“The organised and traditional retail sector will ultimately drive the growth of the fruits and vegetable sector in the country,” says a study conducted by YES Bank and Confederation of Indian Industries (CII).
The study said that organised retail chains are opening up huge opportunities for connecting fruits-and-vegetables value chains to consumers with value addition. “The fruits and vegetables sector is completely dependent on, and driven by, consumer choices and demand pull for fresh and processed products. Therefore, the sector’s growth will not be determined by production alone, but also by the extent of value addition and link-up to the market,” the report added.
The study further noted that a massive surge in production as well as a significant demand shift at global and domestic consumer segments from traditional to high-value crops, led by growth in disposal income and growth of the middle class, have collectively contributed to the demand for fruits and vegetables.
On the export front, the study called for tackling issues like traceability norms, conformity with global standards, and market access. The study also suggested minimising pre- and post-harvest losses and setting up of adequate infrastructure.