Export Potential of Horticultural Products from North Eastern States

EXPORT POTENTIAL OF HORTICULTURAL PRODUCTS FROM NORTH EASTERN STATES

INDEX EXECUTIVE SUMMARY 1. INTRODUCTION 1-7 1.1 HORTICULTURE IN INDIA 1.2 EXPORT OF HORTICULTURE PRODUCES 2. HORTICULTURE IN NORTH EASTERN STATES 8-10 2.1 THE NORTH EASTERN STATES 2.2 HORTICULTURE IN NORTH EASTERN STATES 3. STUDY ON HORTICULTURE IN NORTH EAST 11-13 3.1 OBJECTIVES OF THE STUDY 3.2 SCOPE OF THE STUDY 3.3 METHODOLOGY OF THE STUDY 3.4 LIMITATION OF THE STUDY 4. STATE WISE STATUS OF HORTICULTURE 14-35 4.1 ARUNACHAL PRADESH 4.2 ASSAM 4.3 MANIPUR 4.4 MEGHALAYA 4.5 MIZORAM 4.6 NAGALAND 4.7 SIKKIM 4.8 TRIPURA 4.9 NORTHEASTERN STATES 5. EXPORTABLE SURPLUS IN NORTHEASTERN STATES 36-48 5.1 CITRUS 5.2 BANANA 5.3 PINEAPPLE 5.4 PAPAYA 5.5 JACKFRUIT 5.6 GINGER 5.7 TURMERIC 5.8 POTATO 5.9 CHILLIES 5.10 OTHER CROPS

5.11 FLORICULTURE 5.12 EXPORTABLE SURPLUS FROM NORTH-EAST

6. EXPORT PROMOTION OF HORTICULTURE PRODUCES FROM NER 49-59

6.1 EXPORTS OF HORTICULTURE PRODUCE FROM NER 6.2 SUPPORT STRUCTURE FOR EXPORT PROMOTION 6.3 TRANSPORT NETWORK IN NER 6.4 AIR LINKAGES IN NER 6.5 MARKET INFRASTRUCTURE 6.6 PROCESSING FACILITY 6.7 COLD CHAIN 6.8 IN LAND TRANSPORT ASSISTANCE SCHEME OF APEDA 7. RECOMMENDATIONS 60-65 7.1 MODIFICATIONS RECOMMENDED IN IN-LAND TRANSPORT

ASSISTANCE SCHEME

7.2 TRANSPORTATION 7.3 AGRICULTURAL SUPPLIES 7.4 PACKAGING MATERIAL 7.5 COLD CHAIN 7.6 MARKET CONSIDERATIONS 7.7 RESOURCE REQUIREMENTS

ANNEXURES

Export Potential of Horticultural Products from North Eastern States

Executive Summary

The States in the North Eastern Region of India offer immense

scope for exploiting the export potential of their horticulture products.

These States have been producing substantial quantities of fruits and

vegetables, which have considerable potential for exports to the

international markets. With the integration of Indian Economy with the

global markets, the potential of horticulture exports from this region can

provide a huge competitive advantage in international trade in the coming

years.

The North Eastern Region has been producing many such products,

which have a very high potential for supplying to the export markets in

fresh and processed forms. However these States have not been able to

achieve much growth in this sector due to many inherent weaknesses such

as lack of transport infrastructure, lack of awareness and poor marketing

linkages.

It was in this background that the Agricultural and Processed Food

Products Exports Development Authority (APEDA) decided to conduct a

quick assessment study on export potential of horticulture products from

the North Eastern Region. The study was assigned to CMI Social Research

Centre and was conducted during October – November 2005.

The study was aimed at assessing the exportable surplus quantities

of horticulture products in the Northeastern States and to suggest an

action plan for providing the necessary support for export promotion of

these products. In-depth discussions with the State Government officials

of these States, Members and representatives of various organizations

CMI Social Research Centre i


were held during the study. An exhaustive desk research on various

published documents was under taken under the study. Chapter – 3

provides the detailed objectives, scope and Methodology of the study.

Major findings of the Study:

The data on production of major horticulture crops was collected

from each of the State in the region and surplus quantities were estimated

after taking into consideration the local consumption and average post

harvest crop loss of each of the produces. It was found that the region has

huge surplus quantities available to market in the other States and for

exports to the international markets. It was also observed that a lot of these

products are also being marketed to the other States within the country

and a few of them are also being exported to the neighbouring countries

like Bangladesh and Myanmar. Chapter – 4 terms to a detailed assessment

of the production and surplus quantities of the major horticulture crops in

each State.

The major potential crops, which are in surplus quantities and have

the potential of exports from the region are Citrus (Orange), Banana,

Pineapple, Papaya, Jackfruit, Ginger, Turmeric, Chilli and Potato etc. other

crops like Apple, Passion fruit, Green vegetables, Cut flowers, Spices also

can be successfully developed and commercially exploited for targeting

international markets. The floriculture in these States is also expected to

increase and can be explored for international markets. The crop wise

surplus quantities available over all the Northeastern States is provided at

Chapter –5.

It was observed that the exports of horticulture produce from the

Northeastern States have been mainly of Orange/Citrus fruits, Ginger and

Pineapple etc. The geophysical condition as well as lack of infrastructure

CMI Social Research Centre ii


facilities has restricted these exports to only neighboring South-Asian

countries.

The promotion of exports of horticulture produces from the NER

requires a major support in building the necessary infrastructure and

support systems. The existing infrastructure for the development of

horticulture is highly inadequate in many ways. The low technological

base and limited market infrastructure with virtually no storage facilities

and inadequate means of transport have resulted in a very low or even no

growth in this sector.

The status of air facilities in the region is also very poor. The L.G.B.

international airport at Guwahati has recently commenced some

international flights however they only link to the far Eastern countries

and are of not any help for the export promotion of horticulture produces.

Very small cargo space is available in the domestic flights connecting to

major cities like Delhi and Mumbai.

The markets in the region are largely unorganized and dominated

by the small private traders. The infrastructure, procurement practices and

marketing approaches are the major constraints in development of

markets in the region. The basic infrastructure facilities like storage,

warehousing and transportations are missing and thereby affect the

storage and mobilization of goods.

The processing capacity is developed on the potential of supply of

raw material of that area, however despite of huge surpluses available in

the region, the development of processing industry has been negligible in

these States.

CMI Social Research Centre iii


It was attempted to assess the reasons of the failure of the in-land

transport assistance scheme, operated by APEDA, which provides for

transport assistance to exporters for exporting notified horticulture

products and many Stakeholders of the trade, State Government officers

from the States and officers of other organizations were consulted to get

their views on the same. It was found that the main reason for the scheme

not picking up was largely limitations in the guidelines and the criteria

specified for availing the assistance. The major reasons for this scheme

not being able to work for the exports promotion from the NER are

provided below:

Since due to no direct international connections from Guwahati

international airport to the export destinations of the horticulture

products from the Northeast, no major consignment has taken place

through this route and thereby the assistance has been of no use to

the exporters.

There are very few direct connections from Kolkata airport to the

potential export destinations of these products and the lack of

facilities at Kolkata port to handle perishable commodities does not

make it suitable for the exporters to route their shipments through

Kolkata.

Further the rail network in the Northeastern States is also not very

extensive and requires multiple trans-shipments for transporting

goods through railways.

The hilly terrain of the area creates huge problems in transporting

the produces from the fields to the small markets and further

transportations for exports. In the absence of any suitable

CMI Social Research Centre iv


assistance, the local traders are procuring the produce through their

own channels and some of the produce is being exported to the

neighbouring countries like Bangladesh and Myanmar. These

exports are taking place by road through the land custom stations

in these States and no transport assistance can be provided under

the present scheme for such exports.

Recommendations

Chapter 7 provides a detailed action plan for export promotion of

horticulture products from NER, it contains recommendations for

modifications in the existing In-land transport assistance scheme,

implemented by APEDA and other suggestions for improving market

infrastructure, technology support and integrated post harvest

management. Following modifications were suggested in the scheme:

The scheme should provide for transport assistance subsidy for all

the APEDA scheduled products produced in the NER at the following

rates.

a) Rs. 1 per kg if the goods are transported by road from

Northeastern States for exports to the adjoining countries through

notified land custom stations at the borders.

b) Rs. 2 per kg, if the goods are transported by road from the

Northeastern States to Mumbai or Delhi, for further exports to

international destinations.

c) Rs. 2 per kg, if the goods are transported by road to notified

processing units anywhere in the country for processing for

exports. This assistance shall be provided only to notified units

CMI Social Research Centre v


for purchase of notified fruits for processing on the basis of pre-

determined input-output norms by APEDA.

d) 50% of the airfreight charged by airlines from an airport in

Northeastern States and Bagdogra (West Bengal) to any

international airport in India for exports. This assistance shall be

available only for floriculture and horticulture produce of

extremely perishable nature.

e) Rs. 2 per Kg, if transported from Northeastern States to Kolkata

by rail through ICD Guwahati for exports.

In order to ensure that the assistance is provided to only to the

deserving beneficiaries and ensure that the product exported is actually

sourced from the NER, a control measure in terms of various certifying

documents are also suggested to prevent any misuse of the scheme.

CMI Social Research Centre vi


1. Introduction

1.1 Horticulture in India

India with diverse soil and climate comprises of several agro-

ecological regions, produces variety of horticulture crops. These crops

form a significant part of the total agriculture produce in the country

comprising of fruits, vegetables, root and tuber crops, flowers, medicinal

and aromatic plants, spices and condiments etc.

These crops occupy almost 8.5% of the gross cropped area of the

country and contribute 28.5% to the GDP of agriculture and 52% of export

earnings in agriculture. India is the second largest producer of fruits and

vegetables next to China. Total productions of fruits have been estimated

at 43.00 million tonnes from 4.01 million ha. Vegetables occupy an area of

6.15 million ha.with a production of 88.62 million tonnes. India’s share in

world fruit and vegetable production is 10% and 13.40% respectively.

India is the largest producer of Mango and Banana with a share of 54.20%

and 11 % respectively in total world production. India is the largest

producer of cauliflower, second largest in onion and third in cabbage in

the world. Floriculture which is estimated to cover an area of 0.106 million

ha., is the another area where India is has made noticeable advance with

production of 0.53 million tonnes of lose and 2585 millions cut flowers.

India is also the largest producer and exporter of spices and spice products

and cashewnuts, besides, being the largest producer of coconut and

arecanut in the world. After the Green Revolution it became very clear

that horticulture, for which the Indian topography and agro-climate are

well suited, is an ideal method of achieving sustainability of

smallholdings. Adoption of horticulture both by small and marginal

farmers has brought prosperity in many reasons of the country of which

CMI Social Research Centre 1


Andhra Pradesh, Karnataka and Maharashtra are the examples.

Horticulture development in the country continues to make steady

progress in terms of production and exports. The time bound removal of

quantitative curbs on import and other barriers to access to domestic

market under WTO of which India is a signatory, will require Indian

horticulture produce and products to be competitive both in the domestic

and export markets. Last few years have seen a significant increase in the

area, productions and productivity in horticultural crops in the country.

Area and production figure of horticultural crops in India is provided in

table 1.1 below.

Table-1.1: Area and production of important horticultural crops in India

(Area: million ha., production: million tonnes, Yield: tonnes/ha) 1991-92 2001-02 % Increase

Commodity Area Production Yield Area Production Yield Area Production Yield

Fruit 2.87 28.63 9.98 4.01 43.11 10.72 39.7 50.2 7.5 Vegetables 5.59 58.53 10.47 6.15 88.62 14.41 10.0 51.4 37.6 Spices 2.05 1.9 0.93 2.31 3.00 1.30 12.7 57.9 40.11 Coconut 1.53 6.93 4.53 1.89 8.82 4.67 23.5 27.3 3.0 Cashew 0.53 0.30 0.57 0.77* 0.50* 0.65* 45.2 66.6 14.0 Arecanut 0.21 0.24 1.14 0.31 0.38 1.23 47.6 58.3 7.3 Others 0.21 0.26 1.24 1.46 1.84 1.26 595.2 607.6 1.61

Total 12.33 96.53 7.83 16.59 146.27 8.79 34.6 51.0 12.2 *Figures for 2002-03.

As apparent from table 1.1 above, the period has seen an increase of

34.6%, 51% and 12.2% in area, production and yield respectively in

horticultural crops in India. A comparison of area, production and yield

of the major fruits crops during the same period is provided at table 1.2

below.

Table-1.2: Area and production of major fruit crops in India (Area:’000ha., Production:’000tonnes)

1991-92 2001-02 % Increase Crops

Area Production Yield Area Production Yield Area Production Yield

Apple 195 1148 5.88 241.60 1158.40 4.80 23.9 0.9 -18.36 Banana 384 7790 20.27 466.20 14209.90 30.50 21.4 82.41 50.46 Citrus 387 2822 7.21 618.50 4789.10 7.50 59.8 69.70 4.02 Grapes 32 668 20.87 49.40 1209.70 24..40 54.3 81.09 16.91 Guava 94 1095 11.64 154.60 1715.50 11.10 64.4 56.67 -4.64 Litchi 49 244 4.97 58.10 355.90 6.10 18.6 45.86 22.73



Mango 1078 8752.1 8.11 1575.80 10020.20 6.40 46.2 14.49 -21.08 Papaya 45 805 17.88 73.70 2590.40 35.15 63.8 221.78 96.59 Pineapple 57 769 13.49 77.20 1182.10 15.30 35.4 53.72 13.41 Sapota 27 396 14.66 52.00 593.50 11.41 92.6 49.87 -22.17 Others 526 4144 7.87 643.10 5176.40 8.00 22.2 24.91 1.65

Total 2874 28632 12.07 4010.30 43001.10 14.60 39.5 50.18 20.96

As provided in table 1.2 above, India accounts for an area of 4.01

million ha., under fruit crops with a production of 43 million tonnes.

During the period the area, production and productivity of fruit crops

increased by 39.53%, 50.18% and 20.96% respectively. Fruit production

increased from 28.63 million tonnes to 43.00 million tonnes.

The crop wise area, production and yield of major vegetables are

provided at table 1.3 below.

