Study On Jharkhand Export Competitiveness

STUDY ON
EXPORT COMPETITIVENESS OF JHARKHAND
Prepared by:
Federation of Indian Export Organisations

(Set up by Ministry of Commerce, Government of India)
Niryat Bhawan, Rao Tula Ram Marg
Opposite Army Hospital Research and Referral
New Delhi- 110057
Export Competitiveness of Jharkhand 2
ACKNOWLEDGEMENT
We would like to thank all the stakeholders who have

shared their valuable feedback, without which this study
would not have been possible. We extend our sincere
thanks to all the officials of Government of Jharkhand,
Exporters, Traders, Associations, Chamber of Commerce
and Industries.
INDEX Page no
Executive summary 4-18
PART I EXISTING SECTORS HAVING EXPORT POTENTIAL
Chapter 1 Auto Components and Engineering 20-27
Chapter 2 Mineral Resources 28-38
2.1 Iron and Steel 30
2.2 Mica 35
Chapter 3 Value added products of minerals 38-47
3.1 Refractories 38
3.2 Cement 44
Chapter 4 Handicrafts 48-58
4.1 Silk 48
4.2 Lac 54
Chapter 5 Agriculture 58-68
5.1 Rice 60
PART II EMERGING SECTORS WITH EXPORT POTENTIAL

A Mineral resources 70-74
A.1 Graphite 70
B Handicrafts 74-78
B.1 Bamboo 74
C Agriculture 78
C.1 Maize 78-88
C.2 Pulses 78
D Horticulture 88-142
D.1 Mango 91
D.2 Potato 99
D.3 Cabbage 102
D.4 Cauliflower 105
D.5 Peas 108
D.6 Ginger 114
D.7 Turmeric 118
D.8 Chilli 120
D.9 Mustard 127
D.10 Flower 131
D.11 Cashew 136
Annexures 143-146
References 147
EXECUTIVE SUMMARY
Export Com
mpetitivenesss of Jharkhand 5
EX
XECUTIVE SUM
MMARY
Jharkhan nd was carv ved from th he southernnmost part ofo Bihar in the year 20 000. The staate is
endowed d with a wide
w varietyy of naturaal resourcees and is oneo of the most attraactive
destinatiions becausse of its nattural wealthh, coupled with
w its skilled and ind dustrious peeople
and low cost of liviing. Since itts creation, the state haas set in plaace a rangee of enablerrs for
investmeent. Today with its inv vestment frriendly clim
mate and exxpertise in geology, miining
and immmense poweer potential,, Jharkhand d has the pootential to become
b the most financcially
viable sttate in the country.
c At present maajor industrrial centres in the statee are Tatanagar,
Bokaro steel city, Dhanbad,
D R
Ranchi, Deoghar and Hazaribagh.
H The gross State Dom mestic
Product at current prices
p for Jh
harkhand was Rs. 1, 19,,386 croress in 2011-20 012 as againnst 1,
06,696 Rs.
R crores in n 2010-11.
VAR
RIOUS DISTRICTS OF JHARKHAND
The vast potential that the state possesses lies unexplored as reflected in miniscule export
figures, for which the latest statistics are also not available. According to the last Export
Potential Survey of Jharkhand conducted in year 2005-06, exports stood at USD 17 million.
There is potential for exports of horticulture, silk, handicrafts, automobile and minerals.
Due to the non availability of state exports figures in public domain, we have to rely on the
Eastern Region figures. Eastern region including Jharkhand contributes around 10% to
India’s exports.
STATE’S INFRASTRUCTURE
1. ROAD CONNECTIVITY
Many National Highways viz 2, 6, 23, 31, 80, 98, 99, 100, 75, 78, 32 and 33 pass through the
State. Jharkhand’s road network includes 1,844 km of National Highways, 1,886 km of state
highways, 4,155 km of major district roads, and about 6,300 km of rural roads.
2. RAILWAYS
The State has extensive railway system providing vital links to mining industry and tourism
with important cities and ports of the country. The State has goods-handling facilities
available at Ranchi, Bokaro, Dhanbad and Jamshedpur (Tata Nagar). In addition, ore
loading facilities are available at Kiriburu, Lohardaga and all the coal mines of Central
Coalfields.
3. INLAND CONTAINER DEPOT
At present there is only one ICD in the state which was set up in Jamshedpur to facilitate
rail movement of both domestic and international consignments to-and-from the steel city.
4. AIR CONNECTVITY
Jharkhand is equipped with Sonari and Birsa Munda domestic airport at present.
5. POWER AVAILABILITY
PRESENT POWER SCENARIO OF THE STATE: Total installed capacity of the Power Plants
of Jharkhand State Electricity Board (JSEB) and Tenughat Vidyut Nigam Limited (TVNL)
is1,390 MW, out of which 1,260 MW is thermal and 130MW is hydel. The share of hydel
power is only about 9.4% of total power capacity against the national average of about
24%. Average per capita electricity consumption per year is about 552 units which is very
low compared to the other developed states and also with the national average of 720
units. Power consumption by high tension (HT) consumers is about ~ 45% of the total
consumption, whereas agriculture consumption is only 1.50%.1 T&D losses in Jharkhand

are estimated to be quiet high (around 33-35%) in year 2012.
Anticipated month wise power supply position for the year 2012-2013
State: Jharkhand
Month Peak Energy
Demand Availability Surplus (+) Demand Availability Surplus (+)
/ Deficit (-) / Deficit (-)
(MW) (MW) (MW) (%) (MU) (MU) (MU) (%)
12-Apr 960 876 -84 -8.8 557 522 -35 -6.3
12-May 1047 964 -83 -7.9 607 574 -33 -5.4
12-Jun 1090 868 -222 -20.4 580 524 -56 -9.7
12-Jul 1085 950 -135 -12.4 580 493 -87 -15.0
12-Aug 1125 941 -184 -16.4 610 510 -100 -16.4
12-Sep 1115 969 -146 -13.1 600 532 -68 -11.3
12-Oct 1155 1005 -150 -13.0 630 554 -76 -12.1
12-Nov 1115 947 -168 -15.1 620 505 -115 -18.5
12-Dec 1200 927 -273 -22.8 670 508 -162 -24.2
13-Jan 1200 896 -304 -25.3 670 491 -179 -26.7
13-Feb 1215 888 -327 -26.9 630 447 -183 -29.0
13-Mar 1260 900 -360 -28.6 730 488 -242 -33.2
Annual 1260 1005 -255 -20.2 7486 6149 -1337 -17.9
Source: Load Generation balance report, CEA, 2012-2013; Note: MU- Mega Unit, MW- Mega Watt
The table above shows that throughout the year, there has always been a mismatch
between the demand and availability. In order to take right course of action, the
government has reviewed the current status of power sector in the State and it can be
summed up briefly as follows:-
 Jharkhand has a current deficit of power to the extent of 200-400 MW.2 This is
because no new generation plant has come after 1996.
 The power infrastructure including transmission and distribution is old and worn
out and has also become overloaded due to increase in demand and inadequate
investment in the sector in the past 10 years.
 The state has a distribution network of 1, 44, 000 circuit kms of line network with
the transformation capacity of ~2800 MVA.3
 The transmission network of the State consists of 2300 CKT km of lines of different
1
Source: Jharkhand Energy policy, 2012
2
MW- mega Watt
3
MVA- Mega volt ampere
capacities and the transformation capacity of 2760 MVA.

 Household electrification level in the State is about 50-55% as against the national
average of about 60%.
 To achieve the national average per capita consumption, the State would require
over 2400 MW of new capacity with an investment of over Rs 12, 000 Cr.
 Jharkhand has vast reserves of coal, which needs to be channelized for power
generation. However, long term strategy should be adopted to move to hydel and
other non conventional energy resources.
OBJECTIVE OF THE STUDY
The objective of the study is to explore export potential of the state. Jharkhand carries the
vast potential for increasing the overall exports from the state in varied sectors. Under
mentioned are some of the strengths and key focus areas where future exports can be
increased from the state:
Rich Mineral Base: Jharkhand is the sole producer of coking coal, uranium and pyrite. It
ranks first in the production of coal, mica, kyanite and copper in India. The state has around
28% of the iron ore deposit of the entire country, 32% of the coal reserve, 25% of the
copper ore, 29% of the area covered under the forest, 40% of the countries mineral reserve
and 563 million tones of limestone. Forests and woodland occupy more than 29% of the
area in the state, amongst the highest in India.
Emerging agricultural sector: The economy of the state of Jharkhand gets its revenue
from Agriculture sector, as almost 75% of the population is involved in this sector. Various
kinds of cereal crops, fruits, vegetables and flowers are grown in the state.
Lac production: Jharkhand ranks first in lac production in the country. In 2009-10, the
state accounted major chunk (41.98%) in national lac production, followed by Chhattisgarh
(30.28%), Madhya Pradesh (14.49%), West Bengal (5.18%) and Maharashtra (3.15%). Top
districts in lac production are Simdega, Gumla and West Singhbhum.
SECTORS CONTRIBUTION TO GSDP EMPLOYEMENT GENERATION
Agriculture 13% 60%
Mining 14.29% 2.25%
Manufacturing 27.3% 9.80%
Source: Annual state plan report for Jharkhand 2011-12

Despite of having such ample raw materials in the form of minerals and agricultural
commodities, no sincere efforts have been applied so far to concentrate on value
addition and cater to the demand of international market so as to bring more revenue
to the state. Keeping this objective into mind, an export competitiveness report is
being drafted for Jharkhand, so that the state can equally participate in bringing
parity in the trade imbalance of our country by appropriate policy framework and by
removing infrastructural bottlenecks which are currently acting hindrances to the
State’s export.
METHODOLOGY
The methodology adopted for the study involved: -
FOCUSSED PRIMARY RESEARCH

