Food merchandises are being progressively traded between states with production and ingestion points being separated by big distances. World agricultural exports have grown from $ 224 one million millions in 1979-81 to $ 721 billion in 2006 ( FAOSTAT ) . By 2004, the portion of processed nutrients in international nutrient trade increased to approximately 65 % from 54 % in 1979-81. The enlargement of trade in processed nutrients has been stimulated by the higher demand for processed nutrients due to ‘internationalization of nutrient wonts ‘ of consumers ( led by growing in incomes ) . This demand is being met by inventions ( associating to nutrient engineerings, infrigidation installations and transit ) on the supply side taking to an overall growing in international trade of processed nutrients. The growing rate of processed nutrients exports from developing states is higher than that of primary merchandises and portions of traditional points of export ( such as meat merchandises ) have fallen over clip. Trade in traditional fruits and veggies such as oranges, canned Ananas comosuss, and apple juice have grown at a slower rate as compared to non-traditional merchandises such as Mangifera indicas, frozen murphies and fresh mushrooms.
Rising incomes and consumer involvement in merchandise assortment, freshness, convenience, and year-around handiness have led to increased degrees of international trade in fruit and vegetable merchandises. The portion of fruits and veggies in planetary agricultural exports rose from 10.6 % in 1961 to 19.3 % in 2007 ( FAOSTAT ) . International trade in fruits and veggies has been favored by sudden deficits in major abroad markets, new foreign direct investing or strategic partnerships, and betterments in international logistical capacity. Towards advancing international trade in fruits and veggies, assorted states have invested in research and adopted international engineerings, expanded and upgraded logistical installations, strengthened perpendicular supply ironss, developed industry organisations for corporate action, and built believable systems for quality confidence and nutrient safety direction. These intercessions have been intensified in many developing states with a position to tap developed state markets. The portion of fruits and veggies ( fresh and processed ) in entire agricultural exports of developing states rose from 16.7 % in 1980-81 to 21.8 % in 2000-01 ( Diop and Jaffee 2005 ) . Exports of fruits, veggies, forte green goods and processed merchandises constitute non-traditional agricultural exports and in 2001, developing states had a portion of 56 % of universe trade in fruits and veggies ( excepting the traditional exports of bananas and citrous fruit ) ( Hallam et al 2004 ) .
During 1999-2001, India emerged as one of the 30 top exporters of processed fruits and veggies in the World ( Huang 2004 ) . The portion of non-traditional export points of fish and fish readyings, fruits veggies and pulsations, and processed nutrients in Indian agricultural exports has increased during the last few old ages. The value of nutrient exports from India has more than quadrupled during 1995-2009 with exports making Rs. 36294 Crores in 2008-09 as compared to Rs.7915 Crores in 1995-96. Of this, the value of processed nutrient points ( processed fruits and veggies, carnal merchandises and other processed nutrients ) has risen from Rs. 2329 Crores in 1995-96 to Rs. 10793 Crores in 2008-09 ( Fig.1 ) bespeaking an mean one-year growing rate of 12.5 % . During this period, exports of processed fruit and veggies have grown from Rs.492 Crores to Rs. 3164 Crores ( growing rate of 15.4 % ) .
Fig 1. India ‘s Food Exports in 2008-09 ( by value – Rs. Crores )
Beginning: Anon 2009b
Table 1. India ‘s Exports of Processed Fruits and Vegetables
Processed points
1995-96
2000-01
04-05
05-06
06-07
07-08
Value
% portion
Value
Value
Value
Value
Value
% portion
Dried and Preserved Vegetables
248
50.4
738
227
397
424
430
17.54
Mango Pulp
85
17.2
264
316
364
506
510
20.80
Pickle and Chutney
53
10.7
136
129
261
294
251
10.24
Other Processed Fruits and Vegetables*
107
21.7
207
879
1605
1279
1261
51.43
Entire
492
n.a.
1346
1551
2627
2502
2452
n.a.
