the fork is complex and fruits
are required to be handled carefully if they are not to be not to be deteriorating before they reach
the end consumers. Fruit Processing Industry involves use of various processing tools &
techniques, packaging, storage & transportation (of processed fruits too) that reduce spoilage and
enhance the shelf life of fruits by cleaning, sorting, and packaging.

Figure 2.1: Proposed model for supply chain of fruit processing industry

Farm
Inputs

Production

Procurement, Storage &

Transportation

Primary Processing

Secondary Processing

Wholesale Trade

Domestic (Wholesale Retailing Exports with

3.Trade
PONAGEMENT
& Retailing) different brand
3. POST- HARVEST MANAGE MENT

Post harvest management is about maintaining quality of production in the paddock of the fruits
being placed on a plate for consumption. It includes activities like cooling, fresh produce storage
and handling, processing, packing, transportation of the produce from one place to another.
The ultimate aim of post- harvest management is to postpone the death and decay of the fresh
produce for as long as possible and increase the availability of food from existing production.
Post- harvest management practices help in reducing product (fresh produce) spoilage and
wastages due to unavailability of proper and adequate resources at the farm level [14]. Estimates
suggest that after leaving the farm boundaries nearly 30-40% of fruits are damaged or lost which
further results in diminished returns for producers [14].

In the complete supply chain, the intensity of post- harvest wastages are high because of
harvesting the fresh produce (fruits) at early and inadequate maturity, physical damage and
decay. Therefore, damage and decay can be prevented by educating and training, labor to handle
the produce effectively ; harvesting the produce (fruits) at adequate maturity; handling fruits, no
more than necessary (if feasible, by doing field packs); installing padding inside bulk bins; and
avoiding overstuffing or under stuffing of the containers of produce [3]. The main objective of
post- harvest management and treatments is to extend shelf and storage life of the produce by
creating suitable conditions and thereby retaining the quality attributes and nutritional
composition of the product. Severe efforts like infrastructure modernizing and strengthening of
policy/institutional settings are needed to be made so that the intensity of post-harvests wastages
can be lessened [14].

Post- harvest handling includes cleaning the produce, sorting, packing & processing refrigerated
storage, transportation and distribution.

Cleaning the product makes the produce looks fresh and also cleans the produce with negligible
risk of microbial contamination. At the same time, it also helps in the reduction of potential
microbial contamination.

Sorting the product is helpful in getting rid of a product or portions of a product that may
detract or pose a threat of shortened product shelf life and/or contamination by a microbial
organism.

Packaging the product helps in protecting the quality attribute of the produce. Packaging of the
produce should be designed in such a way so that there should not be any kind of mechanical and
physical damage and the product is easy to store and handle [3].

Storage of the product lengthens the product’s shelf life and also reduces the peril of microbial
growth. Generally, it is refrigerated storage wherein the storage temperature is dependent upon
the type of fruits. The lowest temperature that does not cause chilling injury is the ideal storage
temperature for fresh produce (fruits) [10].

Transportation of the product is basically done by road, from the farmer to the ultimate end
consumer. So, the focus on vehicles, equipments for storage, handling and transportation should
be more. Fresh produce (fruits) is transported by vehicles which are refrigerated or non-
refrigerated vehicles. Improper handling during loading and unloading, rough roads, overloading
and lack of ventilation add to transportation cost.

Below mentioned are the post-harvest management problems

Operation Type Problem Strategy Action Plan Responsibility

Harvesting Rough handling, Create awareness Conduct training FAO, APO and
methods and untimely of proper tools research
Time of harvesting, and techniques institutions
harvesting poorly designed and time of
tools harvesting, R&D
emphasizing on
design of
harvesting tools
Transportation Poor Encourage Government,
infrastructure investment from NGO, Ministry
and refrigerated the private sector of Transport,
transportation, and policy IDFC
Poor temperature support from the
management, government,
loading- create awareness
unloading about the
practices transport
management
system
Storage At the farm R&D on Encourage FAO / IL & FS,
level, there is an temperature financial support CWC
acute shortage of requirements, from public-
storage facilities Create private sector
and cold storage cognizance on
facilities at the the effective
ports and management and
markets technique of
Knowledge gap storing and
in temperature handling
requirements techniques
Packaging & Inadequate Government Training and Indian Institute
Labeling packing regulation and financial support of Packaging
technology, develop existing from government
suitable labeling technologies for appropriate
use of packaging
techniques and
technologies
Marketing Market related Develop Construction of PPP, IDFC and
information is strategic suitable market Ministry of Food
 very limited and alliances with infrastructure Processing
Market multinational and market Industry
infrastructure is companies strategies
very
inappropriate

3.1 CAUSES OF POSTHARVEST LOSSES

Post-harvest wastages are caused by both external and internal factors:

External Factors

 Mechanical Injury: Improper packaging and handling during transportation are the
cause of sap burning, breaking and bruising [10].