 Initially, the products were identified from the state which either have large scale
manufacturing/production or large reserves if in case of minerals. An exclusive
questionnaire is then designed in order to take down inputs from exporters/
associations during field visits.
 Focused field visits were done to selected districts of Jharkhand namely Ranchi,
Khunti, Ramgarh, Lohardaga, Gumla, Simdega, Palamu, West Singhbhum, Saraikela,
East Singhbhum, Deogarh, Dumka, Sahebganj, Hazaribagh, Koderma, Giridih,
Dhanbad and Bokaro; each an emerging production/ export hub for a specific
product.
 The field visits involved contacting all the stakeholders comprising Manufacturers,
Exporters, Trade Promotion Bodies, Associations, Export Promotion Councils,
Importers, Buyers, Distributors and representatives from government. In the
primary research component, information was obtained from relevant individuals/
associations/ export promotion councils in each respondent category through
structured interviews/ discussions based on questionnaire circulated in advance.
SECONDARY RESEARCH
 Secondary research involved an extensive Desk Research and Secondary Data

Review which involved sectoral research, its performance at state, national and
international level.
STEP 1: The study used an indicator called Revealed Comparative Advantage to identify
sectors where Jharkhand should increase its focus based on India’s export comparative
advantage. The formula for RCA is as follows:-
RCA = (Xij / Xit) / (Xnj / Xnt)

Where “X” represents exports, “i” is a country, “j” is a commodity (or industry), “t” is a set of
commodities (or industries) and “n” is a set of countries. RCA measures a country’s exports
of a commodity (or industry) relative to its total exports and to the corresponding exports
of a set of countries. A comparative advantage is “revealed”, if RCA >1. If RCA is less than
unity, the country is said to have a comparative disadvantage in the commodity / industry.
On the basis of products identified in primary research, RCA is initially calculated at 2 digit
HS code level.
RCA CALCULATION AT NATIONAL LEVEL
(AT 2 DIGIT HS CODE LEVEL)
HS Products (selected as per India’s India's World World's total RCA
code Jharkhand) exports in total exports in exports in
particular exports in particular 2011
commodity 2011 commodity
in 2011 in 2011
Values in USD Mn
07 Edible vegetables and 1009.01 301483.25 61796.317 17855727.05 0.97
certain roots and tubers
08 Edible fruit, nuts, peel of 1449 301483.25 86490.585 17855727.05 0.99
citrus fruit, melons
10 Cereals 5371.01 301483.25 113811.23 17855727.05 2.80
12 Oil seed, oleagic fruits, 1853.86 301483.25 81461.584 17855727.05 1.35
grain, seed, fruit, etc, nes
13 Lac, gums, resins, 2270.83 301483.25 7863.339 17855727.05 17.10
vegetable saps and
extracts nes
25 Salt, sulphur, earth, 1599.46 301483.25 45731.61 17855727.05 2.07
stone, plaster, lime and
cement
50 Silk 259.747 301483.25 3385.594 17855727.05 4.54
69 Ceramic products 363.804 301483.25 44844.36 17855727.05 0.48
72 Iron and steel 7925.59 301483.25 471521.69 17855727.05 1.00
94 Furniture, lighting, signs, 901.083 301483.25 191892.84 17855727.05 0.28
prefabricated buildings
Source: ITC
On calculation, it is found that India has comparative advantage in cereals, oilseeds, lac,
cement, silk, and Iron and steel.
STEP 2: In order to study the comparative advantage of the specific commodity in

Jharkhand, It is further expanded it to 4 or 6 digit disaggregated HS code levels.
RCA CALCULATION AT 4 DIGIT DISAGGREGATED HS CODE LEVELS

(PRODUCT SELECTION AS PER COMMODITIES IDENTIFIED IN JHARKHAND DURING
PRIMARY RESEARCH)
HS code Product India’s India's World exports World's total RCA
description exports in total in particular exports in
particular exports in commodity in 2011
commodity 2011 2011
in 2011
Values in USD Mn
0713 Dried vegetables, 228.489 301483 8397.533 17855727.1 1.61
shelled
1301 Lac, natural gums 146.102 301483 714.336 17855727.1 12.11
and resins, gum
resins and balsams
2525 Mica including 49.911 301483 167.18 17855727.1 17.68
splittings, mica
waste
2504 Natural graphite 2.531 301483 599.21 17855727.1 0.25
6902 Refractory bricks, 107.991 301483 4547.037 17855727.1 1.41
blocks, tile etc &
sim refractory
ceram const good
nes
8708 Parts and 2756.614 301483 341253.089 17855727.1 0.48
accessories of
motor vehicles
RCA CALCULATION AT 4 DIGIT DISAGGREGATED HS CODE LEVELS

(PRODUCT SELECTION AS PER COMMODITIES IDENTIFIED IN JHARKHAND DURING
PRIMARY RESEARCH)
HS Product description India’s India's World World's RCA

code exports in total exports in total
particular exports particular exports in
commodity in 2011 commodity 2011
in 2011 in 2011
060390 Cut flowers and flower buds 25.642 301483 487.235 17855727.1 3.12
for bouquets and ornamental
purpose
070190 Potatoes, fresh or chilled, nes 35.317 301483 3459.378 17855727.1 0.6
070490 cabbages, Kohlrabi, Kale & 2.194 301483 1143.978 17855727.1 0.11
sim edible brassicas nes, fresh
or chilled
070410 Cauliflower and headed 0.164 301483 1131.328 17855727.1 0.01
broccoli, fresh and chilled
070960 Peppers of genus capsicum or 20.955 301483 4382.143 17855727.1 0.28
genus Pimenta, fresh or
chilled
070810 Leguminous vegetables, 0.424 301483 320.779 17855727.1 0.08

shelled or unshelled, fresh or
chilled nes
080132 Cashew nuts, without shell 893.373 301483 2616.248 17855727.1 20.22
fresh or dried
080450 Guavas, mango and 200.958 301483 1508.624 17855727.1 7.89
mangosteens, fresh and dried
091010 Ginger 55.246 301483 643.164 17855727.1 5.09
091030 Turmeric (curcuma) 194.4 301483 242.085 17855727.1 47.56
100630 Rice, semi milled or milled, 3983.311 301483 18521.186 17855727.1 12.74
whether or not polished or
glazed
120750 Mustard seeds whether or not 22.945 301483 246.522 17855727.1 5.51
broken
252329 Portland cement nes 190.791 301483 6698.335 17855727.1 1.69
500720 woven fabrics of silk/silk 187.837 301483 2056.959 17855727.1 5.41
waste, o/t noil silk,
85%/more of such fibres
940381 Furniture of bamboo or rattan 0.484 301483 202.498 17855727.1 0.14
(excl. seats and medical
,surgical, dent)
Source: ITC and FIEO analysis
On analyzing the comparative advantages at 4 and 6 digit disaggregated HS code levels, it is

observed that in horticulture sector, India has comparative advantage in dried vegetables,
Mangoes, guavas and Guavasteens, Ginger, Turmeric, Rice, Mustard, Cashew and cut
flowers. In other non agricultural commodities, India is enjoying comparative advantage in
Silk, Refractories and minerals like Mica.
Thus, on analyzing the revealed comparative advantage and present scenario of the
commodity (in the terms of production and manufacturing capacities, trade policy
environment, infrastructure etc) in Jharkhand, the commodities were further categorized
as existing and emerging ones with export potential.
Further, a comprehensive market review of a wide range of secondary data from

International trade centre (ITC) of world bank relating to each product was done at 4, 6 or
8 digit, disaggregated HS code levels. The world markets for those commodities were
studied which either have their manufacturing base in Jharkhand or have the production
capabilities (if in case of agricultural and horticultural commodities) or can emerge as an
important sector for exports promotion in Jharkhand. State Agricultural Developmental
Plans, Industrial policy of Jharkhand etc. were also studied to understand the direction
which state intends to take for various products in the terms of production or exports.
Here we are highlighting some of the major recommendations, sector wise which have
emerged during our interaction with stakeholders with respect to policy and
infrastructural improvements at centre and state level. However, the issues are discussed
more in detail in the subsequent chapters.
GENERAL ISSUES RECEIVED FROM ALL SECTORS

VAT  Exporters are facing problem in its refund. It should be made
online.
SERVICE TAX  Exporters are facing problem in its refund. Earlier exporters faced
problems due to excessive documentation. Now when it has been
made online, there are some issues with bankers at Ranchi so as to
bring it to full operation.
TRANSPORTATION  Transport subsidies should be provided for a land locked state like
SUBSIDY Jharkhand. The cost of diesel is also high due to 22% State Sales
Tax/VAT.
 State should provide the reimbursement of sales tax on diesel and
petroleum used in exports.
LABOUR LAWS  The Contract Labor (Regulation and Abolition) Act should be
amended at the state level, in order to employ labor on short term
(contract) basis in non-core activities, as per the requirement by
the organization.
INFRASTRUCTURE  Freight Corridor: Amritsar Kolkata industrial corridor had been
proposed which would connect Jharkhand to sea ports in Odisha
and West Bengal, since it would pass through Hazaribagh and
Dhanbad districts, the development of these districts are necessary
in order to enhance economic growth of the state.4
SET UP  An export promotion board is required to be set up at chief
secretary level for interdepartmental coordination.
 ICD, Ranchi needs to be developed as ICD Jamshedpur has been
closed down due to lesser traffic.
ROADS  Special attention should be laid on NH31 and NH 33, areas like
Bundughati, 40 km from Ranchi, turning at Chandil and
Baharagora. On NH 33, from Barhi to Barsole, the roads are badly
damaged, needs upgradation.
 Four laning work from Ranchi- Baharagora to Paradeep port/
Haldia port (stretch of NH 33) needs to be expedited.
 Four laning needs to be expedited from Ranchi to Jamshedpur, not
via Kandra (stretch of 10 km). It is double lane at present.
BANKING  Recently, MOU had been signed between DGFT and Delhi govt for
the use of electronic bank realization certificate which will help in
reducing transaction cost to exporters. It will establish a seamless
4
http://articles.timesofindia.indiatimes.com/2013-06-09/ranchi/39849053_1_delhi-mumbai-industrial-
corridor-eastern-dedicated-freight-corridor-dmic
electronic data interchange between bank, exporters and DGFT. It

is recommended that Jharkhand should also implement e- BRC in
its efforts to refund VAT and other related tax administrations.
MAJOR RECOMMENDATIONS FOR VARIOUS SECTORS- POLICY
POLICY INPUTS TAKEN FROM FIELD VISITS

