India’s export figures aren’t luring, especially when it accounts for 45% of the world’s total mango production. But despite concerns over import bans and logistics, the road ahead for Indian mangoes does look bright.
Sairaj Iyer | July 2016 Issue | The Dollar Business
Characterised by an invigorating aroma and a delectable taste, mango, in its various forms is savoured all over the world. It is also known as an excellent source of vitamins and minerals and takes the 5th position in Mimi Sheraton’s top 1000 delicacies to eat before you die. Crowned as the ‘king of fruits’, its unpredictable and irresistible taste naturally enhances its price in domestic and global markets, making it abundantly clear that the premium fruit has immense potential to help India earn a lot of ‘tasty & precious’ forex in overseas markets.
According to studies, around 5.17 million hectare of land is under mango cultivation globally, and about 40 million MT of mangoes are harvested annually. Mangoes are grown in China, Thailand, Pakistan, Mexico, Indonesia, Brazil, Bangladesh, Philippines and Nigeria, but India is by far the largest producer in the world. [India accounts for about 45% of world production.] Andhra Pradesh, Uttar Pradesh, Maharashtra, Karnataka, Bihar, Gujarat, West Bengal, Odisha, Kerala and Tamil Nadu are some of the major mango producing states in India, with UP firmly at the top. But despite all these fancy numbers and figures, India ranks 5th when it comes to exports of fresh mangoes.
The other four top exporters are Mexico, Netherlands, Peru and Brazil (in that order), and they together exported fresh mangoes (HS Code 080450) worth $946.72 million in CY2015 against the world’s total mango exports of $2.13 billion during the period. On the other hand, India exported fresh mangoes worth just $47.75 million in CY2015 to more than 50 countries across the globe. While UAE is by far the largest market for Indian mangoes (UAE accounted for 63.4% of India’s total mango exports in CY2015), UK and Saudi Arabia stand at distant second and third, accounting for 10.47% and 5.68% share respectively in India’s exports of the fruit. Interestingly, despite being the biggest mango producer, exports from India to some of the biggest mango importing nations – USA, Netherlands, China, Germany and UK (in that order) – remain negligible. So, what hinders mango exports from India?
A large domestic market can be seen as one of the reasons for not acheiving a good export ranking. However, those in the mango trade claim that the lack of export facilities is equally blamable for low exports from the country. Adding to these, frequent bans from importing countries and inadequate trade facilitation programmes of export-quality mangoes are obstacles. For instance, in May 2014, EU had put a ban on Indian mangoes until January 2015. As a result, an order size of 2-5 million tonne had to be cancelled and losses added up to millions of dollars. The biggest culprit behind the ban was the ever-present fruit fly.
More recently, the export business yet again came under a severe threat from its biggest buyer, UAE, with authorities issuing a warning after they found pesticide residues higher than prescribed limits in consignments from India. Such restrictions from importing countries have largely created a negative sentiment among overseas buyers and impacted exports of mangoes from India.
However, recent banishments have led to some serious efforts by the Indian authorities. For instance, the EU ban resulted in adoption of stringent policies such as processing mangoes under heat-water and irradiation for an hour. MSAMB (Maharashtra State Agriculture Marketing Board) and APEDA (Agricultural & Processed Food Products Exports Development Authority) later introduced facilities such as treatment plants and certifications to ensure exports quality. Systems like the vapour treatment and hot-water treatment in Vashi, Lasalgaon, and Ratnagiri were also employed to facilitate and improve quality of mangoes that are exported to Japan, US and EU.
Mango exporters need to ensure availability of phytosanitary certificates of the fruit before shipping. The law is stringent but there are exporters who label it as farce. Omkar Sapre, President of Devgad Taluka Mango Growers Association, feels the treatment is simply useless. “The fruit was banned in EU due to presence of fruit-fly. But the Devgad hapus (Devgad alphonso) is highly acidic when raw, and hence no organism can inhabit the fruit. Banning the fruit was just insane,” he tells The Dollar Business.
Sapre further shares that transportation and getting phytosanitary certifications have been major challenges for exporters and growers alike. He continues, “MSAMB’s treatment facilities set up at Lasalgaon and Vashi force fruit-growers to travel a good 1,500 km locally for certifications, before proceeding on their journey to export markets. This not only consumes time, but the chances of getting the fruit damaged also increases.”
As for the Malehabadi and Dussehri mangoes from UP and West Bengal, expensive air-route, which is deemed necessary for exports is a concern. Since air-freight is expensive and does not ensure any potential trade opportunities beyond Nepal and Bangladesh, sellers look at alternatives such as sea routes. However, the latter takes more time, thereby resulting in quality deterioration and sometimes damaging the fruit entirely.