* Includes Pulsations from 2004-05 to 2007-08 of value – Rs. 590 Crore, Rs. 1095 Crore, Rs. 790 Crore and Rs. 549 Crores severally. Beginning: Anon 2009c. Value in Rs. Crores.
A non-traditional veggie that is being exported from India since the early 1990s is Gherkins.
During 2008-09, India exported about 0.30 million dozenss of Cucumber and Gherkins of value of about Rs.797 Crores. Indian Gherkin exports have shown important growing rates since the mid-1990s and the portion of gherkin exports in India ‘s exports of processed fruits and veggies has grown to 16.19 % in 2007-08 from 6.20 % in 1995-96. Table 2 indicates the turning relevancy of gherkins in India ‘s exports of processed fruits and veggies, and nutrient exports. During the recent fiscal crisis ( 2007-08 ) , Gherkin exports from India saw a diminution of about Rs. 106 Crores ( 21.21 % ) as compared to exports during the old twelvemonth ( 2006-07 ) . Exports to Russia and Canada fell to a greater extent ( about 40 % ) as compared to other finish states. During this period, exporters focused on placing new clients in other markets ensuing in important growing in 2008-09 exports to states such as the USA and Canada. Overall exports in 2008-09 doubled every bit compared to exports during 2007-08 and grew by about 58 % as compared to exports during 2006-07.
Table 2. Status of Indian Gherkin Exports
1995-96
2000-01
04-05
05-06
06-07
07-08
08-09
Measure of Indian Gherkin exports ( dozenss )
18183
56101
122350
222458
235768
189072
303955
Value of Indian Gherkin exports ( Rs. Crores )
30.51
126.05
229.61
438.48
504.11
397.17
797.36
Share of Gherkins in India ‘s nutrient exports ( % , by value )
0.39
1.37
1.36
2.45
2.38
1.24
2.19
Share of Gherkins in India ‘s exports of processed fruits and veggies ( % , by value )
6.20
9.36
14.80
17.86
20.15
16.19
n.a.
Beginning: ibid 2009a, ibid 2009b and ibid 2009c. Export informations of 3 ITC categorizations ( at the 8 figures flat – 20011000, 07114000 and 07070000 ) chiefly relates to gherkin exports from India.
Gherkin is an export-oriented veggie that is being cultivated in India since the late eightiess. The domestic ingestion of gherkins in India is estimated at about 100 metric dozenss ( MTs ) with ingestion limited to a few niche sections. The low domestic demand translates to the prevailing dependance of the Indian gherkin sector on exports. Indian gherkins have found purchasers abroad chiefly due to monetary value advantages, consistent quality and ability to provide round the twelvemonth.
Although Indian gherkin exports constitute a important proportion of India ‘s exports of processed fruits and veggies, with gherkin production emerging as a successful instance of contract agriculture in the state, the development and kineticss of this sector has been comparatively undocumented. The comparative newness of the Indian gherkin sector along with its regional presence, low-profile operations of the gherkin exportation houses and deficiency of consciousness about gherkins have constrained sectoral surveies and research. The gherkin sector ‘s experiences in contract agriculture and concern patterns could be utile for be aftering intercessions in other nutrient processing subsectors. Towards make fulling this spread, this survey profiles the development of the gherkin sector in India and outlines the factors that have contributed/constrained its growing. This paper ends with a few issues that need to be addressed by policy shapers and industry to prolong the sector ‘s fight and growing.
2. The Indian Gherkin sector
Gherkin ( besides called pickling Cucumis sativus – Cucumis sativus ) is one of the largest pickled veggies in the universe. About 44 million dozenss of Cucumis sativuss and gherkins were produced in the universe during 2008 with China being the largest manufacturer at 28 million dozenss. China, Turkey, Iran, Russian federation, and United States of America ( USA ) together produce about 76 % of the universe production of Cucumis sativuss and gherkins ( FAOSTAT ) . During 2001-2005, universe production of Cucumis sativuss and gherkins has grown at an one-year mean rate of 3.6 % . The ingestion of pickled gherkins is expected to increase sing the increasing nutrient ingestion away-from-home ( Martinez et al 2006 ) . While universe demand for pickled merchandises has been comparatively level, trade volumes have grown with higher imports of gherkin pickles by the USA. About 1.92 million dozenss of Cucumbers and Gherkins worth US $ 1.88 billion were exported by 128 States in 2007. Dill pickles, sweet pickles and refrigerated pickles are the popular assortments of pickles.
