Agri Export for abundant income... Successful Strategies! Part 6
Value addition is another method to guarantee and increase the export of commodities in multifarious forms. It is long-lasting too! Hardly does it require any big machine or equipment to achieve this. For instance, we shall take lady’s fingers. A kilo of lady’s finger(Bhendi) is sold at Rs10/- to Rs.15/- locally. The sane lady’s finger can be cut to a one-inch small size and soaked in buttermilk and salt. It can further be dried in the hot sun and it becomes bhendi dries(vattal). If we process 3 kgs. of lady’s finger in this method we will get 1 kg dries intact which can be exported to Malaysia and Singapore @ Rs.110/- per kg. The same is the ruling price in Indian markets also. When we sell 3 kgs. of lady’s fingers as it is, we will get Rs.30/- to 45/- only. At the same time, if we do value addition, it will fetch us more revenue. Normally, we have the practice to prepare vattal only when the vegetables become over-ripe. We must change that practice
Vegetable Dries (vattal):-
Similarly, we can make vattal from various vegetables like brinjal, black nightshade seeds (wonder berry), ivy gourd (thimitti vattal), sabre beans, cluster beans, turkey berry etc. The vattal should ideally be sold in packets of 100/50 grams only and not in kilos. There is substantial demand for this even in our country. 100 gms is being sold at Rs.35- in supermarkets. Next is chillies vattal which are offered in star hotels as a pickle for curd rice. This is commonly used in all hotels as a regular pickle.
Demand for tomato powder:-
Sometimes a tomato is being sold at a very low price or they are even thrown in the streets due to oil demand in the market. The best way to alter the situation is to indulge in value addition Some people may prepare tomato pickles. Tomato can be powdered and sold. In fact, star hotels use tomato powder only to make tomato soup. Tomatoes can be cut, dried and powdered. We can get around 12-15 kg. powder from 100 kg.tomatoes. One kilo tomato powder is sold at Rs.250/- and more. Even if we sell 100 kg of tomato @ Rs.10/- per kg. we will be able to get Rs.1000/- only. If the same is sold in powder form, we will be in a position to get more than Rs.3,000/-. Likewise, if we do the same process in respect of radish, mint, drumstick and curry leaves, we will certainly get more profits.
Tamarind and Malaysia:-
Tamarind is one of the most desirable export products consumed by foreigners. Tamarind can be separated from its shell, fibre and seeds and then packed in differently-shaped boxes like square, rectangle and circular forms. Peppermint can be prepared from tamarind by adding sugar with it and this is commonly used in flights to help the passengers overcome the vomiting tendency.
Black colour tamarind has a good sour effect. It has good demand in Malaysia. Similarly, red soil coloured tamarind has a sweet taste which is demanded more in Singapore. Tamarind can be sold Rs.50/- to Rs.100/- more per kilo while exporting. Tamarind is one of the long-lasting products.
Frozen food items can also be prepared in a simple manner. Cucumber seeds and gooseberry can be soaked in vinegar for exporting. In honey, fig and gooseberry can be soaked and exported. Likewise, steamed maize can be packed for export. Dry fruits and dhal varieties also come under the value addition process. The turmeric product is also used in the food and cosmetic item preparation.
Rice and sago crispy fryums have a great demand in foreign countries. These are also valued additional processed items that will last for a longer period. Locally also this is consumed by the majority of the people. All that we need to do is to ensure quality and appealing packing with a brand name.
For value addition process, there are many institutes and colleges to impart training on the latest technology. Indian Institute of Food Processing Technology at Thanjavur, Central Food Technological Research Institute at Mysore, College of Food & Dairy Technology at Alamathy near Chennai, Post Harvest Technology wing of Tamil Nadu Agricultural University, Indian Institute of Packaging,Chennai provide courses on value addition processes right from village and handicraft to major industries. There are certain more additional products which come under value addition process to be understood for doing effective export trade.
