India is peeling back the challenges in its banana export ecosystem and going full throttle with logistics reforms, new sea freight routes, and strategically placed export hubs. While it is the world’s largest banana producer, India still holds just a 1.2% share in global banana exports—a gap it now aims to close.
According to APEDA, India’s banana export value surged tenfold, from USD 25 million in 2010 to USD 250.6 million in 2023. Yet, critical issues like fragmented farming, poor cold chain logistics, and reliance on expensive air freight continue to hinder its global potential.
Key Developments in Focus:
- Export Hubs Identified: Jalgaon, Solapur (Maharashtra), and Anantapur (Andhra Pradesh) to house modern packhouses and reefer linkages for year-round exports.
- Shift Toward Sea Freight: Pilot shipment from CISH Lucknow to the Netherlands showed positive results—an encouraging step away from costly air routes.
- Tariff Disparities: Indian bananas face up to 26% import duty in key Western markets, compared to just 10% for Latin American competitors.
- Push for FTAs: Report urges trade deals with the EU and U.S. to level the playing field and open high-value markets.
- Sustainability Certifications: Emphasizing GlobalGAP and Rainforest Alliance certifications to align with consumer trends in Europe and North America.
Logistics Opportunity:
With infrastructure upgrades and modal shift to cost-efficient sea freight, India’s banana sector could see expanded access to markets in the EU, Russia, and ASEAN, improving both margins and volumes.