Table-1.3: Area Production and Yield of major vegetable crops Area ‘000 ha., Production ‘000 tonnes

1991-92 2001-02 % Increase Crops

Area Production Yield Area Production Yield Area Production Yield

Brinjal N.A N.A N.A 502.4 8347.7 16.6 - - - Cabbage 177 2771 15.7 258.1 5678.2 2.2 45.8 104.91 40.12 Cauliflower 203 2998 14.8 269.9 4890.5 18.1 32.9 63.12 22.29 Okra 222 1886 8.5 347.2 3324.7 9.6 56.4 76.28 12.94 Onion 332 4706 14.2 495.8 5252.1 10.6 49.3 11.60 -25.35 Pea 178 1296 7.3 303.3 2038.2 6.7 70.4 57.26 -8.21 Potato 1135 18195 16 1259.9 24456 19.4 11.0 34.41 21.25 Sweet Potato N.A N.A N.A 131.9 1130.3 8.6 - - - Tapioca N.A N.A N.A 238.9 6515.9 27.3 - - - Tomato 289 4243 14.7 458.1 7462.3 16.3 58.5 75.87 10.88 Others 260 22436 86.3 1890.6 19526.2 10.3 627.1 -12.96 -88.06 Total 5137 58532 11.4 6156.1 88622.1 14.4 - - -

The area under vegetable is 6.15 million ha.with a production of

88.62 million tonnes and an average yield of 14.4 tonnes per ha.

China with an area of 29.60 million ha. produces 454.06 million

tonnes of horticulture produce and occupies the first position in the world.

India occupies the second position with an area of 16.59 million ha and a

production 146.27 million tonnes. Brazil occupies the third position

contributing 42.31 million tonnes of fruits and vegetables from an area of

2.84 million ha. Although India occupies the second position in global



horticulture production, it contributes only 1.18% and 0.20% of share in

global fruit and vegetable exports respectively.

1.2 Export of Horticulture Produces

The Horticultural Crops are considered a better option for

diversification of agriculture due to the higher returns available from them.

It also helps in improving productivity of land, generating employment,

improving economic conditions of the farmers and entrepreneurs,

enhancing exports and foreign exchange earnings. In developed countries,

the growing concern for health and nutrition has caused consumer

preferences to shift from high-fat, high-cholesterol foods, such as fish to

fruits and vegetables. This has also resulted in increasing imports of

horticultural products, especially from the developing countries like India.

The environment for increasing production of horticultural crops is

also very favourable in India because production of horticultural crops in

general is labour-intensive. India endowed with abundant labour in

relation to capital has competitive advantage in production and exports.

Horticultural products not only have good potential for generating

employment in cultivation but also in processing, marketing, and

distribution and they are frequently produced on small farms, thus

providing an important source of additional income for poor farmers in

developing countries. There are many horticultural products, especially

fruits that fetch high prices in the international markets. The growing

attention in horticultural exports is also aimed at increasing foreign

exchange earnings so that the country can meet rising import

requirements for accelerated economic growth.



Export of Fruits

The varied climatic and soil conditions in the country are facilitating

production of a large variety of fruits like Apple, Apricot, Almond,

Avocado, Cashew, Cherries, Dates, Fig, Grapes, Guava, Jackfruit, Lime,

Lemon, Litchi, Mango, Oranges, Papaya, Pineapple, Prunes, Pear, Peach,

Plum, Pomegranate, Strawberry, Walnut etc. India is not only growing a

large variety of fruits very successfully and substantially (India emerged

as the largest producer of fruits in the world) but is also exporting to

global markets. There is an impressive growth in the exports of fresh

fruits from Rs 184.53 crore in 1994-95 to Rs 489.08 crore in 2003-2004.

Exports of Vegetables

A large variety of vegetables are also exported from the country mainly in

fresh form and partly in frozen form. Onions, Potatoes, Cucumbers,

Mushrooms, Garlic, Peas and Mixed vegetables are the major items. In

addition, exports of potatoes and mixed vegetables in frozen form are also

significantly huge. Exports of vegetables from India have also grown from

Rs 249 crore in 1994 –1995 to Rs. 968.15 crore in 2003 - 2004.

Exports of processed fruits and vegetables are also growing. It has reached

Rs 1125.81 crore in 2003-2004 from Rs 348.20 crore in 1994-1995. A large

number of companies have entered in the processed food industries in the

last few years, which has resulted into an increased thrust on exports of

products such as pickles, jams, juices etc. The exports of Fruits and

Vegetable seeds during 1994-95 were Rs 24.77 crore, which has risen to Rs

53.60 crore. India’s share in the exports of floriculture has grown to Rs

249.55 crore from Rs 30.83 crore. Mainly the cut flowers, foliage,

houseplants and dry flowers have contributed to the increase in exports

earnings of floriculture products. The detailed statements of the quantities

exported and value of exports of horticulture produces from India is

provided at Table 1.1 & 1.2 below.



EXPORT QUANTITIES OF HORTICULTURE PRODUCES

(1993-94 TO 2003-04) QTY IN MTS

Item 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Floriculture & Seeds

Floriculture 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00a 30659.53

Fruits & Vegetables Seeds 9138.87 6288.01 9446.52 5208.62 5850.88 6062.38 8179.89 12299.44 6188.68 10657.65 5169.83

Total for Floriculture & Seeds 9138.87 6288.01 9446.52 5208.62 5850.88 6062.38 8179.89 12299.44 6188.68 10657.65 35829.36

Fruits and Vegetables

Fresh Onions 357132.25 401281.52 350989.17 427011.77 333348.96 215693.61 260475.27 343253.69 441849.60 588711.75 859938.76

Other Fresh Vegetables 33366.58 58551.75 83411.74 71850.94 98348.91 64654.63 115626.37 133992.02 170090.00 183019.33 188320.82

Dried Nuts (Walnuts) 6326.05 6459.09 6925.74 5807.94 3889.60 5327.90 4992.83 7742.44 7411.97 7631.24 6417.98

Fresh Mangoes 22793.87 25414.36 22269.17 24773.48 42894.93 45407.59 34631.18 37109.67 44429.33 38003.43 60551.32

Fresh Grapes 15931.57 16876.95 22414.03 20999.29 23808.12 11525.41 14082.58 20647.58 14606.00 25680.62 26783.83

Other Fresh Fruits 39781.39 45962.55 58095.21 166172.61 64605.09 44820.43 72969.80 81243.00 110520.68 90608.46 149294.26

Total for fruits and Vegetables 475331.71 554546.22 544105.06 716616.03 566895.61 387429.57 502778.03 623988.40 788907.58 933654.83 1291306.97

Processed Fruits & Vegetables

Dried & Preserved Vegetables 53512.27 65463.67 104067.95 88675.54 200262.70 145049.55 235637.74 286927.20 209157.78 216640.16 211160.09

Mango Pulp 26219.55 34460.03 36023.33 40302.22 45874.53 38133.73 72384.22 57303.53 76735.18 96107.31 89514.84

Pickle & Chutney 13106.16 17719.44 15597.26 18390.31 24372.27 21138.05 26737.60 40703.54 38758.97 56384.37 63052.73Other Processed Fruits & Vegetables 27683.97 26678.90 37821.02 27884.42 28421.78 34322.16 39152.26 70821.97 61332.36 54792.77 66070.26

Total for Processed Fruits & Vegetables 120521.95 144322.04 193509.56 175252.49 298931.28 238643.49 373911.82 455756.24 385984.29 423924.61 429797.92

Grand Total 604992.53 705156.27 747061.14 897077.14 871677.77 632135.44 884869.74 1092044.08 1181080.55 1368237.09 1756934.25

Table 1.1



VALUE OF EXPORTS OF HORTICULTURE PRODUCES

(1993-94 TO 2003-04) (Rs. In Crore)

Item 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Floriculture & Seeds

Floriculture 18.83 30.83 60.14 63.39 81.20 96.60 105.15 123.12 115.39 165.86 249.55

Fruits & Vegetables Seeds 24.50 24.77 43.08 44.34 55.93 66.33 83.94 67.51 64.58 100.97 53.60

Total for Floriculture & Seeds 43.33 55.60 103.22 107.73 137.13 162.93 189.09 190.63 179.97 266.83 303.15

Fruits and Vegetables

Fresh Onions 182.67 204.61 230.72 265.21 202.46 176.05 202.70 276.22 332.43 361.8 715.87

Other Fresh Vegetables 23.30 44.12 70.47 75.94 114.07 102.33 144.15 190.85 249.88 287.64 252.28

Dried Nuts (Walnuts) 67.17 60.63 82.40 78.93 56.48 68.92 60.56 109.94 117.98 121.23 101.43

Fresh Mangoes 43.87 45.02 38.51 44.88 73.60 79.14 71.55 68.61 80.99 84.19 110.52

Fresh Grapes 33.92 40.84 54.75 52.65 66.00 37.89 55.54 82.98 60.21 110.15 105.89

Other Fresh Fruits 34.46 38.01 54.27 64.71 72.66 71.72 112.72 115.50 146.12 121.74 171.27

Total for fruits and Vegetables 385.39 433.23 531.12 582.32 585.27 536.05 647.22 844.09 987.61 1086.75 1457.26

Processed Fruits & Vegetables

Dried & Preserved Vegetables 107.07 146.52 247.65 231.07 479.89 383.05 589.90 738.29 537.15 561.03 520.49

Mango Pulp 57.98 80.71 84.61 105.01 125.31 138.56 196.53 263.85 241.34 297.01 241.99

Pickle & Chutney 36.13 49.74 52.55 56.43 76.71 75.96 89.98 136.46 120.34 154.16 119.75Other Processed Fruits & Vegetables 67.30 71.23 106.76 81.26 79.59 108.11 117.23 206.94 201.74 194.73 243.58

Total for Processed Fruits & Vegetables 268.48 348.20 491.57 473.77 761.50 705.68 993.64 1345.54 1100.57 1206.93 1125.81

Grand Total 697.20 837.03 1125.91 1163.82 1483.90 1404.66 1829.95 2380.26 2268.15 2560.51 2886.22

Table 1.2

CMI Social Research Centre

7


2. Horticulture in North Eastern States

2.1 The North Eastern States

The North Eastern Region of India comprising the States of Assam,

Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura

and Sikkim has vast bio-diversity and is a home to a unique but fragile

ecology. It constitutes about 8% of the country’s geographical area and 4%

of its population. The North-Eastern Region has the total geographical

area of 2,62,185 Sq. Kms. Arunachal Pradesh having an area of 83,740 Sq.

Km is the largest State while Tripura with 10,490 Sq Km areas is the

smallest state of the region. About 70% of the region is hilly, and the

topography varies within each state. Mountains and hills cover most of

Arunachal Pradesh, Manipur, Mizoram, Nagaland, Meghalaya, Sikkim

and about half of Tripura, one-fifth of Assam. The rainy season in this

region generally commences from March and lasts till the middle of

October. The total annual rainfall varies significantly in the region. In

Khasi and Jaintia Hills, the annual intensity of rainfall reaches the



maximum of about 1080-cm around Cherrapunjee and Mawsynram

(having highest rainfall in the world). It is significantly low in the rain

shadow area of Nagaon district in Assam.

2.2 Horticulture in North Eastern States

Diverse agro climatic conditions ranging from the temperate to

tropical, fertile soils and abundance of rainfall offer immense scope for

development in the horticulture sector. The major horticulture crops of

the region are potato, onion, tapioca, sweet potato among vegetables and

tuber crops; ginger, turmeric and chillies among spices; banana, pineapple,

orange/other citrus fruits, mango, litchi, jackfruit among fruit crops and

coconut and areca nut among fruit-nuts. Other horticultural crops, which

are produced in the region, are cabbage, brinjal, cauliflower among

vegetables; apple, pears, plums/peach and passion fruit among fruit

crops.

Total production of fruits in the region is estimated about 23.35 lakh

tonnes, which is only 5.1% of the total production of the country. As

regards production of vegetables, the contribution of the region is only

4.5% of the total production in the country.

The geo-climatic situation in the region offers excellent scope for growing

different horticultural crops including fruits, vegetables, spices, plantation

crops, medicinal and aromatic plants. A wide range of tropical, sub-

tropical and temperate fruits such as banana, Mandarine orange,

pineapple, jackfruit, papaya, hatkora (Citrus microphylla) etc. and

vegetables, both indigenous and exotic, are grown in the region. The high

altitudinal places in the region provide good opportunities to grow off-

season vegetables, including potato etc during the rainy season.

The region has a huge potential of horticulture development both in terms

of market expansion and production growth. The Planning Commission



has recommended that the Centre must get together with the States to give

a new thrust to horticulture and vegetable gardening. This will include

everything from plant breeding and tissue culture propagation,

demonstration, training of manpower, including barefoot extension agents

to post-harvest technology, marketing, cold storage, processing and

pricing. The North Eastern Region has the potential to be a major player in

the emerging South East Asian Markets in view of its close proximity to

those markets.



3. Study on Horticulture in North East.

The North Eastern States of Arunachal Pradesh, Assam, Manipur,

Meghalaya, Mizoram, Nagaland, Sikkim and Tripura are highly conducive

for the growth of various horticulture crops. These states have been

producing many such crops, which have a very high potential for

supplying to the export markets in fresh and processed forms. However

due to the various problems such as lack of transport infrastructure, poor

connectivity and lack of awareness etc., the potential of these crops have

not been explored satisfactorily. It is due to this concern about the poor

growth of this sector with respect to the opportunities available in the

international market, The Agricultural and Processed Food Products

Exports Development Authority (APEDA) decided to conduct a quick

assessment study on Export Potential of horticulture products from the

North Eastern Region. The study was undertaken by CMI Social Research

Centre during October-November 2005.

3.1 Objectives of the Study

The study had the following objectives:

1. To assess the exportable surplus quantities of horticulture

products in the North Eastern States.

2. To estimate the resource requirement for providing support in

terms of inland transport assistance for exporting these

products.

3. To identify various potential international markets for exporting

these products.



3.2 Scope of the Study

The scope of the study was as follows:

Analysis on Existing and Potential Markets

Analysis on Existing and Potential Market Infrastructure and

system

Analysis on Existing and Potential Product Mix

State wise trend analysis of production and consumption etc.

Analysis of Export Facilitation relating to Cold Chain, Gateway

Airports, International connections etc.

3.3 Methodology of the Study

The research, design and methodology followed for conducting the study

was as follows:

1. Exhaustive desk research was undertaken based on published

information such as state profiles, research reports, Publications of

APEDA and other sources.

2. Internet Scanning was also undertaken to collect relevant data,

abstracts, papers and reports.

