Export Prospects of Fruits and Vegetables From India: A Study of Export Market in The Eu

EXPORT PROSPECTS OF FRUITS AND VEGETABLES
FROM INDIA: A STUDY OF EXPORT MARKET IN THE EU
BY
GADIT FORUM CHETAN

B.E. (Food Processing Technology)
INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE

ANAND AGRICULTURAL UNIVERSITY
ANAND 388 110
2015
EXPORT PROSPECTS OF FRUITS AND VEGETABLES FROM
INDIA: A STUDY OF EXPORT MARKET IN THE EU
A PROJECT REPORT
Submitted by
GADIT FORUM CHETAN

Reg. No. 04-2289-2013
in partial fulfilment for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION

(INTERNATIONAL AGRIBUSINESS)
Under the guidance

of
Dr. R.S. Pundir
Associate Professor & Head
Agribusiness Economics and Policies
INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE

ANAND 388 110
JUNE 2015
INTERNATIONAL AGRI-BUSINESS MANAGEMENT INSTITUTE
ANAND 388 110
CERTIFICATE
This is to certify that this project report entitled “EXPORT PROSPECTS OF

FRUITS AND VEGETABLES FROM INDIA: A STUDY OF EXPORT
MARKET IN THE EU” of M.B.A. (International Agribusiness) embodies bonafide
research work carried out by GADIT FORUM CHETAN under my guidance and
supervision and that no part of this project work has been submitted for any other
degree. The assistance, guidance and help received during the course of investigation
have been fully acknowledged.
Place: IABMI, Anand (Dr. R.S. Pundir)

Date: Advisor
ANAND 388 110
DECLARATION
I hereby declare that the project entitled “EXPORT PROSPECTS OF FRUITS

AND VEGETABLES FROM INDIA: A STUDY OF EXPORT MARKET IN
THE EU” submitted for the M.B.A. (International Agribusiness) degree is my
original work and this has not formed the basis for the award of any degree, associate
ship or other similar titles.
Place: IABMI, Anand Gadit Forum Chetan

Date: (04-2289-2013)
ACKNOWLEDGEMENT
I have great deep sense of gratitude for “Morarka Organic Foods Ltd.” for
providing me the opportunity to undergo project training at their esteemed
organization.
I feel immense pleasure in expressing my sincere and profound sense of gratitude

to my organization guide Mr. Vinod Nair, AGM- Sales & Marketing,
Maharashtra, Morarka Organic Foods Ltd, for his scholastic guidance, constant
encouragement and pertinent suggestions in planning and execution of this
project.
I feel privilege in expressing my deepest sense of gratitude and humble

indebtedness towards my Institute guide Dr. R.S. Pundir, Associate Professor &
Head Agribusiness Economics and Policies, International Agri-business
Management Institute, AAU, Anand for his steadfast inspiration, expert guidance,
painstaking effort and keen abiding interest during the entire project work.
With profound respect, I extend my gratitude to Dr. R.V. Vyas, Principal & Dean,
International Agribusiness Management Institute, AAU, Anand for providing
necessary facilities during project work.
I would also like to thank Dr. Ritambhara Singh for her great efforts in helping
me disentangling some concepts pertaining to international trade. Prof. T.S.
Shibin for his guidance all along; for that I am grateful to him.
I am grateful to all the people in different institutions who generously offered me

their time, guidance and suggestions that made me more enthusiastic about my
field work: Dr. K.S Jadav, Associate Professor, Dept. of Agricultural Economics,
Anand Agricultural University for his guidance, Dr. Alpesh Leua, Associate
Professor Agribusiness Economics and Finance, Navsari Agricultural University
for his immense guidance
Many thanks to the friends who helped me throughout the entire process, Maitri,
Komal, Pooja, Ashish, Jigar and others. To my friends elsewhere, thank you for
your continuous moral support.
Finally, I am forever indebted to my parents and sister for their love, care,
understanding, endless patience and constant encouragement when it was most
required.
Place: IABMI, Anand Gadit Forum Chetan

Date: (04-2289-2013)
EXPORT PROSPECTS OF FRUITS AND VEGETABLES
FROM INDIA: A STUDY OF EXPORT MARKET IN THE EU
Name of student Advisor

Gadit Forum Dr. R.S. Pundir
Reg. No. (04-2289-2013) Associate Professor

ANAND 388 110
ABSTRACT
The global economy has gathered an unconventional momentum with the most
significant transformation in the field of trade. The global agricultural trade
exists more in industrial countries among trade blocks of European Union and
North American Free Trade Agreement. European Union is world’s main
trading partner and its market is accessible for the developing countries. In the
year 2013- 2014, India’s total export of agricultural commodities to EU was of
the order of US $ 4197.4 million.
The study was undertaken for Morarka Organic Foods Ltd. which is focused on
carrying out research by involving grass root beneficiaries for sustainable
agriculture development. To meet the stipulated objectives of the study, apart
from detailed study of export procedure, secondary data were collected and
analyzed using Annual Compound Growth rate for area, production and exports.
To examine the variability, instability index was estimated and for measuring
the export competiveness in selected fruits and vegetables, Nominal Protection
i
Coefficient was used. The study involves major four fruits namely, mangoes,
bananas, grapes, papayas and two main vegetables, onions and capsicum.
Bananas showed a higher growth rate in both area as well as production

whereas; growth rate for mangoes was found to be the lowest among the studied
fruits. Both the vegetables namely, onions and capsicum showed a high amount
of growth rate. Instability for mangoes was found to be the lowest in both area
as well as production. Whereas, instabilities for both the vegetables i.e. onions
and capsicum were also very low.
For exports, for mangoes Netherlands and Belgium showed a negative growth
rate. In case of bananas Germany showed a negative growth rate for quantity
whereas high index of instability. Instability index for bananas was found to be
high for all countries. For grapes, Netherlands showed the highest growth rate in
terms of value whereas; Belgium showed the highest instability index. For all
countries, Instability Index for grapes was found to be high. For papayas,
France showed a negative growth rate in terms of quantity. Highest growth rate
was seen in case of Netherlands. Instability Index for papayas was also found to
be high. Germany showed negative growth rate for both quantity as well as
value. Instability index for Germany was also high for onions as well as
capsicum. Comparatively, instability index for both the vegetables and mangoes
was found to be low.
The study also deals with the quality standards and export procedure for fruits
& vegetables from India to the EU which briefs about the registration
procedures, certifications, number of international trade documents required at
various stages of international trade transactions like Commercial invoice, Bill
of lading, Certificate of origin, Bill of exchange, Pro-forma invoice etc. The
study has also dealt with quality standards followed by EU such as various
ii
labeling requirements, general marketing standards, marketing standards for
table grapes, packaging and container requirements, pesticide and contaminants
levels and others.
To measure the export competitiveness, Nominal Protection Coefficient was

measured for two vegetables and four fruits for their leading importing
countries. The NPCs for mangoes 0.06 to 0.16 for 2013 and 0.05 to 0.09 for
2014 with UK being most competitive; similarly, it was found to be 0.532,
0.491 for bananas. For grapes, it carried from 0.048 to 0.075 in 2013 and 0.040
to 0.065 in 2014 with UK being the most competitive. For papayas, NPC varied
from 0.03 to 0.05 in 2013 and 0.01 to 0.03 in 2014.In case of vegetables, for
onions, France was not found to be competitive in the year 2013 as it showed an
NPC of 1.01 but in 2014 it became competitive with NPC of 0.63. This
indicates that India was competitive for both the years i.e. 2013 and 2014 for all
the studied commodities except for onions in 2013 for France. However, among
the fruits, papayas showed higher competiveness in both the years and similarly
for vegetables, capsicum was found to be more competitive. For all the
commodities except papayas, UK was found to be a more competitive
destination among others.
iii
LIST OF CONTENTS
SR. PAGE
CHAPTER
NO. NO.
ABSTRACT i
LIST OF CONTENTS iv
LIST OF TABLES vi
LIST OF FIGURES vii
ABBREVIATIONS viii
1 INTRODUCTION 1
1.1 Background of the study 3
1.1.1 Overview: European Union’s Agricultural Trade 3
1.1.2 Overview: Indian Agricultural Trade 6
India’s agricultural trade relations with European
1.1.3 8
Union
1.2 Company profile 9
1.2.1 The Product Range 12
1.2.2 Products of Morarka Organic food Limited 12
1.2.3 Corporate Philosophy 13
1.2.4 Organic Cultivation, Technology & Practices 15
1.3 Objectives of the study 16
2 REVIEW OF LITERATURE 17
3 METHODOLOGY 23
4 RESULTS AND DISCUSSION 27
Growth and instability of production of major Fruits
4.1 27
and vegetables of India
Growth and instability analysis of Area and
4.1.1 27
Production of major fruits
Growth and instability analysis of Area and Production
4.1.2 of major vegetables 28
iv
Growth and instability in exports of majorFruits and
4.2 vegetables produced in India which are exported to 30
major countries of the EU
Compound Growth rate and Instability Index of Fresh

4.2.1. 30
mangoes exported from India to major EU countries

4.2.2 32
bananas exported from India to major EU countries

4.2.3 34
grapes exported from India to major EU countries
Compound Growth rate and Instability Index of

4.2.4 papayas exported from India to major EU 36
countries
4.2.5 38
Onions exported from India to major EU countries
4.2.6 capsicum exported from India to major EU 39
countries
Quality standards and export procedures from India to
4.3 41
the EU
4.3.1. Export procedure for exports from India 41
4.3.2. Quality Standards for the EU 69
Competitiveness of major fruits and vegetables
4.4 86
exported from India to the EU
5 SUMMARY AND CONCLUSIONS 90
6 REFERENCES 93
v
LIST OF TABLES
PAGE
SR. NO TITLE
NO
Growth and instability analysis of Area and Production of
Table 4.1.1. 27
major fruits
Growth and instability analysis of Area and Production of
Table 4.1.2. 28
major vegetables
Table 4.2.1 30
mangoes exported from India to major EU countries

Table 4.1.1 32
bananas exported from India to major EU countries
Compound Growth rate and Instability Index of Fresh grapes

Table 4.2.3. 34
exported from India to major EU countries
Compound Growth rate and Instability Index of papayas
Table 4.2.4. 36
Compound Growth rate and Instability Index of Onions
Table 4.2.5. 38
Compound Growth rate and Instability Index of capsicum
Table 4.2.6. 39
Table 4.3.1 List of Documents issued by Nodal agencies 67
Table 4.3.2 List of documents to be facilitated by nodal agency 68

Table 4.4.1. Export competitiveness of mangoes 86
Table 4.2.2. Export competitiveness of fresh bananas 87
Table 4.2.3. Export competitiveness of fresh grapes 87
Table 4.2.4. Export competitiveness of fresh papayas 88
Table 4.2.5. Export competitiveness of onions 88
Table 4.2.6. Export competitiveness of capsicum 89
vi
LIST OF FIGURES
SR.
NO TITLE PAGENO
1.1. Top 6 world agricultural exporters (€billion) 3
1.2. Top 6 world agricultural importers (€billion) 4
1.3. Extra-EU and intra-EU trade in agricultural products, EU-28 5
1.4. Production of Fruits and vegetables in India 7
Per cent share of top commodity in agri export and import

1.5. 8
between two countries
1.6. India-EU Agriculture Trade Trend 9

1.7. Product Mix (Morarka Organic Food Limited) 14
4.1. Do Not Eat Symbol 70
vii
ABBREVIATIONS
Agricultural and Processed Food Products Export Development

APEDA
Authority
BIN Bank Identification Number
BLAI Bills of Lading Application-Instructions
C&F Agents Carrying & Forwarding Agents
C/O Certificate of Origin

CBEC Central Board of Excise and Customs
CGR Compound Growth Rate
CHA Customs House Agent
CIF Cost, Insurance and Freight
Duty Exemption Entitlement Certificate/ Duty Entitlement Pass
DEEC/DEPB
Book Scheme
DGFT Directorate General of Foreign Trade
EDI Electronic Data Interchange
EIC Export Inspection Council of India
EOUs Export Oriented Units
EPC Export Promotion Council
EPZ Export Processing Zone
EU-28 European Union 28
EXIM Export-Import
FIEO Federation of Indian Export Organisation
Fig Figure
FOB Free On Board
g Grams
GOI Government of India
GR Guaranteed Remittance
GSP Generalised Scheme of Preferences
Ha Hectares
I.I. Instability Index
viii
ICES/ E Indian Customs EDI System for processing of Shipping Bills
ICES/I Indian Customs EDI System for processing of Bill of Entry
IEC Number Importer Exporter Code Number
L/C Letter of Credit

MEIS Merchandise Exports from India Scheme
MoA Ministry of Agriculture
MPEDA Marine Products Exports Development Authority
MRLs Maximum Residue Levels
MT Metric Tonnes
NOP National Organic Program
NPC Nominal Protection Coefficient
PAN Permanent Account Number
RASFF Rapid Alert System for Food and Feed
RBI Reserve Bank of India
RFID Radio Frequency Identification
RMS Rapporteur Member States
SAARC South Asian Association for Regional Cooperation
SAPTA South Asian Preferential Trade Arrangement
SDF Statutory Declaration Form
SLI Shipper's Letter of Instructions
UK United Kingdom
USD United States Dollars
VKGUY Vishesh Krishi Gram Upaj Yojana
ix
INTRODUCTION
The global economy has gathered an unconventional momentum with the most
significant transformation in the field of trade. The liberalised multilateral trade
agreements under the World Trade Organisation (WTO) are one of the
significant developments of the 1990s. It has effectively encouraged
development through optimal allocation of resources among the economies of
the world. As tariff levels have declined through successive GATT/WTO
rounds and global supply chains have come to dominate production patterns,
growing attention has been directed to the remaining cost factors that are
important for international competitiveness, in particular those incurred by trade
formalities and procedures.
The world is facing food crisis and to overcome it, trade of agricultural products
is necessary. The original GATT did apply to agricultural trade, but it contained
loopholes.The objective of the Agriculture Agreement is to reform trade in the
sector and to make policies more market-oriented. This improved predictability
and security for importing and exporting countries alike.
The global agricultural trade exists more in industrial countries among trade
blocks of European Union and North American Free Trade Agreement. The
share of agriculture in global trade has been shrinking, as has its share in global
gross domestic product. Most successful developing countries have not relied
on agriculture for their exports. The developing countries of the world are
capable of becoming the world food basket if provided with better trading
opportunities. For countries with a small urban population, increasing
agricultural exports can accelerate growth more than expanding domestic
market demand can. (Aksoy and Beghin, 2005). European Union is world’s
main trading partner and its market is accessible for the developing countries.
The EU is by far the largest importer with € 1,680.2 billion of which
Page | 1
agricultural imports being € 104 billion in the year 2014, followed by United
States of America. Though EU is self sufficient in many agricultural products
but demand of certain products are not met which can be fulfilled by developing
countries. The technological developments have made it possible for faster
transport systems and innovations have led to qualitative products.
International trade in fruits and vegetables has expanded at a higher rate than
trade in other agricultural commodities, particularly since the 1980s. Not only
has world trade in fruits and vegetables gained prominence, but the variety of
commodities has expanded. Over the years, three regions—the European Union
(EU), the North American Free Trade Agreement (NAFTA) area, and Asia
(East, Southeast, and South)—have remained as both the major destinations and
sources of supply. A substantial share of their trade is intraregional, particularly
that of the EU.
68 billion was traded in fruits and 35.5 billion dollars was traded in fresh
vegetables worldwide. World trade in fresh fruit is still increasing. This applies
both to the value as for the quantity that is internationally traded. World trade in
fresh vegetables has stabilised. Compared to 2011 the same amount of trade was
done as last year. 2011 was the peak year when comparing in quantity
Globalization of the fruit and vegetable trade has made fresh produce accessible
to consumers around the world, overcoming seasonality and smoothing price
fluctuations. High income-growth rates in developing countries portend higher
rates of fruit and vegetable consumption and trade in the future. In the
meantime, developed countries will dominate global consumption and trade of
fruits and vegetables, not only because of their high income levels but also
because of consumers’ increasing concerns about healthy eating, which tend to
increase fruit and vegetable intake in their diets.
Page | 2
1.1. Background of the study
1.1.1. Overview: European Union’s Agricultural Trade
With agriculture covering half of the EU’s land area, Europe’s biodiversity is to
a large part inextricably linked to agricultural practices. The EU is the leading
destination as well as source of supply in the global fruit and vegetable trade.
The EU, however, is a customs union (a grouping of countries that have a
common tariff for third countries), and the fruit and vegetable sector has a
common market organization (CMO) with policy mechanisms and trade
agreements in place to stabilize markets.
Fig: 1.1 Top 6 world agricultural exporters (€ billion)

Source: Monitoring Agri- Trade Policy, European Commission, 2014
EU exports of agricultural products reached €120 billion in 2013. However, the
growth was slower than in previous years +5.8%, +12% in 2012 and +17% in
2011 respectively. At the same time, the US had a drop in its agricultural export
value to €115 billion in 2013, down from €117 billion in 2012 after a growth of
+11% and +14% in the preceding years. While the other main world agri-food
exporters, Brazil, Canada and Argentina maintained the value of their exports in
2013, Brazil showed a 14% increase in exports, China recorded a 3.9% growth
Page | 3
to €36 billion. Over the last five years, the value of Chinese agricultural exports
has expanded by 74%. Brazil's growth in exports over the last five years has
also been impressive. The country has maintained its position as the world's
third largest exporter of agricultural goods.
Fig: 1.2 Top 6 world agricultural importers (€ billion)

