World Bank Report claims poor logistics hurting India’s fruit and vegetable exports
By SwizStick • Apr 22nd, 2007 • Category: Supply Chain ManagementVia Rediff India Abroad:
High delivery costs, caused primarily by a fragmented supply chain, bad logistics, together with poor standards are hurting India’s horticulture exports much more than trade barriers, according to a World Bank report.
Despite producing 11 per cent of the world’s vegetables and 15 per cent of fruits at very competitive costs of about 53 per cent and 63 per cent of average global prices, India’s share in global fruits and vegetables trade has remained at only 1.7 per cent and 0.5 per cent, respectively, the report points out.
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Even international transport costs are 20-30 per cent higher than in other countries. For instance, it costs $790 to transport one tonne of grapes from India to the Netherlands, which is two and a half times higher than what the Chileans are paying, although it is twice as far from the Netherlands as India.
It’s a shame too, because India’s fruit and vegetable industry has so much potential. My favorite fruit is the mango. I used to think the best mangos came from the Philippines and Thailand, until a buddy of mine in Singapore swore that nobody could touch the taste of Indian mangos. I didn’t believe him until I travelled to India and tasted for myself. He was absolutely right, hands down the best mangos I had ever tasted (That’s orange mangos, not green. The best green mangos come from Thailand). Insufficient infrastructure, poor logistics, inefficient supply chain management, expensive transportation costs - they all serve to drive up the costs of goods and make them less competitive than other countries, despite the fact that perhaps some of their competitors actually may have inferior products. If you can’t get your goods to market in a fast and profitable manner, it doesn’t matter how good they are.
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Thanks for the article. Vegetable crops develop water requirements which are specific to their variety, maturity, and the surrounding tmospheric and soil characteristics. It’s a good idea to choose your favourite vegetables to grow and plan beds for early, middle of the season and late varieties. It is important to protect your vegetable garden from wild animals looking for a tasty treat. Intake of the unsaturated vegetable oils from la,peanuts, olive, flax, corn, safflower and sunflower which contain unsaturated.