AGRICULTURE RICE

Third party exports of rice are taking place in Jharkhand. Exporters are not
receiving VAT refund. It should be made online.
 Exporters are not receiving service tax refund. It should be made online.
Refund of service tax on actual basis needs to be expedited.
HORTICULTURE FRUITS AND VEGETABLES
 Incentive to farmers for use of ‘Pusa Zero Energy Cool Chamber' for on-
farm storage of horticultural crops. It can retain the freshness of the fruits
and vegetables for a short period.
 It is suggested that exports of commodities like Maize, Pulses, Potato,
Cabbage, Cauliflower, Peas should be included in VKGUY scheme.
FLOWER
 Infrastructure development subsidy should be announced for larger poly
houses. Himachal Pradesh is already extending 90 percent of the subsidy to
farmers for setting up of new poly houses.
SPICES
 Nodal agency: Nodal agency should be set up so as to provide on farm
knowledge and information.
HANDICRAFTS SILK
 Subsidies for testing: At present, azo free dyeing tests are performed in silk
products which are quiet expensive. Due to this, exporters have to bear
huge costs for getting their samples tested. Thus, for testing of Handloom
products, subsidies should be given.
 The sector is weighed down by several problems such as obsolete
technology. It’s up-gradation needs to be done under TUFS.
 TUFS scheme is at present covered for spinning and weaving processes
only, it should be covered for other segments like dyeing etc.
 Sampling and product development fund should be provided to exporters:
75% of the cost of development of sample or product development be
reimbursed to the unit by the state government and a planned scheme may
be drafted by the state.
ENGINEERING  Requirement of single window systems: Providing tax rebates or VAT
AND AUTO refund should be made online.
COMPONENTS  Capital subsidies: For MSME sector, 10% of the capital subsidy should be
raised to 25% for MSME sector. Any technology which is being
commercialized has a premium and MSME may find it difficult to pay such
premium on such hi-tech machines.
MINERALS MICA
 Mining should be legalized. At present, they are running on illegal basis.
Around 4,000 to 5,000 labours including children were engaged in the
illegal mica trade in the Koderma- Giridih zones in Jharkhand.
GRAPHITE
 Low import cost: Proper policy should be formulated for equalizing the
price difference. There is huge import for natural crystalline graphite flakes
and powder in India and that too at much lower cost. The imported
material is cheaper by 25% of the workable price.
IRON AND STEEL
 Subsidy may be provided for incremental increase in the volume of
employment in exports so that the same may be used by the Units in skill
development and training . The formula could be:
(Exports in last FY/Total production in last FY) X Workers

employed minus (Exports in a year preceding to last FY/Total
production in a year preceding to last FY)X Workers employed.
For every additional worker employed, Government should provide equivalent

amount arrived through wage entitlement of workers under MNERGA Scheme with
condition that the amount shall be used for training and skill development only.
MINERALS: REFRACTORIES
VALUE ADDED  Subsidies on transportation: Jharkhand being a landlocked state, subsidies
PRODUCTS on transport should be extended so as to balance out transport cost, remain
competitive and meet consignment commitments.
 Subsidy for Central Electricity Duty (CED), or any Indian taxes loaded in
High Speed Diesel (HSD): It should be provided for fuel for Gensets run by
exporting units.
 Interest free loans: Refractories is a labour intensive industry where fund
cost is very high; so claims are pending by exporters for service tax refunds
and duty drawback. Excise duty refunds can be provided by giving interest
free loans especially to SME sector. This can be done by submitting the
proof of filing claims with a particular department/ authority or a bank
comfort letter/ Bank guarantee in favour of State government as security to
refund/ diversion by respective refunding authority to reduce cost of funds
to exporting units.
 Availability of Raw Materials: The demand and supply for raw material e.g.
Coal (used in refractories) should get the highest priority for exporting
units. Presently, the refractory industry is facing with unbearable coal
shortages. Hence, special status should be given to coal/ coal bed methane
needs of SME units in accessing its coal consumption, availability of coal
quota in full every month and delivery of coal should be on top priority
from the coal mines.
 Creation of a fund bank: A fund bank can be created for
a) supporting MSME exporters to reduce total costs /delays/liquidity
problems of exporters,
b) For technology up gradation, modernization, diversification, creating

testing & QA facilities for financing as loans/Equity venture funds.
MAJOR RECOMMENDATIONS FOR VARIOUS SECTORS- INFRASTRUCTURE
INFRASTRUCTURE INPUTS TAKEN FROM FIELD VISITS, SECTORWISE

AGRICULTURE RICE
 Testing facility for bran: Facilities for testing rice along with bran is needed.
For rice testing, moisture content and average length of rice is tested, the
testing equipment of which are quite cheaper. But for bran testing, oil
content and presence of free fatty acids needs to be tested, the equipments
for which are expensive.
 Modernisation of rice mills: Conventional mills are required to be
modernized to get the recovery of higher percentage of head rice suitable
for export.
HORTICULTURE FLOWER
 Testing facility: Enhanced soil testing facility at Ranchi should be created.
It should be well equipped with modern equipment facilities.
 Cold chain: Cold chain and storage facilities near Ranchi airport is required.
Small containers should be made available in Ranchi air cargo complex.
 In order to boost floriculture sector, multi brand retail outlets should be
opened up so as to develop strong backward and forward linkages.
 Air connectivity: Exporters face problems while airlifting the flowers from
Jharkhand to Kolkata international airport because there are no regular
flight services from Jharkhand to Calcutta. Due to lack of international
airport in Jharkhand, flowers are first sent to Kolkata international airport,
but from Kolkata, there is no proper flight connectivity. Number of flights
should be increased from Jharkhand to Kolkata as well as proper
connectivity should be given from Kolkata international airport so as to
expand the markets. At present flowers are generally getting exported to
Middle East.
SPICES
 Requirement of testing lab: There is a requirement of a testing lab for
spices.
 Post harvest management: Proper post harvest practices should be
adopted for spice cultivation. Facilities at the grading and packing centers
should be provided.
FRUITS/ VEGETABLES
 Food parks needs to be set up with common processing facilities (like R&D,
cold storages, laboratory, pack houses, laboratory for food testing, effluent
treatment plant, power and water supply) should be linked with a well
established supply chain.
 Since Jharkhand carries its key excellence in vegetable production, there is
need to set up organized markets so that farmers could get better
remunerative prices and exports can be boosted further.
HANDICRAFTS SILK
 Dyeing and finishing units: More number of dyeing and finishing units need
to be set up in the state as weavers face problems with manual dyeing
because of lack of uniformity.
 Reeling units: At present, 3000 reeling machines are being installed in
Jharkhand. More number of reeling machines should be installed in order
to improve quality of yarn. This will increase exports in future.
 Air cargo complex needs to be set up at Ranchi airport. This would provide
boost to export oriented subsidies, especially those operating in the area of
high value and perishable commodities.
BAMBOO
 Technology up gradation: Technology application for new product design
needs to be done. This will further encourage setting up of manufacturing
units. There is a requirement of common facility centre for bamboo
artisans.
 R&D should be encouraged for the production and productivity and for
enhancing acreage in forest and non forest area.
LAC
 Price support scheme on the pattern of minimum support price may be
extended to LAC producers to save from the international price
fluctuation.
Special incentive to producer of value added products in specified markets

as has been done for coffee under the scheme “export promotion of coffee
during XI th plan period” which is likely to be extended under XII th plan
period.
ENGINEERING  Setting up an authority on Infrastructure development: There is a
AND AUTO requirement to set up an infrastructural development authority so as to
COMPONENTS attract private investments in the state.
 Setting up of ICD at Ranchi: ICD, Ranchi needs to be developed as ICD
Jamshedpur has been closed down due to lesser traffic.
MINERALS MICA
 Jharkhand is contributing 60% of the Mica reserves, more number of
factories should be set up in order to encourage exports. Fabricated and
value added mica products should be developed like mica paper, micanite
sheets and mica based paper.
RECOMMENDATIONS FOR MSME SECTOR
POLICY
INCENTIVES  Equal or more liberal incentives should be given to MSMEs than to large scale
industries by State Govts. Incentives granted to MSMEs are being withdrawn
one after another. On the other hand, large industries are being given more
and more liberal incentives.
DUTIES  While manufacturing, MSME should be entitled with duty free inputs. Final
product manufactured by MSME should also be at concessional rate of duties.
INFRASTRUCTURE
SET UP  New Industrial Estates and Industrial Areas should be constructed and old
estates and areas should be expanded for MSMEs. In Jharkhand, large number
of steel plants is demanding 6,000 acres land respectively. Instead of 6,000
acres, 6,600 acres should be acquired and 600 acres land near each steel
plant should be given to the Industries Department of Jharkhand Govt. for
constructing Industrial Areas and Industrial Estates for MSMEs.
LAND  Micro & Small Enterprises should be given land at the same rate, terms and
AQUISITION conditions on which land is given to Large Industries in that State. Land
should be reserved in the ratio of 40% for Micro & Small Enterprises and
60% for Medium and Large Industries or as considered desirable.
BANKING
CREDIT LIMIT  Credit limit should be increased by Banks for well-performing MSMEs
without extra collaterals and 3rd party guarantees. MSME’s should get
enhanced credit and thus credit limit should be increased by 20% every year.
 Credit limits to be increased upto Rs. 3 crores, instead of ceiling of Rs. 1 crore
of the Credit Guarantee Fund at present.
 Automatic renewal of limit for performing unit should be done, without
premium.
LIMITATIONS OF THE STUDY
 During primary data analysis: Our teams did encounter problems as there is no
commodity specific board/ association in Jharkhand with respect to agriculture and
horticulture commodities. Moreover, as the potential of agriculture and horticulture
sector of Jharkhand is still untapped/ unrealized, so we could not meet the specific
exporters. So the inputs have been received by producers and unorganized units.
 During secondary data analysis: Some of the commodities eg Chilli is categorized
at 8 digit disaggregated HS code, but we have analysed it to 6 digit disaggregated
code only so as to study and compare India’s exporting destinations and leading
world importers.
PART I
EXISTING SECTORS
WITH
EXPORT POTENTIAL
CHAPTER 1 AUTO COMPONENTS AND ENGINEERING