Source: Monitoring Agri- Trade Policy, European Commission, 2014
The EU remains by far the world's biggest importer of agricultural goods, with
imports just below last year's level at € 101.5 billion well ahead of the US (€84
billion). In 2013, China equalled the US as the second-ranking importer of agri-
food products, although the growth rate of its imports slowed down in 2013 to
+2.4% compared to the previous years. As to the other main players, Japan,
imported €46 billion worth of agri-food products, which is a reduction of 15%
compared to 2012, while Russia and Canada maintained the value of their
imports.
Within all (extra-EU and intra-EU) EU exports and imports of agricultural
commodities, the extra-EU flow of agricultural goods represents one quarter of
all transactions, meaning that close to 75 % of all EU agricultural trade is
carried out within the EU-28 Member States. In the EU-28, the fruit and
vegetables sector accounts for 17% of the total agricultural output value, of
which 10% corresponds to vegetables and the remaining 7% to fruits. The
Page | 4
importance of the sector is higher in most of the southern Member States,
representing between one third and one quarter of their total agricultural output
(on average for the period 2011-2013, more than 30% in Greece, Cyprus, Malta
and Portugal, and between 25% and 30% in Spain, Italy and Romania).
Fig: 1.3 Extra-EU and intra-EU trade in agricultural products, EU-28, 2013
Source: Eurostat
Most of the EU's production of fresh fruit and vegetables is consumed
internally: overall, only 15% of the total fruit production and 7% of the
vegetables production is exported outside the EU (in value). In terms of
quantities of fresh fruit produced, the EU exports around 32% of the production
of kiwis, 15.5% of pears, 12-13% of apples and nectarines, 6-8% of peaches,
lemons and table grapes, and 5.5% or less of the production of apricots,
cherries, strawberries, oranges, melons and watermelons. In the case of
vegetables, EU exports represent around 12.5% of the production of onions, 5-
6% of sweet peppers and mushrooms, and less than 5% of the production of
tomatoes, potatoes, cucumbers, carrots, cauliflowers and broccoli, cabbages and
eggplants. (European Commission, 2014).
Page | 5
1.1.2. Overview: Indian Agricultural Trade
The agriculture sector spearheading the economic development of India has
undergone remarkable transformation from food- deficit situation to the
exportable surplus generation after meeting the domestic requirements of the
large population. India has been bestowed with wide range of climate and
physio-geographical conditions and as such is most suitable for growing various
kinds of horticultural crops such as fruits, vegetables, flowers, nuts, spices and
plantation crops. Agriculture has played an essential role in India’s economic
development, growing about three percent each year on average over the last
forty years. However, despite its growth, the role of agriculture in India’s
economy has been declining sharply as other sectors; particularly services have
grown more quickly. Primary agriculture accounted for about 14% of national
GDP in 2012, down from close to 30% in 2000. (OECD FAO Agricultural
Outlook, 2014).
Horticulture (fruits including nuts, vegetables including potato, tuber crops,
mushroom, ornamental plants including cut flowers, spices, plantation crops and
medicinal and aromatic plants) in India has become a key drivers for economic
development as it contributes 30.4 per cent to GDP of agriculture (ICAR, 2015).
The area under horticulture crops which was 12.77 million hectares during
1991- 1992 has increased to 23.69 million hectares during 2012-13. The total
production during this period has increased by nearly 2.8 times and
corresponding productivity has increased 1.5 times. This has placed India
among the foremost countries in horticulture production, just behind China.
During 2012-13, its contribution in the world production of fruits & vegetables
was 12.6 % & 14% respectively. The volume, price, and direction of trade flows
change over time, reflecting the dynamic nature of demand and supply in fruit
and vegetable markets. (Economic Research Service/USDA Outlook Report,
2012).
Page | 6
Fig: 1.4 Production of Fruits and vegetables in India
Source: Economic Survey 2013-13, GOI
India's diverse climate ensures availability of all varieties of fresh fruits &
vegetables. It ranks second in fruits and vegetables production in the world, after
China. As per National Horticulture Database published by National Horticulture
Board, during 2012-13 India produced 81.285 million metric tonnes of fruits and
162.19 million metric tonnes of vegetables. The area under cultivation of fruits
stood at 6.98 million hectares while vegetables were cultivated at 9.21 million
hectares. India is the largest producer of ginger and okra amongst vegetables and
ranks second in production of potatoes, onions, cauliflowers, brinjal, Cabbages,
etc. Amongst fruits, the country ranks first in production of Bananas (22.04%),
Papayas (40.74%), Mangoes (including mangosteens, and guavas)(32.65%). The
vast production base offers India tremendous opportunities for export. During
2013-14, India exported fruits and vegetables worth Rs. 8760.96 crores which
comprised of fruits worth Rs. 3298.03 crores and vegetables worth Rs. 5462.93
crores. The major destinations for Indian fruits and vegetables are UAE,
Bangladesh, Malaysia, UK, Netherland, Pakistan, Saudi Arabia, Sri Lanka and
Nepal.
Page | 7
It is widely believed that India’s export prospects in agricultural goods are not
good as the country is set to become a net food importing country due to slow
growth in agriculture along with a continued growth in population. However,
this may not be true for all agricultural commodities. There can be some items
where India can continue to export and even increase the same. Horticultural
produce can be one such area. Incidentally, horticulture does not attract much
subsidy in the developed world (Mattoo et al., 2007)
1.1.3. India’s agricultural trade relations with European Union

In the year 2013- 2014, India’s total export of agricultural commodities to EU
was of the order of US $ 4197.4 million. India’s principal agricultural exports
during this period were shrimps and prawns, cashew nuts, grapes, coffee, rice,
castor oil, and soya oil meals. During the same period, the agricultural import
from EU was of the order of US $ 608.52 million. India’s main items of imports
were preparations used in animal feeding, whiskies, and ethyl alcohol and food
preparations.
Fig: 1.5 Per cent share of top commodity in agri export and import between two countries
Source: agricoop.nic.in
Page | 8
Fig: 1.6 India-EU Agriculture Trade Trend
Source: agricoop.nic.in
India’s agriculture export to EU showed an increasing trend from 2009-10 to
2013-14. However, agriculture import from EU decreased in 2013-14 compared
to corresponding period of 2012-13. Percent share of global agri export and
import India’s share in EU total global agriculture import is 0.76 % (2013).
Whereas, EU’s share in India’s total global agriculture import is 3.60% in 2013-
14. Average agriculture tariff rate of India and EU are 33.5% and 13.2%
respectively.
1.2. Company Profile:

Morarka Organic Foods Ltd.
Morarka Organic Foods is a Private Sector Organization that offers services in
Food Processing/ Beverages. The foundation is focused on carrying out research
by involving grass root beneficiaries for sustainable agriculture development.
Morarka organics established in 1993, Head Quarter in Jaipur, Rajasthan, India.
Recent Chairman is Kamal Morarka. Born in a traditional Marwari family,
Kamal Morarka, an industrialist, former cabinet minister and philanthropist
registered M.R. Morarka-GDC Rural Research Foundation in 1991 in memory
Page | 9
of his father Late M.R. Morarka funded by M/s. Gannon Dunkerley &
Company Ltd. Morarka Foundation has ventured into areas such as Organic
Farming and Certifications, Agriculture Extension, Tourism Promotion, Waste
Management, Vermicomposting, Conservation of Heritage etc.
The Foundation employs more than 400 full-time workers including over 40
professionally qualified post graduates, over 70 graduates and large number of
well-trained extension workers in Agriculture Biotechnology and Organic
agriculture and provides Vermiculture know-how to over 300 Agripreneurs
every year in India. It produces over 50, 000 M.T. (1 M.T. Is = 1000 kg.) of
Vermicasting every month and has over 1 Lac hectare land under Certified
Organic Cultivation. It has involved nearly 70,000 farmers to join its organic
agriculture activities in Jaipur, Jhalawar, Pali, Sirohi, Barmer and Jhunjhunu
districts. Morarka Foundation has joined hands with an operations consulting
firm Global Management Services to set up a joint venture company to convert
large tracts of agricultural land in Assam as certified organic land to drive the
eco-investments in the North East region.
Morarka Organic distributes its products in the retail segment under the brand
name of Down to Earth. Morarka Organic has launched an online shopping
website "www.downtoearthorganicfood.com " to make its products available to
consumers across India and world at the click of a mouse. The company offers a
range of food products including cereals, pulses, spices, condiments, masala
mixes, oils, ready-to-eat snacks, various kinds of cookies, etc., along with
English herbs. The products undergo a strict quality standard check and are
certified by several certifications including OneCert Asia Agri Certification as
per NOP (USDA), NPOP (Government of India) and EU Standards for Organic
Certification.
Morarka organic products are available at the Down to Earth store in Tardeo in
Mumbai, Chattarpur in New Delhi, at Burdwan road in Kolkata, Karnavati Club
Page | 10
in Ahmedabad, Vatika road at Jaipur and Indiranagar at Bangalore. These
flagship stores are the first of its kind in India, completely dedicated to organic
food and fabric. Down to Earth products are also available at major
supermarkets, modern trade outlets and stand-alone organic stores across the
India.Morarka Organics has also started exporting organic foods to US. The
exports are mainly conventional pulses for which there is a heavy demand in the
U.S. Down to Earth is an organic food brand from the house of Morarka
Organic. An enterprise that is the outcome of more than 12 years of organic
food research and development and is in accordance with the most stringent
organic certification in the industry. 'Down To Earth' is an attempt to provide
food that can bring harmony and wellness in life for all. With a plethora of
products that gives you the organic substitute for all your food requirements, it
is India's contribution to the global organic revolution. Down to Earth is striding
ahead with the aim of improving the quality of life by improving the quality of
food. In any society, the heritage of food, just like language and religion is
significantly important to provide an identity to the people. All the crops & their
varieties and resultant foods constitute the heritage and represent the genetic
diversity of that place. Food and its consumption are an important part of
everyday culture and its evolution is an ongoing process.
Organic food has been an outcome of consumer concerns regarding the quality
of food. Today the discerning consumer is demanding and willing to pay for
food without contamination. Organic is essentially natural and is based on a
philosophy that respects nature and its dynamism to meet all the requirements of
present and future generations.
Organic farming is a system which avoids the use of synthetic inputs and to the
maximum extent feasible rely upon crop rotations, crop residues, animal
manures, off-farm organic waste and biological system of nutrient mobilization
Page | 11
and plant protection. Foods produced without hormones, antibiotics, herbicides,
insecticides, chemical fertilizers, genetic modification or germ- killing radiation.
1.2.1. The Product Range

The 100 plus project locations covering over 19 States and almost all agro
climatic zones in India, around 1,00,000 farmers and over 10 years in this sector
and is still growing every day has enabled Morarka Organic to gain experience
in handling over 300 different agriculture products at the farm level. Due to
value chain management solutions all developed through in house research,
over 100 crops have been understood fairly well by us. About 130-150 crops-
products currently qualify to be part of our core portfolio and are offered both as
farm grade as well as processed and in retail packs. Being new, in the trade we
are still not handling all the quantities that get produced as organic at the farm
level. As we are progressing in our efforts to establish marketing linkages, we
are not only expanding the portfolio on offer, we are also increasing the
quantities by every crop season. The current crop - portfolio under cultivation &
on offer is broadly categorized as follows:
1.2.2. Products of Morarka Organic food Limited

Garam Masala Bakery Products Cosmetics
Snacks Tea, Coffee Sugar &Jaggery
Pulses & Beans Fresh Vegetables Spices
Nuts & Dry – fruits Cotton & Textiles Oilseeds & Edible Oils
Processed Products Milk & Clarified butter Condiments
Page | 12
Fig. 1.7 Product Mix (Morarka Organic Food Limited)
All the Morarka Organic Products are currently certified as per

 USDA NOP by Onecert Asia.
 EU By OnecertInc, under ISO65 Equivalence.
 JAS by CERES of GERMANY.
 Standards for organic in Switzerland By BIO – SUISSE
 INDIAN NOP by Onecert Asia.
1.2.3. Corporate Philosophy

Organic is attempting to bring people back to nature, to re-discover the lost art
of clean and healthy living. In short, we are once again ‘sowing the seeds of
harmony in life.
Concept
Morarka Organic is striving to create harmony in life and ensure a better future,
and it is doing so through food. Food is a complex and diverse word. It
encompasses nutrition, health, diet, traditions, cuisines, recipes, cultivation and
value addition. Morarka Organic aims to create a cadre of people or
‘Foodsperts’ as we call them, who are knowledgeable about food and all the
above mentioned aspects of food. Foodsperts are experts in food and its history,
origin, cultivation and nutrition. Life today is all speed and time saving. This
fast pace life disrupts our habits, our health and our lives. Food today revolves
Page | 13
around one key word - instant. Food which took our forefathers hours to prepare
is now made in a matter of minutes, all at the press of a microwave button.
Throughout history, food has been viewed as a ritual where careful thought
went into preparation and serving of a cuisine or recipe. Eating the food was
also a ritual in itself, where people would spend hours on the table savouring
every bite and deriving pleasure from each meal. Food today is quick and
instantaneous, hence the term fast food. Food today is swallowed without a
thought, and a meal is over with three bites of a burger. Trying to get ahead in
this rat race has made us lose our food tradition, nutrition and most importantly
health. Through our Foodsperts, Morarka Organic wants to revive and
rediscover the heritage of food.
A foodspert’s concept of food is very different from others. It is based on the
idea that food means pleasure, heritage and culture, and that the act of eating is
more than just feeding fuel to your body. Eating involves careful look at diet
and nutrition, and influences attitudes and emotions. The act of eating should
lead to pleasure, contentment and satisfaction and not just satiation of hunger. A
foods pert believes that enjoyment of food must be combined with an
understanding of the diversity of food. Countless traditional vegetables, grains,
fruits, cuisines and recipes are being lost to convenience food. A foodspert’s
philosophy is simple- he believes that the food we eat should be tasty,
unpolluted and nutritious in a way that doesn’t harm the planet or animals or
human health. A foodspert is not just a consumer, but a partner in the
production of food. He is informed and educated on all aspects of food, right
from production to nutrition. In a way one can say that a foods pert is an all-
rounder when it comes to food, knowing all aspects of food right from its
heritage and tradition to its cultivation and processing, to its nutrition, diet and
recipes.
In a way a foodspert brings together the scientific world, farmers and producers
Page | 14
and the final end consumers. It provides the crucial link between the three,
enabling exchange of ideas, thoughts and information. With careful study of all
aspects of food, a foodspert helps people make daily choices about food,
keeping in mind nutrition, diet, heritage, cuisine and recipe. A foodspert helps
consumers convert from being passive observers to active members of the food
revolution. This is being done by changing the attitude and relationship that
consumers share with their food. A foodspert is instrumental in making
consumers a medium of change, choosing clean and fair food. A foodspert also
recognizes the strong connections between food and the planet. In its attempt to
improving the quality of life, foodsperts are also saving traditions, cultures,
communities and bio diversity. In order to recognize and appreciate food one
must also save and protect the very resources that give us food.
1.2.4. Organic Cultivation, Technology & Practices

Since the modernization of Indian agriculture witnessed relatively low
penetration rates, it has therefore been possible for Morarka Organic to establish
gains in organic farming in a relatively short period of time. Adoption of
organic practices not only improved soil health but also its productivity, such
that it is even being considered as the ultimate solution for the ‘Evergreen
Revolution’. This fact generated a great deal of interest and support from the
government and its various agencies for the promotion of organic farming in
India. It has even facilitated allocation of increased resources for this sector.
When it came to promoting organic agriculture within the farming community,

Morarka Organic used the participatory approach, i.e., they involved farmers
and local entrepreneurs. This approach also enabled Morarka Organic to
promote organic agriculture as a tool for reducing the ever increasing cost of
cultivation. Morarka Organic observed that in almost every place which has
taken up organic agriculture, there were two important issues – fertility
Page | 15
management and pest management – which have been raised by both farmers
and agricultural scientists. The solution was simple. Morarka Organic
introduced vermiculture and its modified applications to take care of fertility
management issues, and it proved successful in almost all conditions. As for
pest management issues, they observed that adoption of biological fertility
management practices substantially reduces incidence of insects and pests. As
for the other problems, traditional practices of using botanicals produced at the
farm were found to be effective in 70-80% of situations. With the development
of the Probiotics approach to pest management, major problems can now be
easily addressed under organic cultivation. In all, adoption of organic
management practices has enabled up to 40% reduction in the cost of cultivation
in almost every condition.
1.3. Objectives of the study

