India’s vegetable exports are witnessing rapid growth, driven by its rich raw material base with diverse agro-climatic zones, skilled agricultural workforce, and government support. The country, currently ranked 13th globally in vegetable exports, saw exports reach US$ 2.63 billion in 2023. Even as companies are aggressively tapping on export opportunities, a number of startups are diligently working to improve the value chain. Additionally, the rise of Farmer Producer Organizations (FPOs) is empowering smallholder farmers, opening pathways to broader participation in exports.
India’s growing vegetable export sector, reveals a fascinating narrative of growth and opportunity. Currently ranked 13th globally, India’s exports of vegetables reached US$ 2.63 billion in 2023, growing by 23.2% YoY and at a robust 5-year CAGR of 11.6%.
India’s top export markets for vegetables in 2023 were Bangladesh (18%), UAE (10%), US (8%), Malaysia (5%) and the UK (4%). The top 10 markets accounted for 62% of India’s total exports.
India is a potential powerhouse in this sector due to several factors. Its diverse agro-climatic zones enable year-round cultivation of a wide variety of vegetables. Additionally, the country boasts a large agricultural workforce skilled in traditional farming methods alongside modern agricultural practices. India’s rich biodiversity also contributes to its vegetable diversity, with indigenous crops catering to domestic tastes and preferences.
The top 10 vegetable producing countries in the world are China, India, Nigeria, the Dominican Republic, the United States, Indonesia, Thailand, Ghana, Russia, and Turkey. While China produced over 616 million metric tons of vegetables in 2022, India produced about 138 million metric tons. Interestingly, China accounts for over 50% of the world’s fresh vegetable production.
Global vegetable exports reached a value of US$ 84.9 billion in 2022, with a 4-year CAGR of 5% (ITC Trade Map). The top exporters were China (12%), Mexico (11%), Netherlands (10%), Spain (10%) and Canada (7%).
India is the second largest vegetable-growing country in the world and holds 10.6% share in world’s vegetable production. Its rich and diverse climate provides a large variety of vegetables. Vegetables produced in the country include potatoes, tomatoes, onions, eggplants, and cabbages among others. It is the largest producer of vegetables like ginger and okra and the second largest in the case of vegetables like potatoes, onions, cauliflowers, brinjal, and cabbages (APEDA). Major vegetable producing states (2022-23) in the country include Uttar Pradesh, West Bengal, Madhya Pradesh, Bihar, Gujarat, Maharashtra, and Odisha.
According to the National Horticulture Database (1st Advance Estimates) published by National Horticulture Board for 2023-24, India has produced about 209.4 million metric tonnes of vegetables. The area under vegetable cultivation was about 11.24 million hectares. Furthermore, it estimates that there will be an increase in production of vegetables like cabbage, cauliflower, pumpkin, tapioca, tomato, and other vegetables. This large vegetable production base provides India, immense export opportunities.
An interesting point to note is that the productivity of horticulture has increased impressively from 8.8 tonnes per hectare (TPH) in 2001-02 to 12.1 TPH in 2020-21, with production and acreage far better than foodgrain production since 2012-13.
Government and industry stakeholders have been working in tandem to address India’s current low share of vegetable exports from India. Some of the main challenges identified are smaller operational landholdings, production challenges, fragmented supply chains, insufficient storage facilities, sub-par transportation infrastructure.
Government of India is promoting green/ sustainable agricultural and good agriculture practices with environment concern. It is implementing National Mission for Sustainable Agriculture (NMSA) which is one of the National Missions under National Action Plan on Climate Change (NAPCC). This includes various components including Rainfed Area Development (RAD), On Farm Water Management (OFWM), Soil Health Management (SHM), Soil Health Card (SHC), Paramparagat Krishi Vikas Yojana (PKVY), Mission Organic Value Chain Development in North Eastern Region (MOVCDNER), Submission on Agro forestry (SMAF) and Per Drop More Crop (PDMC) under Pradhan Mantri Krishi Sinhchayee Yojana (PMKSY).