A. ENGINEERING SECTOR IN INDIA
The Engineering sector is a diverse industry with a number of segments and can be broadly
categorized into two segments - heavy engineering and light engineering. The engineering
sector is relatively less fragmented at the top, as the competencies required are high, while
it is highly fragmented at the lower end e.g ( unbranded equipments and machinery for the
retail segment) as is dominated by small players.
The heavy engineering goods account for the bulk of production. Most of the leading
players are engaged in the production of heavy engineering goods. The requirement of high
level of capital investment poses a major entry barrier. Consequently, the small and
unorganized firms have a small market presence.
EXPORT OF ENGINEERING GOODS & SERVICES DURING 2010-11 TO 2011-12

Value in US $ Million
SL. GROUP-WISE EXPORT 2010-11 2011-12 Growth %
1 Capital goods 23173.64 28648.9 23.63
2 Consumer durables 7839.56 10244.69 30.68
3 Non-ferrous metals & products 6638.76 5556.09 -16.31
thereof
4 Primary iron & steel & items 14028.13 15658.54 11.62
thereof
TOTAL 51680.09 60108.22 16.31
Source: Engineering Export Promotion Council of India
From the period of 2010-11 to 2011-12, the highest growth was registered under
consumer durables followed by Capital goods and primary iron and steel items. The sector
registered a growth of 16.31% in total from 2010-11 to 2011-12.
B. GROWTH OF INDIAN ENGINEERING EXPORTS
As clearly depicted from the graph below, the exports of engineering sector were
continuously increasing from 1975-76 to 2008-09. However in 2009-10, the growth
declined due to global recession but from 2008-09 to 2012-13, the sector recorded a
positive CAGR at 7.2%.
70000
60000 CAGR- 7.2% 60108

56763
50000 51680
40000 40094
33749 33739
30000
20000
10000
3781
0 468 834
1975-76 1985-86 1995-96 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Source: Engineering export promotion council & FIEO analysis
CAR EXPORTS FROM INDIA
During April-March 2012, the industry exported 2,910,055 automobiles registering a

growth of 25.44 percent. Passenger Vehicles registered growth at 14.18 percent in this
period. Commercial Vehicles, Three Wheelers and Two Wheelers segments recorded
growth of 25.15 percent, 34.41 percent and 27.13 percent respectively during April-March
2012. For the first time in history car exports crossed half a million in a financial year.5
Automobile Exports Trends

4,000,000
3,000,000
2,000,000 Automobile Exports Trends
1,000,000 (Number of Vehicles)
0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Source: Society of Indian Automobile Manufacturers (SIAM)
C. PRODUCT ANALYSIS
The HS code 8708 is selected for further analysis because in Jharkhand there are several
ancillary units which are involved in the manufacturing of auto components and parts.
5
Source : Society of Indian Automobile Manufacturers (SIAM)
PRODUCT PRODUCT DESCRIPTION WORLD TO WORLD INDIA'S EXPORTS INDIA'S SHARE

CODE IMPORTS TO WORLD (%)
2010 2011 2010 2011

Values in USD Mn
8708 Parts & access of motor 279969.3 331937.6 1923.6 2756.6 0.7 0.8
vehicles
INDIA’S EXPORT PERFORMANCE
PRODUCT PRODUCT DESCRIPTION 2007 2008 2009 2010 2011 CAGR
CODE (%)
8708 Parts & access of motor 1356.8 1591.6 1167.9 1923.6 2756.6 19.38
vehicles
Source: ITC & FIEO analysis
In value terms India’s exports in part and accessories of motor vehicles increased from USD
1923.6 Mn in 2010 to USD 2756.6 Mn in 2011. India’s share in exports of parts and
components of motor vehicles to the world rose from 0.7% to 0.8% from 2010 to 2011. The
same commodity registered a CAGR of 19.3% from 2007-2011.
INDIA’S TOP EXPORT DESTINATIONS

HS CODE: 8708, Parts and accessories of motor vehicles.
(Values in USD Mn)
India’s markets 2009 2010 2011
World 1167.859 1923.628 2756.614
United States of 280.683 507.695 682.573
America
Turkey 22.781 150.017 222.488
Thailand 86.39 162.946 205.399
Italy 68.721 107.074 177.957
Germany 84.364 106.323 174.822
United Kingdom 59.568 102.754 153.235
Mexico 32.559 35.656 104.103
Brazil 35.527 70.768 98.134
China 21.26 37.22 73.012
France 38.022 58.88 72.538
Source: ITC
In 2011, USA, Turkey and Thailand were the top three exporting destinations, accounting
24.8%, 8.1% and 7.5% to the total exports to world by India.
TOP IMPORTERS IN THE WORLD

HS CODE: 8708, Parts and accessories of motor vehicles.
(Values in USD Mn)
World 2009 2010 2011
Importers
World 215599.9 279969.3 331937.6
United States of 29892.79 43390.81 50217.68
America
Germany 22385.52 27064.32 33690.8
China 12394.19 17984.58 21163.57
Canada 13127.96 17824.63 19419.59
Spain 13481.96 14798.59 17676.05
Mexico 10793.01 14774.62 17600.88
United Kingdom 9555.373 13004.33 15117.76
France 10994.87 12105.58 13721.55
Belgium 7836.175 9030.529 10765.95
Russian 2802.673 5496.866 8788.059
Federation
Source: ITC
The top three importers of parts and accessories of motor vehicles in 2011 were USA,
Germany and China accounting to 15.1%, 10.1% and 6.4% respectively to the total imports
by world. On matching India’s top exporting destination with leading importers in world,
countries like Canada, Spain, Belgium and Russian Federation can emerge as future
markets.
ANALYSING INDIA’S EMERGING MARKETS
Countries Year Total imports Country’s India’s share in

from world (in import from Country’s total
USD Mn) India (In USD imports of
Mn) selected
commodity (in
%)
Canada 2011 19419.58 51.55 0.3
Spain 2011 17676.05 23.9 0.1
Belgium 2011 10765.95 52.73 0.5
Russian Federation 2011 8788.05 32.54 0.4
Source: ITC
OBSERVATIONS
It is observed that India’s export share in Canada, Spain, Belgium and Russian
Federation had been very low in 2011. It is noteworthy that these countries have huge
requirements from world. So India needs to increase its export share in all these
countries.
Export Com
D. TOP EXPORTER
E RS OF AUTO
O COMPONE
ENTS IN WO
ORLD
In 2011,, the total exports

e of parts
p and acccessories of
o motor veehicles in 20011 were worth
w
USD 341 1253.08 Mn n. India acccounted forr a mere 0.8%
0 share (USD 2756 6 Mn) of world
w
exports in parts and accessoriies of motorr vehicles. India
I was ranked
r 25th in 2011, where
w
the som
me of its com mpetitor coountries weere German ny, USA, Japan, China,, Brazil, Meexico,
Poland, Czech
C repubblic and Hun
ngary.
Top 5 co
ountries in th
he world exporting parts and
acccessories of motor vehiclles in 2011
(HS Code: 8708); Sourcce: ITC
%
China, 6.0%
Republic of
Korea, 6.3%
German
ny, 15
.7%
%
Japan, 11
1.0
%
USA, 11.0
0%
The main
n reasons fo
or this posittion are:-
i) Low outp put to expo

ort ratio (2
24% for Ind
dia vis-à-viss 30% for other Indiaa like
countriess).
ii) Low techhnology inttensity of engineering

e exports (sshare of higgh and med
dium
technologgy- 62% forr India vis-àà-vis 71% fo
or India’s competitors)..
NEERING IN
E. ENGIN NDUSTRY IN JHARKHA
AND
Jharkhannd has sev veral large engineerinng and min ning industtries. A nuumber of heavy
h
engineerring companies locatedd in the state produce equipmentts and provide turnkey y and
consultin
ng servicess to the exxisting metaal and min ning industtry. The staate also haas an
expandinng automottive industrry which inccludes origiinal equipm
ment manufa facturers as well
as auto componentt production units. Mo ore than 6000 auto anccillary indu
ustries inclu
uding
auto com
mponents units
u have been
b set up
p; subsequeently at Jammshedpur an nd Adityapuur to
cater to
o the need ds of autom mobile com mpanies. Au uto compon nents whicch produceed in
Jharkhannd range frrom simplee items likee nuts and d bolts to complex
c iteems like Shhafts,
Radiatorrs and Axless.
F. NON TARIFF BARRIERS IMPOSED BY DIFFERENT COUNTRIES
Country Non tariff barrier
Latin American  Problems with regard to technical certification in various countries.

