Showing posts with label exports. Show all posts
Showing posts with label exports. Show all posts

Friday, April 12, 2024

Sweetness and Curvature

 This piece on Sahyadri Grapes was a revelation to me. 

It appeared on on ThePlate, an interesting publication I had not come across earlier; the style of writing was chatty and engaging and I learnt a whole lot of things about farmer-producer companies that are setting new benchmarks for the production and export of fruits and vegetables.

I was particularly surprised to learn about the barriers faced by Indian exporters in getting their products cleared, especially in the European markets. While some of these barriers, such as limits to pesticide residue, seem quite sensible from the point of view of health and wellbeing of the consumers, some others seem completely whimsical, bordering on Euromyths. The EU, it seems, sets standards on the curvature of bananas and limits the sweetness of fruits imported into their common market.

What exactly are these standards? Why were they adopted?

Curvature of Bananas: European Commission regulation 2257/94 decrees that bananas in general should be “free from malformation or abnormal curvature”. Those sold as “extra class” must be perfect, “class 1” can have “slight defects of shape” and “class 2” can have full-scale “defects of shape.” This standard applies to bananas of the varieties (cultivars) of Musa (AAA) spp., Cavendish and Gros Michel subgroups.


Far from being a whimsical, curvature of a banana seems to be a good indicator healthy growth - the amount and sunlight the plant was exposed to during its growth phase, and the resulting distribution of hormones.

Sweetness of Fruits: The Brix scale is used to measure the sweetness of fruits such as grapes. Article 50(2)(a) of Regulation (EU) No 1151/2012 of the European Parliament and of the Council on quality schemes for agricultural products and foodstuffs. 

According to the Plate article, "..the Brix content for grapes to Europe must range from 16 to 20 degrees, whereas the Indian palate prefers sugar content 24 degrees or higher". The relevant EU regulations however seems to set only minimum limits for sweetness, ranging from 12-14 degrees on the Brix scale.

There have been reports of export consignments getting rejected for exceeding limits on pesticide content in the fruits, but have there been cases where a rejection has happened due to excessive curvature or sweetness? 

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REFERENCES & LINKS

* Why are bananas bent? - https://uniquetimes.org/the-curious-case-of-curved-bananas-why-are-they-bent/

* https://www.standard.co.uk/news/uk/bendy-bananas-why-are-they-staying-eu-rules-b1080788.html

* https://www.forbes.com/sites/timworstall/2016/05/12/to-properly-explain-the-eus-bendy-bananas-rules-yes-theyre-real/?sh=4bcf67a86fc9

* https://www.cbi.eu/market-information/fresh-fruit-vegetables/table-grapes/market-entry

* https://unece.org/sites/default/files/2023-02/FFV10Carrots_2021_e.pdf

* Measuring sweetness - https://www.refractometer.eu/scales-for-sweetness-measuring

* https://www.yara.co.uk/crop-nutrition/grapes/managing-grape-sweetness/

* https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52020XC0615(01)&rid=1

* Chaptalisation - process of adding extra sugar to grapes! - https://en.wikipedia.org/wiki/Chaptalization

* https://www.freshpoint.com/news/understanding-brix-is-a-higher-number-always-better/

* APEDA Guidelines (2007) - https://apeda.gov.in/apedawebsite/Grapenet/regu_fresh_grapes08.pdf

* Banana export guidelines - https://www.corpseed.com/knowledge-centre/export-banana-from-india

Thursday, October 10, 2019

A Banana in Afghanistan


I was stunned today - by a banana!

Just after I had finished my breakfast in Kabul, I went across to the fruit counter and found three options - mandarins, apples and bananas. Of the options available the banana seemed the most 'user-friendly' - easier carry in your bag, to peel and eat.

Surprisingly, this particular variety looked perfectly ripe, but was not so easy to peel. Curious to know the variety I turned it around to find a sticker on one side. It said "Sabastiano Premium Eduador"!

Let that sink in. Here in Kabul, Afghanistan, I was holding in my hand one of the great wonders of global supply chain logistics. Here was a fruit grown by farmers on the opposite side of the globe in South America, transported across the seas and mountains, covering a distance of more than 15,000 km before it reached its destination - a DFAC dining hall.

While writing a blog in 2014, I had learnt that three companies - Chiquita, Dole and Del Monte - controlled more than 60 percent of global banana exports. 