Gherkins are chiefly traded in three signifiers: i. natural gherkins – between husbandmans and briners/packers and, between briners and baggers ii. semi-processed gherkins – between briners and baggers and three. processed ready-to-eat gherkins – between baggers and retailers/consumers. International trade in gherkins has been dominated by the increasing imports of ready-to-eat signifiers of gherkins by developed states from developing states. E.g. USA ‘s imports of ready-to-eat pickled gherkins from India increased from 1.5 billion Lbs during 1992-96 to 23.6 billion Lbs during 2002-05. ( Martinez et al, 2006 ) . Growth in imports has been led by the ability of a few developing states to cultivate, procedure and export gherkins that adhere to planetary quality criterions at low monetary values. Developing states in tropical parts, due to the favourable climatic conditions in some parts, have besides been able to run into the seasonal demand from temperate state consumers by cultivating gherkins throughout the twelvemonth.
In India, gherkin production is concentrated in the provinces of Karnataka, Tamilnadu and Andhra Pradesh. The gherkin sector is a good illustration of successful contract farming in India, and this sector has widened the harvest spectrum for at least 60,000 husbandmans in the provinces of gherkin cultivation. A survey in Karnataka has shown that gherkin ranks foremost in footings of gross and net returns to husbandmans, followed by helianthus, garden harvests like coconut, vegetable harvests, arecanut, Paddy and Indian potato, the lowest being finger millet ( finger millet ) ( Erappa 2006 ) .
The development of the Gherkin sector in India has been marked by a high degree of private enterprise in all dimensions of gherkin cultivation and trade. All facets of production ( e.g. assortments ) and processing ( e.g. formulas ) are aligned to run into the demand of export markets. Tendencies in the value and measure of India ‘s gherkin exports are presented in Figure 2. Governmental intercession in the gherkin sector was minimum upto the twelvemonth 2001 with private houses taking the lead in bring forthing, processing and exportation gherkins. Prior to 2001, gherkin exporting houses received support chiefly as subsidies for capital investings on treating machinery, and freight subsidy from Ministry of Food Processing Industries and Agricultural and Processed nutrients Export Development Authority ( APEDA ) . In October 2001, as portion of a new plan to set up agricultural export zones ( AEZ ) , the authorities of India notified eight cultivating territories in Karnataka as an AEZ. Under this plan, assorted intercessions were undertaken by the Government of India along with the Government of Karnataka with the aim of advancing gherkin exports from the AEZ. Subsequently, in May 2003, an AEZ was besides formed covering 7 territories of Andhra Pradesh. Under the AEZ plan, the several province Governments and the Government of India program and implement assorted activities so as to better efficiencies along the gherkin value concatenation. Therefore, it can be said that sector-specific intercessions to back up gherkin exports from the state were initiated with the constitution of the AEZs in Karnataka and Andhra Pradesh.
Fig 2. Indian Gherkin Exports, 1993 – 2009 ( by value )
( Source – Anon 2009b )
Prior to constitution of the Gherkin AEZ in Karnataka, gherkin exports from the state chiefly consisted of majority gherkin exports. Figure 3 indicates the tendencies in the growing of gherkin exports with regard to the assorted public presentation indexs.
Fig 3. Indian Gherkin Exports prior to and after constitution of Gherkin AEZ ( one-year growing rates % )
Source – Anon 2009b
Overall gherkin exports from India, indicated as value of exports, recorded a compounded one-year growing rate of more than 20 % pre- and post-2001. The growing in unit value ( Rs./Kg ) of gherkin exports was greater post-2001 although growing rate of export measures was lower during that period as compared to pre-2001. This addition in unit value can be attributed to the higher proportion of exports of bottled gherkins. The growing rate of measure and value of bottled gherkins was higher during 2001-09 as compared to growing rates prior to the constitution of the gherkin AEZ in Karnataka. However, growing in measure of majority gherkin exports declined aggressively after the constitution of the gherkin AEZ in Karnataka but the unit value of majority gherkins grew to a higher extent as compared to bottled gherkins post-2001. Higher unit monetary values for majority gherkins was obtained due to the increasing export of small-sized gherkins ( considered to be of higher class ) in majority signifier to states such as Netherlands where the fruits are processed and packed in bottles.