3. A team of experts undertook the study and in-depth discussions

were held with the relevant organizations and experts. A partial list

of contacts made during the field survey is provided at Annexure-I.

3.4 Limitation of the Study

The study has been undertaken with some constraints and its would be

useful to understand the same while using the report:



1. The level of commercial horticulture in most of the States is on a

very low key.

2. The reliability of the State-wise data on area, production and yield

of crops should be judged keeping in mind that in most of the cases,

it has been collected from the respective Departments of

Horticulture/Agriculture.

3. The actual feasibility of exporting certain horticulture produce

could vary to a certain degree based upon factors such as quality

produced, current prices and market trends etc.



4. State wise Status of Horticulture.

The North Eastern region due to its peculiar agro-climatic

conditions has considerable potential for horticulture production. Banana,

pineapple and orange are the most important crops among fruits. These

cover about 60% of the area and account for 66% of the production of fruit

crops. Next important crops are Litchi in Tripura and Assam, Apple in

Arunachal Pradesh, Passion fruit in Nagaland, Mizoram and Manipur,

Cashew nut in Assam and Tripura and Coconut in Assam, Tripura and

Nagaland. However the region seems to have missed the opportunity of

penetrating the international markets for marketing the horticulture

produces so far. The horticulture markets in almost whole of the north-

east states are largely unorganized and controlled by private players and

despite of having a wide range of horticulture crops the desired growth in

the sector has not happened. The topography of these States is also not

favourable for movement of the produce. The lack of infrastructure,

procurement & marketing practices, processing & packaging facilities is

the major constraints in marketing of the produces.

4.1 Arunachal Pradesh has tremendous potential for development of



fruits & vegetable crops, spices, plantation crops, flowers and medicinal &

aromatic plants. The total area of fruits during 2004-2005 has been

estimated as 54212 hectare with a total production of 1,03,234 Metric Tones

and 13372 hectare under spices with 37,371 Metric Tones production.

However the productivity status of various crops is still low as compared

to all India level. The area under production and production of major

horticulture crops in the State is provided at Table 4.1 below.

Area and Production of Major horticulture Crops in Arunachal Pradesh

Year: 2004-05

S.No Name of Crop Area under Cultivation (in ha)

Production (in MT)

1. Fruit a) Apple 8403 9474 b) Kiwi 190 62 c) Walnut 3516 58 d) Citrus 23360 27251 e) Banana 4914 14817 f) Pineapple 7913 36310 g) Others 5916 15262

2. Spices a) Ginger 7618 36666 b) Large Cardamom 4142 572 c) Black Pepper 1612 133

Table 4.1 Source: Deptt of Horticulture, Govt of Arunachal Pradesh

There are no regulated markets and the trade moves around the private

traders who procure the produces at local markets in the village areas.

Some traders from Assam have been procuring mandarin orange and

exporting to Bangladesh. During the last season approximately 1200 MT of

orange has been exported through this channel. It was also reported that

good quantities of Ginger is also being sold outside the State however no

organized market information system is in place to assess the quantity and

price of such transactions taking place.

There is only one processing unit in the State in Bagra (West Siang

District) set up by the Industries Department, which has been leased out to



an individual entrepreneur. The unit is extracting fruit juice and pulp. The

unit is also reportedly having problems in production due to lack of

technical support. An estimation of surplus quantities of horticulture

produces after local consumption has been done and the crop wise

availability of surplus quantities is provided at the Table 4.2 below.

Surplus quantities of Major horticulture Crops in Arunachal Pradesh

S.No Name of Crop Surplus (in MT)

1. Fruit a) Apple 6502 b) Kiwi 40 c) Walnut 42 d) Citrus 18702 e) Banana 10168 f) Pineapple 24919 g) Others 10512

2. Spices a) Ginger 25163 b) Large Cardamom 392 c) Black Pepper 91

Table 4.2

The state also has the potential of taking up commercial floriculture also,

however there is a lot of work needed before planning to export orchids

cut flowers in a big way. The production of potato and tomato has also

increased over the years and has the potential of growing much more if

proper processing and marketing infrastructure is provided.

4.2 Assam due to its agro-climatic condition is traditionally a

horticulture-based State. The major horticulture crops occupy 5.46 lakh

hectares (14.2%) of the total gross cropped area of 38.43 Lakh hectares. The

major horticultural crops in the State are Banana, Pineapple, Jackfruit,

Oranges, Assam Lemon, Garlic, Coriander, Potato and Chillies. Plantation

crops, Medicinal & Aromatic plants and floriculture are also gaining

significant expansion. The Technology mission for Integrated

Development of Horticulture in the Northeastern states was launched in



2001-02. The lack of infrastructure, insurgency problems and frequent

floods have adversely affected the growth of the sector however it is

believed that in the coming years the impact of these interventions will

surface in terms of higher production, area expansion, quality

improvement, better marketing and processing capacities and increase in

export earnings. The area under production and production of major

horticulture crops in the State is provided at Table 4.3 below.

Area and Production of Major horticulture Crops in Assam

Year: 2003-04


Production (in MT)

1. Fruit a) Banana* 42000 581000 b) Pineapple* 13000 199000 c) Papaya * 7000 99000 d) Orange 7000 83000 e) Assam Lemon 9000 59000 f) Guava 4000 63000 g) Litchi 4000 20000 h) Jackfruit 18000 170000 i) Mango 4000 30000



j) Other fruits 2000 7000 * Estimates for 2004-05

2. Vegetables a) Khariff Vegetable 67000 922000 b) Rabi Vegetable 143000 2360000

3. Spices a) Chillies 15000 10000 b) Turmeric 12000 8000 c) Onion 7000 17000 d) Ginger 18000 116000 e) Coriander 20000 17000 f) Garlic 7000 22000 g) Black Pepper 3000 4000 h) Other Spices 2000 2000

4. Tuber Crops a) Potato 78000 543000 b) Tapioca (04-05) 3000 13000 c) Sweet Potato 8000 28000

Table 4.3 Source: Directorate of Horticulture, Govt of Assam

An analysis of the data published by the Department of

Agriculture, Govt. of Assam shows that only in Vegetables and Spices

there has been some growth in the area under crops, production and yield

and no major growth has been recorded in Fruit crops during the last 5

years.

‘Village haat bazaars’ and regulated markets are the two major

channels of marketing of the agricultural produce in the State. The

Cooperatives are almost non-existent or very weak and a large quantity of

the cash crops and fruits and vegetables are sold in the rural haats. The

market infrastructure in the regulated markets is in a very poor shape and

there are very few cold storages in private sector and government

godowns for use of farmers and traders.

The Food processing activities are also almost insignificant size and

numbers in the State and the private entrepreneurs have also not done

much in terms of quality improvement and better marketing practices.

However APEDA has provided a refrigerated van to the State

Government for safe transportation of fruits and vegetables. The market



information systems need to be developed to improve the access of current

market information to the producers.

An estimation of the surplus quantities of major horticultural

produces of the State is provided at the Table 4.4 below.

Surplus quantities of Major horticulture Crops in Assam


1. Fruit a) Banana 85000 b) Pineapple 29000 c) Orange 12000 d) Papaya 15000 e) Assam Lemon 8000 f) Guava 9000 g) Jackfruit 25000

2. Spices a) Ginger 42000 b) Other Spices 16000

Table 4.4

The above estimation is based on the data provided on the

consumption patterns and production of the crops after estimating an

average post harvest crop loss of 30% in case of fruits. A large share of

these surplus quantities can be easily explored for exports in fresh and

processed forms. Ginger offers a tremendous potential for exports from

Assam and Government of India has set up an Agri Export Zone for

Ginger in 8 districts of Assam.

The other potential areas of export are flowers and cultivation of

tuberose, marigold and gladiolus are being taken up for development of

floriculture on a commercial basis. A commercial venture for the

cultivation of hybrid orchids is running successfully in the State and all

the cut flowers are being specially packed and sent to cities like Delhi,

Kolkata and Bangalore etc.



4.3 Manipur has very small and scattered holdings and therefore very

little quantity of agriculture produce available individually as marketable

surplus to be disposed off. Thereby it becomes expensive and

uneconomical to carry the small quantity of produce to the markets

located at the distant places. Due to lack of road infrastructure to connect

most of the production areas, the farmers find it difficult to bring their

produces to the markets for sale and thus deprive themselves of

remunerative prices. However because of the peculiar agro-climatic

conditions some horticulture produces like pineapple, orange and ginger

etc. are being grown in considerably huge quantities and the latest

additions like papaya, passion fruit and cabbage etc. are also picking up

and have huge potential of developing into exportable horticulture

produces. The total area of fruit crops during 2003-04 has been estimated

at 27008 hectares with the total production of 167738 metric tonnes and

7670 hectares under vegetable crops with 57018 metric tonnes production.

The area under cultivation for spices was 9952 hectares with an estimated

production of 5279 metric tonnes. The area under production and



production of major horticulture crops in the State is provided at Table 4.5

below.

Area and Production of Major horticulture Crops in Manipur

Year : 2003-04


Production (in MT)

1. Fruit a) Pineapple 10652 79889 b) Banana 1950 15308 c) Papaya 1945 21282 d) Mango 196 997 e) Peach/Pear/Plum 598 3738 f) Guava 732 2298 g) Jack fruit 325 3137 h) Lime 1227 7890 i) Orange 1243 5097 j) Passion fruit 1425 15747 k) Others 6715 12355

2. Vegetables a) Cauliflower 1123 9658 b) Cabbage 1724 21033 c) Tomato 579 4632 d) Pea 1281 7686 e) Radish 198 1762 f) Carrot 263 1973 g) French bean 712 1994 h) Lady’s finger 824 2802 i) Brinjal 315 1481 j) Knol-khol 235 1081 k) Bitter Gourd 51 273 l) Bottle Gourd 65 468 m) Other vegetable 300 2175

3. Spices a) Ginger 1265 12524 b) Turmeric 372 4092 c) Chillies 7324 29296 d) Onion 695 5908 e) Allium Tuberosom 31 295 f) Coriander 145 493 g) Others 120 182

Table 4.5 Source: Department of Horticulture, Govt. of Manipur

The Manipur Small Farmers Agri-business Consortium has started

integrated farming systems for contract farmers in three districts of the



State. The 31 contract farmers in cultivation of turmeric and passion fruits

are being held by providing training on the concept of integrated farming

system to run a sustainable farming. The initiative has the potential of

being successfully replicated in the State for future development of

horticulture sector thereby creating addition employment and increased

export earning in the future. An estimation of the commodity –wise

surplus quantities available is provided at Table 4.6 below.

Surplus quantities of Major horticulture Crops in Manipur


1. Fruit a) Pineapple 24000 b) Orange 1962 c) Papaya 5320 d) Passion Fruit 5300

2. Spices a) Ginger 7045 b) Chillies 22200

3. Vegetables a) Cabbage 2750 b) Other Spices 16000

Table 4.6

These quantities are being sold to other states through the local traders

and a major share of them can be potentially explored in fresh and

processed forms. In addition to the above the State has the potential of

growing floriculture plants like rose, gladiolus, marigold and tuberoses

etc. A significant amount of work has been done by Department of Science

and Technology in promoting commercial cultivation of gladiolus,

particularly in Senapati district of the State.

4.4 Meghalaya being a difficult hilly terrain has only about 10% of the

total land available for cultivation. Paddy is the main food crop grown in

the State. Besides maize, wheat, pulses, potato, ginger turmeric and areca

nut are some of the important cash crops produced in the State. Among



the horticulture crops, banana, pineapple and oranges etc. are grown in

abundance in medium and lower altitude regions and fruits like plum,

pears and peaches are grown in the high altitude regions. Though the

State is deficit in terms of food grains production it has surplus of cash and

horticultural crops. However lack of marketing infrastructure in the State

is the major deterrent factor for increasing productivity and production.

Other constraints such as lack of transport, communication weak co-

operatives organizations and primary markets in the rural areas are also a

serious problem in development of the horticulture trade in the State. The

fluctuating price of the surplus produces like fruits, ginger, vegetables etc.

also are serious disadvantages for the farmers.

The area under production and production of major horticulture crops in

the State is provided at Table 4.7 below.

Area and Production of Major horticulture Crops in Meghalaya

Year : 2004-05


Production (in MT)

1. Fruit a) Pineapple 9565 92036 b) Citrus Fruits 8291 36805 c) Banana 6271 67779 d) Papaya 582 4484

2. Vegetables 11947 144180



3. Tuber Crops a) Potato 18037 160757 b) Sweet Potato 4974 16172 c) Tapioca 3975 20644

4. Spices a) Ginger 9222 47138 b) Turmeric 1673 9242 c) Chillies 1822 1193

5. Plantation Crops a) Tea 1072 3899 b) Areca nut 11231 14294 c) Cashew nut 6762 6837

Table 4.7

Source: Directorate of Horticulture, Govt. of Meghalaya

The huge quantities of horticulture produces in the State is not matched by

sufficient marketing and processing facilities and disposal of huge

quantities of perishable horticulture produce in terminal markets with

poor infrastructure is a serious problem for the local producers due to long

distances, high transportation cost and in-transit damage etc. in order to

exploit the potential and optimum utilization of the production centrally

located, professionally managed multi product horticulture processing

units need to be setup in the State. The local consumption of majority of

the horticulture produce is very small in size and better management of

farming practices and use of technology will create huge surplus and a

wonderful opportunity for exporting fresh and processed horticulture

produces from the State.

The estimation of surplus quantities of major horticulture produces in the

State is provided at Table 4.8 below.

Surplus quantities of Major horticulture Crops in Meghalaya


1. Fruit a) Pineapple 70000 b) Orange 23000

2. Spices a) Ginger 35048



b) Turmeric 6900 c) Bay Leaves (Tez Patta) 15160

3. Tuber Crops a) Potato 117500

4. Plantation Crops a) Areca nut 9200

Table 4.8

The State has huge potential of agro-based industries and the substantially

surplus quantities of fruits such as pineapple, oranges and banana etc. can

be exploited for exports to international markets very successfully. The

State also grows plenty of ginger, bay leaves (TezPatta) and Potatoes with

unique characteristic value matched for successful marketing abroad. The

turmeric (Lakadong variety) has the highest curcumin content (7.1%) and

is considered the best in the world. Strawberry has been at the heart of a

horticultural revolution in this northeastern state and a pilot project

funded under the Technology Mission has created a lot of awareness

amongst the farming community in the area.

