Banana Market Overview in India

The revenue of the banana market in India amounted to $13.4B in 2010, going 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% from 2007 to 2010; the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The pace of growth appeared the most rapid in 2009 when the market value increased by 11% against the previous year. 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.

In value terms, banana production stood at $12.8B in 2010 estimated in export prices. The total output value increased at an average annual rate of +12.4% from 2007 to 2010; the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The pace of growth appeared the most rapid in 2009 with an increase of 24% year-to-year. Banana production peaked in 2010 and is likely to continue its growth in the immediate term.

Average yield of bananas in India stood at 36 tonne per ha in 2010, surging by 4.4% against the previous year. In general, the banana yield, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2010 when yield increased by 4.4% against the previous year. Banana yield peaked 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.

Banana harvested area in India amounted to 830K ha in 2010, 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 in certain years. The growth pace was the most rapid in 2009 with an increase of 8.6% y-o-y. Over the period under review, the harvested area dedicated to banana production reached its maximum in 2010 and is likely to continue its growth in the immediate term.

Banana consumption in India stood at 30M tonnes in 2010, picking up 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 relatively stable, with only minor fluctuations in certain years. The growth pace was the most rapid in 2010 when consumption volume increased by 12% against the previous year. In that year, the banana consumption attained 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, going 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% from 2007 to 2010; the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The growth pace was the most rapid in 2009 with an increase of 11% y-o-y. Banana consumption peaked 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.