 Parasitic Diseases: Parasitic diseases are caused by the attack on fruits by fungi,
bacteria, and insects which is a major reason behind post-harvest decay and wastage
in fruits [10].

Internal Factors

 Physiological Deterioration: Even after the harvesting process, fruits and vegetables
have life in them, and continue their physiological activity. Deterioration takes place due
to fluctuations in temperature and deficiency of minerals [10].

No matter how effective post-harvest operations are, returns cannot be good if the productive
poor. Linking production to post-harvest operations are essential to optimizing results [10]. Pre-
harvest parameters like the selection of proper planting material, crop management, and pest
control must be geared toward producing high quality products.

4. COLD STORAGE FACILITY

Cold storage facility is a temperature-controlled facility network along with storage, and
distribution operations carried out in order to maintain the temperature of a product (fresh
produce, fruits) in a specified temperature range, to keep the produce suitable for eating for a
much longer span of time. In order to extend the shelf life of the fresh produce (fruits) & period
of marketing and transportation hurdles, cold storage facilities are required. It has been noted that
the effective and efficient use of cold chain facility can save up to INR 300 billion annually. This
system facilitates long distance transport of various products as well as makes seasonal products
available over the entire year.

Components of a cold storage facility comprise post-harvest handling of produce, refrigerated

storage & transport, controlled atmosphere storage (CA), chilled or frozen processing,
distribution and retail refrigeration [4]. Storage capacity needs to increase 40 percent to avoid
wastage.
A robust cold chain industry has a critical role to play in a developing nation like India as it
ensures better availability of fruits as well as preventing spoilage of the same.

Figure 4.1: Components of cold chain logistics

(Source: Infrastructure Today, April 2011)

4.1 COLD CHAIN PROCESS

Surface Storage and Refrigerated transportation are the major components of the cold chain
logistics network:
• Surface Storage: involves refrigerating warehouse for storage of the perishable product
in consideration
• Refrigerated Transportation: Reefer trucks, containers, ships, trains, specifically for
transport of perishable products

Perishable items like fruits and vegetables have a shorter product life cycle. Therefore, Cold
chain facility has been considered as the best and suitable to handle such perishable items in
order to get rid of mechanical damage, decay, aging and wastage of fresh produce. Because of
this,it has become mandatory for the producing & consuming centres to establish a cold to take
good care of the fresh produce (fruits). Also, there is a dire need to create an understanding in the
minds of the traders, farmers and the ultimate end consumers regarding the advantages of
establishing cold chain facilities in preserving and storing the fresh produce.

It has been noted that major chunk of the cold stores is used for stocking up potato and potato
seeds which means 80% of the capacities are utilized for single commodity which is potato and
only 17% is for multi product storage (which includes fruits also) [18].
4.2 CURRENT STATUS OF INDIAN COLD CHAIN INDUSTRY

According to World Bank Report, the cold chain industry in India is fragmented, which
contributes to high marketing cost and high wastages of fruits in the country. Presently, India has
nearly 6,500 cold storage facilities, total storage capacity is above 300 lakhs tonnes, with an
additional requirement of cold storage of around 307 lakhs for fruit & vegetables together.
The all India utilization of capacity of cold storage facility is approximately around 48 per cent.

India is the second largest producer of fruits with a production of 134 million tons per year, but
only 10% of its get cold storage facility [5]. Out of the roughly 130 million tons of fruit and
vegetable produce, nearly 40 per cent gets wasted—enough to feed countries like Brazil and
Vietnam. India’s cold storage infrastructure focus mainly on potatoes and potato seeds, and since
1960, there have been no massive investments in cold storage for a long time. As recorded by the
World Bank in December 2012, India has a total of roughly 6488 cold storages with a capacity of
300 lakhs metric tons as over 90 per cent of which are suitable to store potato products only and
are fairly archaic. Bulk cold stores are generally used for single commodity, which operate on a
seasonal basis, e.g. stores for potato, chilies, apples, etc.

