Asia Pacific Journal of Research ISSN (Print) : 2320-5504

ISSN (Online) : 2347-4793

PROBLEMS OF EXPORT OF DRY FRUITS IN JAMMU AND KASHMIR

Zahoor Ahmad Mir

Research Scholar Department of Economics Annamalai University
Annamalai Nagar, Tamil Nadu, India

Dr. K. Kottaiveeran
Assistant Professor Department of Economics Annamalai University
Annamalai Nagar, Tamil Nadu, India

ABSTRACT

International trade plays very dominant role in the economic growth and development of the world. The international trade of a
country consists of inner and outer movement of goods and services, which results in the countries inflow and out flow of the earning
of foreign exchange. Trade brings many benefits like large opportunities of employment, earning more foreign exchanges, good and
greater utilization of a natural resource allocation and it is not only becoming the means of achieving efficient production and
productivity but also ‘Engine of Growth, development and welfare of the trading nations. This paper attempted to study the problems
of export of dry fruits and the data has been obtained from different secondary sources.

Keywords: International Trade, Foreign Exchange, Resource allocation, Engine of Growth, Dry Fruits

Introduction
In the global world nobody has their own capacity to produce the all need merchandise and ventures, everybody is reliant each other.
Hence, rises the way of trade between the nations. The scientific and technological progress of the world also depends on the
international trade. Due to trade, the capital is transferring from one country to another, knowledge is transforming, advancement and
creative things are discovered which are becoming the means of growth, development, sustainability and welfare of the nations.
India is based on the agriculture economy yet because of the trade; India exports more horticulture goods as comparison of the
agricultural goods. Horticulture crops include fresh fruits, dry fruits, medical, aromatic, floriculture, vegetables, root, tuber crops and
nuts and so on. India is the largest producer of Cashew nut, Coconut and Areca nut in the planet and it enjoys both comparative
advantage and comparative costs in agriculture as well as horticulture goods too, and however its share is not exactly different
countries in the event that we look at in world. India is the second largest producer of lime and biggest producer of Mango and
Banana. India ranks eighth number in the world of Walnut production like: 36,000 MT which is 1.05% in the global production.

Methodology
In this context, the present paper aimed to bring out the problems of export of dry fruits in Jammu and Kashmir which helps to
promote the dry fruit exports from India and especially from Jammu and Kashmir. Jammu and Kashmir is famous in various verities
of fresh and dry fruit throughout the world viz. Apple, Walnut, Honey, Saffron etc. Agricultural is the backbone of the Jammu and
Kashmir economy which plays very significant role for growth, development and welfare of the state economy. Within the
Agriculture, Horticulture sector also plays a eulogistic role in the state economy to provide employment directly or indirectly to the

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state population. Horticulture sector has a vast potential to produce various kinds of fruits like Walnut, Almond, Apricot, Apple, Pear,
Plum, Cheery etc.
Researchers, planners, and economists always come forward to highlight the obstacles faced by the people in their trade. Researcher
like Ahangar (2013), highlights that export of horticulture crops had increased the growth, employment, standard of living and welfare
of the state. Logzi (2013), also highlight the importance of trade which promotes the economic development especially less developed
countries. Many developing countries have a comparative advantage in the different agriculture products and export of these products
is the main source of foreign exchange earnings. Rather (2013), while examined the production and export of fruit sector of Jammu
and Kashmir, found that the fruit production is becoming the necessity of the people‟s welfare. He also highlighted that export of the
state production gives the economy stability, alleviation of poverty, and becomes means of welfare of the Jammu and Kashmir
economy. Taili (2014) found that the relationship between the former class and organized sector are responsible to increase the fruit
cultivation and means of export like good marketing, storage facilities and upliftment of the rural people. Further, the good state
policies and comparative technology enhance the export level of the Jammu and Kashmir state.
Research by Lone and Sen (2014), gives the attention towards the comparative advantage, export significance, wastage of production,
lack of liberalization, privatization and globalization, high cost and rising demand of the consumer in horticulture production. Rafiq
(2015), revealed that there is a nonappearance of structure in the business and don't have obvious mandies, dumping facilities,
processing as well as packing units in by far most of the dry fruit producing regions of the valley.
Sangral (2015) presumed that every one of the regions have near points of interest in some specific fruit which is the result of different
topography, soil fertility, soil matter, different environment and geographic conditions. Hanan (2015), highlighted the importance of
horticulture production and value of export in the state and shows the real picture of the horticulture share in the stare SGDP,
furthermore an important component of horticulture sector is that it is a wellspring of boosting agricultural business development in
the rural economy and generates income and employment.