1. To examine the growth & instability of production of major fruits and
vegetables produced in India
2. To study the growth & instability of major fruits and vegetables produced in
India which are exported to the European Union
3. To study the quality standards and export procedures for the fruits and
vegetables exported from India to the European Union
4. To study the competitiveness of major fruits and vegetables exported from
India to the European Union
Page | 16
REVIEW OF LITERATURE
Ganga Devi et al (2015) compared the input cost and output prices of selected
major five crops namely castor, tobacco (bidi), tobacco (calcutti), gram, groundnut,
and maize of Gujarat State. The data were compiled and analysed using standard
statistical tools. The CGR and Instability Index were calculate. In most of the crops
compound growth rate was found higher in case of output prices in comparison to
total input cost. The results of the instability index for output prices were found to
be low. The high growth and low instability index indicated sustainability in
production of these crops, a prerequisite for the state.
Kusuma et al (2014) in their study observed that India is native to mango and is
also the largest producer of mangoes with 44.14 per cent of the total world
production. The export of fresh mangoes increased from Rs. 35.2 crores in 1991-92
to Rs. 162 crores in 2010-11. The paper quantified the changing structure of Indian
mango exports. Data for analysis was taken for a period of 10 years from 2001-02
to 2010-11. Compound growth rate (CGR) was used for analyzing the growth in
mango production, area, yield, and export quantity and export value over the years.
The major Indian mango export markets were categorized as stable market
(Bangladesh, U.K, U.A.E) and unstable markets (Nepal, Saudi Arabia) based on
the magnitude of transition probabilities. The major export markets for Indian
mangoes were Bangladesh (46.22 %), U.A.E (33.26 %), Nepal (6.06 %), Saudi
Arabia (3.63 %) and UK (3.06 %). The increasing share of other countries clearly
showed the need to explore and exploit the market potential of other countries.
Page | 17
The study also depicted the growth in export quantity and value of export where in
growth of value of export was increasing at 9.98 per cent per annum and quantity
of export was increasing at 5.65 per cent per annum. Compared to production,
export of mangoes observed higher growth. Growth in value of export was found
to be very high indicating good potential and higher profit for Indian mangoes.
Krishnan et al (2014) studied the instability in area, production and yield of major
crops in three agro climatic regions in Himachal Pradesh and other dynamics
associated with it. Instability in agricultural production resulted in unpredictable
behavior and decision making from the population engaged in primary sector
which is passed on to the economy as a whole. They studied instability index using
Cuddy-Della Valle index with a purpose of seeing the growth and instability in the
different agro- climatic zone, which could have been helpful for policy implication.
The study showed high instability in the production of high valued commercial
crops in the state. The production of such crops which include many fruits and
vegetables had a direct bearing on income, employment and living standard of the
vast rural population in the state.
Vinayaka et al (2014) studied the trends of area, production and productivity of

fruit crops in India. The study was based on secondary data from 2000-01 to 2010–
11. The investigators estimated the compound growth rate, coefficient of variation
and instability index. The study brought to for that India was the second biggest
harvester of vegetables and fruit, representing 8.6% and 8.48% of overall
production, respectively. The major fruits produced by India are mangoes,
papayas, sapota, and bananas. The study further revealed that growth rate of fruits
crops productivity in India was positive (1.05%) and was associated with
instability index of 10.16 per cent. In the same period a positive growth rate of area
Page | 18
was observed (7.34%) with high instability index of 10.16 per cent, while a
positive growth rate of production (8.48 %) with instability index of 0.10 per cent
was observed for production. The average of area, production and productivity of
fruits crops during this period were 5084.55 (‘000 hectares), 55364.64 (‘000 MT)
and 10.83 (MT/ha).
Bairwa et al (2012) studied the role of fruit crops in the development of process as
they generate more employment and income, in horticulture sector of agricultural
and applied sector. Major fruit crops viz., mango, banana, papaya, grapes, citrus,
guava, apple and pineapple are very important in Indian economy. The study
examined the performance including the growth and instability of important fruit
crops. The results showed that productivity of fruits was almost stagnant over last
decade and area and production was almost double from 1991-92 to 2007-08.
Citrus, grapes, papaya and sapota are showed higher growth rate in production.
Banana, papaya litchi apple and sapota showed higher instability in production and
banana, citrus, mango and papaya have showed higher change in production from
1991-92 to 2007-08. Relative share of mango in total export from India was seen
continuously decreasing and that of grapes increasing year by year.
Parmar et al (2011) calculated the NPC for fresh grapes for different countries for
three years with different price. The study revealed that the NPC for fresh grapes
remained below 1.00 under the study period which indicated that there was wide
scope for increasing the export of fresh grapes. The NPC for the countries likes
UK, Netherland and Belgium were more competitive market for Indian Grapes.
The countries like United Arab Emirates (UAE), Saudi Arabia were moderately
competitive while Bangladesh was less competitive for fresh grape export from
India.
Page | 19
Mittal (2007) stated that the two golden rules for successful development of the
horticulture sector were to ensure consistency in supply and provide recorded and
demonstrated traceability of products. The study claimed that in exports, large
fluctuations in the production of fruits and vegetables caused problems in being a
regular trade partner. The window of international demand for the horticultural
products was found to be very small. Thus, she claimed that a planned strategy
should be made to target the markets during that period and that India can lead in
the export of non-traditional fruits like cassava, sapota, litchi and guava. Also, to
enhance exports there was a need to develop air transport cargo system specialized
for fresh fruits and vegetables, along with the airports, roads and rail connectivity
with the area of procurements. The country’s capability to generate surpluses for
exports depended on its ability to tap the potential of small farmers. Awareness
should be created among the farmers to understand the requirements of the
importing countries. Quality control and longer shelf life are crucial for exports.
Organic production of fresh fruits and vegetable is important to capture markets in
Europe.
Yeledhalli et al (2009) in their study stated that onion in India has ample potential
for exports in both fresh and processed forms. Markov chain analysis was
employed to ascertain the direction of trade through transitional probability matrix
and also the values of nominal protection coefficient and domestic resource cost
revealed that Malaysia showed increasing trend while UAE showed a declining
trend. NPC for onion was 0.947 during 2000-2001 under exportable hypothesis
while under the importable hypothesis it was 0.311. This implied that domestic
prices received by farmers were below the international prices in India. The DRC
ratio worked out to be less than unity (0.23) indicating high export competitiveness
of onion. The policy implications in the form of subsidies, simplified export
Page | 20
licensing procedures may be directed in view of potential exports for onion from
India.
Reddy (2009) used the time series data for the period 1971-2000 regarding
production, area and yield of chickpea and computed compound growth rates,
Coefficient of variation, Instability Index (CII) and for performing decomposition
analysis to attain the objectives. The average production of chickpea increased by
7% from 4.8 MT in period of 1970 to 85 to 5.2 MT in 1986 to2000, while
coefficient of variation increased from 14% to 17 % during the same period. As a
result most of the states fall in low growth-high-risk category in chickpea
production. Only Madhya Pradesh, Andhra Pradesh and Orissa fall under high
growth-low risk category.
Chand et al (2008) analysed primary and secondary data on production aspects and
prices of selected crops. The study estimated risk associated with crop production
at national level and at disaggregate level. Instability in area, production and yield
of rice, cotton and groundnut experienced at the state level in Andhra Pradesh
during 14 years before and after 1994-95 was studied. Instability index for area
showed an increase after 1994-95 for all the selected crops. It increased from 10.6
to 14.4 in rice and from 16.6 to 20.2 in cotton. For rice, decline in instability was
witnessed by 36 per cent districts in area, 41 per cent district in production and 50
per cent districts in yield, whereas, the state level estimates showed only increase
in instability. Similarly, in groundnut, compared to the increase at the state level,
only 59 per cent of the districts showed increase in instability in gross return. The
state level data indicated a decline in instability in cotton yield, but district level
data indicated an increase in 22 per cent of the districts. It also explored how state-
level aggregation for a large state like Andhra Pradesh, could conceal risk and
Page | 21
instability at the disaggregate district level. Further, the paper also estimated
volatility in farm harvest prices and has probed whether price fluctuations reduce
or increase instability in gross returns.
Rakotoarisoa et al (2006) determined nominal protection coefficient for India’s

dairy products to determine level and change in competitiveness between 1975 and
2001. They estimated parameters of domestic demand for and supply of raw milk
and whole milk powder to determine how a world price increase would affect
domestic milk production and whole milk powder exports. Results showed that
India’s dairy products lack export competitiveness.
Dastagiri et al. (2013) studied estimated production trends, market efficiency and
export competitiveness of vegetables in India and suggested measures to improve
production, marketing and exports of Indian vegetables. The study was conducted
in India as a whole for production and export competitiveness and for marketing
efficiency in 8 states covering 20 crops. The trends of fresh vegetables show that
its export quantity increased by 18.3% and 22.2% during two periods respectively.
The results showed that Indian vegetables have huge potential for exports. The
results further showed that for all vegetables the Nominal Protection Coefficient
was less than 1 indicating they are competitive in the international markets.
Page | 22
METHODOLOGY
This chapter deals with the description of the nature and sources of data and the
various tools and techniques employed in analyzing the data.
The methodology adopted has been presented under the following sub- heads:
3.1. Nature and the source of data

3.2. Analytical techniques employed
3.1. Nature and the source of data

To achieve the stated objectives, the study was exclusively based on secondary
data collected from different published sources for a period of 13 years i.e.
2001-02 to 2013-14. The time series data on area, production, export, prices
were collected. This study made use of data from apeda.gov.in, nhb.gov.in,
agricoop.nic.in, indiastat.com, exporthelp.europa.eu, commerce.nic.in,
zauba.com, FAO Stats and other books, journals, newspapers and annual
reports.
Fruits and vegetables are grown widely across the globe. In production, China
ranks first followed by India. The EU is the leading destination as well as
source of supply in the global fruit and vegetable trade. This study is restricted
to exports of few major fruits and vegetables done by India to the European
Union.
3.2. Analytical techniques employed

The data collected from different sources as indicated above were statistically
analyzed by using the following techniques and the results are presented in
tabular forms. Descriptive statistical analysis such as mean was also used.
Page | 23
3.2.1. Compound growth rate in area, production and exports:
To achieve the objective of growth rate analysis, the compound growth rates of
area, production and exports was calculated by fitting the function given below,
Y= a bt e
Where,
Y= Dependent variable for which the growth rate is estimated i.e., Area,
Production and Exports
a= Intercept
b= Regression coefficient
t= Time variable
e= Error term
The compound growth rate was obtained from the logarithmic form of the
equation (1) as below
ln y=ln a + t ln b
The per cent compound growth rate (g) was derived using the relationship
G= (Anti log (ln b)– 1) X 100
3.2.2. Instability Index in area, production and exports:

The coefficient of variation was used as measure to study the variability in
production and horticultural crops from India. The coefficient of variation or
index of instability were computed by using the following formula
CV= Standard Deviation () /Mean (X)  100
Linear trend were fitted to the original data of area, production, horticultural
crops, for the period for the time series data of 13 years from 2001-02 to 2013-
14. The trend coefficients were tested for their significance. The formula
suggested by Cuddy and Della was used to compute the degree of variation
Page | 24
around the trend. The simple coefficient of variation overestimates the level of
instability in time-series data characterized by long term trends whereas the
Cuddy-Della Valle index corrects the coefficient of variation. That is
Coefficient of variation was multiplied by the square root of the difference
between the unity and coefficient of multiple determinations (r2)
Instability Index = Standard Deviation () /Mean (X)  100  √1-r2
Where,
r2 = RSS/TSS = Goodness of fit; It is the coefficient of determination of the

trend regression which best fits the time series. In this study, r 2 was calculated
using latest version of SPSS Statistics.
RSS = Regression Sum of Square

TSS = Total Sum of Square
Reference Index values are categorised into three categories (Sihmar R, 2014),
which represent the different range of instability. The ranges of instability are as
follows:
 Low instability = between 0 to 15
 Median instability = greater than 15 and lower than 30
 High instability = greater than 30
3.2.3. Nominal Protection Coefficient:

The nominal protection coefficient (NPC), a simple indicator of the incentives
or disincentives in place is defined as the ratio of domestic price of commodity
to the world reference price. The domestic price used in this computation could
be either the procurement price or the farm gate price, while the world reference
Page | 25
price is the international price adjusted for transportation cost, packing cost,
port clearing charge, insurance etc.
NPC = Pd / Pr
where,
NPC = Nominal protection coefficient
Pd = Domestic price of the commodity
Pr = World reference price of the commodity i.e. what the farmer would have
received in case of free trade.
NPC shows the degree of divergence of domestic price from the international
price and determines the degree of export competitveness of the commodity.
It is classified into three categories i.e. Highly competitive (NPC < 0.5),
Moderately competitive (0.5 < NPC < 1) and non competitive (1 < NPC)
3.3. Limitations of the Study:

As the study is based on the statistical data taken from the secondary sources it
may possess some of the limitations which are as follows
 It may lack some data which might not have been made available on the
websites or any other references. So, reliability and consistency is the major
limitation of this project.
 The data obtained through secondary research may be outdated
 The summary and conclusion made cannot be competently correct but it can
provide guidelines and can be used for further research
Page | 26
RESULTS AND DISCUSSION
4.1. Growth and instability of production of major fruits and vegetables of India
High growth rate and low instability are prerequisite for sustainable agriculture
performance. Since the magnitude of growth and instability in crop production has
serious implication on import and export, the growth and level of instability in the
area, production of major fruit crops and vegetables were estimated.
Table 4.1.1. : Growth and instability analysis of Area, Production of major fruits
Mangoes Banana Grapes Papaya
Year
Area Production Area Production Area Production Area Production
2001-02 1575.80 10020.20 432.40 12519.20 47.50 1184.20 73.70 2590.40
2002-03 1623.40 12733.20 475.30 13304.40 52.10 1247.80 68.00 2147.20
2003-04 1906.70 11490.00 390.50 11388.00 57.80 1474.80 58.20 1692.00
2004-05 1970.40 11829.70 404.20 11710.30 60.50 1564.70 72.80 2535.10
2005-06 2080.70 12663.10 423.60 12104.50 66.00 1649.60 67.80 2139.30
2006-07 2153.70 13734.10 477.20 16608.70 65.00 1685.00 72.00 2482.00
2007-08 2201.00 13997.00 532.50 17646.80 68.00 1735.00 83.00 2909.00
2008-09 2309.00 12750.00 709.00 26217.00 80.00 1878.00 98.00 3629.00
2009-10 2312.30 15026.70 770.30 26469.50 106.40 880.70 95.70 3913.50
2010-11 2297.00 15188.00 830.00 29780.00 110.00 1235.00 106.00 4196.00
2011-12 2378.10 16196.40 795.50 28455.10 116.00 2220.90 117.40 4457.10
2012-13 2500.00 18002.00 776.00 26509.00 117.63 2483.09 132.00 5382.00
2013-14 2516.00 18431.00 831.20 29529.60 119.00 2585.00 133.00 5639.00
b1 1.04 1.04 1.07 1.10 1.09 1.04 1.07 1.09
CGR 3.70 4.40 7.40 9.80 8.80 4.40 6.70 9.30
r2 0.89 0.88 0.83 0.84 0.95 0.30 0.86 0.84
I.I. 4.705 6.098 12.539 15.135 7.711 25.450 10.381 15.233
2
Note: b 1 , CGR, r & I.I. were estimated using the analytical tools discussed under
Methodology section
Source of data: Directorate of Horticulture/ Agriculture
Area ('000 Ha); Production ( '000 MT)
Page | 27
The instability Index for area for all the crops was found to be on a lower side whereas,
for most fruits, production Instability Index was medium except mangoes which had
low instability Index. Instability of area was found to be lowest for the mangoes (4.70)
and highest for Bananas (12.539). Similarly, for the production of major fruits in India,
the Table shows that Instability Index of most fruits examined here had medium
Instability Index except mangoes with low instability Index. The lowest production
instability was for mango (6.098) and highest being for grapes (25.40).
The Compound Growth rate of the fruit crops can also be seen in the above table. It is
clearly seen that for area, the lowest growth rate was seen in case of mangoes (3.70)
whereas, highest growth rate was found to be in case of grapes (8.80). Whereas, in case
of production of these fruit crops, lowest growth rate was observed in case of
mangoes(4.40) as well as grapes(4.40) and highest being that for bananas (9.80).
Table 4.1.2.: Growth and instability analysis of Area, Production of major vegetables
Onion Capsicum
Year
Area Production Area Production
2001-02 450.00 483.00 - -
2002-03 420.00 421.00 - -
2003-04 500.00 592.00 - -
2004-05 550.00 643.00 - -
2005-06 660.00 868.00 - -
2006-07 700.00 889.00 - -
2007-08 700.00 914.00 - -
2008-09 830.00 1348.00 - -
2009-10 760.00 1216.00 - -
2010-11 1060.00 1512.00 6.00 65.00
2011-12 1090.00 1751.00 10.00 127.00
2012-13 1050.00 1681.00 29.00 153.00
2013-14 1210.00 1977.00 29.72 166.88
b1 1.09 1.14 1.80 1.35
Page | 28
CGR 9.20 13.70 79.80 35.20
2
r 0.96 0.96 0.90 0.83
I.I. 7.187 9.649 20.853 14.494
Source of data : Directorate of Horticulture/ Agriculture
Area (' 000 Ha); Production (In ' 000 MT)
Due to lack of sufficient data in case of capsicum, only four years of area and
production data are taken into consideration.
In case of capsicum, area instability was found to be medium (20.853) and similarly
for production of capsicum Instability Index was found to be low i.e. 14.494
In case of Onions, production as well as area instability indexes were found to be low.
The instability Index for area for all the crops was found to be on a lower side for both
fruits and vegetables except capsicum which showed medium instability index. For
production, all the fruits except mangoes showed medium Instability Index whereas,
all the vegetables exhibited a low Instability Index.
In case of compound growth rate, vegetables showed a higher Growth rate as
compared to fruits.
Page | 29
4.2. Growth and instability in exports of major fruits and vegetables produced in India which are exported to major countries
of the EU
Table 4.2.1. : Compound Growth rate and Instability Index of fresh mangoes exported from India major EU countries
UK Netherlands Belgium Germany France Sweden Italy EU-28
Qty Value Qty Value Qty Value Qty Value Qty Value Qty Value Qty Value Qty Value
01-02 1,372.87 454.19 301.12 107.8 248.03 54.99 77.25 35.50 270.01 82.85 0.54 0.5 14.31 2.56 2537.41 788.37
02-03 1,227.57 532.07 1089.13 133.87 44.99 20.84 136.40 85.75 910.46 186.62 0.34 0.11 17.57 4.07 3539.12 1006.25
03-04 1,511.63 722.37 855.94 322.87 105.88 47.5 101.14 36.54 245.05 29.97 2.01 0.41 0.4 0.31 2932.1 1228.16
04-05 1,308.56 745.77 532 212.68 31.45 32.79 82.55 43.33 41.79 13.38 0.25 0.14 0.7 0.97 2041.65 1071.76
05-06 839.97 537.93 260.86 131.52 20 8.53 4.25 3.66 158.84 74.01 0.56 0.09 2 0.29 1761.98 765.95
06-07 1883.19 1141.3 242.79 84.87 57.03 29.53 58.84 40.3 63.44 28.99 0.2 0.14 3.9 3.18 2729.03 1331.56
07-08 2575.37 1981.7 89.3 37.16 54.93 35.01 343.8 144.06 - - 2.23 1.54 30.59 12.7 3104.7 2216.84
08-09 2527.39 1403.2 161.24 110.74 59.19 36.55 155.89 80.91 - - 7.11 6.13 15.77 3.55 2947.84 1647.43
09-10 2958.66 1746.9 94.35 60.07 39.7 36.55 108.81 43.23 207.37 112.11 19.83 7.3 18.18 8.56 3472.16 2027.47
10-11 2721.91 1455.4 22.43 18.37 40.1 26.89 78.68 16.97 114.88 48.54 - - 5.96 2.97 2995.28 1575.89
11-12 2532.42 1641.6 256.85 131.19 32.19 29.67 99.99 46.96 116.86 48.77 3.76 2.14 1.08 1.81 3060.51 1911.47
12-13 3304.48 3250.1 178.26 74.08 25.17 24.1 148.11 88.84 147.59 81.82 19.91 15 11.5 3.71 3888.09 3557.67
13-14 317.2 584.52 37.67 149.53 20.41 20.11 103.43 115.91 185.76 141.58 19.58 19.59 7.93 4.58 722.94 1061.55
b1 1.01 1.106 0.810 0.930 0.89 0.975 1.053 1.063 0.92 1.03 1.482 1.581 1.06 1.118 0.977 1.07
CGR 1.80 10.60 -19.00 -7.00 -10.70 -2.50 5.30 6.300 -7.90 3.50 48.20 58.10 6.00 11.80 -2.300 7.50
r2 0.01 0.41 0.53 0.14 0.40 0.04 0.04 0.063 0.11 0.02 0.65 0.68 0.02 0.15 0.044 0.41
I.I. 46.74 49.20 69.70 60.44 78.38 37.75 67.34 64.734 100.11 67.41 77.20 83.24 89.36 83.60 29.809 37.61
Source of data: commerce.nic.in (Quantity in thousands; Values in Rs. Lacs)
Page | 30
In case of France, the calculations are done for 11 years due to unavailability of data
for 2007-08 and 2008-09. Similarly for Sweden, data for 12 years were used omitting
2010-11 due to lack of data.
It is visible from the data that lowest instability for quantity in case of exports of
mangoes was found in case of United Kingdom (46.741), followed by Germany
(67.340). Highest instability Index for quantity of exports of fresh mangoes was
observed in Italy (89.368).
In terms of value lowest instability was found to be in case of Belgium (0.378)
followed by United Kingdom (49.206). Highest instability index was found to in case
of Italy (83.608)
In case of growth rates in terms of quantity of exports of mangoes, negative growth
rates were observed in case of Netherlands (-19.00), Belgium (-10.70), France (-7.90).
The overall exports to the entire European Union also observe a negative growth rate
(-2.30). Highest growth rate in terms of quantity was observed in case of Sweden
(48.20) followed by, Italy (6.00).
In case of growth rates in terms of value of exports of mangoes, negative growth rates
were observed in case of Netherlands (-7.00), Belgium (-2.50) although the overall
exports in terms of value showed a positive trend (7.50). Highest growth rate in this
case was observed in Sweden (58.10), followed by Italy (11.80) and United Kingdom
(10.60).
Thus, there is high instability both in quantity and value terms for all the countries for
exports of mangoes, highest growth rates were observed in Sweden in both terms but
the instability was found to be very high. The overall growth rates for the EU showed
a medium Instability Index but the growth rate showed a negative trend indicating that
exporting Mangoes to EU is not feasible.
Page | 31
Table 4.2.2.: Compound Growth rate and Instability Index of fresh bananas
UK Germany France EU-28

Year
Qty Value Qty Value Qty Value Qty Value
2001-02 21.76 5.48 1.85 0.70 1.79 0.37 118.90 23.45
2002-03 18.59 5.62 161.00 17.97 0.87 0.26 223.76 32.72
2003-04 17.94 2.18 0.82 0.03 7.00 0.68 61.47 14.28
2004-05 19.94 4.59 229.82 10.83 0.05 0.02 250.42 15.70
2005-06 46.90 14.80 237.84 13.95 2.20 0.41 286.94 29.16
2006-07 20.92 5.33 23.86 6.68 16.51 1.69 61.74 13.82
2007-08 131.02 22.79 0.50 0.06 - - 180.35 31.32
2008-09 121.74 26.21 100.41 13.53 2.95 0.87 280.05 50.80
2009-10 76.32 18.77 40.63 11.23 1.05 0.13 329.26 48.83
2010-11 39.88 10.36 13.63 13.68 1.63 0.50 195.37 56.30
2011-12 49.88 8.46 21.91 8.55 2.50 0.28 159.79 38.76
2012-13 79.93 23.56 5.02 1.77 0.71 0.40 134.02 41.53
2013-14 55.53 26.21 0.54 0.53 1.28 1.08 88.50 46.09
b1 1.13 1.16 0.89 1.06 1.00 1.08 1.03 1.09
CGR 12.70 15.70 -11.50 5.80 0.30 7.80 3.30 8.80
2
r 0.42 0.49 0.04 0.01 0.00 0.05 0.00 0.45
I.I. 54.316 47.971 134.562 83.150 141.587 81.414 48.387 31.426
Source of data: commerce.nic.in (Quantity in thousands; Values in Rs. Lacs)
In case of exports of bananas to France, calculations are done for 12 years due to
unavailability of data for year 2007-08.
It is seen from the data that lowest instability for quantity in case of exports of bananas
was found in case of United Kingdom (54.32) as well in terms of value lowest
instability was found to be in case of United Kingdom (47.97) and highest instability
index was found to in case of Germany (83.15). Overall Instabilities for the Union was
also found to be high (31.43).
Page | 32
In case of growth rates in terms of quantity of exports of mangoes, negative growth
rates were observed in case of Germany (-11.50) and highest growth rate was observed
for United Kingdom (12.70).
In case of growth rates in terms of value of exports of bananas lowest growth rate was
observed in case of Germany (5.80) and highest was observed in United Kingdom
(15.70)
Thus, even though there is a higher instability both in quantity and value terms for
United Kingdom growth rates observed in the country was found to be highest among
the countries studied.
The overall exports to EU also displays that growth rates are low with high Instability
index.
Page | 33
Table 4.2.3.: Compound Growth rate and Instability Index of fresh grapes exported from India to major EU countries
UK Netherlands Germany Belgium Ireland EU-28
Qty Value Qty Value Qty Value Qty Value Qty Value Qty Value
2001-02 5,042.39 3,312.07 1,347.29 635.55 280.26 117.03 226 95.05 30.6 13.63 7019.74 4205.09
2002-03 8,887.83 3,254.89 3,646.73 1,841.32 724.86 342.47 239.03 105.38 28.71 11.81 13689.70 5617.88
2003-04 6,495.33 2,407.81 4,260.12 1,969.40 2,381.01 957.02 780.03 314.18 46.4 19.31 14073.62 5708.28
2004-05 5,818.15 4,457.76 7,492.41 4,029.82 1,151.39 462.07 443 237.62 15 7.51 14934.95 9196.51
2005-06 11,285.50 5,891.97 12,132.62 6,295.32 2,992.48 1,110.13 1753.87 1191.93 5.1 34.83 28179.73 14525.52
2006-07 13,579.43 7,627.57 19,020.63 10,013.22 6,126.57 1,432.95 4552 1552.66 234.4 117.71 43854.63 20821.74
2007-08 11,608.64 6,343.17 24,378.87 13,586.52 2,162.15 784.62 451.02 314.39 157.33 83.47 39150.51 21272.86
2008-09 12,672.55 6,559.81 24,340.68 13,448.52 1,261.86 461.38 3,641.66 2,242.15 75.57 43 42543.28 23059.82
2009-10 14,308.53 8,165.69 28,821.90 16,755.46 1,605.37 631.61 2,859.60 1,756.94 211.52 121.47 49359.56 28375.38
2010-11 6,911.30 5,051.38 18,186.83 12,696.29 650.19 286.98 1,878.00 1,533.80 108.97 64.87 29352.79 20997.45
2011-12 6,564.45 5,318.62 18,381.70 14,198.10 599.27 406.8 214.78 182.61 28 24.35 28945.48 22522.57
2012-13 14,829.47 15,362.73 35,914.70 32,480.33 1,464.06 1,101.06 404.56 378.51 362.93 362.16 58024.14 55051.83
2013-14 16,701.08 20,570.90 46,081.91 52,662.72 2,419.32 2,723.07 431.06 541.42 476.4 578.71 72250.38 85413.81
b1 1.06 1.13 1.27 1.35 1.04 1.10 1.04 1.13 1.24 1.31 1.16 1.24
CGR 6.10 13.30 26.70 34.90 3.60 10.20 3.60 12.50 24.20 30.50 16.10 23.80
r2 0.32 0.67 0.80 0.89 0.03 0.22 0.02 0.18 0.39 0.62 0.74 0.89
I.I. 31.418 40.860 31.495 34.085 82.298 73.003 105.574 84.124 83.910 90.638 29.213 30.688
Source: commerce.nic.in; (Quantity in thousands; Values in Rs. Lacs)
Page | 34
It is seen from the data that lowest instability for quantity in case of exports of grapes
was found in case of United Kingdom (31.42) closely followed by Netherlands
(31.50) though both are high indexes. The overall instability for quantity was medium
(29.21).
In terms of value lowest instability was found to be again in case of United Kingdom
(40.86).
In case of growth rates in terms of quantity of exports of grapes lowest growth rate
was observed in case of Germany (3.60) and Belgium (3.60) and highest was
observed in Netherlands (26.70)
In case of growth rates in terms of value of exports of grapes, lowest growth rate was
observed in Germany (10.20), followed by Belgium (12.50). Whereas, Netherlands
(34.90) and Ireland (30.50) were found to be on the higher sides.
Thus, exporting grapes is comparatively feasible especially to Netherlands as the
growth rate is high and though the instability indexes are border line high. Moreover
the EU-28 trend also displayed medium to high instability with comparatively better
growth rate.
Page | 35
Table 4.2.4.: Compound Growth rate and Instability Index of papayas exported from India to major EU
countries
UK Netherlands Germany Belgium France EU-28
Year
Qty Value Qty Value Qty Value Qty Value Qty Value Qty Value
2001-02 0.30 0.41 90.00 10.42 24.80 9.24 1.00 0.13 34.00 6.01 180.10 28.41
2002-03 97.72 1.90 0.05 0.01 - - 52.00 10.33 - - 224.12 27.61
2003-04 1.58 0.07 83.09 27.01 43.52 6.39 32.00 10.09 2.00 0.52 204.85 60.16
2004-05 8.97 11.53 72.43 29.12 85.85 16.73 10.00 3.13 10.00 1.15 187.25 61.66
2005-06 2.84 0.75 777.00 111.40 62.00 17.49 7.00 2.23 0.60 0.13 1179.44 151.09
2006-07 128.48 13.91 246.50 93.41 29.41 19.47 50.00 15.19 34.86 11.70 489.69 153.75
2007-08 76.76 11.74 83.03 15.36 57.70 18.59 23.30 9.90 178.12 55.22 439.49 110.90
2008-09 40.93 13.93 743.57 248.66 402.46 42.86 200.02 19.79 165.86 32.20 1555.27 357.77
2009-10 12.48 1.14 766.63 168.19 53.34 4.57 23.01 12.41 233.90 13.41 1118.19 202.50
2010-11 10.60 2.56 659.53 285.33 223.38 87.83 - - 0.13 0.04 913.66 383.14
2011-12 28.17 11.07 539.83 261.27 500.15 116.75 123.00 19.59 1.00 0.13 1548.81 479.45
2012-13 51.27 10.79 1177.24 470.14 156.05 87.06 23.00 14.92 36.69 16.01 1604.92 643.39
2013-14 8.29 2.52 561.71 395.11 196.26 142.12 51.00 44.89 9.02 3.34 860.70 605.18
b1 1.18 1.22 1.52 1.67 1.22 1.29 1.35 1.35 0.98 1.01 1.20 1.31
CGR 18.30 22.00 52.30 67.00 21.90 28.50 34.70 34.70 -2.30 1.10 20.00 31.10
r2 0.14 0.22 0.39 0.49 0.52 0.60 0.50 0.50 0.00 0.00 0.67 0.92
I.I. 23.056
102.690 76.933 63.027 66.065 67.621 61.157 93.656 58.419 135.424 137.413 37.981
Source: commerce.nic.in (Quantity in thousands; Values in Rs. Lacs)
Page | 36
In case of Germany, Belgium and France, the data analyzed for 12 years.
It is seen from the data that lowest instability for quantity in case of exports of
papayas was found in case of Netherlands (63.03) followed by Germany (67.62). The
overall instability for quantity was found to be high 37.98. In terms of value, lowest
instability was found to be in case of Belgium (58.42). Overall Instabilities for the
Union was also found to be medium 23.06
In terms of growth rates of quantity of exports of grapes, negative value was observed
in France (-2.30). Netherlands (52.30) and Belgium (22.80) were found to be on the
higher sides of instabilities.
In case of growth rates in terms of value of exports of grapes, lowest value was
observed in France (1.10). Highest growth rate was observed in case of exports of
fresh papayas from India to the EU was seen in Netherlands (67.00). Overall exports
to EU showed growth rate of 31.10 in terms of value.
Thus, export of papayas to the EU seemed to be highly instable with a medium
growth rate.
Page | 37
Table 4.2.5.: Compound Growth rate and Instability Index of onions exported
from India to major EU countries
UK Netherlands Germany France EU- 28
Qty Value Qty Value Qty Value Qty Value Qty Value
2001-02 942.47 40.09 43.67 20.48 319.49 89.01 119 16.65 1478.63 170.46
2002-03 1,770.30 42.04 - - 98.52 21.16 317.2 18.48 5503.22 291.26
2003-04 431.14 73.56 14 7.53 104.22 25.57 356.8 31.06 6470.73 648.74
2004-05 829.91 167.36 442.02 72.91 2,403.82 137.18 82 6.25 3988.75 402.85
2005-06 2,006.93 136.18 200.02 17.07 0.82 0.08 81.47 5.73 10022.44 701.46
2006-07 598.19 90.95 666 95.04 325.96 31.39 193.69 25.02 4838.44 558.41
2007-08 1,205.23 180.17 849.25 148.09 2.58 0.34 124.99 20.32 7898.27 995.57
2008-09 2,208.88 285.27 831.54 123.32 292.73 14.73 40.69 4.1 5349.42 711.08
2009-10 2,108.36 290.94 51.35 11.87 15.68 1.82 190.54 20.97 7785.33 1267.83
2010-11 2,032.77 233.48 183.05 38.93 92.39 5.55 275.32 25.68 7691.12 1097.68
2011-12 3,663.09 462.89 408.87 66.6 148.66 20.04 394.54 35.58 7665.03 1017.8
2012-13 4,125.21 745.04 375.73 93.74 162.32 14.66 374.98 44.62 7690.06 1502.54
3,635.84 1,064.98 559.26 174.68 71.99 28.8 131.38 49.87
2013-14 10704.23 2379.52
b1 1.147 1.281 1.184 1.157 0.952 0.927 1.031 1.095 1.091 1.181
CGR 14.7 28.1 18.4 15.7 -4.8 -7.3 3.1 9.5 9.1 18.1
r2 0.568 0.908 0.23 0.268 0.008 0.019 0.029 0.201 0.439 0.839
I.I.
38.897 30.106 64.688 63.288 196.810 125.463 56.550 52.202 26.670 25.105
In case of Netherlands, the calculations are done for 12 years due to unavailability of
data for 2002-03.
It is visible from the data that lowest instability for quantity in case of exports of
onions was found in case of United Kingdom (38.89), followed by France(56.55).
Overall exports showed medium instability index of 26.67
In terms of value, lowest instability was found to be in case of United Kingdom
(30.106). Overall, the instability index was found to be 25.105.
Page | 38
In case of growth rates in terms of quantity of exports onions, negative growth rates
was observed in case of Germany (-4.80). Highest growth rate in terms of quantity
was observed in case of Netherlands (18.40)
In case of growth rates in terms of value of exports of onions, negative growth rates
were observed in case of Germany (-7.30) Highest growth rate in this case was
observed in United Kingdom (28.10). Overall growth rate was found to be 0.25
Table 4.2.6.: Compound Growth rate and Instability Index of capsicum