In  tropical South Asia which is home to dozens of varieties of bananas available at much cheaper rates, it is a wonder how commercial logic enables agricultural products to travel insane distances!


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LINKS

* Banana production in Ecuador - https://en.wikipedia.org/wiki/Banana_production_in_Ecuador

* DW (Jan., 2018) - https://www.dw.com/en/world-in-progress-toxic-banana-production-in-ecuador/av-42098343

* Sharbatly Fruit - http://www.sharbatlyfruit.com/

Friday, June 21, 2019

That Hing Thing

Asafoetida (Hing) - resin chips and powder

If you want to make popadoms you need asafoetida, aka Hing.

This bit of trivia caught my attention while watching an edition of National Geographic's "Food Factory" featuring the famous women's cooperative - Sri Mahila Grih Udyog - makers of the iconic popadom brand, Lijjat Papad. You might say that this is nothing noteworthy. After all no Indian kitchen would be complete without a tiny plastic bottle containing what is perhaps the most pungent powder conceivable. In South India perhaps the most popular brand is LG - not the Korean conglomerate but a staid company started by Laljee Goshoo in Mumbai. You just cannot make Sambaar curry, or Rasam, or Dal, without a pinch of asafoetida.

A popular Indian brand

The interesting point is that all the asafoetida sold and consumed in India is imported! Lijjat Papad uses Hing (asafoetida) imported from Afghanistan. Other companies like LG import the product in raw form, mix it with gum arabic, and rice-powder / maida and sell it as "compounded asafoetida" which contains less than 50 percent of the actual stuff. Even in this adulterated form it is an expensive spice - 50g packet sells for INR 75 which comes to about INR 1500 (USD 22) for a kilogram.

Another curious thing is that asafoetida is not officially considered a "spice". For some reason it does not even figure on the Indian Spice Board's list of spices imported into India. The Ministry of Commerce lists it under the category "resins and gums" (ExIm HS code 1301-9013). Most of the asafoetida in the Indian market is imported from Afghanistan and Iran. There are two main varieties of asafoetida ie. Hing Kabuli Sufaid (Milky white asafoetida) and Hing Lal (Red asafoetida). Tajikistan too is now emerging as an important supplier of quality asafoetida.

The earliest know reference to asafoetida comes from an ancient Sumeran medical recipe dating back to 2100 BCE. So it hardly surprising that this resin figures prominently in the Ayurveda treatise - Charaka Samhita - compiled in circa 300 BCE.  According to this source, the Bhagavata Purana compiled in the 10the century, notes that the Hing plant grows in the abode of Shiva. Considering that the plant grows in cold mountainous regions of Iran and the Western Himalayas, it is surprising how a steady supply of this resin has been reaching all corners of India over the past three millennia..

Asafoetida is extracted from the Ferula plants (esp. Ferula asfoetida) which have large taproots, 12.5-15 cm in diameter at the crown when they are 4-5 years old. Just before the plants flower, in March-April, the upper part of the living rhizome root is laid bare and the stem cut off close to the crown. The white sap that extrudes from the exposed stem-base is then collected, dried and sold to traders. The plant grows only in arid, cold areas and efforts to cultivate them in Himachal, Ladakh and Kashmir are yet to succeed.

Farmers in these states would certainly be pleased to see the efforts succeed. After all, there are only a few plants that grow with little care and yield such high prices in the market.

Exports from Afghanistan

For some reason, the FAO-UN does not list asafoetida as a noteworthy export from Afghanistan, but independent research suggests that this is indeed a significant export item from Afghanistan. In 2014-15, the country exported red asafoetida worth USD 21,940,223 (312.281 tons) and white asafoetida worth USD 12,259,302 (218 tons).

Is USD 33 million worth of exports insignificant? Certainly not if you consider the fact that the top export item from Afghanistan is raisins (red, black, big, abjosh) and its total value is just a bit more at ~ USD 36 million. Other famous dry-fruit or spice exports - Almonds and Cumin is worth just USD 26 million and USD 1.6 million respectively!

So why is it that asafoetida fails to get mentioned in the trade charts?

I don't know. Yet.