Types of Dry Fruits

India is the biggest producer of both fresh and dry fruits on the planet. There are different verities of dry fruits like walnut, almond,
apricot, cashew nut, pistachio and plum and so on.
Walnut: Walnuts are oldest tree food before the 7000 B.C. They grow naturally in both western as well as eastern hemispheres.
During ancient Rome walnut was considered as the food of god called „Juglans Regia‟ in honor of Jupiter. The walnut plays a vital
role in the agricultural economies of the world. The yearly world walnut production is higher than 1600000 MT. The walnut
production is purchased in the market in two type‟s kernels (without shell) and nuts (shelled).
Walnut is most imperative agrarian product and origins from Iran. Iran is one of the historical countries in walnut production and its
trees are valuable and high demand throughout the world for wood product, beautiful color, strength, durability, dimensional stability
and excellent machining qualities after drying. The Alexander the Great conveyed it to Europe and migrates to Italy, Spain, France,
China and also many Indian states. The Jammu and Kashmir is one of the first states among the other Indian states where the walnut
was found. It contributes around 98% of the country‟s output. The walnut is one of the precious dry fruit of the state and its production
about 86263 tons from area 61723 hectares. Districts like Poonch, Budgam, Bandipora, Baramulla, Ganderbal, Buderwa, Srinagar, and
Anantnag are famous for walnut production. Ananthnag, Kupwara and Kulgam stand first, second and third respectively in walnut
production, with the production of 41021 MT 2500 MT and 21319 MT respectively. India ranks at eighth number of walnut
production in the world like, 36000MT which is 1.05% in the global production. The present situation of the walnut production in
Jammu and Kashmir is terrible because of climate changes. High rains, diseases and hailstorms badly affect the quality, color and
production of this fruit.
Almond: The almond production in India is expanding as like other fruits in the nation. The Jammu and Kashmir is the imposing
business model maker of the almond production. In Kashmir region (Budgam, Pulwama and Anantnag) and in Jammu region (Doda)
are the places where rich source of almonds are found in the state. Makhdon, Shalimar, Merced, Wais and California paper shell are
the different verities of almonds found in the state. The production of almond in India is concentrated in Utter Pradesh, Himachal
Pradesh and Jammu and Kashmir. The Kashmir enjoys hub of almond industry in the country and almond production is increasing
every year that is the case the share of Jammu and Kashmir in national production is increasing. In Pulwama 50% of farmers
dependent on inorganic fertilizers in almond production, while as 88% of almond growers directly sell their almond production by
middlemen (7% by neighbor, 4% and 1% by the help of relatives). The annual production of almond in Kashmir valley is 1.5 million
tones as per the report of horticulture department.
Apricot: Apricot is considered one of the most delicious and delicate fruit used for jam, preserved, canned, pulp or marmalade even
wine in different European and Asian countries. Besides it, apricot is also used as medicine for the treatment of various illnesses.
Apricot (Prunusarmeniaca L) fruit belongs to Rosaceous family which is known as the largest family of having near about 3400
species with peaches, plums, almond etc, it has distributed globally in northern temperate regions. Apricot is a temperate fruit and
cultivate in climate with good differentiated seasons. The export of apricot is expanding with a high expanding pattern of production.
Export counties are earning enormous measure of remote trade furthermore give the substantial business opportunity huge amount of
foreign exchange and also provide the large employment opportunity, income generation and food nutrition to the penniless
individuals on the planet.

