Indian Horticulture Sector: Status, Challenges, and Schemes

Context: 

This article is based on the news “Ministry of Agriculture and Farmers’ Welfare releases third advance estimate of area and production of various horticultural crops for the year 2022-23” which was published in the PIB. The Ministry of Agriculture and Farmers’ Welfare released the Third advance estimate of area and production of various horticultural crops for the year 2022-23. 

Horticulture Production Surpasses 355 Million Tonnes for 2022-23 – Agriculture Ministry

• Increase in Horticulture Production: The total horticulture production estimated for the year 2022-23 is 355.25 million tonnes, which is an increase of about 8.07 million tonnes from the year 2021-22 (347.18  million tonnes). 
• Increase in Fruit Production: Fruit production is estimated to increase to 109.53 million tonnes in the year 2022-23 from 107.51 million tonnes in the year 2021-22.
• Increase in Vegetable Production:  The production of vegetables is estimated to increase to 213.88 million tonnes in the year 2022-23  from 209.14 million tonnes in 2021-22. 
• Expansion in Plantation Crops: Production of plantation crops is estimated to increase to 16.84 million tonnes in the year 2022-23 as compared to 15.76 million tonnes in the year 2021-22 i.e. an increase of about 6.80%.

About Indian Horticulture Sector 

• Horticulture can be defined as the branch of agriculture concerned with intensively cultured plants directly used by people for food, medicinal purposes, or aesthetic gratification. 
• M. H. Marigowda is considered the father of horticulture in India.

Status of Indian Horticulture Sector

• Share in GDP: Horticulture contributes around 30.4% to Agriculture’s Gross Domestic Product (GDP), using only 13.1% of the gross cropped area. 
• Share in GVA:  The Indian horticulture sector contributes about 33% to the agriculture Gross Value Added (GVA) making a significant contribution to the Indian economy.
• Sector Growth: India’s horticulture production is estimated to have risen annually by 1.37 per cent to 351.92 million tonnes in 2022-23 due to better productivity.
• Production Status: In 2021-22, the total horticulture production was around 341.63 million tonnes, with fruit production at around 107.10 million tonnes and vegetable production at around 204.61 million tonnes.
• India as Global Leader: India has emerged as a world leader in the production of Mango, Banana, Guava, Papaya, Sapota, Pomegranate, Lime & Aamla (Indian Gooseberry).
  • According to the Agricultural and Processed Food Products Export Development Authority (APEDA), India ranks second in fruit and vegetable production after China.
• Major Fruit Export Destination: In the fiscal year 2021-22, India exported fruits and vegetables worth Rs 11,412.50 crore, with major destinations including Bangladesh, UAE, Nepal, Netherlands, Malaysia, Sri Lanka, the UK, Oman, and Qatar.

Advantages/ Significance of Indian Horticulture Sector

• Horticulture Production: India is currently producing about 320.48 million tons of horticulture in 25.66 million Ha of the area as compared to food grain production, in 127.6 M. ha.
  • Higher Productivity than Food Grains: Horticulture occupies only a fraction of the area under agriculture (about 20% of the total area under foodgrain in 2018-19). 
  • The productivity of horticulture crops is much higher compared to productivity of food grains (12.49 tones/ha against 2.23 tones/ha.).
• Short Duration Crops: Vegetables are short-duration crops that are mostly grown on small patches of land by marginal farmers, often in less than an acre of land. 
  • As land holdings become increasingly fragmented, production of vegetables ensures quick returns to farmers, compared to some pulse varieties that take up to six months to harvest.
• Employment Generation: Horticulture creates additional job opportunities in rural areas, expands the range of agricultural activities, and generates higher incomes for farmers.
  • One hectare of fruit production generates 860 man-days per annum as against 143 man-days in cereal crops. 
  • The Cashew industry alone employs over 5.5 lakh workers annually.
• Industrial development: Horticulture plants directly or indirectly serve as raw material for many industries. 
• • The plantation crops like tea, coffee, rubber, oil palm, etc. are the raw materials for industries.
  • Growing ornamental plants is an industry in itself. Aromatic plants like Rose, Jasmine, Tuberose, Sandal, Khas, etc. are used in the perfumery industry. 