The government is providing comprehensive coverage under Pradhan Mantri Fasal Bima Yojana, which covers losses against natural risks, from pre-sowing to post-harvest stages. Ministry of Food Processing Industry has launched a series of initiatives that include the development of cold storage infrastructure, agro processing clusters, backward and forward linkages, etc. Under Mission for Integrated Development of Horticulture (MIDH) assistance is provided for development of post-harvest management and marketing infrastructure such as cold storages, ripening chamber, pack houses, reefer vehicles to farmers to improve marketability of produce. Moreover, India is promoting sea protocols for exports of various fruits and vegetables to promote their exports via ocean routes.
Given the large share of smallholder farmers, the government is also supporting the development of successful farmer producer organisations (FPOs). It launched the Central Sector Scheme for “Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs)” in the year 2020 with a total budgetary outlay of Rs.6,865 crore (US$ 817.7 million). The scheme works on enabling farmers to have higher bargaining power, benefit from economies of scale, reduce cost of production and enhance incomes. FPOs are also working towards inculcating best farming practices and undertaking capacity building in exports for their members.
The government has further supported the food processing industry with tax incentives, with around 73% of the food items in the lowest tax slab of 0-5%. It provides 100% exemption to food processing units on profit for the first 5 years and 25% (30% in case of companies) for next 5 years. In addition, 100% deduction is permitted on capital expenditure for cold chains or warehouses.
According to a research by Statista, revenue in the global vegetables market amounted to US$ 1.1 trillion in 2024, and is projected to grow annually at a CAGR of 6.65% between 2024-29. Some of the key drivers include rising health consciousness, population growth, rising disposable incomes, urbanization, and the convenience of online shopping.
India’s vegetable market, on the other hand, was estimated at US$ 108.6 billion in 2024, according to Statista, and is projected to grow at a CAGR of 8.3% over the next 5 years. A number of interesting companies are now emerging to effectively tap the potential of this highly lucrative sector.
Pisum Food Services, an initiative by the BTW Group, has emerged as a leading exporter of a variety of Indian spices, pulses, grains, fruits, vegetables, etc across the globe. Dhanalaxmi International is an exporter of a wide variety of vegetables like brinjal, capsicum, carrot, chili, drumstick, bottle gourd, green peas, lemon, okra, red onion, sponge gourd, tomato etc. Similarly, Adrianna Springs Impex is among the leading traders of vegetables including ginger, cabbage, potato, garlic, tomato and carrots.
A number of startups are also bringing in critical transformation in the vegetable supply chain from farm to fork. Over the long term, this will have the benefit of better pricing, reduced delivery times, improved realisation for farmers and lower wastages.
For instance, KisaanKonnect manages over 1.75 lakh acres of cultivated land and markets over 200 types of vegetables and 100 types of fruits through its online platform, covering over 1 lakh consumers in Delhi and Mumbai. Similarly, Bengaluru-based Ninjacart procures groceries, fruits and vegetables from farmers and delivers them directly to supermarkets and other retail stores. It claims to be sourcing over 1,400 tonnes of fresh produce daily from farmers across more than 20 states. It then supplies this produce to over 17,000 retail stores.
Waycool leverages a full-stack agritech platform that connects farmers to the market. MyMandi is a B2B2C platform that helps cart pushers to procure fresh produce from its app and delivers fruits and vegetables directly to their doorstep. At the farm level, Fasal is an example of an emerging AI-based startup that provides crop-specific insights to farmers across fruits and vegetables and plantation crops.
India’s vegetable exports are set for significant growth, bolstered by its vast production capacity, diverse agro-climatic zones, and strong government support. On one end, emerging exporters like Pisum Food Services and Dhanalaxmi International are aggressively tapping the international market. And on the other, startups such as KisaanKonnect and Ninjacart, are transforming the supply chain, improving pricing, reducing delivery times, and enhancing farmer realization.
The rise of Farmer Producer Organizations (FPOs) is also crucial, empowering smallholder farmers with better bargaining power and enabling more participation in exports. Government initiatives, like the Central Sector Scheme for FPOs, further strengthen the sector by addressing key challenges in infrastructure and market access. With stakeholders collaborating to fill critical gaps in the value chain, India’s vegetable export sector is not only poised for high growth but also becoming more resilient and sustainable, promising new opportunities on the global stage.
Read More:
© Trade Promotion Council of India. All Rights Reserved.