Another challenge that impedes the export potential in the northern region of India is unavailability of storage facilities. Ports are far from the mango-production zones and the government’s offered incentive of 5% under Merchandise Exports from India Scheme has failed to lure cultivators or exporters, with most ranting that the domestic markets are far easier to reach than those overseas.
The Geographical Identification (GI) tag has also failed to drive up exports at a desired pace and India’s mango variants which have received GI tags are yet to benefit from it. Reports on the website of Controller General of Patents Designs and Trademarks (CGPDTM) state that mango varieties such as Khirsapati and Appemidi of Karnataka, Malihabadi Dusseheri of Uttar Pradesh, Gir-kesar of Gujarat, along with Malda varieties including Fazli, Lakshmanbhog and Khirsapati (Himsagar) have attained a GI status. But these GIs have had no significant impact on export numbers clocked-in by these varieties. Insaram Ali, President of All India Mango Growers Association points the reason behind the failure, “Although GI is made available, awareness is yet to be created.”
With over 1,000 variants in the domestic market and fierce competition from Indonesia, Mexico and Pakistan, a GI certification may support indigenous varieties. But the case of Alphonso is in stark contrast with that of the Malihabadi Dusseheri. The variant enjoys fairly better awareness in international markets, but is yet to get a GI tag. And even as various challenges continue to mount, omnichannel strategies such as selling online are fast catching up as avenues in western India. Farmers, especially from Maharashtra, Gujarat and Karanataka, are leveraging digital routes to find easy access to customers across the globe.
The Perfumed king
While rich mango variants such as Dussehri, Malihabadi, Kishanbhog and Lakshmanbhog can be tapped in driving India’s export-rankings, Hapus or Alphonso, a mango variant that enjoys the distinction of being the costliest mango in the market, can sustain its price in international markets as the top exotic variant. Going by statistics, Alphonso is the most exported variety among Indian mangoes, contributing to 86.5% of India’s total mango exports. Maharashtra, Goa, Karnataka and Gujarat are the largest producers of this variety – Maharashtra alone has 1.6 million acre of Alphonso plantations although it does not even come under top five states in terms of productivity.
Exporters are always excited about the perfectly symmetrical fruit alphonso. However, Uttar Pradesh’s Malihabad and West Bengal’s Malda are considered to have great export potential. Malda, in West Bengal produces the finest export-quality mangoes such as Gopalbhog and Brindaboni. Other varieties such as Langra, Kshirsapati, Kishanbhog, and Fazli are also produced in large numbers. The district has an estimated 45,000 acre land under mango cultivation and bears fruits worth Rs.5.5 crore, as per data from the district magistrate’s office. And as per a grower’s observation, Uttar Pradesh’s mango belt can easily propel India’s export rankings from 5th to 2nd. However, a common dilemma among most growers is costly logistics that they have to bear. And in the south, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana are the largest producers. Top varieties include Rajapuri, Totapuri, Dindugul, Kolar, and also Alphonso, but these have far fewer exports because most of the production goes into food processing and domestic consumption.
India is capable of producing and exporting larger quantities of quality mangoes. “But how?” – that’s the question that needs to be answered. The idea of buying a crate of mangoes online sounds lucrative, but delivering across borders needs an entirely different ecosystem.
In fact, the story of an Indian mango is that of a secret ingredient – it has all the characteristics of making India’s export story look mighty and resounding, but is in great need of efforts from growers, distributors, packaging firms and, of course, policymakers, to ensure that everything else is added in the right proportions.
And if that happens, India has the potential to get crowned as the top exporter of the king of fruits.
Dr. Subhash chavan, Head – dept. Of agronomy, Dr. B. S. K. K. Vidyapeeth
TDB: Land under Alphonso mango cultivation has increased, but productivity has remained stagnant. What do you think are the reasons behind this?
Dr. Subhash Chavan (SC): Konkan’s productivity of Alphonsoes is lesser than 3.5 tonne per hectare. However, Keshar and Totapuri have greater productivity, with the latter reaching up to 15 tonne per hectare. Management practices are chiefly instrumental as mangoes require more post-treatment and scientific practices of cultivation. The fruit is very sensitive to temperature and atmospheric conditions. Pest-attacks are increasing and one can’t use insecticides rampantly. It has to be observed very closely.
There are other factors, such as scarcity of skilled labour, that impact the management of mango fruit during the harvesting season. Since Konkan is close to sea, humidity is high, and this increases pest problems. In locations like Dharwad of Karnataka, humidity is low, so, spending on pesticides is low. Productivity is the key, and if we can have indigenous cultivation techniques, and increase productivity to 10 tonne per hectare, we can definitely look at a good export number.
TDB: Do factors such as the presence of a power plant in the vicinity also affect productivity of alphonsoes?
