Indian horticulture: shifting from volumes to value creation

According to projections for 2025–26, total horticultural production in India is estimated at around 377.8 million tonnes. This volume includes about 121.5 million tonnes of fruit and 21.0 million tonnes of vegetables. The country is one of the leading producers of such crops as bananas, mangoes, papayas, onions, okra, and tomatoes. Nevertheless, the scale of production does not yet translate into a comparable share of added value, export competitiveness, and farmers' incomes.

Sector growth has so far been driven primarily by the expansion of cultivated areas, whereas yield indicators and value chain efficiencies have improved gradually. Horticultural produce is characterized by a high degree of perishability, quality sensitivity, and complex logistics. According to a study commissioned by the Ministry of Food Processing Industries, post-harvest losses for fruit range from 6 to 15 percent, and for vegetables from 5 to 12 percent. In monetary terms, annual losses reach approximately Rs 57,000 crore, affecting such crops as mangoes, tomatoes, bananas, potatoes, and onions. The damage includes not only physical waste, but also quality deterioration, reduced shelf life, distressed sales, and missed opportunities in processing and export markets.

Experience shows that the availability of cold storage alone is not sufficient. A comprehensive approach to the value chain is required, including packhouses, pre-cooling, refrigerated logistics, testing laboratories, processing facilities, and digital traceability systems. The Cluster Development Programme (CDP) aims to develop the entire horticulture ecosystem rather than isolated infrastructure facilities.

Financial returns for producers remain low: the farmer's share of the consumer rupee is about 33 percent for tomatoes, 36 percent for onions, and 37 percent for potatoes. This is caused by the weak bargaining power of farmers and limited access to premium markets when marketing non-graded produce through fragmented supply channels. Large-scale aggregation, grading, processing, and market-oriented crop planning will contribute to increasing incomes.

At the macroeconomic level, price volatility in fruits and vegetables has a significant impact on food inflation. To address such challenges, it is necessary to develop specialized infrastructure within clusters: puree, paste, and dehydration capacities for tomatoes; curing, scientific storage, and dehydration facilities for onions; potato cultivars suitable for processing; and linkages with manufacturers of chips, flakes, and frozen products. According to APEDA data, in fiscal year 25, India exported fresh fruits and vegetables worth approximately $1.82 billion, while simultaneously importing premium fruits at higher prices, which creates opportunities for import substitution and the expansion of processed product supplies.