Summary of number of Cold Storage in India – State wise (as of December 2012)

States Cold Storage No. Of Cold Present Capacity Gap

Requirement Storage
Punjab 1318 569 1902 -584
Haryana 804 266 465 339
Himachal 487 18 20 467
Pradesh
Bihar 4241 299 1396 2845
Jammu and 737 24 65 672
Kashmir
Maharashtra 6273 488 604 5669
Gujarat 2748 514 1834 914
Kerela 2771 194 63 2708
(Source: World Bank Report)

Major Industry challenges are as given below:

• Technical Issues: include outdated equipments for processing operations, technical

support services are limited and inadequate quality control systems
• Institutional Issues: like supply of high quality raw materials is not consistent and
sufficient, access to external resources is limited and inadequate infrastructure are some
of the institutional issues of the industry.
• High energy costs: The operating cost for the cold chain business in India is nearly 80-
90 per cubic ft per year. Energy expenses constitutes to around 30 per cent alone in the
total expenses for the cold chain facility in India.
 • Lack of logistical support: In India, the cold chain industry is highly unorganized and
fragmented. The cold chain players do not have the cash strength to invest in the modern
technology in order to build modernized high quality cold chain infrastructure.
• Temperature: Temperature in cold chain facility is required to be kept in order to avoid
chilling injury in the produce. But due to power fluctuations, temperature doesn’t remain
constant and exposes the produce to cold and warm temperature resulting in surface
dampness in the fresh produce further hastening decay and damage.

5. GLOBAL SCENARIO OF FRUIT PROCESSING INDUSTRY

Globally the performance of Fruit Processing Industry over the last five years has been subjected
to two major factors. They are global population and Gross Domestic Product growth rate. India,
Vietnam, China, Iran, Indonesia, Myanmar, Nigeria, Nepal, Papua, New Guinea and North
Korea are the top 10 major producers of fruits worldwide in the year 2012. Bananas, Apples,
Grapes, Oranges, Mangoes, Pineapples, Papayas and Strawberries are the major varieties of
fruits produced worldwide in the year 2012 [17].

Table 5.1: Top 10 producers of fruits worldwide in 2012

Country’s Name Production (In Million U.S. Dollars)

India 2,670.11
Vietnam 1050.59
China 822.32
Iran 628.96
Indonesia 502.03
Myanmar 497.37
Nigeria 453.74
Nepal 359.42
Papua New Guinea 349.03
North Korea 186.73
Source: Indian Horticulture Database, National Horticulture Board, Ministry of Agriculture, Government of India)

Table 5.2: Top 10 major fruits worldwide in 2012

Fruit crops Production (In Million Metric Tons)

Bananas 101.99
Apples 76.38
Grapes 67.07
Oranges 62.22
Mangoes 42.14
Pineapples 23.33
Papayas 12.41
Strawberries 4.52
(Source: Indian Horticulture Database, National Horticulture Board, Ministry of Agriculture, Government of India)
As a result of an increase in substitute products, processed and preserved fruit products in
countries such as the United States and Australia have stagnated. The most phenomenal growth
to take place globally over the next five years will be in China because of rising average
incomes, strong domestic demand and population adopting westernized diet [7]. Europe, the
second largest market, will remain in a mature life cycle stage. Chile is likely to continue on the
growth in the fruit processing industry because of the suitable conditions for the fruit production.
Over half of the fresh produce of fruits is processed in the United States. South East Asia is
considered to be the second largest producer of processed and preserved fruits. Europe and South
America are the third and fourth largest producers of processed and preserved fruit and
vegetables, accounting for 17.5% and 17.3% of production, respectively [7].

6. INDIAN FRUIT PROCESSING INDUSTRY

Fruit Industry in India is one of the leading industries in terms of production, consumption,
export and expected growth [1]. After China, with an annual production of around 81285
thousand MT in the year 2013, India has been considered as the second largest producer of fruits
in the world. In India, a huge variety of fruits are grown, of which banana, mango, citrus, guava,
grapes, pineapple and apple are the major ones. Maharashtra, Tamil Nadu, Karnataka, Andhra
Pradesh, Bihar, Uttar Pradesh, Uttarakhand and Gujarat are the major fruit growing states. [2].