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Pistachio: Pistacia is the economically very essential species in the genus. The pistachio is actually kernels and obtains from fruits
originated from west Asia and Turkey region. It is edible seed and considered as a valuable business item. Countries like USA, Iran,
Turkey, Syria, China and India are famous in the cultivation of pistachio. They also export good quality of pistachio to other nations.
Kerman famous variety of pistachio is used for the purpose of commercial function. The pistachio grows in hot dry summer and cool
winters and gives the production near about eight to ten years after the plantation. Pistachio is used for the treatment of various
illnesses like cardio-logical, sexual, skin as well as various chronic diseases.
Destination of Foreign Trade and Export of Dry Fruits

Table No-1
Export of dry fruits from India to top countries during (2014-15)
Year 2012-13 2013-14 2014-15
Volume Value (Cores) Volume Value (Cores) Volume Value (Corers)
Country (MT) in % in % (MT) in % in % (MT) in % in %
Vietnam 4.95 4.41 5.09 4.21 24.80 23.23
Pakistan 24.26 19.54 23.51 26.37 23.83 33.38
Saudi Arabia 7.92 9.56 5.34 6.35 6.62 5.65
Bangladesh 12.16 3.58 17.29 6.00 6.23 2.57
UAE 10.62 15.68 7.02 10.31 4.56 4.70
Others 40.07 47.18 41.72 46.73 33.93 30.45
Source: Government of India Ministry of Commerce and Industry (2015)

Bar Diagram-1
Export of dry fruits from India to top countries during (2014-15)
100%
90%
80%
70%
60%
50% 2014-15
40%
30%
2013-14
20%
10%
0% 2012-13

Source: Government of India Ministry of Commerce and Industry (2015)

The table shows the different destination of foreign trade of dry fruits from India to other countries. During 2012-13 India exports
24.26 MT % (19.56 crores %) dry fruits to Pakistan, while as lowest volume of dry fruits was exported by India to Vietnam which is
4.95MT% and its value was 4.41 cores %. During 2013-14 India also export highest volume of dry fruits to Pakistan [(23.51MT %)
values (26.37 cores %)] simultaneously it exports lowest volume of dry fruits to Saudi Arabia which is 5.34 and its value is 6.35 cores
in%. During 2014-15 India exports its highest volume of dry fruits to Vietnam which is 24.80 MT % and its value is 23.23 cores %,
which is less as against the Pakistan which is 23.83 volume in MT % and its value is 33.38crores in%. The lowest volume of export of
dry fruits is UAE which is 4.56 MT% and its value is 4.70 cores in %.
Export of Dry Fruits
India is the largest producer, consumer and exporter of spices, and also exports other agriculture and horticulture products. In India nut
and dry fruit industry is very old industry. The demand and utilization of dry fruits has risen just in last a few years. The dry fruits are
the yield of a poor and nourishment of a rich man. In India, the consumption of dry fruits is near $2.5 billion and becomes just 3% of
global demand. The Global Strategic Business Report: by global industry analysts increases. Dried fruits and edible nuts, the
international market conditions increases and the growth of the global economy spreads very easily. There are various qualities of dry
fruits like, walnut, almond, peach, apricot, pistachio hazelnut etc.

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The exports of fruits from Jammu and Kashmir to other states take the prominent place in the trade. The export of fruits showed very
rich progress for last some decades.
Table-2
Area, production and yield of dry fruit in India
Year Area (000HA) Production (000MT) Yield (MT/HA)
In (%) In (%) In (%)
2001-2002 6.27 4.96 0.79
2002-2003 6.86 4.96 0.72
2003-2004 6.22 5.26 0.84
2004-2005 6.22 5.26 0.84
2005-2006 7.62 6.48 0.85
2006-2007 7.74 6.53 0.84
2007-2008 7.74 7.70 0.99
2008-2009 7.98 7.53 0.94
2009-2010 8.33 8.40 1.00
2010-2011 8.03 8.75 1.08
2011-2012 10.09 12.53 1.24
2012-2013 8.45 10.53 1.24
2013-2014 8.39 11.05 1.31
Source: Indian Horticulture data base 2015/Directorate of Horticulture/Agriculture of respective State.
Bar Diagram-2
Area, Production and yield of dry fruit in India
14

12

10

8 Area (000HA)

6 Production (000MT) In
(%)
4
Yield (MT/HA)
2

0
Year

2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014

Source: Indian Horticulture data base 2015/Directorate of Horticulture/Agriculture of respective State.

The data related to area, production and yield of dry fruits in India from (2001-02 to 2013-14). The area under dry fruits had increased
from 6.27% HA in 2001-02 to 8.39 HA % in 2013-14. Throughout the period of study, the area under dry fruits had an increased
trend. The production of dry fruits had increased from 4.96 % MT during the year (2001-02 to 11.05 %MT in the year 2013-14.The
productivity of the dry fruits had also increased from 0.79% in the year (2001-02) to 1.31% in the year (2013-14).