By 2005, India emerged as the 2nd largest provider of ready-to-eat signifiers of gherkins and the largest provider of semi-processed gherkins to the US. However, analysis of informations on finish states of Indian gherkin exports reveals an increasing focal point on the Russian market. During 2001-02, the value of exports to Russia constituted merely 3 % of value of Indian gherkin exports while this portion rose to about 20 % during 2008-09 ( Fig.3 ) . In footings of measure, the corresponding values during 2001-02 and 2008-09 were 3 % and 24 % severally. This focal point on Russian exports has contributed to higher gherkin exports from India. The unit value ( Rs./Kg ) of gherkin exports to Russia has increased from Rs. 15.26 in 2001-02 to Rs. 22.54 in 2008-09.
Fig 3. Finish Countries of Indian gherkin exports ( 2008 – 09, value of exports in Rs. Crores )
Source – Anon 2009b
As compared to exports to Russia, the unit value of bottled gherkins exported to USA was Rs.18.92 in 2001-02 and it rose to Rs.27.38 in 2008-09. Table 3 indicates the realisations from exports to Russia and USA. Similar comparings of monetary value realisations from exports to other states reveal that lower monetary values are being obtained from Russian markets for both majority gherkins and bottled gherkins. Therefore, while the focal point on Russian markets has contributed to higher export measures, the lower monetary value realisations have reduced the profitableness of gherkin exports. This lower realisation is due to the higher portion of larger gherkins ( considered as lower class ) in exports to Russia. Rate analysis at the National degree is restricted by the deficiency of informations on the classs of gherkins being exported to Russia. However, grade-wise monetary value realisation of gherkin exports from the Karnataka AEZ shows that most of the exports to Belgium, France, Netherlands and Spain are of Grade I Gherkins while most exports to Australia and Russia are of grade III. France has been the largest purchaser of Grade I Gherkins from the AEZ while Russia has been the largest purchaser of class II and grade III Gherkins. The signifier penchants of most purchasers have changed ( from majority to bottled Gherkins ) during the past few old ages while class penchants have remained the same.
Table 3. Unit Realizations from Gherkin Exports to Russia, USA and other States
Finish
Soviet union
USA
Avg monetary value from all states ( Rs. per kilogram )
Year
Share of Indian exports ( % , by value )
Unit value ( Rs. per Kg )
Share of Indian exports ( % , by value )
Unit value ( Rs. per Kg )
2001-02
2.9
15.26
17.4
18.92
17.75
2003-04
13.0
15.42
18.0
18.49
18.78
2005-06
41.9
17.50
13.6
21.14
19.71
2007-08
19.8
16.96
19.8
22.14
21.01
2008-09
20.3
22.54
20.3
27.38
26.23
Beginning: Anon 2009b
3. Development of Indian Gherkin sector
In India, Gherkins were cultivated for the first clip in the State of Karnataka, and since so, Karnataka has been the national leader in the production and export of gherkins. The favourable natural gifts for gherkin cultivation during most months of the twelvemonth enabled the province ‘s exporters to bring forth and export gherkins in an efficient mode. Gherkin exports from India commenced in 1989 with an enterpriser cultivating gherkins in Bangalore and exporting gherkins in bulk signifier to Australia. The initial challenges of gherkin cultivation ( and quality control ) were met chiefly with counsel from the Australian purchaser, a local provider of seeds, and by trial-and-error. The first batch of gherkins that was shipped to Australia in September 1989 was found to be of acceptable quality and orders were obtained for regular supply. This posed a managerial challenge, as the enterpriser had to measure and take between the options of “ confined ” centralised agriculture and decentralised “ contract ” farming to bring forth gherkins to run into the export orders. As confined agriculture entailed high capital investings in land and labor, it was assessed that the meagre borders in gherkin trade would render the activity unviable. Further, the overplus of labour Torahs and other regulative steps would render the system complex and require high degree of administrative/overhead disbursals. It was hence decided that gherkins would be cultivated through contract agriculture by come ining into understandings with husbandmans. Thereby, the private enterprise of an enterpriser with economic motivations and single thrust resulted in the beginning of gherkin cultivation in India. The forward linkage with an Australian gherkin unit ( for redemption of cultivated gherkins ) and entree to seeds and works protection chemicals motivated the enterpriser to put on the line the cultivation of this new harvest.