Table 6.1: Production of fruits (in ‘000mt) in the year 2011-2012 & 2012-2013

State/ UT’S 2011-2012 2012-2013

Andhra Pradesh 9841.1 13939.1
Maharashtra 10538.0 9785.0
Gujarat 7522.4 8413.2
Tamil Nadu 8535.1 6699.9
Karnataka 6428.1 6619.6
Uttar Pradesh 5795.1 5176.1
Uttarakhand 802.1 805.7
(Source: Indian Horticulture Board Database 2013)
Figure 6.1 : Leading fruit producing states of India in terms of production

(Source: Indian Horticulture Board Database 2013)

Table 6.2: Production estimates for major fruits in the year 2011-2012 & 2012-2013

Fruits 2011-2012 2012-2013

Banana 28455 26509
Mango 16196 18002
Citrus 7922 10090
Papaya 4457 5382
Guava 2510 3198
Apple 2203 1915
Pineapple 1500 1571
Pomegranate 772 745
Litchi 538 580
Others 8224 9315
(Source: Indian Horticulture Board Database 2013)

Table 6.3: Production share of major fruit crops in India (2012-13)

Major Fruit Crops in India Production Share in India (2012-2013)

Banana 32.6%
Mango 22
Citrus 12.4%
Papaya 6.6%
Guava 3.9%
Apple 2.4%
Pineapple 1.9%
Sapota 1.8%
 Grapes 3.1%
Pomegranate 0.9%
Litchi 0.7%
Others 11.5%
(Source: Indian Horticulture Board Database 2013)

7. GOVERNMENT SCHEMES & POLICIES RELATED TO FRUIT PROCESSING

INDUSTRY

Several schemes have been formulated by the Government of India to provide financial support
and aid for establishing modern infrastructure, FPU’s, research & development support and
human resource development and other promotional measures to encourage the growth of the
industry. Below mentioned is a glance on selected schemes:

• Food Park Scheme: A total financial assistance of US$ 23 million has been given by the
Government of India to implement Food Park Scheme. Across India, it has approved 50
food Parks to boost the overall food industry [8].

• Packaging Centers: This Scheme aims to provide packaging facilities for enhancing the
shelf life of the product. In Jammu & Kashmir, Rs 1450 million has been approved for
one packaging center in Jammu & Kashmir [8].

• Integrated Cold Chain Facility: During 10th Plan, financial assistance of Rs. 4010 mn
have been approved for 3 cold chain facilities in Maharashtra, 1 each in U.P., Kerala,
Manipur, A.P., Haryana, Delhi and Goa [8].

• Value Added Centre: The intention of the value added center scheme is to enhance
value addition leading to enhanced shelf life. 3 Value Added Centers, 1each in
Maharashtra, H.P., and Punjab have been established [8].
• Focus on Infrastructure: Around India, 60 Agri Export Zones have been set up. The
Ministry of Food Processing Industry has formulated Vision 2015; Government of India
plans to establish 30 mega food parks in public- private partnership mode.

• Incentives for development of storage facilities :

For establishing and operating cold chain facilities and storage facilities, investment
linked tax incentive of 100 per cent deduction of capital expenditure has been done.

• Focus on R&D and modernization :

Setting up / Upgradation of Quality Control/ Food Testing Lab, R&D and promotional
schemes are the initiatives launched by the Government of India.

• Production: Agriculture Ministry, Government of India, has launched The National

Horticulture Mission (NHM) with the objective of the objective of doubling the
production of horticulture by 2001-12 by end to end approach covering research, post
harvest management, processing and marketing in a mission mode for smallest &
marginal farmers.
 • Food Safety and Standards Act (Integrated Food Law, 2006): The objective of this
law is to gain the consumer confidence in the quality and safety aspect of the product.

• Excise Duty Reduction: Excise Duty reduction on fruits & vegetables, export of fruit
product are allowed freely, for establishing a fruit processing industry, no industrial
license is required.

The government has also extended the following incentives and promotional measures
for the promotion of this industry [8]:

 Scheme for Infrastructure Development with following components like: Mega Food
Parks, Integrated Cold Chain Facilities and Preservation Infrastructure (2316 Cr)
 Technology Upgradation Scheme, Expansion and Modernization of Food Processing
Industry (600Cr)
 Scheme for HR Development by imparting training to update skills, EDP (65Cr)
 100% Deduction of profit for the first 5 years of new budding FPUs in the year 2004-
2005
 Income Tax Relief
 Customs Duty Redemption
 The ministry released a grant of Rs. 37.36 crores to new applicants (up to 31.12.2011)