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REFERENCES & LINKS

> https://in.finance.yahoo.com/news/amazing-lijjat-papad-story-rs-80-rs-800-crore-130350826.html
> WIPO article - https://www.wipo.int/ipadvantage/en/details.jsp?id=3619
> Lijjat Papad -  https://en.wikipedia.org/wiki/Shri_Mahila_Griha_Udyog_Lijjat_Papad
> https://www.thedollarbusiness.com/magazine/from-afghanistan-with-love/46065
. India imports 25% of the world's asafoetida
> http://gernot-katzers-spice-pages.com/engl/Feru_ass.html
> https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3459456/
> https://www.indianetzone.com/1/asafoetida.htm
> Plants mentioned in the Bhagavata Purana (600-1000AD) -  https://shodhganga.inflibnet.ac.in/bitstream/10603/118519/21/21_glossary%20of%20plants%20found%20in%20the%20text.pdf
> Afghanistan - Commodity Exports - http://www.fao.org/faostat/en/#rankings/commodities_by_country_exports
- Hing does not figure in the top-5 exports by value -- the only spice that figures here is "Anise, radian, fennel, coriander" -- USD 26million (2016)
- Top export item by value was Raisins - 19T for USD 56million
> Spices Board -  http://www.indianspices.com/sites/default/files/Major%20Item%20wise%20Import-2016.pdf
> Import Policy - ExIm HS code 1301 90 13 --  http://dgftcom.nic.in/exim/2000/itchs2017/chap13.pdf
> Afghanistan Exports - https://atlas.media.mit.edu/en/profile/country/afg/
> (2015) Paper - India-Afghanistan - Overview of Economic Relations - http://www.renupublishers.com/images/article/1461872860AEV2N2d.pdf

* Oldest Medical Document - Sumeria 2100 BCE - https://www.ncbi.nlm.nih.gov/pmc/articles/PMC200079/pdf/mlab00211-0009.pdf
* Shah NC and Amir Zare (2014): Asafoetida (Heeng): The Well Known Medicinal Condiment of India & Iran -  http://www.thescitech.com/admin/includes/abstractpdf/2014-10-0453469a75d73f8.pdf

Thursday, January 12, 2017

Open Sesame



In an interview reported earlier this week, India's Minister for Commerce and Industry, Ms. Nirmala Sitharaman, requested Japan to take steps to increase Indian exports to Japan of sesame seeds, Surimi fish and generic drugs.

This was quite puzzling. Why were two specific items - "sesame seeds" and "Surimi fish" - mentioned in the same breath as Generic Drugs, which is a whole category in itself?

Perhaps it had something to do with the commercial value of the items being imported by Japan...

Sure enough, it turns out that Japan is one of the world’s largest importers of sesame seeds. It is mainly sourced from African countries. Nigeria is, by far, the biggest source, accounting for 28% all sesame seed imports valued at about JPY 11.4 billion (USD 96 million or INR 656 Crores in 2014). This means that Japan imports seeds worth about USD 343 million annually!

In recent years, India too has seen a sharp rise in sesame seed production. In 2014-15, over 0.43 million tonnes was produced, mainly in Gujarat and Uttar Pradesh. However India has not had much success in exporting the seeds to Japan. This is apparently because of high pesticide residue levels.

In other words, it is India that needs to take adequate steps to ensure that the sesame seeds it produces, is not only cost competitive, but also meets phytosanitary standards in the export markets.

The second item - Surimi fish - . I had heard of "Surmai" (Indo-Pacific Mackarel) but not this one.

It turns out that Surimi not a type of fish but something that Japan exports to other countries - especially USA. It is the term used for  "minced fish paste, made from a cheap fish in abundant supply, usually Alaskan pollock, frequently mixed with sugar and sorbitol, a sweetener. The paste is combined with other varieties of fish and fish flavorings, preservatives such as sodium tripolyphosphate and binders such as wheat flour or egg white, and then restructured and colored to look like higher- priced crab, scallops, shrimp or lobster." 

So, is this a case of a minister who was not properly briefed, or was it the IANS/Business Standard reporter who misquoted what has actually transpired?

Either way this is a fine example of the cross-talk, and communication gaps, not only within India, but also between the two countries.