As it was assessed that gherkins could be cultivated in most parts of Karnataka due to favorable climatic and soil conditions, husbandmans in assorted territories of Karnataka were contracted for gherkin cultivation. Extension activities such as visits of possible gherkin husbandmans to other gherkin husbandmans ‘ secret plans helped in actuating husbandmans to take up gherkin cultivation. The enterpriser ‘s anterior experience in contract agriculture in India, Africa and Central America proved to be utile in originating contract agriculture of gherkins in India. Guided experimentation in husbandmans ‘ Fieldss resulted in an mean end product of 2.2 MTs per acre ( little classs for Gallic markets ) and the preparation of a bundle of patterns for gherkin cultivation. In 1990, selling linkages were developed with a local exporter for the export of gherkins due to the then-prevalent system of export quotas. The grade-based pricing was introduced and this has emerged as a criterion industry pattern and one of the drivers of contract agriculture of gherkins in India.
Subsequently, viva-voce communicating about the successful cultivation and bringing of Indian Gherkins resulted in involvement being expressed by assorted European processors. The ability of Indian houses to provide quality gherkins on a round-the-year footing in a universe market confronting scarceness of gherkins, and the lower monetary value of Indian gherkins ( about 40 % lower than gherkins cultivated in devouring states ) rendered Indian gherkins attractive. Feeling the emerging chance in gherkin exports, in 1991, a concern pudding stone in India in partnership with a Swiss house, established the Global Green Company Limited ( GGCL ) . Thereby, an enterprise by an single enterpriser developed into a corporate entity with important capital investings. By 1993-94, two more houses in Karnataka and one house in Tamilnadu commenced activities of gherkin cultivation and export. In 1996-97, GGCL produced bottled gherkins for the first clip in India. Meanwhile, some big exporting houses began securing gherkins through agents ( facilitators ) who would beginning gherkins from husbandmans.
The successful activities by the conglomerate-backed house and the engagement of corporate groups attracted a figure of enterprisers to gherkin cultivation and trading. The seemingly-naA?ve contract agriculture of gherkins, redemption understandings, appraisal of high potency for growing and low barriers to entry led to a figure of houses get downing cultivation and trade in gherkins. An association of gherkin exporters, Indian gherkin exporters ‘ association, was set up to advance the involvement of its members by interacting with Government and other stakeholders. The gherkin sector in India, by the twelvemonth 2000, evolved into an oligopolistic construction ( for specific merchandise signifiers ) with most houses transacting in majority gherkins. In 2008, approximately 40 houses were involved in gherkin exports of which 26 houses were based in Karnataka and accounted for about 55 % of the value of gherkin exports from the state.
The Indian gherkin industry has evolved from being a majority provider of gherkins ( in HDPE barrels ) to a provider of quality merchandises in ready-to-eat signifiers ( in bottles ) . The houses are able to cultivate gherkins of coveted classs and supply pickles of assorted formulas all-round-the-year. The gherkin sector in India has, tacitly, been effectual in developing constructions and mechanisms that support contract agriculture, grade-based pricing and merchandise standardisation while adhering to international quality criterions. The private houses operate by avoiding media attending to a big extent as contract farming in India has been capable to unfavorable judgment and reappraisal by societal militants. The sector has successfully practiced contract farming long before the Government of India accorded formal position to agriculture based on contracts. The successful operation of the gherkin sector is validated by the increasing value of gherkin exports and the turning portion in universe gherkin exports. As an indicant of India ‘s planetary presence in the sector, The Global Green Company limited has late acquired a Belgium-based gherkin exporting house and a Hungary-based exporter of processed veggies to emerge as one of the largest exporter of preserved nutrients in the universe. This Indian house now has production installations in Belgium, Hungary and Turkey and is well-poised to turn as a planetary participant in processed fruits and veggies.