4.5 Mizoram has 41270 hectares of land covered under horticulture crops



with a total production of 165550 metric tonnes. The area under food crops

is 22644 hectares with the total production of 46968 metric tonnes. The

major fruit crops are mandarin orange, hatkora, banana, grapes and

passion fruit etc. The State also has high potential for the growth of

various commercial fruits like kiwi fruit. The area under production and

production of major horticulture crops in the State is provided at Table 4.9

below. Area and Production of Major horticulture Crops in Mizoram

Year : 2003-04


Production (in MT)

1. Fruit a) Mandarin Orange 7651 18930 b) Assam lemon 858 3037 c) Hatkora 1732 2834 d) Banana 3278 8059 e) Pineapple 898 2456 f) Mango 540 1283 g) Peach & Plum 536 1431 h) Papaya 259 821 i) Grape 457 637 j) Jack fruit 162 1065 k) Guava 262 1061 l) Passion fruit 4821 2972

2. Plantation Crops a) Arecanut 2040 5318 b) Betelvine 357 446 c) Tung 1144 297

3. Vegetables a) Iskut (Chowchow) 900 10718

4. Spices a) Ginger (green) 4481 29582 b) Turmeric (green) 275 2258 c) Chillies 1295 2307

Table 4.9

Source: Department of Horticulture, Govt. of Mizoram

The mild climate of the State has a unique advantage of growing almost all

types of flowers round the year. Flowers like anthurium, roses, bird of

paradise and gladiolus etc. are successfully grown in the State and are



being exported outside the State regularly. The estimation of the surplus

quantities of horticulture produces is provided at Table 4.10 below.

Surplus quantities of Major horticulture Crops in Mizoram

S.No Name of Crop Surplus (in MT) 1. Fruit a) Mandarin Orange 5300 b) Hatkora 850 c) Banana 1200 d) Passion Fruit 1100

2. Spices a) Ginger 16500 b) Turmeric 400 c) Chillies 424

3. Vegetables a) Iskut (Chowchow) 6400

Table 4.10

Various exotic varieties of anthurium are also now being grown in the

State and the surplus is being sold outside the State. The necessary

infrastructure in terms of transport, roads and communication is found to

be lacking and an improvement in providing these facilities can give a

boost to the export earnings of the State.

4.6 Nagaland has huge potential for development of horticulture crops

such as pineapple, citrus, passion fruit, banana and potato etc. The total

area of horticulture has been estimated as 93686 hectares with a total

production of 55229 metric tonnes. The technology mission for integrated

development of horticulture has adopted a strategy to focus on fruit crop

cultivation in a compact area, involving the entire community, local NGOs

and farmers groups. The State has pioneered an excellent method of

upgrading jhum (shifting) cultivation by interposing a strong and

increasing component of agro-forestry through assisted tree planting of

selected fast growing economical timber.





Area and Production of Major horticulture Crops in Nagaland

Year : 2003-04


Production (in MT)

1. Fruit a) Apple 75 15 b) Banana 1017 5000 c) Grapes 23 115 d) Mango 282 50 e) Pomegranate 125 50 f) Guava 275 200 g) Litchi 149 80 h) Papaya 677 672 i) Pineapple 2040 24800 j) Citrus fruits 3311 12500

2. Vegetables a) Brinjal 133 158 b) Cabbage 99 150 c) Cauliflower 96 108 d) Pease (green) 1240 255 e) Onion 75 200



3. Tuber Crops a) Sweet Potato 175 86 b) Tapioca 430 2200 c) Potato 1015 1750

Table 4.11

Source: Department of Horticulture, Govt. of Nagaland

The production of horticulture crops in the State has been still low as

compare to other northeastern states. In order to promote cultivation and

development of horticulture crops the State has setup a nursery cum

mushroom development centre, a fruit canning factory, a citrus farm and a

research farm in the State. The marketable surplus quantities of

horticulture crops are provided at Table 4.12 below.

Surplus quantities of Major horticulture Crops in Nagaland

S.No Name of Crop Surplus (in MT) 1. Fruit a) Pineapple 5400 b) Orange 2000

Table 4.12

Although some increase in area cultivated and production of crops such as

ginger and other spices have been noticed, no data on the production of

these crops was available in the State. The floriculture Development in

Nagaland is centered on cultivation of orchids, gerbera and gladiolus. In

the recent years dry flowers have also gained in total of popularity.

4.7 Sikkim has horticulture as one of the major economic activities for the

people now. Large cardamom, ginger and turmeric are the principal crops

while mandarin orange, guava and banana etc. are the major fruits grown

in the State. The State is also producing substantial quantities of flowers

such as gladioli, anthuriums, lilliums, primulas, rhododendrons and

orchids etc. It has 400 species of exotic orchids in the State. The floriculture



development in the State has been so far the best in all the northeastern

states and has the potential to develop into a full-fledged export oriented

industry.



Area and Production of Major horticulture Crops in Sikkim

Year : 2004-05


Production (in MT)

1. Fruit a) Mandarin Orange 5220 8350 b) Passion Fruit 850 120 c) Other Fruits 2171 3740

2. Vegetables a) Kharif 2950 13143 b) Rabi 3520 16243 c) Off-season 2540 12015



3. Tuber Crops a) Kharif Potato 3725 14775 b) Rabi Potato 3780 17837 c) Other root & tuber crops 485 2242

4. Spices a) Ginger 6515 34710 b) Turmeric 520 1735 c) Large Cardamom 24800 3740

5. Flowers (In Nos.) a) Cut/Pot Flowers 3200 1399400 b) Plants/Bulbs 4800 1370000

Table 4.13

Source: Department of Horticulture, Govt. of Sikkim

The ginger and large cardamom grown in Sikkim can be successfully

developed and commercially exploited for targeting international markets.

The floriculture in the State is also expected to increase and with the

setting up of an agri-export zone it is expected that there would be an

export of around Rs. 36 crores worth of orchids in the next three to four

years. The estimation of the surplus quantities of horticulture produces is

provided at Table 4.14 below.

Surplus quantities of Major horticulture Crops in Sikkim


1. Fruit a) Mandarin Orange 1100

2. Spices a) Ginger 24300 b) Turmeric 1300 c) Large Cardamom 3500

3. Flowers (In Nos.) a) Cut Flowers 1300000 a) Plants/ Bulbs 1300000

Table 4.14



4.8 Tripura is a very small State in the northeastern region of the country.

The important crops grown in the State are paddy, jute, cotton, oilseeds

like mustard, groundnut, sesame and the major horticultural crops are

potato, pineapple, orange, jackfruit, cashew nut etc. The area under

production and production of major horticulture crops in the State is


Area and Production of Major horticulture Crops in Tripura

Year: 2004-05


Production (in MT)

1. Fruit a) Mango 3623 9360 b) Pineapple 4980 105086 c) Orange 2698 17044 d) Jackfruit 9032 254945 e) Banana 5374 69330 f) Litchi 2212 12449 g) Lemon 1982 10170 h) Papaya 956 9633 i) Sapota 125 1247 j) Guava 353 1490 k) Others 1036 12672



2. Vegetables a) Summer Vegetable 13607 125191 b) Winter Vegetable 12645 146096

3. Tuber Crops a) Potato 5280 93472

4. Spices a) Ginger 1180 2774 b) Turmeric 1102 3751 c) Chilli (Green) 1700 16279 d) Black Pepper 169 37

5. Nuts a) Areca nut 4465 9042 b) Cashew nut 3814 1542

Table 4.15

Source: Department of Horticulture, Govt. of Tripura

Most of the food grains are consumed within the State to cater the needs of

the local markets while other crops such as jute, cotton, pineapple, orange,

jackfruit, ginger and vegetable crops such as cabbage, cauliflower and

potato are produced in considerable surplus quantities. The estimation of

the surplus quantities of horticulture produces is provided at Table 4.16

below.

Surplus quantities of Major horticulture Crops in Tripura


1. Fruit a) Pineapple 31000 b) Jackfruit 93000 c) Orange 10500 d) Lemon 1350

2. Spices a) Ginger 960 b) Turmeric 1600 c) Chillies 11650

3. Vegetables a) Cabbage 2000 b) Cauliflower 2000

Table 4.16

If market demand exists, the State has the potential to increase production

of those fruits and vegetables with the increasing demand by way of area



expansion. The current scenario is such that due to excessive supply of

these crops, the price is pulled down and the farmers find it most

profitable to arrange transporting their horticulture across the border to

Bangladesh in order to fetch a better price.

4.9 Northeastern States has excellent scope of export promotion of

horticulture produces. Almost all the States have huge surplus quantities

available and a few of them are also being exported to neighbouring

countries like Bangladesh and Myanmar. The production of major

horticulture crops in all the Northeastern States is provided at Table 4.17

below.

Major Horticulture Produces of North East

Commodity Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Sikkim Tripura Total

Citrus 27251 142000 12987 36805 21967 12500 8350 17044 278904 Banana 14817 581000 15308 67779 8059 5000 -- 69330 761293 Pineapple 36310 199000 79889 92036 2456 24800 -- 105086 539577 Papaya -- 99000 21282 4484 821 672 -- 9633 135892 Jackfruit -- 170000 3137 -- 1065 -- -- 254945 429147 Ginger 36666 116000 12524 47138 29582 -- 34710 2774 279394 Turmeric -- 8000 4092 9242 2258 -- 1735 3751 29078 Potato -- 543000 -- 160757 -- 1750 32612 93472 831591 Chillies -- 10000 29296 1193 2307 -- -- 16279 59075

Table 4.17

The economy of these States is predominantly dependant on agriculture

and horticulture activities. The markets are largely unorganized in these

States and are dominated by the private traders. The States have observed

high production of horticulture produces in the past but could not fetch

the market price to the farmers at par with the markets in the mainland.

The basic infrastructure facilities like road links, transportation facilities,

storage and warehousing etc. perform a significant role in stocking and

movement of the goods. These facilities are lacking in these States and

have been a disadvantage in promoting the marketing of horticulture

produces. A large quantity of the produce is also consumed in the local



markets and even thereafter-huge surplus quantities are available to

market in the other States and for exports. An estimation of surplus

quantities of major horticultural produces in the Northeastern States is


Surplus quantities of major horticultural produce in the Northeastern States

Commodity

Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Sikkim Tripura Total

Citrus 18702 12000 1962 23000 5300 2000 1100 10500 74564 Banana 10168 85000 -- -- 1200 -- -- -- 96368 Pineapple 24919 29000 24000 70000 -- 5400 -- 31000 184319 Papaya -- 15000 5320 -- -- -- -- -- 20320 Jackfruit -- 25000 -- -- -- -- -- 93000 118000 Ginger 25163 42000 7045 35048 16500 -- 24300 960 151016 Turmeric -- -- -- 6900 400 -- 1300 1600 10200 Potato -- -- -- 117500 -- 1750 32612 -- 151862 Chillies -- -- 22200 -- 424 -- -- 11650 34274 Total 78952 208000 60527 252448 23824 9150 59312 148710 840923

Table 4.18

The above quantities are estimated after calculating the local consumption

and an average post harvest crop loss and can be easily explored for

exports in fresh and processed forms.



5. Exportable Surplus in Northeastern

States.

Horticulture sector plays a unique role in India’s economy by

improving the income of the rural people. The cultivations of these crops

are largely labour intensive and as such they generate a lot of employment

opportunities for the rural population. Fruits and vegetables are used for

domestic consumption in huge quantities and processing into various

products. Substantial quantities are also exported in fresh and processed

form, there by generating the much-needed foreign exchange for the

country. India with more than 28.2 million tonnes of fruits and 66 million

tonnes of vegetables is the second largest producer of fruits and vegetables

in the world next only to Brazil and China.

India with its good natural resource base, R & D infrastructure and

excellence can change the horticulture scenario of the country and can

boost itself as a leading horticulture country in the world. Along with

many efforts in this direction, the promotion of exports of under utilized

crops from the distant and under developed regions like the North Eastern

States is the need of the hour.

The North Eastern States of Arunachal Pradesh, Assam, Manipur,

Meghalaya, Mizoram, Nagaland, Sikkim and Tripura are highly conducive

for the growth of various horticulture crops. The mild climate of the hills

in the States also has the unique advantage of growing various types of

medicinal and aromatic plants and flowers. These states have been

producing many such crops, which have a very high potential for

supplying to the export markets in fresh and processed forms. However

due to the various problems such as lack of transport infrastructure, poor



connectivity and lack of awareness etc., the potential of these crops have

not been explored satisfactorily. It is due to this concern about the poor

growth of this sector with respect to the opportunities available in the

international market, The Agricultural and Processed Food Products

Exports Development Authority (APEDA) has decided to conduct a quick

assessment study in order to ascertain the exportable surplus quantities of

horticulture products in the North Eastern States and the resources

required to assist and promote the exports of these products to the

international markets. This chapter provides details of the surplus

quantities available in all the Northeastern States of major horticulture

crops, which can be taken up for exports to the international markets.

5.1 Citrus

Mandarin Orange (Citrus reticulata) is

the most common citrus fruits

available in India. Citrus ranks

second in the total area with 0.488

million hectares and 13% of the area

under fruit crops in India. Citrus

fruits are grown mainly in the States

of Maharashtra, Andhra Pradesh,

Punjab, Karnataka and in the Northeastern States. This is one of the most

commonly grown fruit amongst the Northeastern States. It is being

exported mostly in processed form and in fresh form also. An increased

thrust on processed products such as juices, squash etc. has increased the

demand for this fruit. Orange is also exported as fresh fruit to countries

like UAE, Saudi Arabia, Bangladesh and some EU countries. The surplus

quantities available in the Northeastern States of citrus fruit are provided

at Table 5.1 below.



Surplus Quantities of Citrus Fruit in Northeastern States

S.No State Surplus (in MT) 1. Arunachal Pradesh 18702 2. Assam 12000 3. Manipur 1962 4. Meghalaya 23000 5. Mizoram 5300 6. Nagaland 2000 7. Sikkim 1100 8. Tripura 10500 TOTAL 74564

Table 5.1

As provided in table above the surplus quantities available of the

citrus fruit available with the northeastern states is 74564 metric tonnes

which has been calculated after estimating the consumption of the local

population and a post-harvest loss due to improper storage and handling,

over-ripening and other reasons on an average of 20 to 30 percent of the

total production in each State. The surplus only signifies availability of the

quantity available for exports; however the extent of possibility of export

of such quantity will largely depend on quality of produce, processing and

collection facilities and marketing of the products in the international

markets. A sizeable quantity of Mandarin Orange is being exported to

Bangladesh from the Northeastern States. The Orange largely being

exported to Bangladesh is sourced from districts of Meghalaya, Assam and

Arunachal Pradesh. It was also found that a large quantity of Orange goes

un-officially or illegally into countries like Bangladesh very easily, due to

its porous borders with the Northeastern States. These exports (illegal) are

known to fetch very low profits to the farmers whereas the traders on both

the sides have been making huge profits.