Challenges Faced by the Indian Horticulture Sector

• Capital Intensive Nature of Horticultural Crops: The limited outreach of farm insurance and farm mechanisation, combined with a lack of access to institutional credit for small and marginal farmers, contribute to lower investment in the sector.
  • According to NABARD, approximately 30 per cent of agricultural households still avail credit from non-institutional sources.
• Infrastructure Issues:  Lack of proper irrigation facilities is a crucial limiting factor of horticultural production.
  • Lack of irrigation is detrimental during dry spells or droughts, where crops can quickly wither and die due to insufficient water supply. 
  • In contrast, excessive water can also be harmful, leading to waterlogging, root damage, and reduced yields.
• Poor Linkages of Value Chain: The horticulture marketing chain faces challenges due to the perishable nature of fruits and vegetables, which makes it difficult to store and transport them efficiently. 
• • Poor logistics and lack of equitable cold storage and warehousing facilities contribute to delays and wastages. 
  • There is  inequitable distribution of the cold storage facilities among the states, with around 59% of the storage capacity (i.e., 21 MMT) present in the four states of Uttar Pradesh, West Bengal, Gujarat, and Punjab.
• Poor Quality of Seeds: According to the National Horticultural Board,  the inadequate availability of quality planting material was one of the primary reasons for the low productivity of various horticulture crops in India.
• Pests and Diseases: Horticultural crops in India face the possibility of fungal infection and bacterial blights spreading fast and wide.
  • Farmers, facing bacterial blights affecting pomegranate orchards, have been forced to remove their orchards.
  • Exporters of potatoes faced similar challenges on account of late blight fungus.
• Poor Coordination Between Horticulture Departments: There appears to be a lack of coordination among state horticulture departments, with each promoting crops independently without considering the choices made by farmers in other states. 
  • The oversupply issue, such as the significant drop in tomato prices to one rupee per kg earlier highlights the need for better market intelligence. 
  • Farmers require clearer information on future demand and supply to make informed decisions about their crop choices.
• Poor Research and Development (R&D):  There is an R&D shortfall in horticulture varieties. Presently, the capacity utilisation of processing facilities in the country is only around 25 to 30%.
• Insignificant Share in Global Trade: The country’s global horticulture trade remains insignificant, accounting for only 1% of the global trade in vegetables and fruits. 
• Tariff Barriers for Exports: Indian horticulture products face tariff barriers in developed countries, along with non-tariff, phytosanitary requirement-related barriers.

Way Forward

• Institutional Support: Institutes like National Horticultural Board, Agricultural and Processed Food Products Development Authority, and NABARD need to provide liberal financial assistance for undertaking extension services in horticulture. 
  • Commercial banks and Export-Import Bank of India may extend packing credit to horticulture exporters by providing credit-plus services. 
  • Besides, exporters should be imparted training on good agricultural practices and in commodity derivatives to protect them against price volatility and exchange rate risks.
• Strengthening Post-Harvest Mechanism: Establishing post-harvest and logistics infrastructure is crucial for efficiently transporting marketable surplus, preventing farmers from being compelled to engage in distress sales during harvest.
  • A better cold chain network with pack houses and access to refrigerated transport can also help prolong fresh produce’s shelf life and earn farmers better value.
• Accessibility of Good Quality Seeds: It is imperative to enhance the accessibility of superior-grade seedlings and rootstock within the marketplace. 
  • By providing farmers with easier access to superior seedlings and rootstock through government subsidies and initiatives, crop yields can be effectively increased, contributing to overall profitability.
  • The Union Finance Minister allocated Rs 2,200 crore to boost the availability of disease-free, quality planting material for horticulture crops in Budget 2023.
• Investment in Agri-infrastructure: By capitalising on the Mission for Integrated Development of Horticulture and Operation Greens schemes, horticulture produce should reach the airport cargo handling facility within three hours to reach final destination in the Middle East, East Asia, and European markets. 
• • While ginger from Kochi can be transported to the Asian markets, roses may be exported from Bengaluru to the European markets during the Christmas season.
• Co-operatives in Horticulture: To harness market efficiency and boost exports, co-operatives in horticulture should be promoted. 
• • For instance, HOPCOMS supplies seeds, fertilizers and insecticides to farmers at reasonable prices and collects the horticultural produce directly from them for sale through retail outlets spread across Karnataka.
• Promoting Export Growth through ODOP:  Food processing of fruits and vegetables may be done by leveraging the One District One Product model, to expand the export basket. 
  • Litchi (Bihar), strawberries (Bundelkhand) and kiwis (Uttarakhand) are being cultivated and processed by farmers for making juice, jam, jelly, etc., with technical assistance from the Indian Council of Agricultural Research.  
  • These fruits can be exported by building social capital through farmer producer organisations (FPOs), which can leverage the entire horticultural value chain.

• Compliance with International Standards: Horticultural producers have to comply with world-class quality norms (Codex standards).
• For ex, Japan and the US banned the import of mangoes and other fruits from India due to the prevalence of fruit-fly pest infestation. 
• Digitalisation of Horticulture: Climate-smart technologies, biotechnology (for cultivation of Bt Brinjal), and nanotechnology(for improving the shelf-life of fruits and vegetables) should be promoted to boost exports. 
  • Corporate Social Responsibility grants may be utilised to undertake advanced research for digitalisation of horticulture through artificial intelligence, machine learning, and Internet of Things.

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