4. Factors act uponing development of gherkin sector in India
Enabling factors: The Indian gherkin sector has been able to turn into a planetary participant due to the mostly favourable policy environment for agricultural exports in India. Upto 2001, although there were few direct policy intercessions specifically in the gherkin sector, the private exportation houses have benefited from Governmental plans that were offered to the full agricultural sector in the Country. The gherkin industry in India holds a distinguishable place as an illustration of successful contract agriculture and export-oriented agribusiness. The primary factors that have contributed to the development of the gherkin sector in India can be summarised as:
Cost advantages in treating due to minimum capital investings ( on substructure such as machine-controlled works and machinery )
Comparative advantage of natural green goods quality due to the ability to cultivate gherkins ( of all classs ) and produce processed merchandises that conform to International quality specifications
The ‘fit ‘ of gherkins in the bing harvest production systems prevalent in south India
Well-adapted webs for the production and supply of preservatives and ingredients ( such as Anethum graveolens ) for the readying of processed ready-to-eat merchandises
High degree of private enterprise in all facets of gherkin cultivation and trade
Support extended by APEDA
Absence of repressive macro-level policies
Along with the enabling factors indicated above, a few factors have limited the growing of the Indian gherkin sector. These restricting factors include-
Price-based competition and low merchandise distinction
Backward integrating of foreign purchasers and higher power of purchasers
Farmer keeping and extension costs
5. Policy Environment for Non-traditional Exports and Gherkin sector in India
The nutrient processing sector in India is recognised as holding the potency to better husbandman incomes and lead to betterment of the rural economic system. Along with the cardinal authorities ‘s ministries of agro-processing and nutrient processing industries, state-level sections in most provinces besides exist to advance processing of farm green goods. Under assorted five twelvemonth programs and industrial policies, the Indian authorities has encouraged the constitution of nutrient processing industries to heighten value add-on of primary agricultural green goods ( Anon 2008 ) . As portion of the agricultural reform plan initiated in the mid 1990s, most of the processed nutrient points were exempted from licensing, and excise responsibility on processed fruits and veggies reduced from 16 % to 0 % . In 1999, nutrient processing industries were included as a precedence sector to enable entree to bank recognition. Fruit and vegetable treating units have been exempted from payment of excise responsibility. Such policy intercessions have contributed to the addition in installed capacity in fruit and vegetable industries from 11.08 Lakh dozenss in 1991 to 24.74 Lakh dozenss in 2007 ( Anon 2008 ) . The major focal point of the Ministry of Food Processing Industry for the period 2007-12 ( 11th Plan ) is to increase Government investing in making the farm-to-market supply concatenation, market processing substructure to pull more private investing. Schemes are besides planned to beef up research and development, human resources in the nutrient processing sector, set up more nutrient proving research labs to guarantee quality of nutrient merchandises and conformity of national and international criterions, etc.
The Gherkin sector in India is distinct from most of the other agri-based endeavors in India due to the undermentioned grounds:
a. Gherkin cultivation is undertaken merely through contract agriculture. Farmers obtain inputs such as seeds, fertilisers and pesticides from the catching houses.
b. Gherkin is a short-duration harvest that can be grown through inter-cropping.
c. All the exporting units are besides treating units which procure the natural stuffs from contracted husbandmans. Thereby, a high degree of perpendicular integrating exists in this sector.
d. All the processing houses are 100 % EOUs.
e. There is practically no domestic demand for gherkins in India.
The subsystem diagram of the Gherkin sector is given below in Fig.4.