For value-added products, it is necessary to obtain the quality standard certificate from the Food Safety and Standards Authority of India. Particularly, this certificate needs to be obtained for pickles, mango juice, paneer, milkshake and fruit juices. One should apply in foodlicensing.fssai.gov.in website against payment of Rs.7,500/-. This certificate is not only important for local sales but also for export as one of the documents. Apart from this, the documents that are required by the importers should also be arranged to be submitted for exporting.
Q & A
Lavanya, Adambakkam, Chennai-88
Please let me know the website to know the list of all products that are exported to foreign countries.
Under the Commerce Ministry, Central Government of India, you will find the website commerce.gov.in in which you can visit their window ‘about us’ in their home page. If you click ‘Division’, you will be able to access the ‘Export Products Division’. Again, if you click this Division, you will find all the products that are being exported like agricultural products, electronic goods, jewellery, pharma products etc.. You will also be able to find the export transactions that have happened for the last three years. Similarly, you will be able to get relevant information like this from another website, www.indiantradeportal.in
P. Dhanapal, Salem
I have a substantial quantity of coconuts. How can I export this and what are the basic formalities involved in this?
Aweer market which is in Dubai is the right place for coconut export. The exportable coconut should be approximately 450-500 gms or 13-14 inch outer circumference; ie. If we put them in a bag it should weigh 11-13 kg. (25 coconuts). Likewise, the handicraft products that we can make with the help of coconuts can also be exported this way. After preparing the requisite documents, we have to get it registered with the Coconut Board for exporting.
Details of pre-shipment documents
In our last part, we saw details of 10 key questions that we must put forth to the importers in connection with the transaction. After obtaining the order, we need to prepare the basic pre-shipment document known as ‘Invoice’ or ‘Quotation’. There are four types as under:-
For instance, if we intend exporting banana plantain, bitter gourd, brinjal and drumstick, we have to send them a basic document with the picture of all the products available with us for export. We must also mention the details of size and price at which we are prepared to offer. The importer may respond either positively or negatively with some changes regarding price or size. If it is not acceptable, we must negotiate further and take it forward.
To cite an example, the Kamaludeen had recently received an order from Doha in Qatar. He had quoted Rs.1.716 US$, 1.624 US$, 1.856 US$ to the importer for which the importer had mentioned 1.5US$ (Rs.108/-) for all vegetables. The author analysed the same taking into consideration the size of the order and the various expenses he had incurred for procurement of the order. Obviously, he would buy time to calculate and confirm whether he has sufficient margin of profit. If it is viable, he would go ahead making a sales agreement; else, he would drop it. These are all basic documents.
Next is Commercial Invoice under the category of Mother Documents and this is an important document. Next comes Packing List in which we have to mention net weight (bare weight of the product), gross weight (including the outer packing) as per importer’s preference.
Establishments that help in value addition
Indian Institute of Food Processing Technology
Ministry of Food Processing Industries, Government of India
Pudukkottai Road, Thanjavur - 613 005
Ph: 04362 228155.
Prof. & Head of Department,
Tamil Nadu Agricultural University, Coimbatore – 641 003.
Ph: 0422 6611268/6611340/94426 52834
Indian Institute of Packaging
No.169, Industrial Estate,
2nd Main Road, Burma Colony, Perungudi, Chennai – 600096.
Ph: 044 24960730/24961560/93821 99089.
College of Food and Dairy Technology
Alamathi, Koduveli, Chennai – 600 052.
Ph: 044 27680214/15.
Central Food Technological Research Institute,
Cheluvamba Mansion, Valmiki Road,
Opp. Railway Museum, Devaraja Mohalla,
CFTRI Campus, Kajjihundi, Mysuru, Karnataka 570020
0821 2515910, 2514534
(This article was written in Tamil by K S Kamaludeen for Pasumai Vikatan magazine dated 10/12/18 has been transcreated in English by P.S.Ramamurthy)