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Table-3
Area, Production and yield of dry fruits in Jammu and Kashmir
Year Total Area of Production of Total Dry Yield of
Dry Fruits in (%) Fruits in (%) Dry Fruits in (%)
2000-2001 5.02 3.62 0.72
2001-2002 5.09 3.69 0.72
2002-2003 5.34 3.87 0.72
2003-2004 5.45 4.14 0.75
2004-2005 5.82 4.38 0.75
2005-2006 5.98 4.47 0.79
2006-2007 6.31 5.00 0.79
2007-2008 6.35 6.07 0.95
2008-2009 6.56 6.14 0.93
2009-2010 6.76 6.82 1.00
2010-2011 6.93 6.77 0.97
2011-1012 6.58 8.13 1.23
2012-1013 7.09 8.35 1.17
2013-2014 7.19 9.98 1.38
2014-2015 7.25 7.60 1.04
2015-2016 6.19 10.6 1.71
Source: Directorate of Economics and statistics (J&K) Economic Survey (2013-14) and Statement of Area and Production of J&K
(2014-16
Trend Line-1
Area, Production and yield of dry fruits in Jammu and Kashmir
20
18
16
14
12
10
8
6
4
2
0

Total area of Production of total Dry fruits in (%) Yield of

Source: Directorate of Economics and statistics (J&K) Economic Survey (2013-14) and Statement of Area and Production of J&K
(2014-16)
The data related to area, production and yield of dry fruits in Jammu and Kashmir from (2000-01 to 2015-16). The area under dry
fruits had increased from 5.02 % hectares in year 2000-01 to 7.25% hectares in 2014-15. Throughout the period of study, the area
under dry fruits had an increased trend. The production of dry fruits had increased from 3.62% tones during the year 2000-01 to 10.6%
tones in the 2015-16. The production was maximum during the period 2015-16 with 10.6% and minimum during the year 2000-01
with 3.62% tones.

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Table-4
Export of dry fruits from Jammu and Kashmir and foreign exchange earned
Year Almond Walnut Total dry Almond Walnut Foreign Total Foreign
(MT In %) (MT In fruits Foreign Exchange Exchange
%) (MT in %) Exchange Earned (Corers Earned (Corers
Earned (Corers in %) in %)
in %)
2000-2001 0.95 7.17 7.05 0.8 4.85 4.80
2001-2002 0.92 6.85 6.74 0.8 5.19 5.14
2002-2003 1.00 7.06 6.95 0.8 5.35 5.29
2003-2004 1.66 5.83 5.75 0.8 4.38 4.34
2004-2005 14.39 5.25 5.42 4.41 4.09 4.10
2005-2006 14.12 4.86 5.04 5.49 5.05 5.05
2006-2007 12.43 5.03 5.17 6.75 5.20 5.22
2007-2008 9.39 6.19 6.25 3.37 7.08 7.03
2008-2009 8.02 5.27 5.32 3.78 6.25 6.20
2009-2010 2.90 8.40 8.29 3.89 8.72 8.67
2010-2011 4.33 8.82 8.73 6.08 9.12 9.09
2011-2012 3.09 9.01 8.90 4.56 10.22 10.15
2012-2013 8.62 4.90 4.97 21.90 8.77 8.92
2013-2014 10.00 9.15 9.17 36.37 15.68 15.93
2014-2015 8.10 6.14 6.17 NA NA NA
Source: Directorate of Economics and Statistics (J&K) Economic Survey of J&K (2014-15)
Bar diagram- 4
Export of dry fruits from Jammu and Kashmir and foreign exchange
120

100 Total Foreign Exchange

Earned (Crores in %)
80 Walnut Foreign Exchange
Earned (Crores in %)
60 Almond Foreign Exchange
Earned (Crores in %)
40 Total dry fruits

20
Walnut (MT
0
Almond (MT
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014

Source: Directorate of Economics and Statistics (J&K) Economic Survey of J&K (2014-15)
The table 4 indicates the export of dry fruits and foreign exchange earned from Jammu and Kashmir during 2000-01 to 2014-15. The
export in terms of quantity has increased from 7.05 MTs in year 2000-01 to 9.17 MTs in 20013-14 and the foreign exchange earned
was highest 15.93% cores during the year 2013-14 and it was lowest in the year 2004-05 with 4.10% cores. Production in terms of
almond was highest 2004-05 with 14.39 MTs % and was lowest during 2001-02 with 0.92 MTs % only and production in terms of
walnut was highest during 2013-14 with 9.15 MTs% and was lowest during 2005-06 with only 4.86 MTs %.The foreign exchange in
terms of almond was maximum in 2013-14 with 36.37 core % and was minimum in 2002-03 with 0.8 cores % and in terms of walnut
it was maximum in 2013-14 with 15.68 cores % and was minimum in 2004-05 with 4.09 cores %.

