EXPORT OF BANANA FROM INDIA: A COMPREHENSIVE STUDY

I. Introduction

Banana (Musa spp.) occupies a central position in Indias horticultural economy. India is currently the largest producer of bananas in the world, contributing approximately 25–26% of global production (FAO, State of Food and Agriculture Report, 2023). Despite this dominant production share, India’s share in global banana exports has historically remained modest due to infrastructural, logistical, and market-access constraints. In recent years, policy interventions, improved post-harvest handling, and the development of sea protocols have enhanced India’s banana export profile, placing the sector on a significant growth trajectory.

II. Types and Varieties of Banana

India grows an exceptionally diverse set of banana cultivars. Major varieties include:

• Grand Naine (G-9) / Dwarf Cavendish – Preferred for export due to uniform size and long shelf life (National Horticulture Board, Horticultural Statistics at a Glance, 2022).
• Robusta – Predominant in southern India with high productivity (ICAR–National Research Centre for Banana, Technical Bulletin, 2021).
• Rasthali, Poovan, Karpuravalli – Table varieties valued for flavour.
• Nendran – A specialty variety from Kerala, preferred for chips and processing.
• Red Banana – Cultivated in Tamil Nadu and Kerala; niche export potential.
• GI-tagged varieties:
  • Jalgaon Banana (GI No. 185)
  • Virupakshi Hill Banana (GI No. 192)
  • Sirumalai Hill Banana (GI No. 191)
  • Chengalikodan Banana (GI No. 197)

(GI Registry of India, Annual Report 2022).

III. Climate Requirements for Banana Cultivation

Bananas require:

1. Temperature: 26–30°C for optimum growth (ICAR-NRCB, Crop Production Guide, 2021).
2. Rainfall: 1500–2000 mm annually or assured irrigation.
3. Soil: Deep, well-drained loam with pH 5.5–7.0.
4. Humidity: High relative humidity (>65%) for physiological balance.
5. Wind Protection: Essential to prevent pseudostem lodging and fruit damage.

IV. Major Banana-Producing States

According to the National Horticulture Board (2022-23):

Other significant contributors include Karnataka, Madhya Pradesh, Bihar, and Kerala.

V. HSN Code

The Harmonized System Code for fresh bananas is:

• HSN Code 0803 – “Bananas, including plantains, fresh or dried” (World Customs Organization – HS Nomenclature, 2022 Edition)

VI. Value-Added Products

Value addition in bananas includes:

• Banana chips (notably from Nendran variety)
• Banana purée and pulp
• Banana powder/flour
• Dehydrated banana slices
• Banana fibre and textile products
• Pre-ripened consumer-ready fruit packs

(Ministry of Food Processing Industries, Status Report on Banana Value Chain, 2021)

VII. Export Incentives

1. RODTEP (Remission of Duties and Taxes on Exported Products)

Provides remission of unrebated taxes incurred in the supply chain. The scheme remains valid through March 2026 (Directorate General of Foreign Trade, Trade Notice No. 25/2024).

2. Duty Drawback

Refund of basic customs duty paid on inputs used in export production (Customs and Central Excise Duties Drawback Rules, 1995).

3. ECGC Support

The Export Credit Guarantee Corporation of India provides:

• Export credit insurance
• Political risk cover
• Buyer credit cover

(ECGC Annual Report, 2023–24)

These mechanisms reduce market, payment, and geopolitical risks for agricultural exporters.

VIII. Export Performance

• In 2021–22, India exported approximately 376,000 MT of bananas valued at USD 157 million (APEDA Export Statistics, 2023).
• In 2022–23, exports increased to USD 176 million.
• In 2023–24, banana exports crossed USD 300 million, signifying rapid growth (Press Information Bureau, Government of India, Release dated 20 December 2023).

India’s move toward sea-based shipments has significantly contributed to this rise.