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REFERENCES & LINKS

* BS (2017) - http://www.business-standard.com/article/news-ians/india-japan-fta-implementation-needs-to-be-expedited-sitharaman-117011000351_1.html

* Surimi exports from Japan to USA - http://www.nytimes.com/1984/07/25/garden/surimi-what-kind-of-seafood-is-it.html?pagewanted=all
* (BS, 2014) - Sesame production in India - http://www.business-standard.com/article/markets/india-s-sesame-seed-output-to-rise-by-126-shefexil-114110200688_1.html

* BS (2016) - http://www.business-standard.com/article/news-ians/sitharaman-urges-firms-to-exploit-free-trade-accord-with-japan-116100600675_1.html

* CEPA - RIS Report 2016

* Mint (2014) - http://www.livemint.com/Politics/Nv3BR8VYZ9zLJwwGeFAlWJ/EU-team-to-inspect-sesameseedprocessing-units.html

* SHEFEXIL - http://www.shellacepc.com/
-  About Sesame seeds - http://www.shellacepc.com/products/sesame-seeds/

* IARI - All India Network Project on Pesticide Residues - http://www.iari.res.in/?option=com_content&view=article&id=185&Itemid=531

Monday, January 19, 2015

Open Sesame!


Long ago, when 40 thieves decided to hide their treasure in a cave, the chosen password was "Open Sesame!"

Unfortunately they were rather lax in their security protocols and Ali Baba ran away with all the gold. But a question still hangs in the empty cave, and in my mind - why did they choose the name of a tiny oil seed?

In today's world of international trade, sesame still holds the secret to a treasure trove. Consider this -


  • Until recently, India was the biggest exporter of sesame seeds (now Myanmar is top dog)
  • Japan still holds the record for the biggest importer in the world.
  • Sesame can grow in places where most other crops fail, and yet it has the highest oil-contents of any seed.
The North Indian market is dominated by the white colored sesame while, in in the South, the most commonly available variety is the black one. Ditto for South East Asia and Japan. Why so?

 

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LINKS

* (BS-2No14) - http://www.business-standard.com/article/markets/india-s-sesame-seed-output-to-rise-by-126-shefexil-114110200688_1.html

* Sesame on Wiki - http://en.wikipedia.org/wiki/Sesame




Thursday, July 31, 2014

The Cost of a Fruit Fly


This fruit-fly (Bacterocera dorsalis) has cost Indian farmers and horticulturists Rs. 50 Crores in export earnings this year.

Quarantine officials in the European Union detected traces of fruit-fly larvae in a consignment of mangoes and promptly placed a ban on imports. They want to avoid, as far as possible, the chances of their own fruit & vegetable patches getting infested with this particular insect.

Is the fear unfounded? Can this tropical insect survive the European winters? If 400 hundred years of trade did not transmit it, it is rational to believe that by just closing the dock gates to this fruit-fly will be of any help?

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REFERENCES:

* Verma, Varuna (2014): PEST CONTROL, The Telegraph, 4Jun14 -- http://www.telegraphindia.com/1140604/jsp/opinion/story_18476634.jsp#.U4_14vmSwSM

* Note on Non-Tarrif-Barriers imposed by other countries - http://www.apeda.gov.in/apedawebsite/Databank/NTBs_July_08.pdf

* The EU Combined Nomenclature (CN) -- http://ec.europa.eu/taxation_customs/customs/customs_duties/tariff_aspects/combined_nomenclature/index_en.htm

* International Plant Protection Convention (IPPC) -- https://www.ippc.int/

* Compliance standards of USDA-APHIS (Animal & Plant Health Inspection Service) - http://www.aphis.usda.gov/wps/portal/aphis/home/




Friday, May 23, 2014

FDI and the Export of Polluting Industries

An interesting article was posted on Academia today - "Japan's Global Environmentalism: Rhetoric and Reality".

It was a bit dated (1998) but the topic dealt with a time-period when I worked with Japanese ODA, and of how Japan deliberately advocating high-tech solutions to environmental problems in developing countries simply in order to maximize purchases of capital-intensive technology and high-tech production services from Japan.