UK Germany Italy EU-28
Year
Qty Value Qty Value Qty Value Qty Value
2001-02 692.78 143.36 43.23 8.6 - - 876.4 183.4
2002-03 105.17 38 17.52 4.82 0.65 0.26 194.89 59.06
2003-04 367.33 177.61 44.91 18.86 1.28 0.77 469.05 217.27
2004-05 115.94 29.67 21.02 5.29 1.2 0.22 164.31 42.78
2005-06 141.93 48.44 18.36 4.9 1.38 0.2 608.21 108.68
2006-07 227.17 90.15 12.11 21.47 21.96 11.73 301.34 136.97
2007-08 213.79 39.55 - - 1.36 0.81 227.01 44.79
2008-09 497.52 73.08 3.23 0.27 2.67 0.49 512.62 75.93
2009-10 1,377.93 396.64 6.27 1.33 23.93 4.82 1436.18 416.09
2010-11 1,351.57 305.47 0.05 0.03 0.96 0.18 1360.67 307.7
2011-12 2,216.38 441.49 0.03 0.03 1.8 0.56 2279.32 457.87
2012-13 2,144.23 1,035.52 34.31 9.28 0.92 0.88 2396.51 1150.33
2013-14 2,839.32 3,246.21 56.88 27.21 3.25 1.5 3148.15 3684.72
b1 1.269 1.315 0.777 0.811 1.06 1.085 1.213 1.272
CGR 26.9 31.5 -22.3 -18.9 6 8.5 21.3 27.2
r2 0.609 0.568 0.161 0.125 0.032 0.052 0.557 0.515
I.I. 62.396 124.005 81.641 100.863 161.098 174.937 60.794 130.689
In case of Germany and Italy, the calculations are done for 12 years due to
unavailability of data for 2007-08 and 2001-02 respectively.
Page | 39
A perusal of the analysis indicates that lowest instability for quantity in case of
exports of capsicum was found in case of United Kingdom (62.39). Overall exports
showed instability index of 60.79
In case of Growth rates for quantity of exports of capsicum, negative growth rates
was observed in case of Germany (-22.30) whereas, highest growth rate in terms of
quantity was observed in case of United Kingdom (26.90).
In case of growth rates in terms of value of exports of capsicum, negative growth
rates were observed in case of Germany (-18.90) Highest growth rate in this case was
observed in United Kingdom (31.50). Overall growth rate was found to be 27.2.
Page | 40
4.3. Quality Standards and Export Procedures for Fruits and Vegetables
4.3.1. Export procedure for exports from India

India’s import and export system is governed by the Foreign Trade (Development
& Regulation) Act of 1992 and India’s Export Import (EXIM) Policy. Imports and
exports of all goods are free, except for the items regulated by the EXIM policy or
any other law currently in force. The procedure is gathered and studied from
sources for this study namely, agriexchange.apeda.gov.in, Singh (2009), Joshi
(2009).
4.3.1.1. Processing of an export order & entering in to export contract
The immediate task of the exporter is to acknowledge the export order which is
different from its acceptance. Then he should proceed to examine the export order
carefully in respect of item, specification, pre-shipment inspection, payment
conditions, special packaging labeling and marketing requirements, shipping and
delivery date, marine insurance, documentation, arbitration, applicable laws and
jurisdiction, etc. The various aspects relating to processing of an export order as
are discussed as under:
o Scrutiny :
The exporter’s purchase order should be examined carefully and its contents
scrutinized in terms of the Proforma invoice / contract sent to the foreign buyer, on
the following aspects:
1. Item (product): The order has been received for the product for which
quotation/offer was sent and the exporter is still in the position to supply the
product.
2. Size and Specifications: Should be same as per offer / quotation.
Page | 41
3. Pre-shipment inspection: Should be either by exporter himself or any agency
easily available. If the buyer desires the inspection to be done by an agency/agent
of his choice, financial and physical aspects of inspection should be examined and
communicated to the buyer. If compulsory pre-shipment inspection by Indian
Export Inspection Agency is required, the buyer should be informed about the
applicable scheme.
4. Payment Conditions: are same and stipulated. A confirmed sight and
irrevocable letter of credit (L/C) has been opened, where required.
5. Packaging, Labeling and Marking requirements: If any should be noted for
compliance. Particular attention should be paid to the individual packaging of
consumer goods required for direct sale to the consumers. In such a case labels,
price tags, poly pack/skin packing etc. would be required and supply be assured.
6. Shipment and delivery date: It should be in conformity with the exporter’s
plans and whether:
 Part shipment is allowed.
 Trans – shipment is permissible or not.
 Port of shipment/destination is same or changed.
7. Documents particularly those which are required with the bill of exchange.
These are:
 Commercial invoice as usual or there is any specific notation required thereon.
 Certification by an authority on the commercial invoice. For instance, it may
require certification by Embassy Consulate of the foreign country.
 Bill of lading ‘straight’ or ‘to order’, ‘shipped’, or ‘received for shipment’.
 Certificate of origin whether the usual one issued by a trade association or
chamber of commerce or special ones like that required for availing of GSP
concessions or other preference. Also whether necessary certification on
Page | 42
commercial invoice would suffice or a separate certification of origin is
required.
 Packaging list.
 Insurance policy or certificate.
o Entering in to Export Contract
Export Contract should be explicit as possible and without any ambiguity
regarding the exact specification of goods and terms of sale including export price,
mode of payment, storage and distribution method, types of packaging, port of
shipment, delivery schedule, etc. All theses “terms” have a special connotation and
meaning in International trade which must be understood by the parties (seller &
buyer).
1. Product Standards and specifications: The first important element of an
exporter contract is to explicitly state the following:
 Product name including technical name
 Sizes, if any in which to be supplied
 Standard / specifications, national or international or according to specific
requirements of buyer or as the sample approved by him.
2. Quantity: Put the quantity both in figures and words clearly specifying whether
it is in terms of number, weight or volume. If the quantity refers to goods by
weight or measurement, specify the nature of the same.
3. Inspection: Whereas a number of goods are now subject to pre-shipment
inspection by designated agencies, the foreign buyer may still stipulate his own
conditions and manner of inspection by any other agency. Hence the parties must
clearly states in their contracts the nature, manner, aspects and the agency for
inspection of goods, different from those laid down under the Quality Control and
Pre–shipment inspection rules.
Page | 43
4. Total Value of the Contract: The total value of the contract may also be put in
both figures and words specifying the currency along with the name of the country.
5. Terms of Delivery: Also known as type of price, terms of delivery should be
clearly incorporated in the contract. It could be F.O.B., C.I.F., C&F. etc.
6. Taxes, Duties and Charges: The taxes, duties and charges relating to
exportation of goods are normally a part of price i.e. terms of delivery quoted by
seller. Similarly such levies, if any in the country of importation are to be account
of the buyer.
7. Period of Delivery / Shipment: As distinguished from terms of delivery, period
of delivery/shipment relates to the actual dates of delivery/shipment. In addition, it
must be place of dispatch and delivery because if it is not designated, the place of
the business of the seller is usually deemed to be the place of delivery. It also
depends upon the terms of delivery
8. Part shipment/Transshipment/Consolidation by Cargo scheme: In the
absence of these stipulations, disputes generally arise when the exporter is enable
to ship the goods in one lot or directly to the port of delivery. Also indicate the port
of transshipment and the number, if any part shipment agreed upon.
9. Packing, Labeling and Marketing: The exporter contract must be explicit as
possible about the type of package and particulars labels and marking
requirements. The language, color of labels and even marking have to be taken
care as of required by the buyer.
10. Terms of Payment – Amount, Mode and Currency: The mode and manner
of payment for the goods to be exported vary from contract to contract depending
upon the terms settled between the parties. While quoting different payment terms,
the exporter should specify as to whether the prices are based on current rate of
Page | 44
exchange of the Indian rupee on the basis of another currency say US Dollar or any
other currency.
11. Discounts and Commissions: Depending upon the source of export enquiry
and the intermediary involved, if any in the execution of an order the contract
should specify the amount of discount / commission to be paid and by whom i.e.
by exporter or importer.
12. Licenses and Permits: Normally all exporter/importer transaction involve
obtaining the licenses and permits/quotas to the export/import in the country of
exportation/importation. The problem with regard to import licenses in the buyer’s
country is sometime more prominent and acute in different developing countries.
13. Insurance: The terms of delivery normally take care of the aspects of
insurances to be obtained by the buyer/seller. The extent of insurance risk and its
incidence needs to be clearly described and proper insurance policies should be
obtained.
14. Documentary Requirements: International Trade transactions usually involve
certain special documents which can be broadly divided in to four categories:
 Documents required for exportation/importation of goods
 Documents needed by the buyer for taking delivery of the goods
 Documents relation to the payments.
 Special documents depending upon the nature of goods and the conditions of
the sale
4.3.1.2. Registration Procedure
o Importer-Exporter Code Number (lEC No.): IEC Code is unique 10 digit code
issued by DGFT – Directorate General of Foreign Trade, Ministry of Commerce
and Government of India to Indian Companies. IEC Code is “Importer Exporter
Page | 45
Code”. To import or export in India, IEC Code is mandatory. No person or entity
shall make any Import or Export without IEC Code Number.
4.3.1.3. Issuing letter of credit
The documentary letter of credit (also known as a documentary credit) has been
used for more than 150 years to facilitate trade by providing payment against
presentation of documents relating to the transaction as specified in the credit.
A Letter of Credit is a written undertaking by the Importer’s bank, known as the

Issuing Bank, on behalf of its customer, the Importer (Applicant), promising to
effect payment in favor of the Exporter (Beneficiary) up to a stated sum of money,
within a prescribed time limit and against stipulated documents. A key principle
underlying Letters of Credit is that banks deal only in documents and not in goods.
4.3.1.4. Inspection Certificates and Quality Control

An important aspect about the goods to be exported is compulsory quality control
and pre-shipment inspection. For this purpose, Export Inspection Council (EIC)
was set up by the Government of India under Section 3 of the Export (Quality
Control and Inspection) Act, 1963. It includes more than 1000 commodities which
are organized into various groups for a compulsory pre-shipment inspection. The
designation is done based on international norms namely ISO 17020 and ISO
17025 for inspection agencies and labs respectively.
 ISI Certification :
Indian Standards Institute now known as Bureau of Indian Standard (BIS) is a
registered society under a Government of India. BIS main functions include the
development of technical standards, product quality and management system
certifications and consumer affairs.
Page | 46
 Agmark Certification :
AgMark is an acronym for Agricultural Marketing and is used to certify the food
products for quality control. Agmark has been dominated by other quality
standards including the non manufacturing standard ISO 9000.
Benefits of ISI and Agmark Certification:

Products having ISI Certification mark or Agmark are not required to be inspected
by any agency. These products do not fall within the purview of the export
inspection agencies network. The Customs Authorities allow export of such goods
even if not accompanied by any pre-shipment inspection certificate, provided they
are otherwise satisfied that the goods carry ISI Certification or the Agmark.
 In-Process Quality Control (IPQC) :
In-Process Quality Control (IPQC) inspection is mainly done for engineering
products and is applied at the various stages of production. Units approved under
IPQC system of in-process quality control may themselves issue the certificate of
inspection, but only for the products for which they have been granted IPQC
facilities.
 Self Certification Scheme :
Under the Self Certification Scheme, large exporters and manufacturers are
allowed to inspect their product without involving any other party. The facility is
available to manufacturers of engineering products, chemical and allied products
and marine products. Self-Certification is given on the basis that the exporter
himself is the best judge of the quality of his products and will not allow his
reputation to be spoiled in the international market by compromising on quality.
Self-Certification Scheme is granted to the exporter for the period of one year.
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 ISO 9000 :
The discussion on inspection certificate and quality control is incomplete without
ISO-9000. Established in 1987, ISO 9000 is a series of international standards that
has been accepted worldwide as the norm assuring high quality of goods. The
current version of ISO 9000 is ISO 9000:2000.
4.3.1.5. Certificates of Origin
The Certificate of Origin is required by the custom authority of the importing

country for the purpose of imposing import duty. It is usually issued by the
Chamber of Commerce and contains information like seal of the chamber, details
of the good to be transported and so on. The certificate must provide that the
information required by the credit and be consistent with all other document, It
would normally include:
 The name of the company and address as exporter.

 The name of the importer.
 Package numbers, shipping marks and description of goods to agree with that
on other documents.
 Any weight or measurements must agree with those shown on other documents.
 It should be signed and stamped by the Chamber of Commerce.
 EIC/EIAs continued to issue Certificates of Origin under various preferential
tariff regimes. A total of eight, namely GSP, GSTP, SAPTA, SAFTA, IAPTA,
ISFTA, CECA-Singapore and Early Harvest Scheme under Indo-Thailand has
been issued.
Page | 48
Types of Certificate of Origin:
(a) Non preferential Certificate of Origin: Non-preferential certificate of origin
is required in general by all countries for clearance of goods by the importer, on
which no preferential tariff is given. It is issued by:
 The authorised Chamber of Commerce of the exporting country.
 Trade Association of the exporting country.
(b) Certificate of Origin for availing Concessions under GSP: Certificate. of
origin required for availing of concessions under Generalized System of
Preferences (GSP) extended by certain countries such as France, Germany, Italy,
BENELUX countries, UK, Australia, Japan, USA, etc. This certificate can be
obtained from specialized agencies, namely;
 Export Inspection Agencies.
 It. Director General of Foreign Trade.
 Commodity Boards and their regional offices.
 Development Commissioner, Handicrafts.
 Textile Committees for textile products.
 Marine Products Export Development Authority for marine products.
 Development Commissioners of EPZs.
(c) Certificate for availing Concessions under Commonwealth Preferences
(CWP): Certificate of origin for the purpose of Commonwealth Preference is also
known as 'Combined Certificate of Origin and Value. Two member countries,
require it they are, Canada and New Zealand of the Commonwealth. For
concession under Commonwealth preferences, the certificates or origin have to be
submitted in special forms obtainable from the High Commission of the country
concerned.
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(d) Certificate for availing Concessions under other Systems of. Preference:
Certificate of origin is also required for tariff concessions under the Global System
of Trade Preferences (GSTP), Bangkok Agreement (BA) and SAARC Preferential
Trading Arrangement (SAPTA) under which India grants and receives tariff
concessions on imports and exports. Export Inspection Council (EIC) is the sole
authority to print blank Certificates of Origin under BA, SAARC and SAPTA
which can be issued by such agencies as EPCs, DCs of EPZs, EIC, APEDA,
MPEDA, FIEO, etc.
Contents of Certificate of Origin:

 Name and logo of chamber of commerce.
 Name and address of the exporter.
 Name and address of the consignee.
 Name and the number of Vessel of Flight.
 Name of the port of loading.
 Name of the port of discharge and place of delivery.
 Marks and container number.
 Packing and container description.
 Total number of containers and packages.
 Description of goods in terms of quantity.
 Signature and initials of the concerned officer of the issuing auth9rity.
 Seal of the issuing authority.
4.3.1.6. Packing and Labeling of Goods

An important stage after manufacturing of goods or their procurement is their
preparation for shipment which involves packaging and labeling of goods to be
exported.
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o Packaging :
The primary role of packaging is to contain, protect and preserve a product as well
as aid in its handling and final presentation. Packaging also refers to the process of
design, evaluation, and production of packages. The packaging can be done within
the export company or the job can be assigned to an outside packaging company.
Packaging provides following benefits to the goods to be exported:
 Physical Protection – Packaging provides protection against shock, vibration,

temperature, moisture and dust.
 Containment or agglomeration – Packaging provides agglomeration of small
objects into one package for reason of efficiency and cost factor. For example it
is better to put 1000 pencils in one box rather than putting each pencil in
separate 1000 boxes.
 Marketing - Proper and attractive packaging play an important role in
encouraging a potential buyer.
 Convenience - Packages can have features which add convenience in
distribution, handling, display, sale, opening, use, and reuse.
 Security - Packaging can play an important role in reducing the security risks of
shipment. It also provides authentication seals to indicate that the package and
contents are not counterfeit. Packages also can include anti-theft devices, such
as dye-packs, RFID tags, or electronic article surveillance tags, that can be
activated or detected by devices at exit points and require specialized tools to
deactivate. Using packaging in this way is a means of loss prevention.
o Labeling :
Like packaging, labeling should also be done with extra care. It is also important
for an exporter to be familiar with all kinds of sign and symbols and should also
Page | 51
maintain all the nationally and internationally standers while using these symbols.
Labelling should be in English, and words indicating country of origin should be as
large and as prominent as any other English wording on the package or label.
 Labelling on product provides the following important information :