Fig 4. Subsystem diagram of the Gherkin sector in India
Gherkin cultivation in the state is undertaken in an unrestricted mode with no specific legal commissariats or policies regulating this activity. The EOUs operate under the commissariats of imposts and cardinal excise Torahs. The EOUs obtain assorted benefits such as duty-free imports ( of seeds, fertilisers and chemicals for pre and station crop intervention such as micro foods, workss and growing regulators, organic and inorganic substances used for works nutrition, insect powders, antifungals, weedicides, weedkillers, irrigation filters, driplines, drip-fittings, micro sprinklers, agricultural sprinklers, fertiliser armored combat vehicles, valves, fertiliser pumps and chemical injections, crates, membranophones and saving media ( Such as acetic acid and acetum ) ) and revenue enhancement inducements that are permitted under the assorted export publicity strategies. The gherkin-exporting EOUs are allowed to sell upto 50 % of their production ( in value footings ) in the domestic duty country ( within India ) topic to positive net foreign exchange net incomes. The foreign trade policy 2004-09 ( Anon 2006 ) , with mention to contract agriculture, capable to some conditions, provided for the motion of inputs and equipments to farms. The EOUs obtain import responsibility freedoms on treating equipments under the EPCG strategy and besides obtain subsidies under strategies of the Ministry of nutrient processing industries. The local procurance of preservatives ( such as seawater, acetum, acetic acid ) and packing stuffs ( bottles, labels, cartons, caps ) is at market-determined monetary values. Self clearance is permitted for the regularly-exporting 100 % EOUs and the motion of inputs across treating units is restricted by imposts commissariats.
It can be concluded that the growing of the gherkin sector is chiefly due to the liberalised policy environment predominating with regard to cultivation, processing and exports of gherkins. The benefits obtained by the 100 % EOUs, in a state of affairs of absence of domestic demand, have besides helped the industry ‘s growing. The market-based constructions in the sector along with the development of specific provider webs have contributed positively. The future growing of the sector would be facilitated by policies and intercessions that would see stakeholder penchants and manage stakeholder involvements.
6. Mentality for Indian non-traditional agricultural exports and gherkin exports
Indian agribusiness ( particularly, the gardening subsector ) is presently go throughing through a phase of intense structural alterations due to the entry of many big corporate houses in agricultural production and trade, and development of trade good trading systems. The liberalised trade environment, for both external and domestic trade, has opened up huge chances in agribusiness with houses competing with each other to work information engineering and improved production engineerings. Many corporate houses have opted for backward integrating and entered into production contracts with husbandmans for specific merchandises of coveted classs and quality. This has led to higher husbandman consciousness about efficient production systems and the demand to aline production so as to run into market demand. Supported by favorable policies and growing in domestic demand ( triggered by increasing consumer incomes ) for merchandises such as fruits and veggies, a gradual displacement of resources in favor of export oriented agribusiness can be expected in the old ages to come.
Although the gherkin sector has performed good with minimum direct Governmental support, the sector is sing border squeezing due to the level monetary values of processed merchandises and the increasing costs of cultivation. Some exporters are of the sentiment that Indian gherkin exports could accomplish a sustainable degree of 300000 MTs as the extended cultivation of gherkins would render it as a rival to harvests that guarantee nutrient security to husbandmans. Besides, it is felt that the coming of new packing engineerings could displace demand for bottled gherkins that is presently driving many houses to put in machine-controlled bottling units. It is besides normally agreed by exporters that the sector would non be able to keep the high growing rates as seen during the past decennary.