5.2 Banana

Banana is widely grown in India

and ranks third in area with 0.464

million hectares covering 12.46% of

the total area. It is first in total

production with 15.07 million

tonnes, being nearly 34.22% of the

total fruit production of the

country. India occupies first position in banana production globally.

Andhra Pradesh, Assam, Bihar, Gujarat, Karnataka, Kerala, Madhya

Pradesh, Maharashtra, Orissa and West Bengal are the largest banana

growing states. The highest productivity/ yield (52.18 tonnes per hectare)

is recorded in Maharashtra followed by Gujarat (40 tonnes per hectare)

and the lowest productivity is from the northeastern region. Banana is

exported largely in processed form to many countries. The major markets

for fresh and processed banana are UAE, USA, UK, Saudi Arabia, Sri

Lanka and Singapore. The surplus quantities available in the northeastern

states of banana are provided at Table 5.2 below.

Surplus Quantities of Banana in Northeastern States

S.No State Surplus (in MT) 1. Arunachal Pradesh 10168 2. Assam 85000 3. Manipur -- 4. Meghalaya -- 5. Mizoram 1200 6. Nagaland -- 7. Sikkim -- 8. Tripura -- TOTAL 96368

Table 5.2

The surplus quantity of banana with the northeastern states is 96368

metric tonnes. The post-harvest loss has been estimated at 10 to 15 percent

of the total production and the surplus quantity mentioned above is

available for export to international markets. The biggest constraint in



promotion of banana exports was the lack of transportation infrastructure

and organized markets. The largest contribution in the surplus mentioned

above comes from the State of Assam and can be easily exploited for

exports with better organization of markets. There is a huge demand of

banana as pulp and banana chips in the international markets.

5.3 Pineapple

Pineapple (Ananas Comosus) is an important

fruit crop in India. A good source of vitamins A

and B, pineapple is fairly rich in vitamins C,

calcium, magnesium, potassium and iron. It is

also a source bromelin, a digestive enzyme. The

cultivation of pineapple is confined to high

rainfall and humid coastal regions in the

peninsular India and hilly areas of the

northeastern region. It is commercially grown

in Assam, Meghalaya, Mizoram, Tripura, West Bengal, Kerala, Karnataka

and Goa and on a small scale in Gujarat, Maharashtra, Tamil Nadu,

Andhra Pradesh and Orissa. Pineapple covers an area of 0.074 million

hectares with the total production of 1.006 million tonnes and is 1.99% of

the total area under fruit crops. It contributes 2.28% to the country’s fruit

production. The surplus quantities available in the northeastern states of

pineapple are provided at Table 5.3 below.

Surplus Quantities of Pineapple in Northeastern States

S.No State Surplus (in MT) 1. Arunachal Pradesh 24919 2. Assam 29000 3. Manipur 24000 4. Meghalaya 70000 5. Mizoram -- 6. Nagaland 5400 7. Sikkim -- 8. Tripura 31000 TOTAL 184319

Table 5.3



The surplus quantity of pineapple in all the northeastern states is 184319

metric tonnes after providing for the local consumption and 25-30 percent

of post-harvest crop loss. There is a huge demand for this fruit in the

international markets and is being successfully exported to many

countries like UAE, USA, UK, Netherlands, Saudi Arabia etc. Pineapple is

exported largely in processed form such as juices, pulp and slices.

5.4 Papaya

Papaya (Carica Papaya) ranks 6th in area

with 0.68 million hectares (1.82%) of the

total area under fruit crops and 1.582

million tonnes (3.59%) of the total

production under fruits. It requires the

less area for tree, comes to fruiting in a

year and produces fruits throughout the year. The surplus quantities

available in the northeastern states of papaya are provided at Table 5.4

below.

Surplus Quantities of Papaya in Northeastern States

S.No State Surplus (in MT) 1. Arunachal Pradesh -- 2. Assam 15000 3. Manipur 5320 4. Meghalaya -- 5. Mizoram -- 6. Nagaland -- 7. Sikkim -- 8. Tripura -- TOTAL 20320

Table 5.4

The total surplus quantity of papaya is 20320 metric tonnes and the

highest quantities available for exports were found in Assam State. It was



also observed that the State has the potential of increasing the

production/yield on availability of markets by way of area expansion and

improved farming practices. The demand for papaya is expected to rise in

the future due to its highly nutritive and medicinal value. Papain prepared

from dried latex of its immature fruits is also used for meat tenderizing,

manufacture of chewing gum, cosmetics, for de-gumming natural silk and

to give shrink resistance to wool. Besides, it is also used in pharmaceutical

industries, textile and garment cleaning paper and adhesive

manufacturing etc.

5.5 Jackfruit

Jackfruit (Artocarpus hetrothyllus) has diverse

uses, besides being hard and well adapted to

different agro-climatic conditions. The latex from

the bark of the tree contains resin. Pickles and

dehydrated leather are its preserved delicacies.

The potential markets for this produce are UAE,

Saudi Arabia, USA, UK and Singapore. The

surplus quantities available in the northeastern states of jackfruit are


Surplus Quantities of Jackfruit in Northeastern States

S.No State Surplus (in MT) 1. Arunachal Pradesh -- 2. Assam 25000 3. Manipur -- 4. Meghalaya -- 5. Mizoram -- 6. Nagaland -- 7. Sikkim -- 8. Tripura 93000 TOTAL 118000

Table 5.5



The surplus quantities of Jackfruit in the northeastern states are 118000

metric tonnes, which is only in Assam and Tripura.

5.6 Ginger

Ginger (Zingiber Officinale) is one of the

oldest spices with a distinct flavour and

pungency. It has a wide range of uses that

include culinary, flavourant in soft drinks,

alcoholic and non-alcoholic beverages,

confectionary, pickles and pharmaceutical

preparations. India is the largest grower of ginger and also the largest

producer of the dry ginger in the world. In India Kerala, Orissa, Andhra

Pradesh, Himachal Pradesh, Meghalaya and West Bengal are the major

ginger growing states. The export of ginger from India is largely to UK,

UAE, Saudi Arabia, Netherlands and Japan. Fresh and Dry ginger and

pickles etc. are the most common form in which ginger is exported to these

countries. The surplus quantities available in the northeastern states of

Ginger are provided at Table 5.6 below.

Surplus Quantities of Ginger in Northeastern States

S.No State Surplus (in MT) 1. Arunachal Pradesh 25163 2. Assam 42000 3. Manipur 7045 4. Meghalaya 35048 5. Mizoram 16500 6. Nagaland -- 7. Sikkim 24300 8. Tripura 960 TOTAL 151016

Table 5.6

The total surplus quantity of Ginger in northeastern states is 151016 metric

tonnes. Ginger offers tremendous scope for commercialization in North-



East and with India already providing for more than half the quantity of

ginger oil and oleo resins traded in the world market, the surplus

production can be very successfully exploited for exports with a minimal

effort. A huge quantity of Ginger is also being exported legally and

illegally to neighboring countries like Bangladesh.

5.7 Turmeric

Turmeric (Curcuma Longa) is an important

common flavouring spice with growing

demand with variety of applications such

as condiment, dye and drugs. India is the

world’s largest producer of turmeric with

an annual production of 0.66 million tonnes from an area of 0.16 million

hectares. Andhra Pradesh, Tamil Nadu, Orissa, Karnataka, West Bengal,

Maharashtra, Meghalaya and Assam are the major producers for turmeric

in India. The major importing countries of Indian turmeric are UAE, USA,

Bangladesh, Iran, UK and South Africa. Almost 15% of the total export of

spices is attributed to turmeric. The surplus quantities available in the

northeastern states of Turmeric are provided at Table 5.7 below.

Surplus Quantities of Turmeric in Northeastern States

S.No State Surplus (in MT) 1. Arunachal Pradesh -- 2. Assam -- 3. Manipur -- 4. Meghalaya 6900 5. Mizoram 400 6. Nagaland -- 7. Sikkim 1300 8. Tripura 1600 TOTAL 10200

Table 5.7



The potential for exporting turmeric from northeastern states is very high

and it was observed that the best quality comes from Meghalaya with

highest curcumin content (7.1%), best in the world.

5.8 Potato

Potato (Solanum Tubersum) is grown in

almost in all the states of India under

diverse conditions. Nearly 90% of the

potato is grown in the vast indo-

gangetic plains of North India during

short winter days from October to

March. Uttar Pradesh has the largest

area and production of potato followed by West Bengal and Bihar. Limited

quantities of potato are exported from India as fresh potato, seed potato

and frozen potato. Major potato exports are to the neighbouring countries

of South-East Asia and South Asia. The surplus quantities available in the

northeastern states of Potato are provided at Table 5.8 below.

Surplus Quantities of Potato in Northeastern States

S.No State Surplus (in MT) 1. Arunachal Pradesh -- 2. Assam -- 3. Manipur -- 4. Meghalaya 117500 5. Mizoram -- 6. Nagaland 1750 7. Sikkim 32612 8. Tripura -- TOTAL 151862

Table 5.8

The total surplus quantity of Potato in northeastern states is 151862 metric

tonnes.



5.9 Chillies

Chillies (Capsicum Annuum) are valued for

its diverse commercial uses. India is a major

producer and exporter of chilly. Indian

chillies are exported to many countries of

the world mainly Bangladesh, Bahrain,

Canada, Italy, Israel, Japan, Malaysia,

Netherlands, Philippines, Singapore, Spain, Sri Lanka, Saudi Arabia, USA,

UAE. The surplus quantities available in the northeastern states of Chillies

are provided at Table 5.9 below.

Surplus Quantities of Chillies in Northeastern States

S.No State Surplus (in MT) 1. Arunachal Pradesh -- 2. Assam -- 3. Manipur 22200 4. Meghalaya -- 5. Mizoram 424 6. Nagaland -- 7. Sikkim -- 8. Tripura 11650 TOTAL 34274

Table 5.9

The total surplus quantity of Chillies in northeastern states is 34274 metric

tonnes.

5.10 Other Crops

The other horticultural crops found to be in surplus quantities like

Large cardamom, Bay Leaves, Black pepper from the spices, Cabbage,

Cauliflower, Sweet potato, Iskut (Chowchow) from vegetables and

Kiwifruit, Walnut, Assam Lemon, Passion fruit and Hatkora from Fruits

are other surplus quantities available for exploring the export markets.



Areca nut is also found in surplus in the Meghalaya State and has the huge

potential for export to international markets like UAE and Saudi Arabia.

5.11 Floriculture

The northeastern region with its

rich and dense forests, exotic

and cultivated floral treasure is

a storehouse of exotic flora of

which many are indigenous to

this part of the country. The

climate of this region has given

rise to huge wealth of

ornamental plants like Rose, Carnation, Gerbera, Chrysanthemum and

Orchids like Dendrobium, Cymbidium, Anthurium etc. However a major

initiative is necessary to explore export potential of floriculture from this

reason. The existing infrastructure for the development of commercial

floriculture is highly inadequate. Micro-Irrigation methods, transport

infrastructure, refrigerated vans, frequent air connectivity, adequate

planting material and information dissemination systems need to be built

up to exploit this highly potential market.

5.12 Exportable Surplus from North-East

There has been a considerable increase in the export of horticulture

produce from India during the past one decade. However the comparative

growth from an equally high potential area of north-eastern states has not

happened. The present Study is an effort to identify the potential crops,

which are in surplus quantities and have the potential of being exported to

international markets. The summary of crop-wise surplus quantities

available over all the north eastern states is given below at Table 5.10



Exportable Surplus from North-East

S.No Name of Crop Surplus (in MT) 1. Fruit a) Citrus 74564 b) Banana 96368 c) Pineapple 184319 d) Papaya 20320 e) Jackfruit 118000

2. Spices a) Ginger 151016 b) Turmeric 10200

c) Chilli 34274

3. Potato 151862

4. Other Crops 51965 Table 5.10

The promotion of horticulture exports from the NER is a very challenging

task and requires enormous efforts from all the stakeholders. Based on the

export performance of the same products produced in the rest of India, a

very moderate product wise target for exports has been suggested in the

Table 5.11 below.

S.No Name of Crop Surplus (in MT) Export Target (in MT)

1. Fruit a) Citrus 74564 3728 b) Banana 96368 4818 c) Pineapple 184319 9215 d) Papaya 20320 610 e) Jackfruit 118000 2360

2. Spices a) Ginger 151016 7550 b) Turmeric 10200 600

c) Chilli 34274 1050

3. Potato 151862 3037

4. Other Crops 51965 2500 Table 5.11



6. Export Promotion of Horticulture

Produces from NER

The previous chapters of the report have noted that there are

surplus quantities existing of various horticulture produces such as Citrus,

Ginger, Pineapple, Banana and Papaya etc. in the Northeastern States,

which can be explored for exports to international markets. It was also

observed that though there is a very little organized production of flowers

or other floricultural products in these States, the floriculture also has the

potential to graduate to a full-fledged commercial activity with a huge

potential of exports.

6.1 Exports of Horticulture Produce from NER

The exports of horticulture produce from the Northeastern States

have been mainly of Orange/Citrus fruits, Ginger and Pineapple etc. The

geophysical condition as well as lack of infrastructure facilities has

restricted these exports to only neighboring South-Asian countries. The

details of export of horticulture produces from the Northeastern States

during the last three years are provided at Table 6.1 below.

2002-03 2003-04 2004-05

S.

No Produce Qty

(MT)

Value

(Rs. in

Crore)

Qty

(MT)

Value

(Rs. in

Crore)

Qty

(MT)

Value

(Rs. in

Crore)

1. Orange/Citrus fruits 1224.51 0.712 1635.54 1.30 1996.02 1.81

2. Pineapple 17.80 0.005 -- -- -- --

3. Other fresh fruits 44.00 0.031 15.20 0.012 20.42 0.017

4. Ginger 4145.00 3.22 1556.51 1.61 3197.00 3.34

5. Fresh onion/potato 32.00 0.017 80.00 0.04 73.00 0.04

Table 6.1 Source: Superintendent, Customs Department



The figures provided in the above table represent the volume and

value of exports of horticulture produces, which has taken place through

the land custom stations on the borders with the neighbouring countries.

