Bengal fruit traders seek subsidy on road freight

SILIGURI: Fruit traders in West Bengal have called for removal of inconsistencies in the export policy that grants subsidy on air and maritime export of fresh fruits but not on road freight, arguing that this has made exports unviable to neighbouring countries where there is a huge demand for Indian fruits.

India is the second largest producer of fruits in the world with an annual production of over 80 million tonne. But its share in the world’s fruit exports is just 1 per cent.

"Transport subsidy is a major factor that needs a careful restructuring to alter this gloomy scenario," said U Saha, secretary, Exporters Coordination Committee of West Bengal. "Fruit export is eligible for transport subsidy if shipped through air or water routes. But there is no subsidy on surface transport that creates multi-prong problems for exporters from West Bengal."

Saha said there are not many processing facilities in West Bengal, which makes fruit producers dependent on exports of 'raw' fruits. But being a perishable commodity, exporters have only a small time window to transport raw? fruits from the producers to the market.

Mango and licchi are the main exportable fruits in West Bengal. They are produced mainly in Murshidabad and Malda districts.

S Misra, president of Malda Mango Merchants Association, said the main fruit market in Bangladesh is about 150 km from Malda, while those in Bhutan and Nepal are about 250 km away. "It takes lesser time to reach these destinations by road than by air, as the nearest airports in Kolkata and Siliguri are over 250 km from Malda, Thus, air shipment is not a practical option for exporters in Bengal."

Misra said there is 5-8 lakh tonne demand for Indian mango in Nepal, Bhutan and Bangladesh.

A senior official with the Agricultural and Processed Food Products Export Development Authority said the issue can only be resolved by the Union government. "If settled, this can largely alter our fruit export scenario," the official added.