A study ( undertaken by the writers ) on the intercessions preferred by gherkin exporters and other stakeholders has shown that exporters seek support in accessing equal measures of production inputs ( such as bottles/caps and improved pesticides ) . The study has besides revealed that the sector is antiphonal to the demand to put on capital equipment for bottling and seeks support in the signifier of soft, long-run recognition. Governmental intercession in developing a typical trade name of Indian gherkins abroad is besides sought by gherkin exporters. The lifting dependance on Russian markets could suppress the sector ‘s public presentation due to the increasing cultivation of gherkins in Russia. It is hence felt that extra market development attempts are required to obtain higher incursion into Western Europe and US markets. Exporters feel that intercessions under the AEZ should besides help the passage to run into criterions of good agricultural patterns ( GAP ) and enable enfranchisement ( under protocols such as GLOBALGAP ) that is progressively being sought by abroad purchasers. The passage to GAP would necessitate an incorporate attack to turn to economical, environmental and societal sustainability issues for on-farm production and post-production procedures so as to turn to concerns of nutrient safety and quality. This is besides echoed by ( Kumar et al 2008 ) who observe that the quality of Cucumis sativus and gherkin merchandises should be improved through airing of improved techniques of production and processing. Agro-system specific programs could be prepared to pull off dimensions of dirt, H2O, harvest and fresh fish production, harvest protection, carnal production, carnal wellness, animate being public assistance, reaping and on-farm processing and storage, energy and waste direction, human public assistance, wellness and safety of wildlife and landscape. The gherkin sector in India is ideally positioned to develop towards run intoing the germinating GAP demands due to the high degree of private sector engagement, export orientation and favourable policy environment. Indian houses need to develop important comparative advantages ( e.g. bringing of smaller batch sizes all round the twelvemonth along with lower monetary values or specialising in the supply of hand-picked smaller gherkin classs as compared to other gherkin manufacturers to emerge feasible and sustain in planetary markets.
Specific intercessions by the AEZ nodal bureaus to better the public presentation of the sector could include –
Negotiate with states ( such as the USA ) or regional axis ( European Union ) to cut down import barriers
Undertake elaborate appraisals ( cost audits ) on cost of Gherkin processing for majority and bottled battalion signifiers, for assorted classs, with assorted formulas and for different graduated tables and engineerings of production, and place ways to cut down costs
Interact with bankers to place ways of supplying low-priced recognition ( investing and working capital ) to assorted entities ( such as catching houses, processing houses, husbandmans, facilitators etc )
Promote the acceptance of drip irrigation systems with fertigation for Gherkin cultivation, particularly in the waterless zones of the AEZ
Identify the SPS ordinances applicable to Gherkins, examine their sustained impact on AEZ exports and if found inhibitory, negotiate to cut down damaging impact
Plan and implement focused market development activities to promote higher demand for AEZ Gherkins
Undertake research on the impact of assorted cultivation patterns and processing patterns on merchandise quality
Train husbandmans, transporters, processors on assorted issues associating to cut down quality loss, and better merchandise quality
Explore ways to better the handiness of packing stuffs ( such as bottles, caps, cartons and barrels ) in a timely and cost-efficient mode
Enabling participatory planning and reviewing of the AEZ plan
7. Decision
Since the early 1990s, the policy environment in India for agricultural exports has seen limitations on exports of most farm end products and processed nutrients being removed. This is based on the belief that export-oriented agribusiness and nutrient processing would take to higher value add-on, higher farm ( and non-farm ) incomes and finally, capital formation in agribusiness. India ‘s export-import ( EXIM ) policies have initiated a batch of programs/schemes to promote export-oriented agribusiness in the state with the engagement of the private sector. Gherkin processors and exporters have utilised assorted export publicity strategies of the cardinal authorities while avoiding activist forces in the parts of gherkin cultivation. The Government ‘s direct engagement in the gherkin sector has been minimum and, has been limited to the execution of export publicity strategies. However, unequal policies to protect husbandmans come ining into contracts could emerge as an issue in future. Policies to turn to this issue would be utile if they do non restrain entrepreneurial enterprises in the sector. Developing states need to guarantee that the activities of export-oriented and non-traditional agricultural subsectors are non limited by repressive policies. This could be achieved by changeless interaction with Industry and institutional mechanisms for coordination between governmental sections. Policies to enable entree to merchandise information and research end products, support investings, enhance sectoral fight and, safeguard manufacturer involvements without restraining market forces, would lend to the development and effectivity of export-oriented and non-traditional agribusiness.