Countries
China  China has FTA’s with a no. of countries while India either does not have or at
best has a preferential trade agreement which is insufficient for Indian
engineering goods to be competitive with Chinese engineering goods
Chile  India’s auto exports are negatively affected as India has a PTA where it still
has to pay additional customs duty of 6% while all major auto exporting
countries have FTA’s with Chile.
Engineering goods
European  CEMEP standards, machinery tolerance increases cost of compliance, CE

commission marking, Low Voltage Directive and Electromagnetic Compatibility Directive.
 lack of harmonised customs and trade administration in terms of
classification, valuation, origin and customs procedures
United States  Inspection procedure for detection of bugs which is cost prohibitive (5-7% of
the CIF value of US imports)
Korea  Testing and certification regimes adopted by them are highly restrictive in
terms of procedures, time frames and cost of compliance
AUTOMOBILES
Chile  Luxury tax @ 70-80% if CIF > $ 15,740.
Colombia  Import license for used goods only if domestically not produced
 Screening / prior approval for imports
 Indicative / estimated / reference prices for protecting domestic industry
G. ISSUES AFFECTING ENGINEERING SECTOR IN JHARKHAND
 VAT refund: Online VAT refund process has not been implemented. In the absence
of refund, huge amount of working capital is locked up in un-refunded/unutilized
VAT. This is entailing cost detrimental to the financial position of the company. It
should be made online.
 Problems in availing finance: Exporters from SME segment are facing problems in
availing adequate and timely finance on competitive terms all across Jharkhand.
 Road transport: The trailer loaded with container is detained for MVI (Manual
Verification Interface) verification and certification for its longer size, whereas all
trailers and containers made are of standard size and weight. This causes delay in
exporting the consignment and loss to the exporter. Also the consignment is left on
the road side for damage or pilferage.
 Inadequate Power Infrastructure: Many parts of the state including the capital
face acute power shortage and prolonged power cuts owing to the breakdowns in
the state-owned Tenughat Vidyut Nigam Limited and Patratu Thermal Power
Corporation. The two power plants frequently develop technical snag due to poor
maintenance. In 2012, Adityapur industrial area suffered production loss of over Rs
25 crore owing to the power failure.
RECOMMENDATIONS
POLICY  Requirement of Single window systems: Providing tax rebates or
refunding VAT should be facilitated through single window
systems.
 Friendly Labour Laws: The Contract Labor (Regulation and
Abolition) Act should be amended at the state level, in order to
employ labor on short term (contract) basis in non-core activities,
as per the requirement by the organization.
 Capital subsidies: for MSME sector, 10% of the capital subsidy
should be raised to 25% for MSME sector. Any technology which
is being commercialized has a premium and MSME may find it
difficult to pay such premium on such hi-tech machines.
 Regulations: Proper regulation should be established for MVI
verification and certification so that consignments do not get
delayed. Authorities should be instructed to adhere to it strictly.
 Ensuring location based tax exemptions and barriers to
interstate movement of goods
 Land should be allocated on additional priority to export oriented
units as there is scarcity of land.
 Subsidy may be provided for incremental increase in the volume
of employment in exports so that the same may be used by the
Units in skill development and training . The formula could be:
(Exports in last FY/Total production in last FY) X Workers

employed minus (Exports in a year preceding to last FY/Total
production in a year preceding to last FY)X Workers employed.
For every additional worker employed, Government should provide

equivalent amount arrived through wage entitlement of workers under
MNERGA Scheme with condition that the amount shall be used for
training and skill development only.
INFRASTRUCTURE  Setting up an authority on Infrastructure development: There is a

requirement to set up an infrastructural development authority so
as to attract private investments in the state.
 Modernisation of Ranchi airport: Ranchi airport needs to be
modernized as per the international standards.
 Setting up of ICD at Ranchi: ICD, Ranchi needs to be developed as
ICD Jamshedpur has been closed down due to lesser traffic
 Dedicated Department for Export and Marketing under Industries
Department: There is a need for the line departments to provide
timely information and technical support to investors on
international focus markets.
 Display centres needs to be constructed: There is a need for one
International Standard Convention Centre at Ranchi to showcase
Products of Jharkhand. Buyer seller meeting platforms should be
frequently organized.
 Power: With respect to inadequate power infrastructure, over head
cables should be replaced by underground cables and transformers
needs to be repaired. Availability of reliable and quality power
supply should be there.
Export Com
CHAP
PTER 2 M
MINERA
ALS
A. MINERAL
M SE
ECTOR IN INDIA
The country is endowed with hugee resources of many metallic an nd non-metallic

mineerals. Mininng sector is i an impo ortant segmment of thhe Indian economy.
e S
Since
indeppendence, there
t has beeen a pronoounced growwth in the mineral
m prooduction bo oth in
term
ms of quantitty and valu ue. India prooduces as many
m as 87 minerals, which
w inclu
ude 4
fuel, 10 metallicc, 47 non-mmetallic, 3 attomic and 23
2 minor minerals
m (inccluding buillding
and other
o materrials).
PIE CHART SH
HOWING SHAR
RE OF STATE
ES IN VALUE OF
O MINERAL PRODUCTION
P N 2012-13
(ES
STIMATED)
Meghala
aya Jh
harkhand &K Andhra Pra
J& adesh Ma adhya
3.5% 1.6% 0..5% 0.3% Prradesh
Assam 0
0.2%
3.8%
Rajassthan
Odisha 20.66%
6%
Trripura
5.7%
5
Tamil Nadu
6.3%
Chattisgarh
West Bengal 18.6%
11
1.8%
Source: Ministry of Mines,

M Annual report 2012
2-13
State-wise analysis revealed th

hat during 2012-13, thee value of mineral production havee
shown a mixed treend as compared to th hat in the previous
p yeear. The Staates which have
indicated
d an increease in th he value of mineral production n are Rajaasthan (20..6%),
Chhattisgarh (18.6%%), West Bengal
B (11.8
8%), Tamil Nadu(6.3% %), Tripura (5.7%), Od disha
(4.7%), Assam (3.8 8%), Meghaalaya (3.5%%), Jharkhan nd (1.6%), Jammu
J & Kashmir
K (0..5%),
Andhra Pradesh (0 0.3%) and Madhya Prradesh (0.2 2%). Howev ver, some ofo the prinncipal
mineral-producing States have shown decrease in value of mineral production that include
Karnataka (52.3%), Himachal Pradesh (16.3%), Arunachal Pradesh (8.8%), Goa (6.9%)
and Bihar (4.3%).
B. MINERAL RESERVES IN JHARKHAND
Jharkhand is one of the leading producers of coal, kyanite, gold, silver, bauxite and felspar.
Jharkhand accounts for about 36% rock phosphate, 29% coal, 29% iron ore (hematite),
30% apatite, 22% andalusite, 18% copper ore and 5% silver ore resources of the country.
Important minerals occurring in the State are:-
 Bauxite in Dumka, Gumla, Lohardaga and Palamau districts;
 China clay in Dumka, Hazaribagh, Lohardaga, East & West Singhbhum, Sahebganj
and Ranchi districts;
 Coal in Bokaro, Deoghar, Dhanbad, Giridih, Godda, Hazaribagh, Palamau, Pakur, and
Ranchi districts;
 Copper in Hazaribagh and East Singhbhum districts;
 Dolomite in Garhwa and Palamau districts; felspar in Deoghar, Dhanbad, Dumka,
Giridih, Hazaribagh, Koderma and Palamau districts;
 Fireclay in Dhanbad, Dumka, Giridih, Godda, Hazaribagh, Palamau, Ranchi and West
Singhbhum districts;
 Gold in East Singhbhum district; graphite in Palamau district;
 Iron ore (hematite) in West Singhbhum district; iron ore (magnetite) in Gumla,
Hazaribagh, Palamau and East Singhbhum districts;
 Kyanite in East & West Singhbhum districts;
 Limestone in Bokaro, Dhanbad, Garhwa, Giridih, Hazaribagh, Palamau, Ranchi, East
& West Singhbhum districts;
 Manganese ore in East & West Singhbhum districts;
 Mica in Giridih and Koderma districts; ochre in West Singhbhum district;
 Dunite/ Pyroxenite in East Singhbhum district;
 Quartz/Silica sand in Deoghar, Dhanbad, Dumka, Giridih, Godda, Hazaribagh,
Koderma, Palamau, Ranchi, Sahebganj, East & West Singhbhum districts; and
 Quartzite in East & West Singhbhum districts.
The total value of mineral production in Jharkhand during 2010-11 has been is 3.64 USD
bn, which got increased by 6.35% last year. The state is claiming fourth position in the
country accounting for 7.72% of the total value of mineral production.
Mineral producing districts in Jharkhand

Alumina Ranchi
Iron and Steel Bokaro, East Singhbhum
Pig Iron East Singhbhum
Sponge Iron Saraikela, Kharsawan
Source: Department of mines and geology, government of Jharkhand, 2011-12
MINERAL PRODUCTION IN INDIA vis-à-vis JHARKHAND (in million tonnes)

Mineral 2008-09 2009-10 Jharkhand's Jharkhand's
resources share (2008- share (2009-10)
India Jharkhand India Jharkhand
09)
Coal 492.75 96.27 532.06 105.93 19.53 19.90
Iron ore 212.96 21.2 218.63 23 9.95 10.52
Limestone 221.56 1.94 228.63 1.91 0.87 0.83
Bauxite 15.55 1.58 13.95 1.66 10.16 11.89
Graphite 0.11 0.01 0.10 0.02 9.09 20.00
Source: Department of Mines and Geology, Government of Jharkhand, 2011-12
From the above table, Jharkhand’s contribution was the highest in Coal, Bauxite, Graphite
and Iron ore in the year 2009-10 in India’s overall production.
2.1 IRON AND STEEL
A. STEEL PRODUCTION IN INDIA
The Indian steel industry has entered into a new development stage from 2007-08, riding
high on the resurgent economy and rising demand for steel. Rapid rise in production has
resulted in India becoming the 4th largest producer of crude steel and the largest producer
of sponge iron or DRI (direct reduced iron) in the world.
Indian steel industry : Production for Sale (in million tonnes)
Category 2007-08 2008-09 2009-10 2010-11
Pig Iron 5.28 6.21 5.88 5.68
Sponge Iron 20.37 21.09 24.33 25.08
Total Finished Steel 56.07 57.16 60.62 68.62

