Despite India’s high output and being the third-largest producer of banana in the world, only 0.4% of the total produce is being exported. One of the major reasons for this is the lack of cold chain technology and skill shortage.
Having worked closely with banana cultivators and other stakeholders who are involved in the farm to market process over the years, we at Danfoss have managed to understand their grievances and challenges better.
As you would know, Tamil Nadu is the largest banana producing state in India accounting for 24% of the country’s total output.
Today, as per industry data, a recorded 30-40% loss on a production of 8-9 million tonne of bananas between farm and supermarket is draining Tamil Nadu anywhere between Rs 2,400 and Rs 2,700 crore. Currently the capacity of cold storages, pack houses and ripening chambers for banana only accounts for 8% of production. However, it is estimated that by appropriate use of technology, especially cold chain solutions, we can attempt to reduce losses by 10 to 12% which can help save Rs 1,500 crore of crop value.
Quoting an instance, Danfoss along with CII, works closely with the stakeholders in a small district in Tamil Nadu called Theni, to understand their success and are working towards replicating this model. Organised pre-harvest technologies, focussed supply chain and branding create higher profits for farmers and better prices & quality for consumers. Incidentally, the industry body has hosted Tamil Nadu Banana Festival twice in Theni for the benefit of all stakeholders in the value chain and during the previous time around it had recommended setting up of 10 cold storages across the state to reduce post-harvest losses, which are now being implemented by Tamil Nadu Government.
Cold chain infrastructure and technology
At the national level, by investing in cold chain infrastructure, earnings of farmers can be increased by 40%, consumers get scientifically ripened fruit with right nutrition values, better self-life and can create huge opportunities for processing of banana products. A scheme called “A Banana a day” can replace or substitute eggs in noon meal schemes wherein each location would help generate employment for rural women and men, approximately 800 per location.
Main requirements of small farmers in this dynamic environment are better access to capital and education. Collective action to deal with scale requirements needs to be designed to satisfy new product and process standards or to avoid exclusion from the supply chain. Collective action through cooperatives or associations is important not only to be able to buy and sell at a better price but also to help small farmers adapt to new patterns and much greater levels of competition.
A major challenge faced by the banana industry is the lack of scientific farming methods, the deficient supply of tissue culture, poor post-harvest and cold chain infrastructure coupled with low consistency in quality and lack of adequate branding and marketing. However, given the acceptance of the fruit internationally as an energy food coupled with its low seasonality, availability of well-developed technologies for storage and local and international transport can ensure better returns to farmers.
If farmers have knowledge on right ripening methods, this can help them yield good results. It will also result in production of quality crops which can be catered to export market and also help in meeting domestic market demand. Technologies such as cold chain solutions offered by Danfoss help store food at the desired temperature, allowing fruits to ripen in a consistent manner with least energy spent and also contain artificial ripening. Energy efficiency leads to cost savings.
All these measures can further improve India’s chances in muscling itself into the exporters list as the quality of the fruit can be preserved if the transit warehousing infrastructure can be advanced.
Skill shortage
Skill shortage in the post-harvest technology industry is yet another problem that Danfoss is keen on addressing. Danfoss has set up a training centre in Chennai where they have live demo equipment for -30 degree and + 20 degree applications to facilitate better skill training. Danfoss also has labs for OEMs (original equipment manufacturers) who can come and test their equipment and validate their specifications and energy efficiency standards. Danfoss also regularly engages with universities and enhances the sustainability story around food and agriculture among students.
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