Numerous I-wish-I-knew-that-before points turned up, for instance -


  • The disastrous and ultimately aborted Narmada Dam project of theWorld Bank was closely linked to hydroelectric facilities funded by Japanese ODA (Kuroda, 1992).
  • Japanese environmental problems have been transferred along with FDI in mining and manufacturing operations to developing countries like Malaysia and the Philippines (Harada, 1991; Kojima, 1994;Nester, 1990; Ofreneo, 1993; Ui, 1989).
  • Kawasaki’s transfer of its iron ore sintering plant to the Philippines after environmental lawsuits were filed by local citizens near the original location in ChibaCity, Japan (Yokoyama, 1992).
  • Japanese-made pollution filters do not work because the energy inputs are from low-grade coal, instead of the higher-quality fuels domestic Japanese corporations use. Therefore, dirty industries have been transferred overseas without the environmentally cleaner—but more expensive—technology which would be used if these industries were located within Japan (Harada, 1991). 
  • Japanese practice of dumping of hazardous waste in the oceans, and exports of waste to Korea, Taiwan, and Thailand (Kumamoto, 1994). 
  • Japan is the only OECD country not to adopt the decision on the Control of Trans-frontier Movements of Wastes Destined for Recovery Operations (Hopp and Olson,1994). 
  • 15% of Japan’s landmass has been slated for resort development as a consequence of the 1987 Resort Act (Beasley, 1992), and much of this land has been used for golf courses. Recently, high land prices in Japan have fueled the expansion of golf courses across Southeast Asia and the Pacific.
  • In the early 1990s some of the world’s highest rates of deforestation occurred in Sarawak, Malaysia, where over 66% of logs were being exported to Japan to fuel demand for logs and pulp(Thompson, 1993).
  • In fact Japan leads the world in the importation of tropical hardwoods by a large margin (ITTO, 1995). Japan also has extensive FDI in wood chip and pulp production in Chile, Australia, Indonesia, Malaysia, and the USA.
  • Instead of banning tropical hardwood imports or urging its Southeast Asian neighbors to ban exports, Japan’s solution instead has been to offer environmental aid for reforestation. Reforestation, however, usually consists of particular species of imported trees (primarily eucalyptus) which are most profitable for export (Ui, 1989: 396).
  • In the Philippines, Japanese aid has modernized the fishing port and market facilities and most of the large commercial fishing operations are Japanese owned (Ofreneo, 1993). As a result of over-fishing and ocean pollution,small-scale Filipino fishermen’s annual catch has been reduced dramatically (Broadand Cavanagh, 1993).
  • Mitsubishi was a major contributor to Indonesian deforestation (Hurst,1990) and currently owns large shares of interests in logging companies, saw mills,and dangerously polluting industries in Malaysia (Karan and Jasparro, 1998).

The complete paper, published in Political Grography is available here.

> Taylor, Jonathan (1998): Japan's Global Environmentalism: Rhetoric and Reality, Pergamon Political Geography, 18, 1999



Monday, March 17, 2014

Fracking Away

Everybody knows the importance of technology & innovation. But when it comes to turning theory into practice, very few countries have been able to actually create an enabling environment that encourages real innovation.

In recent times, nothing illustrates this better than Fracking.

Geological surveys had revealed decades ago that vast reserves of energy lay hidden beneath impermeable layers of rocks. It took a geologist named George Mitchell nearly 50 years of persistence to find a cost-effective way of extracting shale gas and oil from these rocks.

Today, nearly 40% of USA's natural gas comes from fracking. It has not only made the country a net gas exporter but also changed international power-politics by reducing the bargaining strength of Russia and the Gulf states.

The interesting part here - one that is often sidelined - is that Mitchell's technology would not have been a success without the support of various government agencies. Three key inputs that he got were -- mapping and confirmation of large volumes of gas reserves available underground; development of diamond-studded drill bits and a tax credit (part Jimmy Carter's 1980s law to tax 'windfall profits'), for drilling out unconventional natural gas.

On the sidelines of this revolution, there have been some unexpected success stories in India. Farmers who cultivate Guar (cluser beans), have seen their profits shoot up. Last year (2012-13) 90% of India's production - 406,000MT of guar-gum, worth Rs. 21,000 Cr (~US$ 5 billion) - was exported to USA, China and Australia.

What is the connection between a legume grown as cattle-feed in arid Rajasthan and Gujarat, and the newfangled oil-drilling technology?

Well, somebody found out long ago that guar-gum is a pretty strong water-soluble lubricant. In 1998, when Goerge Mitchell was in his 80s, his team started using guar-gum with water instead of expensive foams and drilling gels. The rest, of course, is history.

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LINKS

  • The Economist - Schumpeter - The Father of Fracking -- http://www.economist.com/news/business/21582482-few-businesspeople-have-done-much-change-world-george-mitchell-father
  • Interview (Aug, 2013) -- http://www.economist.com/node/21582461
  • NYT Obituary on George Mitchell -- He Fracked Until It Paid Off -- http://www.nytimes.com/news/the-lives-they-lived/2013/12/21/george-mitchell/
  • Why Guar Beans Matter -- http://www.pri.org/stories/2012-06-15/why-guar-beans-matter
  • APEDA on Guar Gum Exports -- http://www.apeda.gov.in/apedawebsite/SubHead_Products/Guargum.htm