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July 9, 1999 |
'There is a tremendous demand for sweetcorn, babycorn and mushrooms'Vegetables spawn brands and businesses "There is a tremendous demand for sweetcorn, babycorn and mushrooms. However, Brussel sprouts and artichokes are yet to capture our people's imagination. It is only a matter of time before they become part of the Indian meal," says Gupta. The horticulture companies -- most of them are based in Maharashtra -- began with thrust on exports. For their counterparts in Kenya, Ghana and Zambia had made successful inroads into the lucrative European markets. Chris Lane, managing director, Hydrosystems International Limited, the UK-based firm that supplies cooling systems to Indian agriculturists, says, "Thailand is producing thousands of tons of babycorn and flying it to Europe right over your heads. If they can do it, why can't Indian companies?" However, export of fresh produce calls for substantial investment in infrastructure for cooling, warehousing, packaging and transportation. In fact, according to Gupta, 55 per cent of total value goes into air-freight charges, making exports comparitively less attractive. "Initially, we were all caught up in the glamour of the export market. In the long run, the local market proved profitable. For there is very little additional cost to the basic vegetable," says Gupta. Trikaya, for instance, exports only 30 per cent of its produce. The veg biz has motivated even small farmers to enter the market. While this substantially widens the supply base and lowers prices thanks to low overhead costs, "the lack of sufficient infrastructure limits their quantities. They are burning their fingers," says Nanabhoy. Agrees Gupta. "We corporate players also have the advantage of larger volumes and high-quality seeds. For example, our expensive seeds yield sweetcorn that is sweeter than others." "In the long run, it won't be the game of corporate domination. The educated farmer can take this business forward really, if he can maintain low costs. One thing is for sure, the market can only grow," he says.
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