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Problems of Export of Dry Fruits

There are various problems of export of Dry fruits. Among them few are discussed below.

Identification of Foreign Markets

Every production has a value with their markets. Majority of the Indian production of fruits and vegetables are going outside the
country due to good market and its returns come more or vice versa. But the Jammu and Kashmir fruit products are having the huge
amount of production, is going waste and ash, there is no full-fledged mandis, co-operative markets. Govt. impressive intervention in
the market that is the result, the Jammu and Kashmir did not export more and more production. Due to high freight, high income tax
and additional storage charges, Ludhiana, Amritsar and Delhi etc are becoming the means of restrictions of export of dry and fresh
fruits in Jammu and Kashmir. The foreign market sources are not identified for the government to the fruits produce and exports.

Lack of Finance
The majority of the dry fruit producers are selling their production in the local markets like Phari and other city markets due to the
need of money for domestic purpose. The financial institutions and new bank financial institutions are not ready to give loans to
growers and dealers.

Low Profile of Government Polices

Due to the lack of govt. dry fruit export oriented policies and weakness of intervention reduces the export level of dry fruits and fresh
fruits. Huge of the population is dependent upon the horticulture sector and whom have a need of money for labors, fertilizers,
pesticides, sprays, transport cost, packing expenditure etc which is not possible for everyone to do this and result would come the 30-
40% of production is waste and share of export also falls down.

Lack of Storage
In India, 30-40% of fruit productions are annually wasted before reaching the consumption market and only 10% of the cold storage
facilities are available for fruit production. India is world‟s second largest producer of horticulture production and lack of adequate
storage facilities availability is one of the big problem facing Indian producers and has not suitable processing points in various types
of productions. No good packing qualities of raw materials are available which will keep in the stores and in the time of sown use and
to do further production increases.

Lack of Infrastructure
The main problem in India is the lack of infrastructure like transport, power supply, roads, full-fledged mandis, dumping facilities,
packing units and processing facilities and also in the Jammu and Kashmir state where the happening biggest wastage of horticulture
production from the farm to house and house to mandies and during the transpiration from the farm gate to consumer the production is
going pass out seven different distribution channels and in every channel the loss of the product is near about five to seven percent.

Conclusion
International trade is an “ENGINE OF A GROWTH” and welfare of the global economy especially developing countries like India.
Trade plays very vital role in the exchange of foreign earnings and achieving lot of knowledge and information about the unknown
events and hidden secrets which are becoming the means of growth, development and welfare of those countries who are taking steps
towards the trade. Fruit cultivation and marketing are the main source of generation of income and increasing standard of living high.
Jammu and Kashmir is the home of world‟s famous verities of dry fruits like walnut, saffron and honey which are exported to the
different countries. Fruit cultivation is the backbone of the Jammu and Kashmir economy which provides directly or indirectly
employment to the state population and 75% of the temperate fruits in India are produced in Jammu and Kashmir. If we overcome the
export related problems of dry fruits by the government of India and her state Jammu and Kashmir. We will get huge amount of
money from foreign exchange and develop both country and state economy rapidly.

Acknowledgement
The authors deeply acknowledge Dr. G. Ravi, head and professor, Dr. N. Ramagopal former head and Professor, Dr. E. Slivarajan
Professor, Department of Economics, Annamalai University. Dr. Surandiverajan head and Professor of agricultural Economics
Annamalai University and visiting Professor Dr. R. Elango for their valuable comment and suggestions to write this article. They
showed the way in the field of agricultural Economics. I strongly acknowledge. This article has been extracted from Zahoor Ahmad
Mir PhDs thesis, entitled “An economic analysis of production of dry fruits in Jammu and Kashmir.

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