(alloy + non alloy)
Ministry of Steel, Govt of India
B. PRODUCT ANALYSIS
PRODUCT PRODUCT WORLD TO WORLD INDIA'S EXPORTS TO INDIA'S SHARE

CODE DESCRIPTION IMPORTS WORLD (%)
2010 2011 2010 2011
Values in USD Mn
72 Iron and steel 392228.91 478364.403 6996.228 7925.589 1.8 1.7
PRODUCT PRODUCT 2007 2008 2009 2010 2011 CAGR
CODE DESCRIPTION (%)
72 Iron and steel 5983.152 8198.676 4386.433 6996.228 7925.589 7.2

India’s share in exports of iron and steel to the world registered a decline of 5.5% from
2010 to 2011. But CAGR registered a positive percentage growth of 7.2% from 2007 to
2011.
INDIA’S TOP EXPORT DESTINATIONS

HS CODE:72- IRON AND STEEL
(values in USD Mn)
World 4386.433 6996.228 7925.589
China 420.599 739.791 645.338
United States of America 214.221 427.001 551.045
Belgium 160.393 600.399 512.247
United Arab Emirates 275.186 361.282 460.217
Italy 273.858 384.017 458.49

Republic of Korea 160.738 317.66 447.036
Germany 75.781 163.483 251.059
Saudi Arabia 73.193 154.661 228.512
Japan 110.693 384.289 224.433
Chinese Taipei 47.958 162.71 214.651
Nepal 150.766 198.28 211.496
Source: ITC
China, USA and Belgium were the top three exporting destinations for India in 2011. India’s
export share to these three countries in 2011 was 10.6%, 6.15 and 8.1% respectively.
TOP IMPORTERS IN WORLD

HS CODE:72- IRON AND STEEL
(values in USD Mn)
World Importers 2009 2010 2011
World 289753.612 392228.91 478364.4
Germany 21446.815 29386.724 38189.09
United States of 13052.702 22517.939 29630.15
America
China 27816.485 25326.244 28380.64
Italy 13083.629 19376.132 24903.9
Turkey 11340.993 16118.937 20424.25
France 11406.94 14462.069 18111.55
Belgium 9442.104 12521.775 16707.2
Netherlands 7380.973 10116.423 13294.86
Spain 7603.827 10492.806 13123.77

Source: ITC
The top three importers of iron and steel in 2011 were Germany, USA and republic of
Korea, with an import share of 8%, 6.2% and 5.9% respectively. On matching the top
importers in the world with India’s exporting destinations, it is found that countries like
Turkey, France, Netherlands and Spain serve as emerging markets for India in future.

from world(in import from Country’s total
USD Mn) India (In USD world imports
Mn) (in %)
Turkey 2011 20424.25 182.60 0.9

France 2011 18111.54 77.18 0.4
Netherlands 2011 13294.86 102.03 0.8
Spain 2011 13123.76 172.87 1.3
Source: ITC
OBSERVATIONS
It is observed that India’s export share in Turkey, France, Netherlands and Spain had
been 0.9%, 0.4%, 0.8% and 1.3% respectively. These countries had high requirement
from world, but India’s exports to all these countries had been miniscule. So India
needs to increase its export share in all these countries. Since India enjoys free trade
agreement with European Union, this product should be placed under major
concessions.
C. TOP EXPORTERS OF IRON AND STEEL IN THE WORLD
The top 5 countries exporting iron and steel to the world in 2011 were Japan, China,
Germany, Republic of Korea and USA. World exports of iron and steel industry in 2011 was
worth USD 471521.69 Mn, out of which exports from India were worth USD 7925.58 Mn,
holding the share of 1.75% to the total exports to the world.
Export Com
Pie chart sho

owing top 5 countries
c
exporting irron and steel to the world in 2011; Sou
urce: ITC
USA,, 5.4%
Japan, 8.9%
Republic of
Korea, 5.8
8%
na, 8.5%
Chin
Germa
any, 7.
6%
%
D. STEEL
L PRODUCT
TION IN JHA
ARKHAND
Steel prooduction in the State has

h increaseed from 8 million
m tonnnes (MT) to over 12 miillion
tonnes per
p annum during
d the 11th
1 Plan peeriod. Jhark
khand is preesently prod
ducing abouut 20-
25% of total
t steel being producced in the coountry. With the propo osed expanssion of a num
mber
of integrrated steel plants, the State will be
b producin ng over 25 MT of steeel and thus,, will
become a steel-hub b of India. Even
E variou
us types of auto grade steels, whiich were eaarlier
mported, are now bein
being im ng produced within th he State6. Similarly
S the productioon of
alumina in the Statee has increaased from abbout 80,000 0 metric ton
nnes to overr 200,000 metric
m
tonnes.
E. NON TARIFF
T BAR
RRIERS
Produ uct Couuntry Non n tariff barrrier

Stainleess Steel Barrs Braazil Midd term review w of CVD (Co ountervailingg duty)
Steel Korrea Anttidumping du uty initiated on 21.06.07
Articlees of iron andd steel Arggentina If price
p below MIP,
M importeer to validatee invoice fro om
Cusstoms in orrigin country y and subm mit full set of
origginal documeents
Steel and
a castings EC Raddioactive conntamination caused
c by Co
obalt 60
F. ISSUE
ES AFFECTING STEEL SECTOR
S IN JHARKHAN ND
 High
H intereest rates: Interest
I ratte on INR borrowings is 13% at a present. The
in
nternal cred
dit rating po
olicy of bannks are nott transparennt. This is one
o of the major
m
problems wh hich MSME sector is faccing with.
 Innterest Subbvention: MSME
M is en
ntitled to In
nterest subvention, bu ut the exporters
have not reeceived intterest subv vention fromm Aug 2009 to Marrch 2011. Also,
6
Jharkhand Industrial po
olicy, 2012
availability of export financing products is not made known to exporters by the

bank. PCFC credit, Buyer’s and supplier’s credit are not available. There is lack of
knowledge upfront.
 Non refund for VAT: Exporters are not receiving VAT refund at present. The reason
for this is lack of proper rules and regulations for JVAT. It should be made online.
 Unmotorable Road condition: The road leading from Ranchi to the Kolkata port is
deteriorated in the sense that it takes 28-36 hours instead of 12 hours to cover the
distance of 400 kms. Four laning should be expedited.
 Unreliable power supply: There is no reliable power supply available from JSEB.
The demand and supply mismatch in the power sector of Jharkhand is worsening
the situation. The electricity requirement in 2009-10 was 6,833 MU whereas the
actual energy available from the generation was 2,945 MU. There is a shortfall being
3,888 MU i.e., 56.9 per cent of the requirement.7
RECOMMENDATIONS
POLICY  Friendly Labour Laws: The Contract Labour (Regulation and
Abolition) act should be amended at the state level, in order to
employ labour on short term (contract) basis in non-core
activities, as per the requirement by the organization.
 Subsidies for transport: Transport subsidies should be provided
for a land locked state like Jharkhand. The cost of diesel is also
high due to 22% State Sales Tax/VAT.
 Capital subsidies: For technology up gradation in MSME sector,
10% of the capital subsidy is given at present. It should be
increased to 25%.
 Interest Subvention: Interest subvention should be increased to
further 4% for MSME sector and 2% for large scale industries.
RBI should re-iterate its upfront.
 Overseas vendor development may be implemented under MAI
scheme so that overseas buyer can visit the state and identify the
supplier. The ambit of the Reverse Buyer Seller Meet may be
extended to provide for the same. DOC , GOI may be asked to do
the needful by amending MAI guidelines.
INFRASTRUCTURE  Requirement of ICD: There is a requirement of ICD in Ranchi as
ICD in Jamshedpur is closed due to lesser traffic. The
consignments are directly taken to Paradeep port in Kolkata via
Durgapur.
 Trade facilitation centres: Requirement of trade facilitation
centres for exports promotion.
 Up gradation of tool rooms: Tools rooms are there but there are
not being utilized completely for export purpose.
7
http://www.business-standard.com/india/news/jharkhandpower-board-holds-surplus-power-to-meet-state-
demand/481776/
2.2 MICA
A. MICA PRODUCTION IN INDIA
The mica production in India had been confined to Bihar, Andhra Pradesh and Rajasthan
which contribute 60%, 30% and 10% respectively. Mica is being considered as an
important strategic mineral because of its excellent insulating properties and high-heat-
resistance capacity. Chemical, Pharmaceutical and Paint industries are the main consumers
of mica. India accounts for a major portion of the world’s export of block mica and mica
splitting. Mica is exported in huge bulk from this country. India contributes 90% of the
world’s total production of mica.
B. PRODUCT ANALYSIS
Product Product description WORLD TO WORLD INDIA'S EXPORTS INDIA'S SHARE
code IMPORTS TO WORLD (%)
2010 2011 2010 2011
Values in USD Mn
2525 Mica, including 197.25 213.38 38.41 49.91 19.5 23.4
splittings; mica waste
Product Product description 2007 2008 2009 2010 2011 CAGR
code (%)
2525 Mica, including 18.512 30.21 25.557 38.414 49.911 30.0
splittings; mica waste
Indian exports of Mica, including splittings and waste have increased in 2011 as compared
to previous year. The CAGR also reported a positive growth of 30% from 2007-2011.
INDIA’S TOP EXPORTING DESTINATIONS

HS CODE 2525: MICA, INCLUDING SPLITTING AND MICA WASTE
(Values in USD Mn)
World 25.557 38.414 49.911
China 12.527 22.41 26.379
Belgium 2.059 3.571 5.459
Japan 2.926 3.208 4.079
Finland 0.58 1.133 1.704
Germany 0.336 0.539 1.211
France 0.083 0.039 0.998
Russian Federation 0.333 0.57 0.9
Ukraine 0.026 0.031 0.613
Saudi Arabia 0.282 0.394 0.567
Source: ITC
The top three export destination for India in 2011 were China, Belgium and Japan holding
the share of 52.9%, 10.9% and 8.2% to the total exports by India to the world.