IX. Major Export Destinations

Primary markets include:

• Middle East: UAE, Saudi Arabia, Oman, Qatar, Bahrain, Kuwait (APEDA Market Intelligence Report, 2023)
• South Asia: Nepal, Bhutan
• Emerging Destinations:Russia, Iran
• Europe (trial shipments): Netherlands, Italy
• Potential Markets: UK, Germany, Japan, China

X. Export Finance

Export finance avenues include:

1. Pre-shipment credit (Packing Credit)
2. Post-shipment credit (Bills Purchase / Discounting)
3. Interest Equalisation Scheme – for MSME exporters
4. ECGC-backed credit lines
5. NABARD & commercial bank agri-export loans (Banking Regulation Department – RBI Master Circular on Export Credit, 2023)

XI. Russia as a New Growth Market

India is actively developing Russia as a key export destination:

• The first commercial shipment of Indian bananas to Moscow was facilitated in early 2024 (APEDA Press Statement, February 2024).
• Russia seeks alternatives to Latin American supply chains due to geopolitical shifts.
• India aims to export $1 billion worth of bananas to Russia over the coming years (APEDA Chairman’s Statement, Business Standard, December 2024).
• Development of cost-effective sea-route protocols is central to this expansion.

XII. Modes of Export

1. Air Freight

• Used for premium quality consignments.
• Short transit time but high cost.

2. Sea Freight

• Increasingly adopted due to lower costs.
• Requires controlled atmosphere (CA), reefer containers, and stringent ripening parameters.

3. Reefer/Controlled-Atmosphere Containers

• Essential for long-distance shipments (ICAR-NRCB Post-Harvest Manual, 2022).

XIII. Export Promotion Bodies

• APEDA – Nodal agency for banana exports; conducts training, certifications, and infrastructure support.
• National Horticulture Board (NHB) – Cluster development and data support.
• Directorate General of Foreign Trade (DGFT) – Policy and incentives.
• ICAR institutes – Research and post-harvest protocols.

XIV. Government Initiatives

1. Operation Greens (TOP to TOTAL) – Includes banana clusters for integrated value chains (MoFPI Guidelines, 2020).
2. Cluster Development Programme (CDP) – Maharashtra, Tamil Nadu, Gujarat clusters under APEDA.
3. Sea Protocol Development – For Europe, Russia, and Central Asia.
4. GI-based Branding Initiatives for unique banana cultivars.
5. Infrastructure Grants under MoFPI and APEDA for:
   • Packhouses
   • Ripening chambers
   • Pre-cooling units
   • Cold storage and reefer vehicles

XV. Challenges and Bottlenecks

1. High perishability and post-harvest losses.
2. Inadequate cold-chain infrastructure in rural production belts.
3. High air-freight charges; limited reefer container availability.
4. Failure to comply with stringent international phytosanitary standards.
5. Fragmented production; inadequate aggregation of farmers.
6. Price volatility and credit risk.
7. Competition from Ecuador, Costa Rica, Colombia, and the Philippines (FAO Banana Statistical Review, 2023).

XVI. Solutions and Way Forward

1. Strengthen cold-chain infrastructure across production clusters.
2. Expand sea-route logistics with CA/reefer container support.
3. Training for farmers and exporters on GlobalGAP, HACCP, and residue standards.
4. Promote GI-tagged bananas to premium markets in Europe and Asia.
5. Encourage FPOs and cooperatives to improve aggregation and bargaining power.
6. Stable incentive regimes under RODTEP and Duty Drawback.
7. Government–industry partnerships for marketing and branding globally.

XVII. Conclusion

India, though the largest global producer of bananas, has only recently begun unlocking its export potential. Improvements in logistics, cold chain, sea protocols, and government support have contributed to a sharp rise in exports. With focused policy intervention, diversification of markets (particularly Russia and the EU), and strengthening of the banana value chain, India is well-positioned to emerge as a leading global banana exporter. The coming years present a strong opportunity to transform banana cultivation into a high-value export-driven agricultural sector, contributing substantially to farmer incomes and rural economic development.

REFERENCES

1. Food and Agriculture Organization (FAO). State of Food and Agriculture, 2023.
2. APEDA. Export Statistics of Horticultural Products, Annual Report 2023.
3. National Horticulture Board. Horticultural Statistics at a Glance, 2022-23.
4. ICAR–National Research Centre for Banana. Technical Bulletin on Banana Production, 2021.
5. Ministry of Food Processing Industries. Value Chain Study on Banana, 2021.
6. Directorate General of Foreign Trade. Trade Notice No. 25/2024 on RODTEP Extension.
7. Press Information Bureau (PIB). “India’s Banana Export Performance,” Release dated 20 December 2023.
8. Business Standard. “India Targeting Russia for Banana Exports,” December 2024.
9. GI Registry of India. Annual Report, 2022.
10. RBI. Master Circular on Export Credit, 2023.
11. ECGC. Annual Report, 2023–24.
12. World Customs Organization. HS Nomenclature, 2022 Edition.

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