Where are the most bananas grown? Most people will answer the Philippines, Guatemala, Colombia or Peru. These countries are famous for the large quantities of bananas shipped to Europe every year. They are all in the top ten banana producing countries. However, in 2019, India exported the most bananas-30.5 million tons. This is not a well-known fact in Europe. That's because India only exports about 5% of its fruit.

"There is a reason," said Frits Popma of Popma Fruit Expertise in the Netherlands. Frits has three years of banana experience. He has consulted on projects for more than 200 companies in 55 countries. Frits is currently working on a project in India. "In India, bananas are food for the poor. The product does not look good. But because of the huge internal market potential, it can be sold anyway." Nevertheless, about 10% of the Indian population does want better quality banana.

This can easily become about 120 million consumers. India’s export data is also on the rise, and more political parties are open to it. Middle Eastern countries and Russia are the main export destination candidates. Although it is technically feasible, Frits believes that large-scale exports from India to Europe will not be carried out soon. That's because of the country's unfamiliarity and quality of bananas. "Of course not in the current logistics environment. The shortage of containers is pushing up costs," he said.

Obstacle India hopes to make better use of their banana export opportunities. The country also wants to focus on bringing improved products to the market. However, Fritz pointed out that there are still some obstacles to overcome. Most multinational companies have tried their luck in growing bananas in India, but to no avail. They left after a while. It turns out that it is too difficult to replicate the working methods used by well-known exporting countries. Popma sees the real export potential of India. But he warned that this is a long and expensive process.

He said that one of the biggest obstacles is the complete lack of infrastructure. Therefore, the quality is not optimal. "Pre-cooling here is a completely unknown concept. The entire cold chain must be built from the ground up. It is best to have supermarkets and local partners. All parties involved must realize that they will not "cannot profit immediately." It takes time. "Lack of infrastructure means that India is wasting 30% of bananas. 

Panama disease Cavendish is the most widely traded banana variety in the world. However, there are 14 unique types in Indian shops that are not known in Europe. Therefore, there is more crop biodiversity. This can provide protection against fungal disease TR4 or Panama disease. This destroyed the entire banana plantation and polluted the soil for decades. It is also spreading and has already hit Peru and Colombia. The Philippines also exports bananas. Fritz says, for example, the harvest there has been reduced by 15%.

Moreover, there is currently no way to eradicate this disease. However, there is currently no TR4 in India. Fast rotations also play a role in controlling TR4. Fritz said, for example, in Latin America, banana trees can bear fruit for 20 years. In India, they are replaced every three years. "If no one can find a solution to TR4, countries like India-if they do it right-have a lot of export potential." 

The problem of dumping exports usually stems from the difference in expectations between the sending country and the receiving country. There is also usually a lack of communication. According to Fritz, in India and some other countries, they don't usually weigh a box of bananas. This is not a problem in the internal market. But in Europe, underweight boxes can cause import tariff problems. It is not easy to break into a market with a long history. "For example, people born in Ecuador or the Philippines, you can say,'Think about bananas' from a very young age."

"That's because they have grown bananas for five generations. Everything is under control and the cost price is known." The price that the destination country is willing to pay also plays a role in the quality of the bananas shipped. For example, in Europe, the price is low, but the quality and certification requirements are high. "You can't get 1 euro; it's too low. If Europe does nothing, it will become a dumping ground for the world. It must be willing to pay higher prices. Because if bananas are exported, they can make an extra 0.20 euro for the same box of bananas. For example , In China, they will go to China," Fritz concluded.

Publication Date: Thursday, October 7, 2021 Author: Martine van der Wekken © FreshPlaza.com

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