It was also observed that a large quantity of exports also goes through

illegal channels and is not recorded. These exports (illegal) are through

private traders based in Assam and Meghalaya, who buy at very low

prices from the farmers of these States.

6.2 Support Structure for Export Promotion

The promotion of exports of horticulture produces from the NER

requires a major support in building the necessary infrastructure and

support systems. The existing infrastructure for the development of

horticulture is highly inadequate in many ways. The low technological

base and limited market infrastructure with virtually no storage facilities

and inadequate means of transport have resulted in a very low or even no

growth in this sector. The role played by Government Departments like

the Department of Horticulture/Agriculture of the State Governments is

highly inadequate. Due to many other problems like insurgency and

political instability, the growth of private sector in this area has also been

very poor. The existing players in the market are mostly the same age-old

traders (operating like ‘Mahajans’), who lack the long-term vision and are

exploiting the farmers for meager gains. The Northeastern States can

become a key center for production of a variety of fruits and vegetables

and also has the potential to emerge as a major supplier of floriculture

products to the international markets. The location of these States having

extensive international border also provides remarkable opportunities for

border trade and exports to the neighbouring countries.



6.3 Transport Network in NER

The inadequate transport facilities and difficult terrain are the

major reason for the very low level of commercial horticulture in the NER.

There are a number of national highways in the region connecting the

State capitals and the State highways and other roads connect the district

headquarter and towns. However the condition of these roads are very

poor and gets worse even during the long monsoon seasons. The distance

of majority of these States from Guwahati or Kolkata is long and

transporting of goods from these States to them is very expensive. The

distance from State capitals of the Northeastern States to Guwahati and

Kolkata is provided at Table 6.2 below.

Distance from State capital to (in Kms)

State Guwahati Kolkata

Arunachal Pradesh 421 1502

Assam -- 1081

Manipur 484 1565

Meghalaya 100 1181

Mizoram 466 1547

Nagaland 339 1420

Sikkim 589 720

Tripura 599 1680

Table 6.2

The status of road network in the Northeastern States is provided at Table

6.3 below.



Table 6.3 Status of Road Network

State

Total

Length

(In Kms)

Surfaced

Roads

(In Kms)

Un-surfaced

Roads

(In Kms)

% of surface

Roads

Roads/100

sq. km

Arunachal Pradesh 18365 5689 12676 30.97% 21.93

Assam 89486 12882 76604 14.40% 114.08

Manipur 11434 3863 7571 33.78% 51.21

Meghalaya 9565 6560 3005 68.58% 42.64

Mizoram 5075 2877 2198 56.69% 24.07

Nagaland 21021 6451 14570 30.69% 126.79

Sikkim 2019 1546 473 76.57% 28.45

Tripura 16296 4393 11903 26.96% 155.40

Source: Basic Road Statistics, Deptt. of Road Transport and Highways, GOI

The railway network in the Northeastern States is also very poor and

majority of the areas are not connected in these States. The status of rail

network in the NER is provided at Table 6.4 below.

Railway Network in the NER

State Broad gauge Meter gauge Narrow gauge Total gauge

Arunachal Pradesh 0 1.27 0 1.27

Assam 902.94 1470.58 0 2373.52

Manipur 0 1.35 0 1.35

Meghalaya 0 0 0 0

Mizoram 0 1.50 0 1.50

Nagaland 7.63 5.22 0 12.85

Sikkim 0 0 0 0

Tripura 0 44.72 0 44.72

Table 6.4 Source: NEDFI Data Bank

6.4 Air linkages in NER

The status of air facilities in the region is also very poor. The L.G.B.

international airport at Guwahati has recently commenced some

international flights however they only link to the far Eastern countries



and are of not any help for the export promotion of horticulture produces.

Very small cargo space is available in the domestic flights connecting to

major cities like Delhi and Mumbai. The other domestic airports in the

region are at Imphal, Dimapur, Tezpur, Jorhat, Dibrugarh, Lilabari, Silchar

and Agartala etc. However the capacities to carry cargo is minimal on

these sectors and are of not much use to the horticulture exports. The other

nearest airports with international connections is the Kolkata airport.

However the connections are again largely to Eastern countries, which do

not have the desired market potential for the products of NER. It was also

reported that the infrastructure and facilities at Kolkata airport were also

found to be lacking in proper handling of perishable commodities for

exports.

6.5 Market Infrastructure

The markets in the region are largely unorganized and dominated

by the small private traders. The infrastructure, procurement practices and

marketing approaches are the major constraints in development of

markets in the region. Though the economy of the region is essentially

agro-based with majority of population engaged in agricultural

operations, the development of agricultural marketing systems has been

very poor and only a very small quantity of marketable surplus is sold in

the regulated markets. The basic infrastructure facilities like storage,

warehousing and transportations are missing and thereby affect the

storage and mobilization of goods. Only a few States have market

regulation act and enacted the same and the middlemen in the process

take advantage of the farmers’ poor conditions and weak bargaining

power. The farmers, in general bring their surplus produce from distant

villages to the nearest markets for disposal and at times, not being aware

of the prevailing market trends, resort to distress sales.



6.6 Processing facility

Export of processed fruits and vegetables is another thrust area for

increasing export of value added products. The processing capacity is

developed on the potential of supply of raw material of that area, however

despite of huge surpluses available in the region, the development of

processing industry has been negligible in these States. Many socio-

economic factors affecting the business environment of these States have

resulted in the poor growth in this sector and thereby have caused a huge

opportunity loss to the region.

6.7 Cold Chain

The NER has a very limited number of cold storages and only a few

of them are operational. NHB has funded a few cold storages in the

region; Guwahati airport also has a walk-in–cooler of 15 MT capacity,

which is lying inoperative. A same kind of cold storage installed at

Agartala airport was also reported to be inoperative. APEDA has provided

100% assistance for purchase of 4 refrigerated trucks in the region for

promotion of export of horticulture products. The cost of hiring

refrigerated trucks for transporting horticulture produces from Guwahati

to the major cities in the country for further exports is very high.

6.8 In land Transport Assistance Scheme of APEDA

The Ministry of Commerce, Government of India had introduced a

scheme for providing transport assistance for export of horticulture

produces from the NER under the Export Development Fund. The

scheme, operated by APEDA, provides for transport assistance to

exporters for exporting notified horticulture products. An amount of Rs. 1



crore was released to APEDA for the purpose. However the scheme has

failed to invoke much response and no utilization of funds has taken place

so far. The detailed guidelines of this scheme may be seen at Annexure-II.

Considering the huge potential of horticulture produce available in

the region and the disadvantaged location of the NER, a scheme to

provide subsidy for transport assistance should have evoked a huge

response but it did not happen. Therefore it was attempted to assess the

reasons of its failure and many Stakeholders of the trade, State

Government officers from the States and officers of other organizations

were consulted to get their views on the same. It was found that the main

reason for the scheme not picking up was largely limitations in the

guidelines and the criteria specified for availing the assistance. A critical

analysis of the various aspects of the present scheme is provided below.

As provided in the guidelines of the scheme the rate of transport

assistance for the eligible products is as under:

a) Re. 1 per kg if transported by road from North Eastern states to

Guwahati for export by air from Guwahati international airport.

b) Rs. 2 per kg if transported from North Eastern States to Kolkata

by rail through ICD, Guwahati.

c) Inland Transport Assistance on transportation by rail through

ICD Guwahati @ Rs. 2 per kg for the products which can be taken

by rail from North Eastern Region to any place in West Bengal for

processing and export.

d) 90% of the airfreight charged by airline from an airport in the

northeastern states and Bagdogra airport to Guwahati or Kolkata

for exports.

e) APEDA to ensure appropriate verification of the goods that have

been procured from North Eastern Region for exports.



f) The above rates are applicable to all fresh and processed fruits as

mentioned in the ‘State-wise Table’ in the guidelines.

The major reasons for this scheme not being able to work for the exports

promotion from the NER are provided below:

1. Since due to no direct international connections from Guwahati

international airport to the export destinations of the horticulture

products from the Northeast, no major consignment has taken place

through this route and thereby the assistance has been of no use to

the exporters.

2. There are very few direct connections from Kolkata airport to the

potential export destinations of these products and the lack of

facilities at Kolkata port to handle perishable commodities does not

make it suitable for the exporters to route their shipments through

Kolkata.

3. Further the rail network in the Northeastern States is also not very

extensive and requires multiple trans-shipments for transporting

goods through railways.

4. The hilly terrain of the area creates huge problems in transporting

the produces from the fields to the small markets and further

transportations for exports. In the absence of any suitable

assistance, the local traders are procuring the produce through their

own channels and some of the produce is being exported to the

neighbouring countries like Bangladesh and Myanmar. These

exports are taking place by road through the land custom stations

in these States and no transport assistance can be provided under

the present scheme for such exports.



The exports of the horticulture produces from the NER to the adjoining

countries have so far been through the land custom stations on the borders

with these countries. The list of land custom stations in the NER is


S.No Division Land Custom Stations 1. Shillong Dawki Borsora Shella Bazar Bholaganj

2. Dhubri Mohendraganj Ghasuapara Dalu Mankachar Baghmara Hatisar

3. Agartala Agartala Srimantapur

4. Karimganj Karimganj (SFS) Sutarkandi Manu Old Ragna Bazar

5. Imphal Moreh

6. Guwahati Guwahati Intl. Airport ICD Amingaon

Table 6.5

The majority of exports of horticulture produce from the

Northeastern States have been reported from Mahendraganj, Dalu, Dawki,

Karimganj (Steamer and Ferry Station), Agartala, Old Ragna Bazar and

Moreh land custom stations. The value of exports of horticulture

produces reported from these stations is provided at Table 6.6 below.



(Value in Rs.)

Land Custom Stations 2002-03 2003-04

Mahendraganj 2017710.00 0.00

Dalu 237649.00 0.00

Dawki 861250.00 2800903.00

Karimganj (SFS) 34308526.00 14723899.00

Agartala 5160274.00 2025532.00

Old Ragna Bazar 2534433.00 1636209.00

Moreh 50018680.00 94059922.00

Table 6.6

Source: Superintendent, Customs Department

The locations of these LCS may be seen at the Map provided at Annexure

III. These land custom stations are gateways for the transit of goods,

services and human beings between neighbouring countries and the

Northeastern States. There is a huge demand for the products from the

Northeastern States in these countries and it was found that the volume of

these exports could be increased drastically by providing the necessary

support to the exporters. However huge transport costs and inadequate

transport infrastructure are seriously hampering the country's trade

prospects with the neighbouring countries. Due to negligible imports

through these Land Custom Stations, the truckers are reluctant to carry the

products to these stations and in case they agree, they charge a very heavy

transport cost (both sides). It therefore becomes very necessary to provide

assistance to these exporters, which will not only boost trade and

commerce in the NER but also will help in creating a niche market for

these products in the South-Asian countries.

The areas from where the produce from the North eastern States are

largely procured for exports and the LCS through which their produce is

exported is provided at Table 6.7 below



Exports through Land Custom Stations in the NER

State Production Areas LCS

Arunachal Pradesh Pasighat and Along Karimganj SFS

Assam

NC Hills, Karbi Anglong,

Cachar, Kamrup, Nalbari &

Dhubri Districts

Karimganj SFS &

Mahendraganj

Manipur Thoubal, Churchandpur &

Senapati Moreh & Karimganj SFS

Meghalaya

East Khasi Hills, Jaintia Hills,

East Garo Hills & West Garo

Hills

Dalu, Dawki, Karimganj

Mizoram Aizawl & Khawzawl Division Karimganj SFS

Nagaland Dimapur & Wokha Karimganj SFS

Sikkim -- --

Tripura North, West & Dhalai Districts Agartala, Old Ragna Bazar

Table 6.7

It was found that in majority of these areas, the cost of

transportation is very high and it varies from Rs 2.00 per KG to Rs 3.75 per

KG depending upon the product and the distance of the farms to the

markets and the markets to the LCS. It is therefore suggested that a

minimal transport assistance of Rs. 1 per kg on horticulture products

exported through the land custom stations to the neighbouring countries

will go a long way in supporting the promotion of exports of these

products from the NER.



7. Recommendations

The previous chapters have brought out the surplus quantities and

potential of exports of horticulture produces from the Northeast. The

potential markets for each crop have also been mentioned in the concerned

chapters. It was also observed that the region has not been able to match

the success of other states in the country due to many constraints in

development of horticultural exports. These included lack of

transportation, communication, agricultural supplies, packing material,

cold chain, market considerations and above all the difficult terrain and

isolation of the area. In order to exploit the potential of this region in

exports of horticulture produces, resources need to be placed for

supporting the difficult task of export promotion from this region.

The action plan for export promotion of horticulture products from

NER, suggested here contains recommendations for modifications in the

existing In-land transport assistance scheme, implemented by APEDA and

other suggestions for improving market infrastructure, technology

support and integrated post harvest management.

7.1 Modifications recommended in In-land transport

assistance scheme

The In -land transport assistance scheme has been assessed in the

previous chapter of this report and following modifications are suggested

in order to make it more effective and useful for promotion of exports

from the region.



The scheme should provide for transport assistance subsidy for all

the APEDA scheduled products produced in the NER at the following

rates.

a) Rs. 1 per kg if the goods are transported by road from

Northeastern States for exports to the adjoining countries

through notified land custom stations at the borders. (List of

suggestive land custom stations most suitable for export of these

products is provided at Table 7.1 below.)

b) Rs. 2 per kg, if the goods are transported by road from the

Northeastern States to Mumbai or Delhi, for further exports to

international destinations.

c) Rs. 2 per kg, if the goods are transported by road to notified

processing units anywhere in the country for processing for

exports. This assistance shall be provided only to notified units

for purchase of notified fruits for processing on the basis of pre-

determined input-output norms by APEDA.

d) 50% of the airfreight charged by airlines from an airport in

Northeastern States and Bagdogra (West Bengal) to any

international airport in India for exports. This assistance shall be

available only for floriculture and horticulture produce of

extremely perishable nature.

e) Rs. 2 per Kg, if transported from Northeastern States to Kolkata

by rail through ICD Guwahati for exports.



