Introduction

India is a rich and diverse agricultural nation, known for its vast production of fruits and vegetables. However, the country also faces significant post-harvest losses in this sector, which diminishes both economic opportunities and food security. The primary focus of the agriculture and food sector has always been on increasing yield and productivity, but the resources are limited there should be focus on managing the food loss and waste which is almost around 30%. In this blog post, we will explore the reasons behind these losses and discuss the government interventions and disruptive solutions that aim to address the issue. Additionally, we will examine the current trends in the market and advancements in the processing of fruits and vegetables.

Perishability Issues in the Fruits and Vegetables Market

In the dynamic landscape of the Indian agricultural sector, the management of perishability poses a significant challenge, particularly in the realm of fruits and vegetables (F&V). The intricacies of transportation, storage, and distribution demand innovative solutions to mitigate losses and ensure sustained freshness. One of the main factors contributing to the short shelf life of F&V is their natural ripening process. As fruits and vegetables ripen, they release ethylene gas, which can speed up the ripening process of other nearby produce. This can result in over-ripening and spoilage if not properly managed. Careful monitoring of ethylene levels in storage and display areas is necessary, and stakeholders must take appropriate measures to prevent cross-contamination. Post-harvest losses in India remain excessively high, with a substantial quantity of fruits and vegetables succumbing to inefficient post-harvest processes. This inefficiency contributes to a significant disparity between gross production and net availability. According to a study published by NABARD in 2020, post-harvest handling is responsible for 20-30% of losses across various stages, including storage, grading, packaging, shipping, and marketing, whether as fresh produce or in processed form. These losses occur primarily in the farmer’s field (15-20%), during packaging (15-20%), transportation (30-40%), and marketing (30-40%). The total food loss in India is accounted to INR 1,52,000 Cr.

Challenges in Perishability and Post-harvest Losses:

• • Inadequate Cold Chain Facilities: The main issue in India is not the lack of cold storages but the lack of pre-cooling and connectivity at farmgate. According to a report from the National Centre for Cold-chain Development, the gap in cold storage infrastructure was only 8% (2020), but in Reefer Vehicles, it was 85%, Pack-houses 99%, and ripening chambers 91%. This clearly shows that the focus should not be only on cold storage enablement but on cold chain development.

• Inefficient Transportation Systems: The transportation system plays a pivotal role in determining the quality of perishable goods. In many cases, inadequate transportation facilities, coupled with prolonged transit times, result in the deterioration of fruits and vegetables before they reach the market. Investing in refrigerated transport and improving logistical efficiency can address this challenge.
• Limited Value Addition: The lack of processing facilities for fruits and vegetables contributes to their higher vulnerability to spoilage. Processing levels in F&V currently stand at close to 2% (MOFPI, 2020). Value addition techniques such as drying, canning, and freezing help extend the shelf life of these perishable commodities, but their availability/ adoption is limited in many regions.

Technological Interventions to Address Post Harvest Losses:

Government Initiatives and Policies for Cold Chain

Market Trends and Future Outlook to address post-harvest losses:

Demand for Exotic and Specialty Produce

In India, the demand for exotic and specialty produce in fruits and vegetables is evident through the increasing popularity and consumption of items such as avocados, dragon fruit, kale, quinoa, asparagus, and various types of berries. These non-traditional fruits and vegetables, once considered exotic, are now regularly featured in upscale grocery stores and restaurants. The demand reflects a shift in consumer preferences toward diverse and globally inspired culinary experiences, driven by factors like health consciousness, changing lifestyles, and a willingness to explore new flavours and textures.

Rise in the sales of Processed F&VThough the penetration of processed F&V is comparatively lesser than Fresh produce, the category has shown a considerable amount of growth. The retail value sales of processed F&V in India increased by 11% to INR 22.4 billion in 2022, showcasing a significant growth in market value. Frozen processed fruit and vegetables, as the best-performing category, grew by 15% to INR 9.2 billion, contributing substantially to the overall sales increase (Euromonitor). Urban consumers, returning to busy lifestyles post-pandemic, have driven the demand for convenient and time-saving food products, including processed F&V. The preference for ready-to-eat or easy-to-prepare options aligns with the convenience offered by processed F&V, contributing to increased sales. Metal packaging, especially metal food cans, emerged as the best-performing type with a 6% growth to 102 million units. Metal cans provide necessary protection for shelf-stable fruit products (Euromonitor).

 Emerging Favourites in Processed F&V Category:

The processed F&V category is one of the most value-driving categories in terms of exports. Processed fruits exports in 2022-23 were valued at 908.09 USD Million, and Processed vegetables export value was 508.97 USD Million.