8. CHALLENGES OF INDIAN FRUIT PROCESSING INDUSTRY

It has been found that India has reasonably good supply chain in grapes, apples and now
bananas. But the same cannot be replicated in other fruits and vegetables as: As per a study by
CIPHET, 2010, Percentage of losses estimated for Fruits & Vegetables in the year 2010 were
5.8%- 18.0% due to inefficient cold storage facilities as total existing cold storage capacity in
India are only 10.4 per cent of the overall production of fruits and vegetables. 30 – 35% of the
total production is wasted because of inefficient cold chain facilities, skilled manpower
deficiency and spoilage at various post-harvest stages resulting in decay, flesh softening, and
physiological disorder in fresh fruit produce.
Despite this major production and share, there exist certain crucial challenges in the Indian Fruit
Processing Industry leading to heavy wastage and increasing unit prices:

• Employment in unorganized sector: Large portion of human resource has been

employed in the unorganized sector almost 82% composing of helpers or minimally
educated like 10th standard or below and the rest 18% in the organized sector [6].

• Lack of adequate infrastructure: Cold chain and warehousing facilities are improper,
infrastructure of different modes of transportation (road, rail, air) is the inadequate dearth
of modernized logistics infrastructure like logistics parks, integrated cold chain
solutions, last mile connectivity, customized transportation, and adoption of new
technology is some of the lacunas that exist in the industry to a greater extent.
 • Lack of adequate skilled manpower: Skill gaps in the fruit & vegetable segment;
inadequate documentation skills, knowledge, inability to apply technical expertise and
understand changing customer preferences [6]. Low remuneration due to inadequate
human skills, making the industry unattractive.

• Low productivity level: The major challenge is lower productivity while at post the
production stage; the wastage rate is very high due to inefficient post–harvest
management and less technological interventions.

• Processing plants with obsolete technology: - Obsolete technology needs to be shunned

off and technology Upgradation is the need of the hour for the processing plants.

• Lack of visibility in the supply chain, storage facilities, information flow about the flow
of products and appropriate technologies are some of the other challenges.

9. SWOT ANALYSIS and PEST ANALYSIS

9.1 Swot Analysis:-

Strengths
 Favorable agro-climatic conditions, offering tremendous potential for growing fruits
 Potential for production, consumption and expected growth

Weakness:-
 Inadequate technological base, cold chain and post- harvest management activities
 Highly Unskilled labor and low remuneration for the employees making the industry
unattractive

Opportunities:-
 Large crop and material base in the country due to a vast pool of natural resources
 Developed nations are the export destinations in India

Threats:-
 High competition from global players
 Shortage of human resource due to migration of trained human resource to other
industries
 Fast obsolescence due to rapid developments in the industry

9.2 Pest Analysis

Political Economic

Industry performs low due to day to day Financial assistance for establishing packaging
changing policies and constant changes in the stations, cold storage facilities and
tax structure transportation systems
Exploitation of farmers by intermediaries in an High transportation costs due to losses during
inefficient supply chain storage and transportation

Lack of common policy on contract farming

Technological Social

Processing technology is mostly manual in Exploitation of farmers by intermediaries in the

India leading to high losses supply chain

There is very limited use of pre-cooling

facilities for fruits

About 95% of cold storage facilities are in the

hands of private players

10. POTENTIAL OF FRUIT PROCESSING INDUSTRY IN INDIA

Due to large potential for production, consumption and expected growth, Fruit processing
industry is now regarded as the sunrise sector of the Indian economy. After China, India is the
second largest producer with an annual production of around 81285 thousand MT in the year
2013 due to large crop and material base and pool of natural resources in the country [7].

Apple, Banana, mango, guava, grapes and pineapple are the main varieties grown in
Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, Bihar, Uttar Pradesh, Uttarakhand and
Gujarat, which are the ch [2]. Also, India has a great potential to export , as bananas, mangoes,
and grapes are getting exported to the destinations like UK, Middle East, Singapore and Hong
Kong, estimating to 26509MT, 18002 MT, and 10090MT respectively in the year 2012-2013.
With strong technical base, adequate cold chain facilities and efficient logistics services, the 30-
35% post harvest losses can be reduced and can make India a leading nation in fruit processing
industry.
Figure 10.1 All India production of fruits at a glance

(Source: Indian Horticulture Board Database 2013)

11. CONCLUSION

There is a need to process fruits because of their perishable nature in order to increase their
storage or shelf life considerably. The process of the supply chain of fresh produce (fruits) from
the farm to the folk (end point of consumption) is highly complex. Post- harvest management
includes cooling, handling, storage, processing, packaging, transport and market phase. External
& Internal factors are responsible for post-harvest losses like mechanical injury, parasitic
diseases and physiological deterioration. The main objective of post- harvest management and
operations is to make appropriate conditions to increase the shelf life of the produce and at the
same time preserve the nutritional composition and quality attributes of the produce.