List of suggestive land custom stations

S.No Land custom Stations Station State

1. Mahendraganj Assam

2. Dalu Meghalaya

3. Dawki Meghalaya

4. Karimganj (SFS) Assam

5. Agartala Tripura

6. Old Ragna Bazar Tripura

7. Moreh Manipur

Table 7.1

In order to ensure that the assistance is provided to only to the

deserving beneficiaries and ensure that the product exported is actually

sourced from the NER, a control measure in terms of various certifying

documents are suggested to prevent any misuse of the scheme. The

transport assistance to the exporters shall be considered when their

applications are received with the following documents duly stamped and

signed by the respective authorities:

i. Custom certified export promotion copy of the shipping bill

(air/sea/road) as applicable, in original;

ii. Self certified photocopy of the original transport bill (or bill

issued by the transporter) for domestic rail/road transport and

corresponding airway bill/bill of lading for International

transportation;

iii. Custom/Bank certified copy of the commercial invoice in original,

and;

iv. A certificate of realization of foreign exchange furnished in the

form no.1 from the Bank. The format is as given in the Appendix 22

of the Handbook of procedures issued by Ministry of Commerce.

This would ensure that the exports from the North Eastern Region

are through the official channel.



v. A certificate by District Horticulture Officer and /or State

Agriculture Marketing Board certifying that the product is the

produce of the District/State in NER.

vi. Duly stamped transport bill by Srirampur land check post on

Assam-West Bengal border, in case products are transported by

road to Mumbai or Delhi. In case of products exported from

Sikkim, the transport bill should be stamped by the authority at the

exit check post at Sikkim Border on the NH 31A.

The other guidelines for In-land transport assistance scheme

regarding the procedure and terms and conditions of the existing scheme

may remain unchanged.

7.2 Transportation

Major constraint in promotion of horticultural exports is in the

transportation area. The high cost of road transportation and highly

inadequate railway network has made the development of this sector

virtually impossible. The region has poor air linkages and lacks reliable

and frequently air cargo space. The airfreight rates are exorbitantly high

making the activity economically unviable. The present scheme of APEDA

of inland transport assistance for horticulture products from the northeast

region needs to be modified as already mentioned above. It was also

observed during discussions that awareness about availability of such

scheme is very poor and needs to be publicized effectively for the benefit

of the traders and farmers.

There are no refrigerated vans in regular use within the region. The

vans provided by APEDA are inadequate and have not been of much help

so far. The scheme has to provide for many more such vans to make any

substantial impact in assisting the community.



7.3 Agricultural Supplies

For any agriculture based activity, supplies such as planting materials,

fertilizers, pesticides, and other farm equipments are to be made available

to the farmers and the concerned State Governments need to be sensitized

for taking up this in a big way. Government of India through its existing

schemes like the Technology Mission for Integrated Development of

Horticulture needs to give more thrust on exportable produces.

7.4 Packaging Material

Proper packaging and presentation is critical for success in the export

market of high value horticulture crops. Good quality packaging material

and local sources of supply needs to be provided to the region for

promoting the exports of horticulture produces. Efforts in terms of

obtaining duty free or duty drawbacks for packing materials used for

export produces from the region will go a long way in ensuring this.

7.5 Cold Chain

At present there are no pre-cooling or cooling facilities for the produces

of the region. In order to exploit the potential of horticultural exports, an

efficient cold chain needs to be developed, best done by private

enterprises or farmers co-operatives.

7.6 Market Considerations

Horticultural exports are strictly demand driven therefore local

markets capacity to absorb surplus and dissemination of market



information is a must for promoting exports from the region. The region is

ideally located to tap exports to the neighbouring countries. Efforts to

advocate opening of borders at the policy level maybe considered for

promoting the trade with these countries.

7.7 Resource Requirements

Many agencies/departments of the Governments such as NEDFI,

NABARD, NHB, Ministry of Agriculture, Govt of India, State

Governments offer financial assistance in form of loans, subsidies and

equity participation for taking up projects for promotion of Horticulture in

the NER. APEDA has also been implementing many programmes and

supporting projects for development of Horticulture produces in order to

make them competitive in the export markets. However to give the

necessary impetus to the existing efforts, take up new initiatives and

implement the modifications in the present schemes more financial

investment shall be required and it is therefore suggested to have an

additional budget allocation of Rs. 10 crore for the purpose. The detailed

statement on the resource requirement for the proposed investment is

provided at the Table 7.2 below. (Rs in crore)

S.No Particulars Resources Required

1 In-land Transport assistance 3.00

2 Refrigerated Vans (12) 1.80

3 Supply of planting material 2.00

4 Development of Cold chain 2.00

5 Marketing and information management 1.20

Total 10.00

Table 7.2


ANNEXURE I

TRIPURA

Mr. I. S. Singh Director, Deptt. of Horticulture, Govt. of Tripura Mr. Pran Ballav Saha Deputy Director, Deptt. of Horticulture, Govt. of Tripura Uday Shankar Debnath Assit. Director Deptt. of Horticulture, Govt. of Tripura

SIKKIM Mr. G. K. Gurang Secy. Dept. of Agriculture & Horticulture Govt. of Sikkim, Krishi Bhavan Tadong, Gangtok – 737102 Sikkim Mr. P. Tshering Bhutia Addl. Director, Deptt. of Horticulture, Govt. of Sikkim Krishi Bhavan Mr. D.K. Mukhia Jt. Director (Hort. Marketing), Govt. of Sikkim Krishi Bhavan Mr. B. J. Roy Assit. Director (Marketing) Govt. of Sikkim, Spices Board, D.P.H. Road, Gangtok, Sikkim – I Mr. H. S. Srinivasa Deputy Director, Spices Board, Govt. of Sikkim

ARUNACHAL PRADESH Mr. J. Jaloh, I.A.S Secy to C.M Secy Agriculture (Addl. Charge) Govt. of Arunachal Pradesh Mr. G. Koyu, I.A.S Secy Horticulture Govt. of Arunachal Pradesh Dr. Alok Tagi Director Horticulture (State Co-ordinator – SFAC) Govt. of Arunachal Pradesh Mr. Tago Basar Director Agriculture Govt. of Arunachal Pradesh Mr. Egam Basar Horticulture Devp. Officer Govt. of Arunachal Pradesh

ASSAM Dr. A.M. Paul Director of Horticulture, Govt. of Assam Dr. H. Baruah Addl. Director of Horticulture Govt. of Assam Krishi Bhavan, Agriculture Campus, Khanapara, Guwahati -22 Mr. Bidyut Kr. Baruah Regional Manager APEDA Mr. R. Dutta Regional Project Co-ordinator Govt. of Assam Small Farmers Agri-Business Consortium Jain complex, IIIrd Floor, G.S. Road, Guwahati - 5

Dr. Ariz Ahmed, C.E.O Govt. of Assam Assam Small Farmers Agri-Business Consortium Agriculture Campus, Khanapara, Dispur Dr. Rajendra Prasad Das (Prof.) Horticulture Deptt., Govt. of Assam

NAGALAND

Mrs. Thangi Menon Secy Agriculture (Horticulture) Govt. of Nagaland

MANIPUR Mr. Jay Kumar/Mr. Rattan Kumar Mr. Kiran Kumar Director Horticulture, Govt. of Manipur

MIZORAM Dr. Sameul Director Horticulture. Govt. of Mizoram Mr. J. Lalthlantlinga (tlinga) Marketing officer Trade & Commerce Department Govt. of Mizoram

ANNEXURE II

GUIDELINES FOR INLAND TRANSPORT ASSISTANCE

Subject: Procedure for Grant of Inland Transport Assistance of

Horticulture Products from the North East Region including

Sikkim for the period of 10th Five Year Plan i.e. from 15.07.2002 to

31.03.2007

For promoting exports of agricultural products and processed food from

NE Region it is proposed to grant Inland Transport Assistance for export of

identified products as contained in Annexure I (A). The benefit will be available

for ultimate export made with effect from 15.07.2002 to 31.03.2007. Assistance

will be released through APEDA. The procedure and terms and conditions for

claiming Transport Assistance will be as under and valid for exports shipment

effected from 15th July, 2002 upto 31st March’2007.

1) The application for Transport Assistance may be made in the prescribed

form enclosed as Annexure II.

2) The applications received shall be considered on first come first served

basis and subject to availability of funds.

3) Applications for Transport Assistance should be addressed to APEDA

offices as per the details given here under:

a) In case of shipments effected from Regional Manager

Calcutta or Guwahati airport or APEDA,

Calcutta seaport and / or the beneficiary Guwahati/ Calcutta

belongs to Eastern or North Eastern

India.

4) The date of submission of claim in any APEDA office shall be the date of

claim for consideration. Exporters should claim transport assistance on

per shipment basis. However, application for shipments would be made

on fortnightly basis, i.e. 1st to 15th and 16th to end of the calendar month.

5) Each claim should be accompanied by all the required documents

mentioned in para (8) below along with a detailed statement furnishing

shipment details (in the format given in Annexure - III). All claims for

shipment made within a fortnight should be bunched together and

submitted as a single application with a summary statement on the top as

per the format given in the application form at Annexure (IV).

The date of flight/mentioned on the shipping bill/ date of Ship movement

mentioned on ‘Bill of Lading’ will be deemed to be the date of shipment.

6) The information not provided in full for all shipments covered under the

application, in the prescribed format, will be summarily rejected.

7) Consignment of eligible and non-eligible items should be sent separately.

This means that documents to be submitted along with application i.e.

shipping bills, roadways bill, Airways bill/ ‘bill of lading’ and Invoices

should show only eligible items clearly specifying number of boxes, items,

weight etc.

8) Applications should be accompanied with the following documents duly

stamped and signed by the respective authorities:

a) Custom Certified exports promotion copy of the shipping bill (Air/

Sea) in original.

b) Self-certified photocopy of the original transport bill (or ‘Bilti’ issued

by the transporter) for domestic road/ rail transport.

c) Self-certified photocopy of the original Roadways/ Airway Bill, for

Domestic (if any) and Airway bill/ ‘Bill of Lading’ for International

transport.

d) Custom certified short shipment Certificate in original, if any.

e) Photocopy of APEDA Registration Certificate.

f) Custom/ Bank certified copy of the commercial Invoice in original.

g) Certificate of realization of foreign exchange by Bank in original in

Form No. 1 of Appendix 22 of Handbook of Procedures of Ministry of

Commerce.

9) Alterations in the documents, if any, should be authenticated by Airlines /

Custom Authorities /Other Authorities as the case may be. The

documents with alterations in amount, quantity or any material facts

alterations, not authenticated by acceptable authority, shall be rejected by

APEDA.

10) Transport Assistance shall be paid only to the exporter effecting

shipments for export only and not to any other party

11) The items exported along with their respective quantities should be

individually mentioned on the invoice and the shipping bills along with

HS Code.

12) The shipping bill as well as the invoice must clearly indicate the

description of items, number of their packages / cartons along with the

gross weight of each item separately. The Transport Assistance shall be

paid on gross weight actually shipped and paid for. In case item wise

details are not mentioned in the shipping bill or the invoice, exporters

may produce any other material documentary proof in support of the

items exported along with a sworn in affidavit.

13) The flight number as well as its date must be mentioned on the export

promotion copy of the shipping bills as well as the airway bills.

14) Applications will be received by APEDA by following PRESCRIBED

DATES:

a) Applications for the period from 15th July, 2002 to 31st March, 2007

(fortnight wise) to be submitted on or before the end of 7

fortnights from the expiry date of concerned fortnight. (see

Annexure -VII)

15) In case of delay in submission of applications beyond the above

prescribed date, the following penalties shall be imposed:

Period of Delay Penalty cut in % of

Assistance

admissible

a) Applications received after prescribed date 5 %

but within 30 days from the prescribed date

b) Applications received from 31 days to 60 days 10 %

of the prescribed date.

c) Applications received from 61 days to 90 days 20 %

of the prescribed date.

d) Applications received after 90 days of the Total

(rejection) prescribed date shall not be accepted.

16) Wherever the details are incomplete and a letter has been issued by

APEDA for resubmission of application with details and the exporter does

not resubmit such details within the stipulated time, such applications

shall also be rejected after 180 days of the “prescribed date”.

17) In case of any doubts / disputes the matter will be referred to Ministry of

Commerce, Govt. of India, whose decision shall be final and binding.

18) While submitting claim for Transport Assistance, the exporter shall also

send a statement showing the Transport Assistance already received from

APEDA (fortnight wise), or claims pending in APEDA.

19) If the information furnished by the applicant is found to be incorrect at

any stage, the applicant shall be liable to return the whole amount of

Transport Assistance received by him. APEDA shall also retain the right

to impose any other penalty as it considers fit.

20) The Transport Assistance shall be released only after verification of the

documents as contained in this letter and after verification of details and

relevant documents/as may be required by APEDA. Exporters are

advised to refer to the checklist at Annexure- VI while submitting the

documents.

21) The rate of Transport Assistance for the eligible products shall be as

under:

a) Re. 1 per kg if transported by road from North Eastern states to

Guwahati for export by air from Guwahati international airport.

b) Rs. 2 per kg if transported from North Eastern States to Kolkata by rail

through ICD, Guwahati.

c) Inland Transport Assistance on transportation by rail through ICD

Guwahati @ Rs. 2 per kg for the products which can be taken by rail

from North Eastern Region to any place in West Bengal for processing

and export.

d) 90% of the airfreight charged by airline from an airport in the

northeastern states and Bagdogra airport to Guwahati or Kolkatta for

exports.

e) APEDA to ensure appropriate verification of the goods that have been

procured from North Eastern Region for exports.

f) The above rates are applicable to all fresh and processed fruits as

mentioned in the ‘State-wise Table’ enclosed as Annexure I(A).

22) Items transported from NE Region for processing and export outside the

North Eastern States and Sikkim except West Bengal will not be eligible

for assistance.

23) Transport Assistance shall be paid to the exporters only when a certificate

of realization of foreign exchange on eligible products has been furnished

in Form no. 1 (as given in Appendix 22 of the Handbook of Procedures

issued by Ministry of Commerce) from the Bank. FOB realization of the

products shall be maintained in US $ terms (please refer Annexure-V).

24) Transport Assistance shall be payable on GROSS WEIGHT basis only.

25) All claimants must ensure before sending the documents to APEDA or

any regional office of APEDA that applications has been filed only for

eligible items and for applicable destinations within the prescribed time

along with the requisite documents certified by the concerned authorities.