SC: The weather has had a deep impact on cultivation. For example, heat waves in March 2016 led to deterioration of mangoes. But there is no impact due to Jindal Power plant. Such concerns were raised even during the Dabhol project, but there is evidence. The university has been closely studying the impact of such elements, but nothing negative has been found because of the new thermal plant, neither in Ratnagiri or Sindhudurg.
TDB: Mango growers in Ratnagiri have been waiting for years to receive geographical indication (GI) for their produce. Will it be of any help?
SC: The GI process started a long time ago and the committee had requested us to add Karnataka, and even parts of Goa and Gujarat. No doubt, the cultivation in Dharwad in Karnataka is on a large scale. But if Karnataka mango gets GI, Maharashtra’s produce would lose out on the economic value of alphonso. If one looks at quality, Ratnagiri and Konkan Hapus mangoes definitely top the chart.
TDB: Do efforts of APEDA & MSAMB to boost mango productivity really percolate down to the grass-roots level?
SC: APEDA has been pushing for reforms and good practices. And the efforts in terms of creating infrastructure for export facilitation are visible. For example, phytosanitary requirements such as irradiation facilities and vapour heat treatment plants for exporting are good moves. The vapour heat treatment is present at Vashi, and irradiation facility is in Lasalgaon, near Nashik. They are doing great, but more needs to be done. If another such facility is initiated close to the cultivation of alphonso, it would help a lot of mango growers. No doubt, the government is trying hard to ensure the best and is keen on taking action, but then, it needs to act quickly.
TDB: What more needs to be done to drive up our mango exports?
SC: Although India produces close to 45% of the world’s mangoes, its total exports share in the world is only 1.35%. The weather condition is the biggest constraint in India. Australia and Mexico have strong international markets, and their varieties have good resistance to weather conditions. Hence, exotic varieties should be crossed with our local Hapus, which still has more export markets to cover. In countries like UAE and Japan, Hapus enjoys a good customer base, but in terms of contribution to export markets such as EU and US, it does not even have a single-digit contribution. We should look at varieties that not only retain taste and appearance of Hapus, but also show resistance to diseases. We have tasted some success when it comes to discovering such new hybrid varieties, but for them to settle we will need at least twenty years of observation.
Insaram ali, President, all india mango Growers association
TDB: How do you view India’s mango cultivation and exports?
Insaram Ali (IA): As per numbers that I can recollect, the total area under mango cultivation in the country is about 25.5 lakh hectare and the productivity should be somewhere close to 8 MT per hectare. Uttar Pradesh is the largest mango grower, with an annual productivity of about 45-50 lakh MT, followed by Andhra Pradesh producing roughly 35-40 lakh MT. The current mango productivity in Maharashtra is about 12-15 lakh MT. Mango has great potential since it has applications beyond being a tabled fruit. For instance, Bainganpalli variety produced in Andhra Pradesh and Karnataka is mostly used for making juice and other processed food products.
When it comes to exports, Alphonso from Maharashtra, also known as Hapus, is a costly variety and is majorly exported. Alphonso has a slightly acidic taste and is a little low in sweetness when compared with mangoes from UP. The Keshar variety, which is grown in Maharashtra, Gujarat, Karnataka, and parts of Bihar, is also exported in huge volume.
Interestingly, Mexico which produces only 4% of the world’s mangoes is its largest exporter in the world. Besides, Thailand, Pakistan and Brazil are also big exporters of mango. As far as India is concerned, export figures have not been great in the last decade.
TDB: What factors are impeding exports of Indian mangoes?
IA: In India, both states and Centre have policies with respect to horticulture and mango cultivation. However, these policies do not address the scope of mango cultivation. Even in recent elections, many politicians and government agencies promised to include new incentives for mango farmers such as insurance and other facilities, but none spoke about mango exports. And as of today, subsidy on mango cultivation is a far-fetched dream. Well, mango gets a minimal export subsidy, but sadly, it does not reach the cultivators.
TDB: How are mango varieties such as Malehabadi or Dussehri doing on the exports front?
IA: Malehabad, in UP, is known as the capital of mango in India. Interestingly, cultivation of Malehabadi or Dussehri variety spreads across various districts in UP, including Saharanpur, Pratapgarh and Amroha, and also across parts of Bihar and West Bengal. We had proposed a 60% subsidy in air freight, and suggested the government to contribute Rs.10 per kilo for brand promotion over a period of five years, so that Dussehri is able to make a mark in the overseas markets. If this happens, we can certainly see good traction in our overall export numbers.
The average annual yield of Dussehri varieties in UP is about 42-45 lakh MT, and this year it is expected to touch 50 lakh MT. Subsidised air-freights will make our mangoes cheaper in global markets. Creating awareness and educating customers on the taste and benefits of mango can boost exports. Imagine, since Malehabadi has received GI tag, only 4 MT has been exported so far.