HS CODE 2525: MICA, INCLUDING SPLITTING AND MICA WASTE
(Values in USD Mn)
World 148.322 197.251 213.383

China 23.75 39.686 43.403
Japan 29.62 34.259 35.882
Germany 18.317 20.15 23.66
United States of 12.873 21.821 18.585
America
Netherlands 3.561 7.77 8.087
France 3.704 4.639 5.417

Italy 3.82 5.139 5.274
Singapore 1.149 1.172 5.236
Belgium 6.583 4.168 5.148
Source: ITC
Top countries importing mica, including splitting and waste in 2011 were China, Japan and
Germany with an import share of 20.3%, 16.8% and 11.1% from total world imports.
On matching India’s top exporting destinations with leading importers in the world, it is
found that countries like Netherlands, Republic of Korea, Italy, Singapore can become the
emerging markets for India.

USD Mn) India (In USD imports from
Mn) World (in %)
Netherlands 2011 8.087 0.076 0.9
Republic of 2011 7.682 0.770 10
Korea
Italy 2011 5.274 0.104 2
Singapore 2011 5.236 0.077 1.5
Source: ITC
Export Com
OBSERV
VATIONS
Although the impo ort market of above listed

l countries is nott very high h, it is obseerved
that in Netherlands
N ds, Italy and
d Singaporee, India’s exxport sharee was low in
n the year 2011.
2
So thesee countries have the pootential to become
b em
merging ma arkets for In
ndia.
C. TOP EXPORTERS
E S OF MICA IN WORLD
D
Exports of Mica, in
ncluding spplitting and mica wastte to world w worth USD
d in 2011 was
167.180 Mn. Amon ng the top five countrries, India stood
s he topmost position in
at th n the
exports of
o mica in 2011,
2 holdin
ng the sharee of almost 30%
3 to the total
t world exports.
Pie chart shoowing top 5 countries

c
exporting Mica
M to world in 2011
(So
ource: ITC)
a, 6.60
Canada
%
Japa
an, 6.80%
India, 29.90
0%
France
e, 7.10
%
China,, 17.30
%
D. MICA
A PRODUCT
TION IN JHA
ARKHAND
In Jharkhhand, Mica belt is locatted along th

he northern front of thee Bihar Platteau and incclude
parts off Hazaribaggh and Gaya districtss. Mica beelts generallly occur in the vein ns of
metamorphic rockss. The Micaa belt in th his region runs in Eaast West direction. Girridih,
Domchanch and Ko oderma are the princip pal collectin
ng centres where
w it is processed. This
particulaar Mica beltt produces more
m than half
h of the to otal mica pro
oduction off the countryy.
E. ISSUE
ES AFFECTING MICA TRADE
T IN JH
HARKHAND
D
All the mica
m mines had been cllosed two decades
d ago
o in Jharkhaand due to issues
i relateed to
child labbour. Mica mining ind dustry in Jh
harkhand is highly fraggmented an nd unorgan nized.
Infact, ov
verseas buyyers of Indiaan mica were the first to oppose child
c labourr in the indu
ustry
and to stop purchasses, which ledl to a bann on mica mining
m in th
he province of Bihar, which
w
was exteended to Jhaarkhand.
RECOMMENDATIONS
POLICY  Mining should be legalized and closely monitored. At present they are
running on illegal basis. Around 4,000 to 5,000 labour including children
were engaged in the illegal mica trade in the Koderma- Giridih zones in
Jharkhand.
 Due to the problem of illegal mining, State police sometimes detains the
truck, asking for mining challan. This causes delay in exporting the
consignment and incurs damages to the exporter.
 For factories processing mica, proper visits should be done by Industry
department, Sales tax department and pollution board. This will ease the
problems of mica manufacturers and a proper coordination can take place
between them.
 Mining leases can be given; closed-down mines should be made operational
through allocation to new miners.
 Setting up of an institutional mechanism: There has not been any success in
evolving an institutional mechanism at the ground level which would check
illegal mining and engaging child labour, the two principal reasons for
closing down of mica mines in Jharkhand, two decades ago.
INFRASTRUC  Factories to be set up: Jharkhand has the ability to produce world famous
TURE quality of Ruby Mica, which is available in Koderma mica belt. Since
Jharkhand is contributing 60% of the Mica reserves, more number of
factories should be set up in order to encourage exports. Fabricated and
value added mica products should be developed like mica paper, micanite
sheets and mica based paper.
Chapter 3 VALUE ADDED PRODUCTS OF MINERALS

3.1 Refractories
A. REFRACTORY INDUSTRY IN INDIA
Refractories are heat-resistant materials that constitute the linings for high-temperature
furnaces and reactors and other processing units. The refractory industry in India took off
in the late 19th century and started flourishing in the late 1950s when the public sector
steel plants were set up and Tata Steel embarked upon its expansion plans. The Indian
refractory industry has an aggregate production capacity of 20 lakh tonnes per annum. The
capacity utilization, however, currently stands at around 60 percent or 11.5-12 lakh tones
per annum. About 75 per cent of the refractories that are manufactured find their
application in the steel industry, 12 per cent in the cement industry, 5-6 percent in non-
ferrous industries, three per cent in the glass industry and the rest in other industries.
Necessarily, refractories are used either where high temperature or high rate of
abrasion/corrosion/erosion is involved. Traditionally, refractories are made of naturally-
occurring minerals, such as bauxite, kyanite, magnesite, fireclay, chrome ore, etc.
B. PRODUCT ANALYSIS
TABLE BELOW PRESENTS INDIA EXPORTS vis-à-vis WORLD IMPORTS
(at 4,6 digit, disaggregated)
HS code Product description World imports from India’s export to India share in total
world world world imports (%)
(values in USD Mn) (Values in USD Mn)
2010 2011 2010 2011 2010 2011
6902 Refractory bricks,
blocks, tile etc & sim
refractory ceram 3962.2 4580.18 106.4 107.9 2.7 2.4
const good ne
690220 Refractory bricks etc
>50% alumina
1336 1758.3 57.9 78 4.3 4.4
Al2O3, silica SiO2 or
mixture etc
>50% Mg,Ca o Cr
expressd as MgO,CaO 1638.6 1840.1 32.5 14.9 2 0.8
o Cr2O3 o mx
987.4 981.7 15.9 14.9 1.6 1.5
nes
Export performance in India
HS code Product description 2007 2008 2009 2010 2011 CAGR
(%)
6902 Refractory bricks,
blocks and tiles and
other similar
refractory ceramic
constructional
42.6 61.1 57.1 106.4 107.9 26.1
goods, other than
those of siliceous
fossil, meals or
similar siliceous
earths.
Source: ITC
On further expanding the HS code 6902 to six digit, disaggregated, it is found that India’s
share in total world imports have been highest for HS code: 690220.
Since Jharkhand is producing the refractories from various minerals like Aluminium, Silica,
Fireclay, steel etc, the market analysis at 4 digit HS code 6902 is carried out as it contains
most of the minerals used for refractory industry. It is interesting to note that the CAGR of
refractories exports from India recorded a positive increase of 26.1% from 2007 to 2011.

HS CODE: 6902, Refractory bricks, blocks and tiles and other similar refractory ceramic
constructional goods, other than those of siliceous fossil, meals or similar siliceous earths.
(Values in USD Mn)
India’s market 2009 2010 2011
World 57.125 106.446 107.991
Iran (Islamic Republic of) 1.777 1.832 6.588
Indonesia 1.469 3.013 5.097
United Kingdom 1.105 4.665 5.027
Nigeria 2.118 2.2 4.245
Turkey 3.663 3.864 4.213
Italy 1.053 2.308 3.863
Malaysia 2.437 6.726 3.836
Mexico 0.516 1.772 3.697
Source: ITC
The top three export destination for India in 2011 were Iran, Indonesia and UK holding the
share of 6.1%, 4.7% and 4.7% to the total world exports.
HS CODE: 6902, Refractory bricks, blocks and tiles and other similar refractory ceramic
constructional goods, other than those of siliceous fossil, meals or similar siliceous earths.
(Values in USD Mn)
World importers 2009 2010 2011
World 3562.222 3962.219 4580.189
India 189.686 219.164 300.891
Japan 257.827 282.409 271.746
United States of 205.454 241.082 268.788
America
Germany 145.315 129.601 183.766
Austria 139.439 127.156 154.576
France 107.848 117.26 133.055
China 90.161 100.857 132.15
South Africa 95.91 116.522 129.911
Mexico 55.488 85.032 125.015
Source: ITC
The total world import market size is USD 4580.189 Mn. Out of this, top countries
importing refractory bricks and blocks in 2011 were India, Japan and USA with the import
share of 6.6%, 5.9% and 5.9% respectively from total world imports. On matching India’s
top exporting destinations with leading importers in world, it is found that countries like
Japan, Republic of Korea, Germany, Austria, France, China and South Africa can become the
Export Com
ANA
ALYSING INDIIA’S EMERGIN
NG MARKETS
S
Counttries Year Total im

mports from Country’s Indiia’s share ini
world (iin USD Mn) import from Cou
untry’s tottal
India (Inn USD worrld imports (iin
Mn) %)
Japan
n 2011 271.74 0.433 0.2
Repub blic of Korea 2011 225.86 1.31
1 0.6
Germany 2011 183.76 1.32
2 0.7
Austria 2011 154.57 0.18
8 0.1
Francce 2011 133.05 2.4 1.8
China
a 2011 132.15 0.05
5 0
South
h Africa 2011 129.91 0.92
2 0.7
Sourcee: ITC
OBSERV
VATIONS
It is notteworthy th
hat India is
i the largeest importeer of refra actories in the world with
import share of 6.6%
6 and export
e share of 2.4% %. In all th
he above liisted counttries,
exports from India a were connsiderably low.
l So theese countries can beccome the fu
uture
marketss for India. Since we are
a relying on importss of refracttories, Jharrkhand, beiing a
minerall rich state can effectiively contriibute in im
mproving thhe trade baalance and then
graduallly increasin
ng the expoorts of refra
actories froom India.
C. TOP EXPORTERS
E S OF REFRA
ACTORIES IN WORLD
Pie
e chart showinng top 5 coun
ntries exportting
Refractorie
es (HS code: 6902)
6 to Worrld in 2011; Source:
S ITC
USA, 6.2%
6
France, 7%
China, 30.9%
Austrria, 7.8%
Germany, 15.4
4
%
World im mports of refractories