26) H S Code (Annexure-I (B) is required in respect of all products in the

Invoice and Shipping Bills.

27) In case the quantity shipped as per Air Way Bill is more than as per

shipping bill, exporter’s claim should be restricted to the quantity as per

the Shipping Bill.

28) Before filing application, the applicant shall ensure that the application is

complete in all respects as per the above guidelines and the Check List in

Annexure VI

ANNEXURE NO. I (A).

1. All fresh & processed items (under APEDA Schedule) covered by

approved AEZs.

2. All certified Organic products under the APEDA schedule.

3. The other select list of items on which transport assistance are as follows:

States Banana Guava Lemon Orange Pears Pine-

apple

Plum Cut

Flowers

Ginger Passion

Fruit

Kiwi Apple Bamboo Cane

Arunachal

Pradesh a a a a a a a

Assam a a a a a a a Manipur a a a a a a a a Meghalaya a a a a a a a Mizoram a a a a a a Nagaland a a a a a Sikkim a a a a a a Tripura a a a a a a a

ANNEXURE – I(B)

IN LAND TRANSPORT ASSISTANCE

1) Items covered under this scheme HS Code

A. Fresh

a) Pineapple 08043000

b) Orchids and other flowers 06031000

c) Ginger 07099009

d) Banana 08030000

e) Cut Flowers 06031000

f) Ginger 19052000

g) Guava 08045001

h) Lemon 08053000

i) Orange 08051000

j) Passion Fruit 08109009

k) Pears 08082000

l) Plum 08094000

m) Rice All codes under 1006

n) Pepper 07099040

o) Apple 08081000

p) Kiwi 08105000

B. Processed

a) Processed guava 20079920

b) Guava fruit 20089994

c) Lemon fruit 20089912

d) Processed citrus 20079100

e) Citrus fruit 200830

f) Oranges 20083010

g) Orange juice frozen 20091100

h) Orange juice frozen 20091200

i) Pear fruits 20084000

j) Single citrus fruit 20093100

k) Processed pineapple 20079930

l) Pineapple fruit 20082000

m) Pineapple juice 20094100

n) Pineapple Prepared/ Preserved 20082000

o) Pineapple Juice 20094000

p) Pineapple Squash 20089904

q) Jaggery 17011110

r) Pepper in Brine 07119010

s) Processed Apple 07119010

t) Processed Kiwi 20089913

Annexure II

APPLICATION FOR INLAND TRANSPORT ASSISTANCE

For the Fortnight ending …… to ……….

1) a) Name : ……………………………………

Address: ……………………………………

……………………………………

……………………………………

City: ……………………………………

Pin code: ……………………………………

b) APEDA Registration No…………………………

Registration Date…………………………………

2) a) Total amount of transport assistance claimed .…………..

b) Transport assistance already received ……………

c) Claims pending a) Fortnights ……………

b) Date of submission ……………

c) Office where submitted ……….

Declaration

a) The full text of the scheme under which this request for assistance is made

available to me / I/we and us have read and understood the same. I am/

we are familiar with the procedures and terms and conditions of grant as

set out in the scheme and understand and accept that these are binding on

me / us.

b) I / we declare that the particulars stated above and in the annexure are

correct and nothing has been withheld or concealed.

c) In case any portion of the goods is re-imported, the same would be

brought to the notice of APEDA and the amount of transport assistance

received in respect to such items would be immediately refunded.

Authorized Signatory

Place: Name (Block Letters)

Date: (Designation with seal of company)

ANNEXURE-III

DETAILS OF THE SHIPMENT

S.No Name of the Exporter 1. Fortnight Ending 2. Port of Embarking 3. Invoice No. 4. Airway/ Transport bill/R.R 5. Port of Disembarking 6. Invoice Date 7. Airway/ Lading Bill Date 8. Country Code 9. Shipment No. 10. Port of Shipment 11. Airway Bill No. 12. Airway date

ANNEXURE -IV

SUMMARY OF SHIPMENT AND CLAIM FOR INLAND TRANSPORT

ASSISTANCE

S.No. Bilti No./ RR/ Airway

Bill No.

Invoice

No.

Amount of Assistance

Claimed (Rs.)

Page

Nos.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Total

(Signature of the applicant)

Note: Each shipping claim should be enclosed in sequence, page numbering

should be done and page number of documents of the start of each

shipping bill and end of the shipping bill may be indicated for facilitating

processing.

ANNEXURE -V

APPENDIX-22

BANK CERTIFICATE OF EXPORT AND REALISATION

FORM NO.1

To _________________________________________ (Name and address of Licensing Authority) we

___________________________ (Name and address of the Exporters) hereby declare that we have

forwarded a documentary export Bill to _________________________ (Name and address of the

bank i.e., Branch and City) for collection/negotiation/purchase as per particulars given

hereunder.

Invoice Export

promotion

copy of

Shipping Bill

duly

authenticated

by the

Customs

Description

of goods as

given in the

customs

authenticated

Shipping bill

Bill of

Lading/PP/Receipt

Airways Bill

Destination

of goods

Country

name

Bill amount

CIF/C&F/FOB

(In foreign

exchange

No. Date No. Date No Date

(1) (2) (3) (4) (5) (6) (7) (8) (9)

Freight

amount

as per

Bill of

Lading/

Freight

memo

Insurance

amount

as per

insurance

Compan

y’s

Bill/Rece

ipt

Commission /

Discount/Pai

d /payable

Whether

the

export is

in freely

convertib

le

currency

or in

Indian

Rupees

FOB

value/

FOB

value

actually

realised

in free

Foreign

Exchan

ge /

Rupees

Date of

realisation

of export

proceeds

GRI/PP

/ SDF

form

No. date

&

category

of

applicab

le

licence

(10) (11) (12) (13) (14) (15) (16) (17)

We further declare that the aforesaid particulars are correct. (Copies of invoices

relevant to these exports and Customs attested EP. Copy of relevant Shipping

Bill is attached for verification by the bank).

Signature of the exporter: ……………………………..

Name in block Letters: …...…………………………..

Place: ………………………………

Designation: ………………………………

Full official: ………………………………

Address

Full Residential Address: ………………………………

Official Seal/stamp

BANK’s CERTIFICATE

Authorised Foreign Exchange Dealer

Code No. allotted to the Bank by

RBI

RefNo. _____________________________

Dated______________________________

Place ______________________________

1. This is to certify that we have verified the relevant Export Invoices, Customs

attested E.P. Copy of Shipping Bill and other relevant documents of M/s.

____________________________________. We further certify that the particulars

given in Co. 1 to 17 have been verified the F.O.B. value mentioned in Col 14

above with reference to following documents : -

(i) Bill of Lading/PP receipt /Airways Bill

(ii) Insurance policy/Cover/Insurance Receipt

2. We have also verified that the date of the connected mate receipt as

indicated in the relevant Shipping Bill is ___________________________ (date to

be given).

3. We have also verified that the date of Export is ___________________

(Applicable only in respect of Exports by Air)

4. This is to certify that we have certified the amount of the Commission

paid/payable, as declared above, by the export i.e.

___________________________________________________________ (in figures

and words) with G.R. Forms and found to be corrected

_______________________

(Signature of the Bankers)

Full address of the Bankers _____________________________________

Branch and City _______________________________________________

Official Stamp.

Note:

1. Bank can issue a consolidated certificate (consignmentwise) for

more than one consignment)

2. FOB actually realised and date of realisation of export proceeds are

to be given in all cases except where consignment has been sent

against conformed irrevocable letter of credit

3. This shall be required wherever specifically prescribed in the

Policy/procedure.

Annexure-VI

INLAND TRANSPORT ASSISTANCE SCHEME FOR THE PERIOD

FROM 15th JULY’2002 TO 31st MARCH 2007 CHECKLIST FOR PROCESSING

OF INLAND TRANSPORT ASSISTANCE CLAIMS

(The objective of the Check List is to facilitate the beneficiary in filling and filing their claims with APEDA. It does not

necessarily means that the beneficiary will be eligible for the Financial Assistance on compliance of following check

points)

CHECKS YES NO REMARKS (Please tick and ensure that all details are filled up)

1. Whether the beneficiary is registered with

APEDA?

2. Whether the copy of PAN No. allotted by

Income Tax Deptt. Is mentioned in the

application or alternatively the copy of

acknowledgement received from Income

Tax Deptt. Is given alongwith the

application ?

3. Whether the claim is sent to the respective

designated office of APEDA as per

Notification ?

4. Whether the photocopy of APEDA

Registration Certificate has been enclosed.

CHECKS YES NO REMARKS

5. Whether the registration valid for the

period during which the export was made.

6. Whether Annexure II i.e. Application for

the subsidy is duly filled in the prescribed

format and signed by the exporter.

7. Whether the fortnight is eligible period of

respective Financial Year, within the AFS

Scheme?

8. Whether the claim has been submitted

within the prescribed time ? (otherwise it is subject

to deduction of penalty/Total Rejection)

9. Whether the country to which export has

been made is covered under the scheme ?

10. Whether all the claims submitted in a file,

pertain to a single fortnight ? (There should be

separate claim for each fortnight)

11. Whether the items are eligible as per

Annexure I (A) of the Notification?


12. Whether Annexure IV i.e. Summary of

Shipping Bill wise claim has been

submitted and that is duly signed by the

beneficiary and there is no correction or

alteration ?

13. Whether Annexure V - Bank Certificate

for realization of foreign currency, giving

Shipping Bill wise realization, has been

submitted in prescribed format?

In case of certificate of realization of

foreign exchange by Bank, Check:

i) Whether it is in the standard format

(Form I)?

ii) Whether it is on the Bank Stationary?

iii) Whether the name and address of the

banker is clear on the certificate and it

is properly signed and stamped?

iv) If there is any alteration, whether

they are authenticated by the bank

with signature and rubber stamp?

14. Whether Annexure III i.e. claim for

airfreight subsidy has been submitted

separately for each shipment?


15. Whether Annexure III has been signed by

the beneficiary?

16. Whether a declaration to the effect that

items are not air freighted by

Special/Chartered flights has been given

on Annexure III ?

17. Whether the beneficiary has made

separate Shipping Bills for eligible and

non eligible items?

18. Whether H.S. Codes {Annexure – I(B)}of

the items exported have been correctly

mentioned on the shipping bill ?

19. Whether the declaration on shipping bill (on

the reverse side) has been verified by the

Custom authorities?

20. Whether No. of packets and gross weight

as mentioned on shipping bill reconcile

with the same mentioned on other

documents ?


21. Whether the shipment has been effected

within the period of the fortnight, for

which claim has been submitted? (For this

purpose flight date given on declaration

on shipping bill is considered to be the

actual date of shipment).

22. If there is any alteration on shipping bill,

declaration on shipping bill, or on short

shipment notice whether that is

authenticated by the custom authorities

with stamp and signature of the custom

authorities?

23. If there is any alteration on Airway Bill

whether that is authenticated by the cargo

agent with his rubber stamp and initials?

24. Whether the weight, on which subsidy

has been claimed, has been actually

exported?

25. Whether CIF Values, Airfreights and FOB

Values as given in Annexure III are the

same as given in the Certificate of

realization of foreign currency?


26. In case of Papaya and Onion, whether the

variety of papaya has been mentioned on

shipping bill as well as on Invoice?

27. Whether the beneficiary has submitted

the complete set of documents along with

each Annexure III.viz.

i) Copy of the commercial invoice (in case of

floriculture copy of Performa invoice)

signed by the beneficiary in original and

certified by the Custom Authorities or

Bank ?

ii) Self Attested photocopy of Airway Bill?

iii) Custom certified Export promotion copy

of the Shipping Bill in original?

iv) A copy of short shipment notice, if any,

certified by the Custom Authorities in

original?

v) All alterations, cuttings, overwriting are

authenticated?

28. Whether

(a) Correct English names and

relevant HS codes have been

mentioned in all documents?


(b) The application has been

completely filled up and the

declaration has been signed?

(Signature with Name and Seal

Place………………….. of the company)

Date……………………

Annexure VII

PRESCRIBED DATES FOR SUBMISSION OF CLAIMS

FORTNIGHT LAST DATE OF

SUBMISSION OF CLAIMS

(in 2003--2007) (in 2003-2007)

1st – 15th April 2003 31st July 2003

16th – 30th April 15th August

1st – 15th May 31st August

16th – 31st May 15th September

1st – 15th June 30th September

16th – 30th June 15th October

1st – 15th July 31st October

16th – 31st July 15th November

1st – 15th August 30th November

16th – 31st August 15th December

1st – 15th September 31st December

16th – 30th September 15th January 2004

1st – 15th October 31st January

16th – 31st October 15th February

1st – 15th November 28th February

16th – 30th November 15th March

1st – 15th December 31st March

16th – 31st December 15th April

1st – 15th January 2004 30th April

16th – 31st January 15th May

1st – 15th February 31st May

16th – 28th February 15th June

1st – 15th March 30th June

16th – 31st March 15th July

16th – 31st March’2007 15th July,2007

STATEMENT TO BE FORWARDED BY REGIONAL OFFICES ON

FORTNIGHTLY BASIS FOR APPROVAL

The Regional Office shall forward the following information on E-Mail to

APEDA Delhi for taking prior approval before disbursement of amount.

Abstract I

(Each Exporter’s File wise in horizontal format)

1. File No.

2. Name of Exporter

3. Fortnight ending

4. Date of Receipt

5. Shipping Bill details

6. Port of shipment

7. Destination Port

8. Description of Products

9. Quantity Claimed (Kgs.)

10. Gross Eligibility (Kgs.)

11. CIF Value (Rs.)

12. FOB Value (Rs.)

13. 25 % of IATA Rate (Rs.)

14. 1/3rd of or 50 % of FOB value (as the case may be) (Rs.)

15. Eligible ceiling of per Kg. Assistance (e.g. Rs. 10/- or Rs. 25/-)

16. Claimed Amount (as per application) (Rs.)

17. Entitlement of Exporter (least of Col. 13 to 15 above) (Rs.)

18. Penalty Amount (%)

19. Recommended Amount (Rs.)

Abstract II

1. Certificate of Chartered Accountant recommending the amount of

assistance.

Abstract III

(Consolidated statement of disbursement for which approval sought for)

1. File No.

2. Name of Exporter

3. Amount Recommended as assistance (Product wise)

ANNEXURE III

Export Potential of Horticultural Products from North Eastern States

Documents

Transcript of Export Potential of Horticultural Products from North Eastern States