TDB: You mentioned better logistics and a GI tag can boost exports. How challenging are these issues on ground?
IA: Air freight is our biggest challenge because it costs a lot to send mangoes to Europe or the Middle East. Pakistan, because of its geographical location, is able to transport its mangoes quite easily to the Middle East and at a much lower cost than Indian exporters. Even for a limited distance, Pakistani exporters get better subsidies on air freights from their government. Further, our GI tag has also not been helped much to increase exports. Though it wasn’t easy to get a GI tag, it has hardly benefitted mango exports from India.
Omkar sapre, President, Devgad taluka Alphonso mango producers association
TDB: What makes Alphonso the most sought-after variety of mango?
Omkar Sapre (OS): Among all 1,200 Indian mango varieties, Alphonso is the most preferred as a tabled fruit as it has the least moisture content and highest aromatic content. It is sold as a premium fruit across India, and is cultivated in 9 different varieties across India, depending on the place where it is grown. The Ratnagiri, Devgad and Vengurla Hapus are the premium varieties. Then there are varieties from Dharwad (Karnataka), Valsad (Gujarat), and even in Bihar.
TDB: Despite being a big mango producer, exports from India remain low. What’s you take on the situation?
OS: Logistics, lack of awareness, and phytosanitary certifications are major challenges. Alphonso unnecessarily travels 1,300 km from Devgad to Mumbai to get certified. Mangoes are then exported via air. And since there are no subsidies involved, air freight alone makes Indian mangoes expensive in overseas markets. To remain competitive in global markets, exporters look at sea-route as an alternate option. But then it takes 15-20 days to reach any export destination, and the fruit doesn’t survive such a long route!
General awareness about Alphonso among overseas customers is good, but it is very difficult to explain why the Indian variety is costlier than the Mexican, Brazilian or Pakistani variety. Also, the Mexican variety reaches the market first, and thus customers simply do a price comparison. In addition, our market is small and we cannot commercially compete against other major exporters.
Further, sadly, consumers find a great difference in taste between Indian Alphonso and what they get in their country. This means, overseas customer preferences are also impacting mango exports from India.
TDB: Could you elaborate on the aspect of phytosanitary certifications?
OS: Phytosanitary certifications are mandates such as irradiation or heat treatment on agricultural products to preserve the ecological balance of the importing country. Countries importing our mangoes are paranoid about the presence of fruit-fly, and thus demand proper treatment. However, this process isn’t necessary for many products, such as Alphonso. It is because the fruit is acidic when raw, and hence it’s technically impossible for the flies to survive. But nobody understands this. Also, the irradiation facility is simply time-consuming. Our mangoes travel from Devgad, to Lasalgaon, and then to Mumbai, after which they are exported. Well, the irradiation concept is fine, but the distance is too long; we need an irradiation facility somewhere closer to our farms.
Also, the vapour heat treatment doesn’t make sense. If a mango gets treated at 48 degree celsius for one hour, it gets cooked. So, where is the sense in these requirements?
TDB: GI tag for Alphonso has been pending for eight years now. Why?
OS: There are many reasons, but the weirdest of them all is that Konkan Krishi Vidyapeeth is not the right body to file for a GI tag. A geographical indication can be filed by producers or a group of people or a body which has an interest in the product. But Konkan Krishi Vidyapeeth has no interest in mangoes as it is a research organisation and an educational entity – hence the very first proposal was turned down by the authority. The organisation hasn’t done much and even at the government-level no one has found time to think and get rid of the issue. Well, I think nothing has happened because the Konkan farmers haven’t protested. It is only when there is a hunger strike or any farmer threatens to commit suicide there is some movement.
Then there are multiple requests for the GI tag. There are at least three good varieties of Alphonso – Vengurla, Ratnagiri and Devgad. But the problem is that if Devgad receives GI, the other two will demand the same. Well, a product is said to get a GI tag on geographical factors, but sadly, the GI body thinks all Alphonsoes are the same.
TDB: How do you view government policies to boost mango exports?
OS: APEDA (Agricultural and Processed Food Products Export Development Authority) and MSAMB (Maharashtra State Agricultural Marketing Board) facilitate mango exports from Maharashtra. But there has been no policy level discussions with mango growers. Also, GI tags for Devgad and Ratnagiri mangoes have been pending since 2008. But nothing has been done to address these issues.
TDB: From a cultivation perspective, what are the threats to Alphonso?
OS: The fruit is susceptible to weather change. After the 2008 tsunami, weather conditions have not been good. Some researchers believe that because of tsunami, rain pattern has changed to an extent. Even in Devgad, it rains when it is supposed to be warm, and vice-versa. Pest attacks have also increased. And for new pests, there are no pesticides available. Though the total area under mango cultivation has increased, production has not been able to keep pace with demand and production area.
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