Banana Market Overview in India

The revenue of the banana market in India amounted to $13.4B in 2010, jumping by 7.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +9.7% over the period from 2007 to 2010; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2009 with an increase of 11% year-to-year. Over the period under review, the banana market reached its peak figure level in 2010 and is likely to continue its growth in the immediate term.

In value terms, banana production amounted to $12.8B in 2010 estimated in export prices. The total output value increased at an average annual rate of +12.4% over the period from 2007 to 2010; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2009 when production volume increased by 24% year-to-year. Banana production peaked in 2010 and is likely to see steady growth in the immediate term.

In 2010, the average yield of bananas in India totaled 36 tonne per ha, picking up by 4.4% against the previous year. Overall, the banana yield, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2010 with an increase of 4.4% against the previous year. Over the period under review, the average banana yield reached its peak figure level at 37 tonne per ha in 2008; however, from 2009 to 2010, yield remained at a lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2010, the harvested area of bananas in India totaled 830K ha, increasing by 7.8% against the previous year. The harvested area increased at an average annual rate of +8.0% from 2007 to 2010; the trend pattern remained relatively stable, with only minor fluctuations being observed over the period under review. The growth pace was the most rapid in 2009 with an increase of 8.6% against the previous year. Over the period under review, the harvested area dedicated to banana production reached its maximum in 2010 and is likely to see steady growth in the near future.

In 2010, the amount of bananas consumed in India amounted to 30M tonnes, rising by 12% against the previous year. The total consumption volume increased at an average annual rate of +7.7% from 2007 to 2010; the trend pattern remained consistent, with somewhat noticeable fluctuations in certain years. The pace of growth appeared the most rapid in 2010 with an increase of 12% year-to-year. In that year, the banana consumption reached its peak volume and is likely to continue its growth in the immediate term.

The revenue of the banana market in India amounted to $13.4B in 2010, picking up by 7.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +9.7% over the period from 2007 to 2010; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2009 when the market value increased by 11% y-o-y. Over the period under review, the banana market reached its peak figure level in 2010 and is expected to retain its growth in the immediate term.

Driven by increasing demand for banana in India, the market is expected to continue an upward consumption trend over the next twenty years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from 2010 to , which is projected to bring the market volume to tonnes by the end of .

Over the period under review, imports of banana in India were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for banana.

This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.