A cold chain facility is a temperature- controlled facility, along with warehousing and
distribution operations. It has been noted that only 10-11 percent of the fruits produced using
cold storage. There are various challenges involved in the industry related to cold storage
facilities like technical issues, institutional issues, high energy costs and temperature variability
adding to the deterioration of the fresh produce. Growth is expected to stem from countries like
India and China because of rising average incomes, westernized diet and strong domestic
demand. After China, India is considered to be the second largest producer of fruits across the
globe with an annual production of around 81285 thousand MT in the year 2013. 30-35% of the
overall production is lost due to unskilled labor, inefficient cold storage facilities and spoilage at
post- harvest stages. Several schemes and promotional measures have been formulated by the
Government of India to promote the industry growth.

The researchers have conducted SWOT and PEST analysis of Fruit Industry in India. As per the
analysis, they have found that favorable agricultural yield and climatic conditions in India, have
offered remarkable potential for fruit industry in India. Also, the industry has employed a large
portion of highly skilled, skilled and semi-skilled human resources providing employment
opportunities to the population of India. Thereby, high agricultural yields, enhanced productivity,
employment have been identified as key potential areas for boosting the economy of India.

Fruit processing industry is considered to be the sunrise sector of the Indian economy. India has
a strong potential for production, consumption and exports. Citrus, Banana, mango, guava,
grapes, pineapple and apple are the major varieties grown in India. Favorable agro-climatic
conditions make India a potential producer of fruits. Due to inadequate cold chain facilities,
logistics infrastructure and post- harvest handling activities, the fruit processing industry is still
in its infant stage. Still, there are opportunities like developed nations are the export destinations
in India. High competition from global players and fast obsolescence of technology are the
threats faced by the industry.

12. REFERENCES

[1] A Brief Report on Food Processing Sector in India, October 2013.

[2] Annual Report of Ministry Of Food Processing Industries, Government of India, 2011-12
[3] Bachmann Janet and Earles Richard (2000), Postharvest handling of fruits and vegetables,
Appropriate Technology Transfer for Rural Areas, pp 1-8.
[4] Bledsoe Gleyn, (2009), Cold chain and storage action plan, Chemonics International, US aid
from the American people, Private sector competitiveness enhancement program pp 1-50
[5] Cold Storage and Cold Chain – ‘the growth catalysts’, ET Roundtable on Cold Storages and
Cold Chains, 2013.
[6] Human Resource and Skill Requirements in the Food Processing Sector (2022) – A Report,
2011.
[7]IBIS World Industry Report: Global Fruit & Vegetables Processing, August 2013,
IBISWorld Inc. (“IBISWorld”)
[8] J,Jenny. January (2002), Postharvest Management of Fruit and Vegetables, Sydney
Postharvest Laboratory Information Sheet.
[9]Kachru R.P., 2012, Agro- Processing Industries in India- Growth, Status and Prospects,
Innovaciones Alimentarias INNOVAL C.A.
[10] Marketing and Food Safety: Challenges in Postharvest Management of Agricultural/
Horticultural Products in Islamic Republic of Iran, APO and FAO, 2006.
[11] Matapurkar Aneesh and Sinha Arnav, (2011) “Cold chain: Finally warming up to India?”,
Infrastructure Today, pp 22-25.
[12] Mkandawire, Mgawa, June2014, Creative Juicing, tce production, www.tce.today.com.
[13] Ngarmsak T and Jennylynd. B.J., (2010), “Processing of fresh-cut tropical fruits and
vegetables: A technical guide, RAP Publication pp 72.
[14] A Report on Postharvest Management of Fruit and Vegetables in the Asia-Pacific Region,
APO and FAO, 2014.
[15] Prasad Amit and Kumar Ajit.,(2013) “A Regulatory Framework: An Overview of Food
Processing Industry in India”, Seminar proceeding of XVI International Conference, ISBN, 978-
81-923211-4-1.
[16] Singh.P. Surendra, Sikka B.K. and Singh Ashutosh, (2009), Supply Chain Management and
Indian Fresh Produce Supply Chain: Opportunities and Challenges, International Food &
Agribusiness Management Association, 19th Annual World Symposium, pp 1-8.
 [17] T.K. Rajendra, Mistry N.C., et al, (2013), Indian Horticulture Database, National
Horticulture Board, Ministry of Agriculture, Government of India.

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