 Shipper's mark
 Country of origin
 Weight marking (in pounds and in kilograms)
 Number of packages and size of cases (in inches and centimeters)
 Handling marks (international pictorial symbols)
 Cautionary markings, such as "This Side Up."
 Port of entry
 Labels for hazardous materials
4.3.1.7. Export Documentation and Procedures

Exporters should seriously consider having the freight forwarder handle the
formidable amount of documentation that exporting requires; freight forwarders
are specialists in this process. The following documents are commonly used in
exporting; which of them are actually used in each case depends on the
requirements of both our government and the government of the importing
country.
1. Commercial invoice
2. Bill of lading
3. Consular invoice
4. Certificate of origin
5. Inspection certification
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6. Dock receipt and warehouse receipt
7. Destination control statement
8. Insurance certificate
9. Export license
10. Export packing list
STEP1: Enquiry:
The starting point for any Export Transaction is an enquiry.
An enquiry for product should, inter alia, specify the following details or provide
the following data
 Size details - Std. or oversize or undersize
 Drawing, if available
 Sample, if possible
 Quantity required
 Delivery schedule
 Is the price required on FOB or C& F or CIF basis
 Mode of Dispatch - Sea, air or Sea/air
 Mode of Packing
 Terms of Payment that would be acceptable to the Buyer - If the buyer proposes
to open any Letter of Credit, any specific requirement to be complied with by
the Exporter
 Is there any requirement of Pre-shipment inspection and if so, by which agency
 Any Certificate of Origin required - If so, from what agency.
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STEP 2: - Proforma generation:
After studying the enquiry in detail, the exporter - be it Manufacturer Exporter or
Merchant Exporter - will provide a Proforma Invoice to the Buyer.
STEP 3: Order placement:

If the offer is acceptable to the Buyer in terms of price, delivery and payment
terms, the Buyer will then place an order on the Exporter, giving as much data as
possible in terms of specifications, Part No. Quantity etc. (No standard format is
required for such a purchase order)
STEP 4: Order acceptance:

It is advisable that the Exporter immediately acknowledges receipt of the order,
giving a schedule for the delivery committed.
STEP 5: Goods readiness & documentation:

Once the goods are ready duly packed in Export worthy cases/cartons (depending
upon the mode of dispatch), the Invoice is prepared by the Exporter.
If the number of packages is more than one, a packing list is a must.
Even If the goods to be exported are excisable, no excise duty need be charged at
the time of Export, as export goods are exempt from Central Excise, but the AR-4
procedure is to be followed for claiming such an exemption. Similarly, no Sales
Tax also is payable for export of goods.
STEP 6: Goods removal from works:

There are different procedures for removing Export consignments to the Port,
following the AR-4 procedure, but it would be advisable to get the consignment
Page | 54
sealed by the Central Excise authorities at the factory premises itself, so that open
inspection by Customs authorities at the Port can be avoided.
If export consignments are removed from the factory of manufacture, following the
AR-4 procedure, claiming exemption of excise duty, there is an obligation cast on
the exporter to provide proof of export to the Central Excise authorities
STEP 7: Documents for C & F agent:

The Exporter is expected to provide the following documents to the Clearing &
Forwarding Agents, who are entrusted with the task of shipping the consignments,
either by air or by sea.
 Invoice
 Packing List
 Declaration in Form SDF (to meet the requirements as per FERA) in duplicate.
 AR-4 - first and the second copy
 Any other declarations, as required by Customs
On account of the introduction of Electronic Data Interchange (EDI) system for
processing shipping bills electronically at most of the locations - both for air or
sea consignments - the C&F Agents are required to file with Customs the
shipping documents, through a particular format, which will vary depending on
the nature of the shipment. Broad categories of export shipments are:
 Under claim of Drawback of duty
 Without claim of Drawback
 Export by a 100% EOU under DEPB Scheme
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STEP 8: Customs Clearance:
After assessment of the shipping bill and examination of the cargo by Customs
(where required), the export consignments are permitted by Customs for ultimate
Export. This is what the concerned Customs officials call the ‘LET EXPORT’
endorsement on the shipping bill.
STEP 9: Document Forwarding:

After completing the shipment formalities, the C & F Agents are expected to
forward to the Exporter the following documents:
 Customs signed Export Invoice & Packing List
 Duplicate of Form SDF
 Exchange control copy of the Shipping Bill, processed electronically
 AR-4 (original duplicate) duly endorsed by Customs for having effected the
Export
 Bill of Lading or Airway bill, as the case may be.
STEP 10: Bills negotiation:

With these authenticated shipping documents, the Exporter will have to negotiate
the relevant export bill through authorized dealers of Reserve Bank, viz., Banks.
Under the Generalized System of Preference, imports from developing countries
enjoy certain duty concessions, for which the exporters in the developing countries
are expected to furnish the GSP Certificate of Origin to the Bankers, along with
other shipping documents.
Broadly, payment terms can be:
DP Terms, DA Terms, Letter of Credit, payable at sight or payable at... days.
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STEP 11: Bank to bank documents forwarding:
The negotiating Bank will scrutinize the shipping documents and forward those to
the Banker of the importer, to enable him clear the consignment.
It is expected of such authorized dealers of Reserve Bank to ensure receipt of
export proceeds, which factor has to be intimated to the Reserve Bank by means of
periodical Returns.
STEP 12: Customs obligation discharge:

As indicated above, Exporters are also expected to provide proof of export to the
Central Excise authorities, on the basis of the Customs endorsements made on the
reverse of AR-4s and get their obligation, on this score, discharged.
STEP 13: Receipt of Bank certificate:

Authorized dealers will issue Bank Certificates to the exporter, once the payment is
received and only with the issuance of the Bank Certificate, the export transaction
becomes complete.
It is mandatory on the part of the Exporters to negotiate the shipping documents
only through authorized dealers of Reserve Bank, as only through such a system
Reserve Bank can ensure receipt of export proceeds for goods shipped out of this
country.
4.3.1.8. Export Shipping Instructions

When an exporter engages a custom broker or forwarder to handle the customs
declaration, he/she must give instructions on what to do with the shipment in the
shipping instructions.
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Bill of Lading Application-Instructions:
The letter of credit (L/C) is a confidential document. Many exporters prefer not to
let the customs broker or forwarder see the L/C, and instead provide a BLAI
detailing the requirements and instructions of an ocean shipment
The exporter may provide the BLAI to the customs broker after he/she has
obtained a shipping order (S/O) or a space booking number from the carrier. The
BLAI usually is provided to the customs broker before obtaining the S/O in cases
where the packing list and valid export permit are required to obtain the S/O.
4.3.1.9. Procedure for Clearance of Export Goods

For clearance of export goods, the export or his agents have to undertake the
following formalities:
o Registration :
The exporters have to obtain PAN based Business Identification Number(BIN)
from the Directorate General of Foreign Trade prior to filing of shipping bill for
clearance of export goods. Whenever a new Airline, Shipping Line, Steamer
Agent, port or airport comes into operation, they are required to be registered into
the Customs System.
o Processing of Shipping Bill - Non-EDI :
i) Under manual system, shipping bills or, as the case may be, bills of export are
required to be filed in format as prescribed in the Shipping Bill and Bill of Export
(Form) regulations, 1991. The bills of export are being used if clearance of export
goods is taken at the Land Customs Stations.
ii) Shipping Bills are required to be filed along with all original documents such as
invoice, AR-4, packing list etc. The assessing officer in the Export Department
checks the value of the goods, classification under Drawback schedule in case of
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Drawback Shipping Bills, rate of duty/cess where applicable, exportability of
goods under EXIM policy and other laws enforce. The DEEC/DEPB Shipping bills
are processed in the DEEC group.
iii) Once, the shipping bill is passed by the Export Department, the exporter or his
agent presents the goods to the shed appraiser (export) in docks for examination.
The shed appraiser may mark the document to a Custom officer (usually an
examiner) for examining the goods. The examination is carried out under the
supervision of the shed appraiser (export). If the description and other particulars
of the goods are found to be as declared, the shed appraiser gives a ‘let export’
order, after which the exporter may contact the preventive superintendent for
supervising the loading of goods on to the vessel.
o Processing of Shipping Bill - EDI :
Under EDI System, declarations in prescribed format are to be filed through the
Service Centers of Customs. A checklist is generated for verification of data by the
exporter/CHA. After verification, the data is submitted to the System by the
Service Center operator and the System generates a Shipping Bill Number, which
is endorsed on the printed checklist and returned to the exporter/CHA.
o Octroi procedure, Quota Allocation and Other certification for Export
Goods:
i) The quota allocation label is required to be pasted on the export invoice. The
quota certification of export invoice needs to be submitted to Customs along-with
other original documents at the time of examination of the export cargo.
ii) Since the shipping bill is generated only after the 'let export order' is given by
Customs, the exporter may make use of export invoice or such other document as
required by the Octroi authorities for the purpose of Octroi exemption.
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o Arrival of Goods at Docks :
The goods brought for the purpose of examination and subsequent 'let export' is
allowed entry to the Dock on the strength of the checklist and other declarations
filed by the exporter in the Service Center. The Port authorities have to endorse the
quantity of goods actually received on the reverse of the Check List.
o System Appraisal of Shipping Bills :
In many cases the Shipping Bill is processed by the system on the basis of
declarations made by the exporters without any human intervention. In other cases
where the Shipping Bill is processed on screen by the Customs Officer, he may call
for the samples, if required for confirming the declared value or for checking
classification under the Drawback Schedule.
o Status of Shipping Bill :
The exporter/CHA can check up with the query counter at the Service Center
whether the Shipping Bill submitted by them in the system has been cleared or not,
before the goods are brought into the Docks for examination and export. The
Customs officer may pass the Shipping Bill after all the queries have been
satisfactorily replied to.
o Customs Examination of Export Cargo :
After the receipt of the goods in the dock, the exporter/CHA may contact the
Customs Officer designated for the purpose present the check list with the
endorsement of Port Authority and other declarations as aforesaid along with all
original documents such as, Invoice and Packing list, AR-4, etc. Customs Officer
may verify the quantity of the goods actually received and enter into the system
and thereafter mark the Electronic Shipping Bill and also hand over all original
documents to the Dock Appraiser of the Dock who many assign a Customs Officer
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for the examination and intimate the officers’ name and the packages to be
examined, if any, on the check list and return it to the exporter or his agent.
The Customs Officer may inspect/examine the shipment along with the Dock
Appraiser. The Customs Officer enters the examination report in the system. He
then marks the Electronic Bill along with all original documents and check list to
the Dock Appraiser. If the Dock Appraiser is satisfied that the particulars entered
in the system conform to the description given in the original documents and as
seen in the physical examination, he may proceed to allow "let export" for the
shipment and inform the exporter or his agent.
o Variation Between the Declaration & Physical Examination :
The check list and the declaration along with all original documents are retained by
the Appraiser concerned. He may also forward the physical documents to Assistant
Commissioner/Deputy Commissioner of Customs (Exports) and instruct the
exporter or his agent to meet the Assistant Commissioner/Deputy Commissioner of
Customs (Exports) for settlement of dispute. In case the exporter agrees with the
views of the Department, the Shipping Bill needs to be processed accordingly.
Where, however, the exporter disputes the view of the Department principles of
natural justice is required to be followed before finalization of the issue.
o Stuffing / Loading of Goods in Containers :
The exporter or his agent should hand over the exporter copy of the shipping bill
duly signed by the Appraiser permitting "Let Export" to the steamer agent who
may then approach the proper officer (Preventive Officer) for allowing the
shipment. In case of container cargo the stuffing of container at Dock is dome
under Preventive Supervision. Loading of both containerized and bulk cargo is
done under Preventive Supervision. The Customs Preventive Superintendent
(Docks) may enter the particulars of packages actually stuffed in to the container;
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the bottle seal number particulars of loading of cargo container on board into the
system and endorse these details on the exporter copy of the shipping bill presented
to him by the steamer agent. The Customs Preventive Officer supervising the
loading of container and general cargo in to the vessel may give "Shipped on
Board" endorsement on the exporter’s copy of the shipping bill.
o Drawal of Samples :
Where the Appraiser Dock (export) orders for samples to be drawn and tested, the
Customs Officer may proceed to draw two samples from the consignment and
enter the particulars thereof along with details of the testing agency in the ICES/E
system. The disposal of the three copies of the test memo are as follows:
 Original – to be sent along with the sample to the test agency.
 Duplicate – Customs copy to be retained with the 2nd sample.
 Triplicate – Exporter’s copy.
o Amendments :
Any correction/amendments in the check list generated after filing of declaration
can be made at the service center, provided, the documents have not yet been
submitted in the system and the shipping bill number has not been generated.
Where corrections are required to be made after the generation of the shipping bill
No. or after the goods has been brought into the Export Dock, amendments are
carried out.
o Export of Goods Under Claim for Drawback :
After actual export of the goods, the Drawback claim is processed through EDI
system by the officers of Drawback Branch on first come first served basis. The
status of the shipping bills and sanction of DBK claim can be ascertained from the
query counter set up at the service center. The claim will come in queue of the EDI
system only after reply to queries/deficiencies is entered by the Service Center.
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All the claims sanctioned on a particular day are enumerated in a scroll and
transferred to the Bank through the system. The bank credits the drawback amount
in the respective accounts of the exporters. Bank may send a fortnightly statement
to the exporters of such credits made in their accounts.
The Steamer Agent/Shipping Line may transfer electronically the EGM to the
Customs EDI system so that the physical export of the goods is confirmed, to
enable the Customs to sanction the drawback claims.
o Generation of Shipping Bills :
After the "let export" order is given on the system by the Appraiser, the Shipping
Bill is generated by the system in two copies i.e., one Customs copy, one
exporter’s copy. After obtaining the print out the appraiser obtains the signatures of
the Customs Officer on the examination report and the representative of the CHA
on both copies of the shipping bill and examination report. The Appraiser
thereafter signs & stamps both the copies of the shipping bill at the specified place.
The Appraiser also signs and stamps the original & duplicate copy of SDF.
Customs copy of shipping bill and original copy of the SDF is retained along with
the original declarations by the Appraiser and forwarded to Export Department of
the Custom House. He may return the exporter copy and the second copy of the
SDF to the exporter or his agent.
o Export General Manifest :
All the shipping lines/agents need to furnish the Export General Manifests,
Shipping Bill wise, to the Customs electronically within 7 days from the date of
sailing of the vessel.
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The new Foreign Trade Policy (2015-2020) has streamlined the export process for
perishable agriculture produce with a view to enhancing its competitiveness in the
international market. Under this policy, five schemes, namely Focus Product
Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agri
Infrastructure Incentive Scrip, VKGUY, for rewarding merchandise exports with
different kinds of duty scrips with varying conditions (sector specific or actual user
only) attached to their use, have been merged into a single scheme, namely
Merchandise Export from India Scheme (MEIS) and there would be no
conditionality attached to the scrips issued under the scheme.
In order to reduce transaction and handling costs, a single window system to
facilitate export of perishable agricultural produce has been introduced. The system
involves creation of multi-functional nodal agencies to be accredited by
Agricultural and Processed Food Products Export Development Authority
(APEDA), New Delhi.
4.3.1.10. Single Window Clearance System

The system involves creation of multi functional Nodal Agencies, which requires
to be mandatorily accredited by Agricultural and Processed Food Products Export
Development Authority (APEDA). The accreditation enables them to function as a
single window for clearance of perishable produce to either issuing or facilitating
the requisite documentation / clearances under one roof by acting as a coordinating
agency for exporters.
These Nodal agencies could be shipping companies, Agri- clinics, C&F agents,
existing regulatory agencies or laboratories. These agencies have the same powers
of clearance / certification for export of perishable goods.
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Some of the agencies, which could be hired by the exporters for the purpose, are as
under:
(1) Nodal Agency acting as a Single Window for performing all functions;
(2) Nodal Agency in combination with other Regulatory Agencies (performing
core functions);
(3) Nodal Agency in combination with other Regulatory Agencies (performing
non-core functions);
(4) Known Shipper performing through self declaration; and
(5) Regulatory Agencies performing core functions in respect of documents
4.3.1.10.1. Duties, Powers and Functions of APEDA:

APEDA is the Authority to administer and regulate the Single Window Clearance
System relating to the export documentation and levy of charges thereupon for
facilitating the export of Perishable Agricultural Produce, promote simplified
documentation processes and procedures in the export of the perishable
agricultural produce. The duties, powers and functions of APEDA include the
following:
a) Control and regulation of the service levels, charges, terms and conditions that
may be levied upon exporters of Perishable Agricultural Produce by nodal
agencies;
b) Prescribing the criteria for accreditation of Nodal Agencies;
c) Accreditation, renewal, modification, suspension or cancellation of such
accreditation of Nodal Agencies;
d) Calling for information from, undertaking inspection of, conducting enquiries
and investigations including audit of nodal agencies;
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e) Specifying the form and manner in which the books of account shall be
maintained and statement of accounts rendered by the nodal agencies;
f) Application of Information Communication Technology towards a seamless and
paperless one-stop export certification service;
g) Providing advisory services to the exporters; and
h) Exercising such other powers as the Government may prescribe.
4.3.1.10.2. Duties, Powers and functions of Nodal Agencies:

The duties, powers and functions of Nodal Agencies include the following:
a) The nodal agency shall perform all or one or more than one of the following
functions required for the export of Perishable Agricultural Produce through a
Single Window Clearance System:
I. Issue Export Documents as per the notified procedure;
II. Collection and remittance of notified charges for issue of export document; and
III. Any other function as APEDA may prescribe.
b) The Nodal Agency shall be accountable and answerable for the declarations and
the truthfulness of the export document to APEDA and the exporter be liable to
them on this count.
Agricultural products have to go through quality control and pre-shipment
inspections before export. Under the Export (Quality Control and Inspection) Act,
1963 (External website that opens in a new window), about 1,000 commodities
under the major groups of food and agriculture, fishery, minerals, organic and
inorganic chemicals, rubber products, jute products and coir are subject to
compulsory pre-shipment inspection. However, products that have an ISI
Certification Mark or Agmark do not need to be inspected by any agency. All
goods should be labelled, packaged, packed and marked before export.
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Table 4.3.1. : List of Documents issued by Nodal agencies
Sr. Ministry
No. Document Involved Act Chp Sec
The Foreign Trade (Development
Certificate of Min of Finance- and Regulation) Act, 1992 (No.22 of
1 Origin DGFT 1992) II 5.2.4
Ministry of The Export (Quality Control and

Agriculture; Inspection) Act 1963; Export of
Department of Fresh poultry meat and poultry meat
Animal Products (Quality Control,
Health Husbandry, Dairy Inspection and Monitoring) Rules,
2 Certificate and Fisheries 2002 17 3
Produce Grading & Marking ACT
AGMARK 1937- General Grading and Marking
3 Certificate Min of Ag-DMI Rules, 1998
Laboratory
4 Reports APEDA APEDA Act, 1985 II 10(2)
Source: DGFT, GOI
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Table 4.3.2. : List of documents to be facilitated by nodal agency
S. Ministry
No. Document Involved Act Chp Sec.
Self FEMA,
Declaration 1999
Form (SDF) / Chapter II. The Foreign Exchange Management Act,
1 GR Form Section 7 1992 (42 of 1999) II 7
Min. of 50,
Finance – The Shipping Bill and Bill of Export 51,
2 Shipping Bill CBEC (Form) Regulations, 1991 152
Single
Export DOC App
3 Document DGFT Foreign Trade Policy 1C
Commercial / Bill of the goods, to inform customs about
Export the quantity, price, commodity, consignee
4 Invoice description, destination, weight etc.
Ministry of The Merchant Shipping Act, 1958. The
Shipping ; Merchant Shipping (Crew
Bill of Ministry of Accommodation) Amendment Rules 1984
Lading / Civil / The Aircraft Act, 1934, Aircraft Rules,
5 Airway Bill Aviation 1937 XIV 412
MoA (Dept
of Plant
Phytosanitary Quarantine The Plant Quarantine Act & Notification 8-
6 Certificate & Insp.) 97/91-PP.I, dated 26th November 1993 VII
Source: DGFT, GOI
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4.3.2. Quality standards for the EU
While the vast majority of food laws and regulations have been harmonized
throughout the EU, the single EU market is still not a “done deal.” It is important
to note that when EU-wide legislation is incomplete or absent, the laws of Member
States apply, often resulting in different rules in different Member States. For
studying the import standards for the European Union, FAIRS Country Report,
USDA GAIN, 2013 was used.
4.3.2.1. LABELING REQUIREMENTS
A) General Requirements
o Compulsory Information:
The compulsory information must appear on the pre-packaging or on a label
attached to it. The information must be marked in such a way that it is easily
visible, clearly legible and indelible. The following information is mandatory on
labels:
1) The name under which the product is sold.
2) The list of ingredients, in descending order of weight. However, ingredients
need not be listed in the case of fresh fruit and vegetables, including potatoes,
which have not been peeled, cut or similarly treated
3) Allergens
4) The net quantity of prepackaged foodstuffs expressed in metric units (liter,
centiliter, milliliter, kilogram or gram).
5) The date of minimum durability: the shelf life is indicated by the words "Best
before..." when the date includes an indication of the day or by "Best before end
of..." in other cases.
6) Any special storage conditions or conditions of use.
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7) The name or business name and address of the manufacturer or packager, or of
the seller established within the Community.
8) Particulars of the place of origin or provenance in case absence of such
information might mislead the consumer.
9) Instructions for use.
10) A mark to identify the lot to which a foodstuff belongs, determined by the
producer, manufacturer or packager or by the first seller in the EU. The marking
must be preceded by the letter "L", except in cases when it is clearly
distinguishable from other indications on the label. Foods marked with a “Best
Before” or “Use By” date that consists of at least the Day and Month are exempt
from the lot marking requirement. Food marked with a “Best before End” date
with Month and Year only does not qualify for exemption.
11) Treatments undergone, with specific indications for irradiated foods and deep-
frozen foods.
 Warnings on Labels
Any non-edible parts of a packaging system that consumers could mistake for food
must be labeled with the words “DO NOT EAT” and where technically possible
carry the following warning symbol:
Fig 4.1. : Do Not Eat Symbol

Source: FAIRS Country Report, USDA FAS GAIN, 2013
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 Language Requirements
As a general rule, labeling has to be in a language easily understood by consumers;
this is in practice the official language(s) of the member state. As an exception to
the general rule, it is also allowed to use: - Another language provided it can easily
be understood by consumers. - Other means depicting the content (e.g. pictures).
Multi-language labeling is allowed throughout the EU.
 Stick-on Labels
EU legislation does not contain any reference to the use of stick-on labels. It is up
to individual Member States whether to accept stick-on labels.
B. Medical / Health / Nutrition Claims
1. GENERAL PRINCIPLES
o General conditions
1. The use of nutrition and health claims shall only be permitted if the following
conditions are fulfilled:
(a) The presence, absence or reduced content in a food or category of food of a
nutrient or other substance in respect of which the claim is made has been shown to
have a beneficial nutritional or physiological effect, as established by generally
accepted scientific evidence;
(b) the nutrient or other substance for which the claim is made
(c) the quantity of the product that can reasonably be expected to be consumed
provides a significant quantity of the nutrient or other substance to which the claim
relates to a significant quantity that will produce the nutritional or physiological
effect claimed as established by generally accepted scientific evidence;
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2. The use of nutrition and health claims shall only be permitted if the average
consumer can be expected to understand the beneficial effects as expressed in the
claim.
3. Nutrition and health claims shall refer to the food ready for consumption in
accordance with the manufacturer's instructions.
2. NUTRITION CLAIMS
o Comparative claims
1. Without prejudice, a comparison may only be made between foods of the same
category, taking into consideration a range of foods of that category. The
difference in the quantity of a nutrient and/or the energy value shall be stated and
the comparison shall relate to the same quantity of food.
2. Comparative nutrition claims shall compare the composition of the food in
question with a range of foods of the same category, which do not have a
composition which allows them to bear a claim, including foods of other brands.
3. HEALTH CLAIMS
o Specific conditions
1. Health claims shall only be permitted if the following information is included in
the labelling, or if no such labelling exists, in the presentation and advertising an
appropriate warning for products that are likely to present a health risk if consumed
to excess.
 Restrictions on the use of certain health claims
The following health claims shall not be allowed:
(a) Claims which suggest that health could be affected by not consuming the food;
(b) Claims which make reference to the rate or amount of weight loss;
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(c) Claims which make reference to recommendations of individual doctors or
health professionals and other associations
 Health claims other than those referring to the reduction of disease risk
and to children's development and health
1. Health claims describing or referring to:
(a) The role of a nutrient or other substance in growth, development and the
functions of the body; or
(b) Psychological and behavioral functions; or
(c) Without prejudice to slimming or weight-control or a reduction in the sense of
hunger or an increase in the sense of satiety or to the reduction of the available
energy from the diet, may be made without undergoing the procedures laid down,
if they are:
(i) based on generally accepted scientific evidence; and
(ii) well understood by the average consumer.
 Reduction of disease risk claims and claims referring to children's
development and health
1. The following claims may be made where they have been authorised for
inclusion in a Community list of such permitted claims together with all the
necessary conditions for the use of these claims:
(a) reduction of disease risk claims;
(b) claims referring to children's development and health.
2. For reduction of disease risk claims the labelling or, if no such labelling exists,
the presentation or advertising shall also bear a statement indicating that the
disease to which the claim is referring has multiple risk factors and that altering
one of these risk factors may or may not have a beneficial effect.
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C. Product-Specific Labeling
o General rules
 Marketing standards
Fruit and vegetables not covered by a specific marketing standard shall conform to
the general marketing standard. However, where the holder is able to show that the
products are in conformity with any applicable standards adopted by the United
Nations Economic Commission for Europe (UNECE), they shall be considered as
conforming to the general marketing standard.
The general marketing standard introduces a definition of "sound, fair and of
marketable quality" for these products and requires them to bear the full name of
their country of origin.
1. Minimum quality requirements
Subject to the tolerances allowed, the products shall be:
 Intact,
 Sound; products affected by rotting or deterioration such as to make them unfit
for consumption are excluded,
 Clean, practically free of any visible foreign matter,
 Practically free from pests,
 Practically free from damage caused by pests affecting the flesh,
 Free of abnormal external moisture,
 Free of any foreign smell and/or taste.
 The condition of the products must be such as to enable them:
 To withstand transport and handling,
 To arrive in satisfactory condition at the place of destination.
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2. Minimum maturity requirements
The products must be sufficiently developed, but not over-developed, and fruit
must display satisfactory ripeness and must not be overripe. The development and
state of maturity of the products must be such as to enable them to continue their
ripening process and to reach a satisfactory degree of ripeness.
3. Tolerance
A tolerance of 10 % by number or weight of product not satisfying the minimum
quality requirements shall be permitted in each lot. Within this tolerance not more
than 2 per cent in total may consist of produce affected by decay.
4. Marking of origin of produce
Full name of the country of origin. For products originating in a Member State this
shall be in the language of the country of origin or any other language
understandable by the consumers of the country of destination. For other products,
this shall be in any language understandable by the consumers of the country of
destination.
 Specific marketing standards
The number of specific standards has been reduced from 36 to the following 10
products like apples, citrus fruit, kiwifruit, lettuces, curled-leaved and broad-leaved
endives, peaches and nectarines, pears, strawberries, sweet peppers, table grapes,
tomatoes
 Exceptions and exemptions from the application of marketing standards
1. The following products shall not be required to conform to the marketing
standards:
(a) Provided they are clearly marked with the words ‘intended for processing’ or
‘for animal feed’ or any other equivalent wording, products:
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(i) Intended for industrial processing, or
(ii) intended for animal feed or other non-food use; products transferred by
the producer on his holding to consumers for their personal use;
(c) products recognized in a Commission Decision taken at the request of a
Member State in as products of a given region which are sold by the retail trade of
the region for well established traditional local consumption;
(d) Products having undergone a trimming or cutting making them ‘ready to eat’ or
‘kitchen ready’.
2. The following products shall not be required to conform to the marketing
standards within a given production area:
(a) products sold or delivered by the grower to preparation and packaging stations
or storage facilities, or shipped from his holding to such stations; and
(b) Products shipped from storage facilities to preparation and packaging stations.
3. Member States may exempt from the specific marketing standards products
presented for retail sale to consumers for their personal use and labelled ‘product
intended for processing’ or with any other equivalent wording and intended for
processing
4.Member States may exempt from the marketing standards products directly sold
by the producer to the final consumer for personal use on markets reserved only for
producers within a given production area defined by Member States.
5. As regards the specific marketing standards, fruit and vegetables other than the
‘Extra’ Class, at stages following dispatch, may show a slight lack of freshness and
turgidity and slight deterioration due to their development and their tendency to
perish.
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4.3.2.1.1. Marketing standard for Table Grapes
i. Definition of produce
This standard applies to table grapes of varieties (cultivars) grown from Vitis
vinifera L. to be supplied fresh to the consumer, table grapes for industrial
processing being excluded.
ii. Provisions concerning quality

The purpose of the standard is to define the quality requirements for table grapes,
after preparation and packaging.
A. Minimum requirements
In all classes, subject to the special provisions for each class and the tolerances
allowed, bunches and berries must be:
 sound; produce affected by rotting or deterioration such as to make it unfit for
consumption is excluded,
 clean, practically free of any visible foreign matter,
 practically free from pests,
 practically free from damage caused by pests,
 free of abnormal external moisture,
 free of any foreign smell and/or taste
 In addition, berries must be intact, well formed, normally developed.
Pigmentation due to sun is not a defect.
B. Maturity requirements
The juice of the fruit shall have a refractometric index of at least:
 12 °Brix for the Alphonse Lavallée, Cardinal and Victoria varieties,
 13 °Brix for all other seeded varieties,
 14 °Brix for all seedless varieties. In addition, all varieties must have
satisfactory sugar/acidity ratio levels.
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C. Classification
The table grapes are classified into three classes defined below:
(i) ‘Extra’ Class
Table grapes in this class must be of superior quality. They must be characteristic
of the variety, allowing for the district in which they are grown. Berries must be
firm, firmly attached, evenly spaced along the stalk and have their bloom virtually
intact. They must be free from defects, with the exception of very slight superficial
defects, provided these do not affect the general appearance of the produce, the
quality, the keeping quality and presentation in the package.
(ii) Class I
Table grapes in this class must be of good quality. They must be characteristic of
the variety, allowing for the district in which they are grown. Berries must be firm,
firmly attached and, as far as possible, have their bloom intact. They may,
however, be less evenly spaced along the stalk than in the ‘Extra’ Class.
(iii) Class II
This class includes table grapes that do not qualify for inclusion in the higher
classes, but satisfy the minimum requirements specified above. The berries must be
sufficiently firm and sufficiently firmly attached, and, where possible, still have
their bloom. They may be less evenly spaced along the stalk than in Class I.
iii. Provisions concerning sizing
Size is determined by the weight of the bunch. The minimum bunch weight shall
be 75 g. This provision does not apply to packages intended for single servings.
iv. Provisions concerning tolerances
At all marketing stages, tolerances in respect of quality and size shall be allowed in
each lot for produce not satisfying the requirements of the class indicated.
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A. Quality tolerances
i) ‘Extra’ Class
A total tolerance of 5 per cent, by weight, of bunches not satisfying the
requirements of the class, but meeting those for Class I is allowed. Within this
tolerance not more than 0,5 per cent in total may consist of produce satisfying the
requirements of Class II quality.
ii) Class I
A total tolerance of 10 per cent, by weight, of bunches not satisfying the
requirements of the class, but meeting those of Class II is allowed. Within this
tolerance not more than 1 per cent in total may consist of produce satisfying
neither the requirements of Class II quality nor the minimum requirements, or of
produce affected by decay.
iii) Class II
A total tolerance of 10 per cent, by weight, of bunches satisfying neither the
requirements of the class nor the minimum requirements is allowed. Within this
tolerance not more than 2 per cent in total may consist of produce affected by
decay.
B. Size tolerances
For all classes: a total tolerance of 10 per cent, by weight, of bunches not satisfying
the requirements as regards sizing is allowed. In each sales package, one bunch
weighing less than 75 g is allowed to adjust the weight, provided the bunch meets
all other requirements of the specified class.
v. Provisions concerning presentation
A. Uniformity
The contents of each package must be uniform and contain only bunches of the
same origin, variety, quality and degree of ripeness. In the case of the ‘Extra’
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Class, the bunches must be approximately uniform in size and colouring. The
visible part of the contents of the package must be representative of the entire
contents.
B. Packaging
The table grapes must be packed in such a way as to protect the produce properly.
The materials used inside the package must be clean and of a quality such as to
avoid causing any external or internal damage to the produce.
vi. Provisions concerning marking
Each package must bear the following particulars in letters grouped on the same
side, legibly and indelibly marked, and visible from the outside:
A. Identification
The name and the address of the packer and/or the dispatcher.
B. Nature of produce
‘Table Grapes’ if the contents are not visible from the outside, name of the variety.
C. Origin of produce
Country of origin and, optionally, district where grown, or national, regional or
local place name.
4.3.2.2. Checks on conformity to marketing standards

o Conformity checks carried out by the Member States
1. Member States shall ensure that conformity checks are carried out selectively,
based on a risk analysis, and with appropriate frequency, so as to ensure
compliance with the marketing standards and other provisions. The criteria to
assess the risk may also include:
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(a) The nature of the product, the period of production, the price of the product, the
weather, the packing and handling operations, the storage conditions, the country
of origin, the means of transport or the volume of the lot;
(b)The size of the traders, their position in the marketing chain, the volume or
value marketed by them, their product range, the delivery area or the type of
business carried out such as storage, sorting, packing or sale;
(c) Findings made during previous checks including the number and type of
defects found, the usual quality of products marketed, the level of technical
equipment used;
(d) The reliability of traders’ quality assurance systems or self-checking systems
related to the conformity to marketing standards;
(e) the place where the check is carried out, in particular if it is the point of first
entry into the Union, or the place where the products are being packed or loaded;
(f) Any other information that might indicate a risk of non-compliance.
o Acceptance of declarations by customs
1. Customs may only accept export declarations and/or declarations for the release
for free circulation for the products subject to specific marketing standards if:
(a) The goods are accompanied by a conformity certificate, or
(b) The competent inspection body has informed the customs authority that the lots
concerned have been issued a conformity certificate, or
(c) The competent inspection body has informed the customs authority that it has
not issued a conformity certificate for the lots concerned because they do not need
to be checked in the light of the risk assessment. This shall be without prejudice to
any conformity checks.
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o Certificate of conformity
Certificates of conformity may be issued by a competent authority to confirm that
the products concerned conform to the relevant marketing standard
Instead of certificates issued by competent authorities in the Union, the third
countries may use their own certificates provided that they contain at least
equivalent information to the Union certificate. The Commission shall make
available, by the means it considers appropriate, specimens of such third country
certificates.
o Conformity checks carried out by third countries
Approval of conformity checks carried out by third countries prior to import into
the Union
1. At the request of a third country, approve checks on conformity to specific
marketing standards carried out by that third country prior to import into the Union
2. The approval may be granted to third countries where the Union marketing
standards, or at least equivalent standards, are met for products exported to the
Union. The approval shall also specify the third country inspection bodies in
charge of the proper checks.
o Methods of inspection
1. Member States of EU shall lay down specific arrangements for checking
conformity at the point of retail sale to the end consumer.
2. Where inspectors find that the goods conform with the marketing standards, the
inspection body may issue a certificate of conformity
3. Where the goods do not conform with the standards, the inspection body shall
issue a finding of non-conformity for the attention of the trader or their
representatives.
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The methods of inspection are based on the provisions of the guide for the
implementation of quality control of fresh fruit and vegetables adopted by the
OECD Scheme for the Application of International Standards for Fruit and
Vegetables.
4.3.2.2. Packaging and Container Requirements

A. Size & Content
A small "e" of at least 3 mm on the label guarantees that the actual content
corresponds to the quantity indicated. The size of the figures indicating the
quantity depends on the nominal quantity: nominal quantity greater than 1000 g or
100 cl: at least 6 mm high greater than 200 g/20 cl but less than 1000 g/100 cl: at
least 4 mm greater than 50 g/5 cl but less than 200 g/20 cl: at least 3 mm less than
50 g/2 cl: 2 mm. The quantity must be followed by the unit of measurement.
B. Packaging Waste Management
Member States are required to take measures to reduce packaging waste and must
introduce systems for reuse, recovery and recycling of packaging. Its use is
voluntary. A well-known and widely used recycling program is the German “green
dot” system.
Materials in Contact with Foodstuffs European Parliament and Council specifies
the main requirements for materials that come into contact with foodstuffs. It also
sets out labeling and traceability requirements and the procedure for the
authorization of substances through the European Food Safety Authority.
To date, specific directives have been developed for plastic materials, recycled
plastic materials, regenerated cellulose film and ceramics. In the case of ceramics,
migration limits have been established for lead and cadmium. Materials must bear
an indication "for food contact" or the symbol Commission restricts the use of
Bisphenol A in plastic infant feeding bottles. Exporters are advised to verify if a
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Member State follows EU provisions as Member States are allowed to authorize
provisionally the use of certain substances not listed in one of the specific
directives.
4.3.2.3. Pesticides and Contaminants

o Pesticides
The traces pesticides leave in treated products are called "residues".
 Maximum residue level
A maximum residue level (MRL) is the highest level of a pesticide residue that is
legally tolerated in or on food or feed when pesticides are applied correctly (Good
Agricultural Practice).
If there is no EU legislation in place in the importing Member State, then the

exporter can seek to obtain an "import tolerance" for active substances that have
not been evaluated or used in Europe before. Applications for import tolerances
must be submitted to the “Rapporteur Member State” (RMS). The Commission
assigns a Member State, if no RMS exists. The RMS reviewed dossiers are
evaluated by the European Food Safety Authority before being forwarded to the
Commission. It also requires Member States to take and analyze samples for
product and pesticide residue combinations in food of plant and animal origin.
o Contaminants
 Maximum Levels
EU wide harmonized maximum levels for contaminants are which includes
maximum levels for mycotoxins and heavy metals.
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4.3.2.4. Other Regulations and Requirements
o Product Inspection and Registration

Member State authorities are responsible for carrying out inspections on a regular
basis and in cases where non-compliance is suspected. Products can be checked at
import or at all further stages of marketing. Infringements of EU food and feed
legislation are reported through the Rapid Alert System on Food and Feeds
(RASFF). Criteria for laboratories conducting food controls have been harmonized
but it is the Member States’ responsibility to designate laboratories that are
allowed to perform analyses.
European Parliament and Council Regulation lays down general rules for the
performance of official controls to ensure the verification of compliance with feed
and food law, animal health and animal welfare rules. Product samples have to
comply with the food regulations applicable in the EU. Inspection fees for non-
animal origin products differ from one Member State to another. Measures in case
of non-compliance also vary widely, ranging from non-admittance of a product to
forced destruction. This may be a decisive factor in choosing a port of entry for
products where problems are more likely. Generally, there is no EU requirement to
register imported foods except for the introduction of novel foods. The
introduction of foodstuffs with particular nutritional uses needs to be notified to the
Member State where the food is sold.
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4.3. Competitiveness of major fruits and vegetables exported from India to the
EU
K Netherlands Belgium Germany France Sweden Italy
FOB FOB FOB FOB FOB FOB

NPC price NPC price NPC price NPC price NPC price NPC price N
00 0.06 42100.00 0.08 24346.15 0.13 30968.75 0.11 56862.79 0.06 20000.00 0.16 41100.00 0
00 0.05 - - - - 38787.50 0.09 52771.43 0.07 - - - -
Table 4.3.1.: Export competitiveness of mangoes
Source: nhb.gov.in; zauba.com
The export competitiveness of mangoes from India was worked out using wholesale
price of Trivendrum was taken for two years 2013 and 2014. Thus, Table 4.3.1.
portrays that mangoes are highly competitive in both the years as the NPCs for 2013
varied from 0.06 to 0.16 and for 2014 it was between 0.05 and 0.09.
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Table 4.2.2.: Export competitiveness of fresh bananas
Domestic FOB
price price
NPC
(Rs/qtl) (Rs/qtl)
2013 2737.583 5141.176 0.532
2014 3352.00 6830.00 0.490
The export competitiveness of bananas from India was worked out using wholesale
price of Mumbai and reference price of United Kingdom was taken for two years
2013 and 2014. Thus, the Table 4.2.3. shows that bananas are competitive in both
the years as it was found to be less than 1 for both years i.e. 0.532 in 2013 and 0.49
in 2014
Table 4.2.3.: Export competitiveness of fresh grapes

UK Netherlands Germany Belgium Ireland
FOB FOB FOB FOB FOB Domestic

Price NPC Price NPC Price NPC Price NPC Price NPC Price
2013 80785.7 0.048 52600 0.075 61825.76 0.064 53144 0.074 61651.35 0.063 3934.89
2014 81802.2 0.040 64000 0.052 51100 0.065 53923 0.061 70150 0.047 3312
The export competitiveness of fresh grapes from India was worked out using
wholesale price of Mumbai and reference price of United Kingdom, Netherlands,
Germany, Belgium was taken for two years 2013 and 2014. Thus, Table 4.2.3. shows
that fresh grapes are competitive in both the years as it ranged from 0.048 and 0.075
in 2013 and 0.04 to 0.065 in 2014 which is less than 1. For both the years, fresh
grapes was seem to be more competitive in UK.
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Table 4.2.4.: Export competitiveness of fresh papayas
UK Netherlands Germany
FOB FOB Domestic

Prices NPC Prices NPC FOB Prices NPC Price
2013 21148.15 0.053 - - 37100 0.031 1136.667
2014 51871.43 0.021 33966.67 0.032 56687.1 0.019 1084.25
The export competitiveness of fresh papayas from India was worked out using
wholesale price of Mumbai and reference price of UK, Netherlands and Germany
was taken for two years 2013 and 2014. For Netherlands, lack of availability of data
for year 2013 NPC for that year is not calculated. Thus, Table 4.2.4. shows that fresh
papayas are competitive in both the years as it was less than 1 for both the years.
Table 4.2.5.: Export competitiveness of onions

UK Netherlands France
FOB FOB FOB Domestic
price NPC price NPC price NPC price
2013 34833.33 0.07 - - 2292.81 1.01 2305.83
2014 3900.00 0.37 4175.00 0.348 2300.00 0.63 1451.92
The export competitiveness of onions from India was worked out using wholesale
price of Mumbai and reference price of United Kingdom, Netherlands and France
was taken. For UK, onions were found to be competitive for both the years whereas
in case of France, onions were not found to be competitive for the year 2013 as the
NPC was found to be 1.01; but in 2014 it became competitive enough.
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Table 4.2.6.: Export competitiveness of capsicum
UK Germany
FOB FOB Domestic
price NPC price NPC price
2013 6500 0.286014 - - 1859.091
2014 - - 32600 0.076112 2481.25
The export competitiveness of capsicum from India was worked out using wholesale
price of Bangalore and reference price of United Kingdom and Germany was taken
for two years 2013 and 2014 respectively. Thus, Table 4.2.6. shows that capsicum
is competitive in both the countries for the respective years.
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SUMMARY & CONCLUSIONS
In India, agriculture is the major source of income as well as an important

source for exports. Primary agriculture accounts for about 14% of national GDP
in 2012, down from close to 30% in 2000 which shows India’s contribution to
GDP is declining. Horticulture contributes 30.4 per cent to GDP of agriculture.
Moreover, area under horticulture crops is increasing alongwith the production
which has placed India among the foremost countries in horticulture production,
just behind China. The EU is the leading destination as well as source of supply
in the global fruit and vegetable trade. In the year 2013- 2014, India’s total
export of agricultural commodities to EU was US $ 4197.4 million. India’s
agriculture export to EU showed an increasing trend from 2009-10 to 2013-14
The study was undertaken for Morarka Organic Foods Ltd. which is focused on
carrying out research by involving grass root beneficiaries To meet the
stipulated objectives of the study, apart from detailed study of export procedure,
secondary data were collected and analyzed using Annual Compound Growth
rate for area, production and exports. To examine the variability, instability
index was estimated and for measuring the export competiveness in selected
fruits and vegetables, Nominal Protection Coefficient was used. The study
involves major four fruits namely, mangoes, bananas, grapes, papayas and two
main vegetables, onions and capsicum. The instability Index for area for all the
crops was found to be on a lower side for both fruits and vegetables except
capsicum which showed medium instability index. For production, all the fruits
except mangoes showed medium Instability Index whereas, all the vegetables
displayed a low Instability Index. In case of compound growth rate, vegetables
showed a higher Growth rate as compared to fruits.
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For exports, high instability was observed for both quantity and value terms for
all the countries for exports of mangoes, highest growth rates were observed in
Sweden in both terms but the instability was found to be very high. The overall
growth rates for the EU showed a medium Instability Index but the growth rate
showed a negative trend indicating that exporting Mangoes to EU is not
feasible. For bananas, even though there is a higher instability both in quantity
and value terms for United Kingdom growth rates observed in the country was
found to be highest among the countries studied. The overall exports of banana
to EU also displays that growth rates are low with high Instability index.
On the other hand, exporting grapes was found to be comparatively feasible
especially to Netherlands as the growth rate is high even though though the
instability indexes are border line high. Moreover the EU-28 trend also displays
medium to high instability with comparatively better growth rate. For papayas,
France showed a negative growth rate in terms of quantity. Highest growth rate
was seen in case of Netherlands. Export of papayas to the EU seemed to be
highly instable with a medium growth rate. For onions and capsicum, Germany
showed negative growth rate for both quantity as well as value. Instability index
for all the countries was also high for onions as well as capsicum.
Thus, almost all the commodities showed high Instability Indexes with low or
medium growth rates for all the countries.
The data for exports shows negative growth rates in certain cases as well as high
instability index which could be indicative of various factors like, some TBT
and SPS barriers while exporting these commodities to the EU. These issues
could be addressed by following appropriate export procedures and carefully
drafting documents necessary for the exports. Understanding the export
procedures and documentations is prerequisite for the exporter. Exporter’s
operation starts with the receipt of enquiry. Based on the enquiry, exporter
submits his offer giving complete details of the products, technical
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specifications, price, delivery, payment terms etc. After the process of
negotiations, importer sends a purchase order followed by letter of credit.
Specifications of the importer are taken into consideration while exporting
namely, quality standards adopted by EU such as various labelling
requirements, general marketing standards, and marketing standards for table
grapes, packaging requirements, pesticides and contaminants levels could also
aid in enhancing the exports from India. As soon as the goods are ready, the
exporter invites the representative of Export Inspection Agency for pre-
shipment inspection and obtains certificate. Documentation formalities are done
by exporter and sent to CHA, where custom formalities are done. After
inspection by customs department, the cargo is allowed to load. Few major
documents required are Commercial invoice, Bill of lading, Certificate of
origin, Bill of exchange, Pro-forma invoice etc.
For competitiveness, India was found to be more competitive in papayas and

onions for the year 2014 whereas, India was seen to be more competitive in
grapes and onions for the year 2013.In case of grapes, exporting to United
Kingdom was seen to be more competitive in both the years. Similarly, for
papayas, Germany was found to be competitive Again for onions, United
Kingdom was found more competitive.
The exports of the major four fruits namely, mangoes, bananas, grapes, papayas
and two main vegetables, onions and capsicum does not contribute significantly
to the economic growth of India. In order to have a positive impact on the
economic growth the quantity of exports must be increased and should be
maintained. Although, in absolute terms, India’s trade with the EU has
increased, there are some disturbing trends. Due to some reasons, India–EU
trade has grown at a slower pace than India’s total trade which have led to
negotiations or a wide ranging trade and investment agreement. Thus, the time
is ripe for an India–EU FTA.
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REFERENCES
 Aksoy A. M., Beghin J. C. (2005); “Global Agricultural Trade and

Developing Countries”; The World Bank Document. pp- 237- 241.
 Bairwa K. C., Sharma R., Kumar T. (2012); “Economics of Growth and

Instability: Fruit crops of India”; Rajasthan Journal of Extension
Education, Vol. 20. pp- 128-132.
 Brans H. (2013); “Food and Agricultural Import Regulations and Standards –

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EXPORT PROSPECTS OF FRUITS AND VEGETABLES

FROM INDIA: A STUDY OF EXPORT MARKET IN THE EU

GADIT FORUM CHETAN

INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE

GADIT FORUM CHETAN

in partial fulfilment for the award of the degree

MASTER OF BUSINESS ADMINISTRATION

Under the guidance

INTERNATIONAL AGRIBUSINESS MANAGEMENT INSTITUTE

This is to certify that this project report entitled “EXPORT PROSPECTS OF

Place: IABMI, Anand (Dr. R.S. Pundir)

I hereby declare that the project entitled “EXPORT PROSPECTS OF FRUITS

Place: IABMI, Anand Gadit Forum Chetan

I feel immense pleasure in expressing my sincere and profound sense of gratitude

I feel privilege in expressing my deepest sense of gratitude and humble

I am grateful to all the people in different institutions who generously offered me

Place: IABMI, Anand Gadit Forum Chetan

Name of student Advisor

INTERNATIONAL AGRI-BUSINESS MANAGEMENT INSTITUTE

Bananas showed a higher growth rate in both area as well as production

To measure the export competitiveness, Nominal Protection Coefficient was

Compound Growth rate and Instability Index of Fresh

Compound Growth rate and Instability Index of Fresh

Compound Growth rate and Instability Index of Fresh

Compound Growth rate and Instability Index of

Compound Growth rate and Instability Index of Fresh

Compound Growth rate and Instability Index of Fresh grapes

Table 4.3.1 List of Documents issued by Nodal agencies 67

Table 4.3.2 List of documents to be facilitated by nodal agency 68

Per cent share of top commodity in agri export and import

1.6. India-EU Agriculture Trade Trend 9

Agricultural and Processed Food Products Export Development

C/O Certificate of Origin

ICES/I Indian Customs EDI System for processing of Bill of Entry

IEC Number Importer Exporter Code Number

L/C Letter of Credit

Fig: 1.1 Top 6 world agricultural exporters (€ billion)

Fig: 1.2 Top 6 world agricultural importers (€ billion)

1.1.3. India’s agricultural trade relations with European Union

1.2. Company Profile:

1.2.1. The Product Range

1.2.2. Products of Morarka Organic food Limited

All the Morarka Organic Products are currently certified as per

1.2.3. Corporate Philosophy

1.2.4. Organic Cultivation, Technology & Practices

When it came to promoting organic agriculture within the farming community,

1.3. Objectives of the study

Vinayaka et al (2014) studied the trends of area, production and productivity of

Rakotoarisoa et al (2006) determined nominal protection coefficient for India’s

3.1. Nature and the source of data

3.1. Nature and the source of data

3.2. Analytical techniques employed

3.2.2. Instability Index in area, production and exports:

CV= Standard Deviation () /Mean (X)  100

Instability Index = Standard Deviation () /Mean (X)  100  √1-r2

r2 = RSS/TSS = Goodness of fit; It is the coefficient of determination of the

RSS = Regression Sum of Square