r in 2011 was
w worth USDU 4547.0
037 Mn. Top p five counntries
which exported
e reefractories in 2011 were
w China, Germany, Austria, Frrance and USA,
holding the
t share of 30.9%, 15 5.4%, 7.8%, 7% and 6.2
2% to the tootal world imports. Exp ports
from Inddia were wo orth USD 10 07.99 Mn in
n 2011 therreby constittuting the share
s of 2.4
4% to
the totall exports froom the worlld.
D. REFRACTORIES IN JHARKHAND
Jharkhand state is a major producer of refractories and alumina bricks in the country;
taking advantage of substantial reserves of refractory material and fireclay available in and
around Dhanbad, Hazaribagh, Latehar and Giridih area.
Mineral Value added Districts

product
Aluminium, Silica, Steel, Refractories Hazaribagh, Bokaro, Dhanbad, West Singhbhum,
Fireclay etc Ranchi
Source: Department of Mines and Geology, Government of Jharkhand, 2011-12
E. NON TARIFF BARRIERS
Product Country Non tariff barrier

Ceramic Argentina If price below MIP, importer to validate invoice from Customs
products in origin country and submit full set of original documents.
F. ISSUES AFFECTING REFRACTORIES SECTOR OF JHARKHAND

 Costly High speed Diesel (HSD): Presently, high speed diesel is getting used for
getting export consignments from port to factory and taking loaded containers from
factory to port, so this incur extra cost to exporters, which global markets don’t
acknowledge.
 Service tax refund: Exporters are not receiving service tax refunds of their
production. It should be made online.
 VAT refund: Exporters are not receiving VAT refund of their production. It should be
made online.
RECOMMENDATIONS
INEFFICIENT  The Government. of India guideline for priority sector lending is 40% of
BANKING total net bank advances. But almost all bankers in State like Jharkhand
are not following the guidelines of GOI. The credit deposit ratio of such
banks is not in favour of Jharkhand and its priority sector. Nationalised
banks can adopt following suggestions in order to encourage SME
exports sector.
a. CD (credit deposit) ratio of at least 60%
b. Priority sector advances at least 40%
c. Minimum achievement of 80% under Annual credit plan
POLICY  Subsidies on transportation: Jharkhand being a landlocked state,
subsidies on transport should be extended so as to balance out transport
cost, remain competitive and meet consignment commitments. Subsidy
for high speed diesel should be provided for fuel for Gensets run by
exporting units.
 Interest free loans: Refractories is a labour intensive industry where

fund cost is very high so claims pending by exporters viz service tax
refunds, duty drawback. Excise duty refunds can be provided by giving
interest free loans especially to SME sector. This can be done by
submitting the proof of filing claims with a particular department/
authority or a bank comfort letter/ Bank guarantee in favour of State
government as security to refund/ diversion by respective refunding
authority to reduce cost of funds to exporting units.
 VAT refund: It should be made available to exporters and should be
online
 Service tax refunds: It should be made available to exporters and
should be online.
 Nodal agency: Getting MDA is difficult in cities like Ranchi due to lack of
trained economic cost expert service providers as they bridge gap
between government and entrepreneurs.
MARKETING  Trade fairs and seminars should be frequently organized. More
sensitisation programs and workshops should be organized.
 Reverse buyer seller meets should be organized with emerging markets
of Refractories viz. Japan, China, Germany, Austria, France, South Africa
and Republic of Korea etc.
INFRA  Power supply:
STRUCTURE o Uninterrupted power supply to exporting units by making
Electric Sub Stations or dedicated HT, OH (High tension,
overhead) cabling from uninterrupted industrial feeders from
nearest Sub-Stations.
o Leased line of optic fibre required from BSNL to Exporting units
to help them communicate, keep eye on manufacturing unit
management in Terrorist affected Jharkhand, which compels
entrepreneurs to leave factories in early hours.
 Since Jharkhand is a home to core minerals, separate industrial parks
are required in order to promote the refractory industry.
 Availability of Raw Material: The demand and supply for raw material
e.g. Coal (used in refractories) should get the highest priority for
exporting units. Presently, the refractory industry is facing with
unbearable coal shortages. Hence, special status should be given to coal/
coal bed methane needs of SME units in accessing its coal consumption,
availability of coal quota in full every month and delivery of coal on top
priority from the coal mines.
 Creation of a fund bank: A fund bank can be created for
o Supporting MSME exporters to reduce total costs /delays/liquidity
problems of Exporters,
o for technology up gradation, modernization, diversifications,
creating testing & QA facilities
o for financing as loans/equity venture funds.
3.2 CEMENT
A. LIMESTONE PRODUCTION IN INDIA
Limestone is one of the chief raw materials involved in cement production. The production
of limestone was at 238 million tonnes in the year 2010-11, increased by 2.07%, over the
previous year. Limestone is widely produced in India. As much as, 87% of the total output
in the year 2010-11 was contributed by seven principal States; viz. Andhra Pradesh (22%),
Rajasthan (18%), Madhya Pradesh (13%), Gujarat (9%), and Tamil Nadu, Chhattisgarh and
Karnataka (8% each). The remaining 14% of the total production was shared by other
limestone producing States. Cement grade limestone, the main raw material for cement
manufacture is abundantly available- Current Reserves are estimated at about 110,000 Mn
tonnes.
India is the second largest producer of quality cement in the world. The cement industry in
India comprises 183 large cement plants and over 365 mini cement plants. Currently there
are 40 players in the industry across the country. The Indian cement industry is involved in
production of several types of cement such as Ordinary Portland Cement (OPC), Portland
Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement,
Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement,
etc.
B. PRODUCT ANALYSIS
INDIA EXPORTS vis-à-vis WORLD IMPORTS

PRODUCT PRODUCT WORLD TO WORLD INDIA EXPORTS TO INDIA'S SHARE
CODE DESCRIPTION IMPORTS WORLD
2010 2011 2010 2011 2010 2011
Values in USD Mn
252329 Portland 7073.581 7014.196 88.735 190.791 1.3 2.7
cement nes
India exports to world
PRODUCT PRODUCT 2007 2008 2009 2010 2011 CAGR
CODE DESCRIPTION (%)
252329 Portland 175.51 131.53 104.43 88.73 190.79 2.1
cement nes
India’s share in the exports of Portland cement rose from 1.35% to 2.7% from 2010 to
2011. CAGR of the commodity had also increased at the rate of 2.1% from 2007-2011.
INDIA’S TOP MARKETS

HS code: 252329 Portland cement nes
(values in USD Mn)
World 104.437 88.735 190.791
Nepal 28.976 32.682 90.476
Sri Lanka 6.146 24.606 79.28
Bhutan 0 0.022 6.346
South Africa 0 2.829 4.221
Maldives 1.009 8.608 3.076
Madagascar 0 3.293 2.901
Mozambique 0.534 0.235 1.696
Seychelles 0.22 0.161 1.021
Bangladesh 2.035 0.443 0.644
Comoros 0.333 0 0.372
Source: ITC
India’s top three exporting destination of Portland slag cement in year 2011 were Nepal,
Srilanka and Bhutan, holding the share of 47.4%, 41.6% and 3.3% respectively to total
world exports by India.
WORLD’S TOP IMPORTERS
HS code: 252329 Portland cement nes
(values in USD Mn)
World 6598.242 7073.581 7014.196
United States of 435.693 406.918 381.25
America
France 196.522 236.142 308.561
Afghanistan 0 0 241.424
Singapore 249.742 207.927 241.356
Iraq 367.086 546.067 238.622
Nigeria 293.874 451.228 222.038
Sri Lanka 121.572 130.695 199.973
Mali 0 179.676 188.521
Angola 162.289 164.456 167.862
Source: ITC
Leading importers of Portland slag cement, in 2011 were USA, France and Afghanistan. On
comparing the countries between India’s top exporting destinations and World importers,
it is found that all these leading countries can become the emerging markets for India.
India’s export share in top 3 importing countries in world is further analysed.
Export Com
ANALY
YSING INDIA
A’S EMERGING MARKE
ETS
Counttries Year Total im
mports from Country’s Indiia’s share in
world (iin USD Mn) import from Cou
untry’s tottal
India (Inn USD worrld imports (in
Mn) %)
USA 2011 381.25 0 0
Francce 2011 308.56 0 0
Iraq 2011 238.62 0 0
Sourcee: ITC
OBSERV
VATIONS:-
India’s export shaare in USA,, France and
a Iraq were
w nil in the year 2011.
2 So these
t
countriees can beco
ome the futture markeets for India
a. Iraq is undergoing
u reconstrucction
thus addding to dem
mand of Porrtland cemeent which needs
n to be exploited.
C. TOP EXPORTERS
E S OF PORTLAND SLAG
G CEMENT IN WORLD
Grraph showing
g top 5 counttries exportin
ng
Portland sla
ag cement (HS code: 252329) to the wo orld in 2011
12.00%
1 10.2%
10.00%
7.4%
%
8.00% 7.0%
6.00% 6.3%
4.00% 4
4.5%
2.00%
0.00%
Tu
urkey China
Germany
P
Pakistan
Thaiiland
So
ource: ITC
Top fivee countries exporting
e P
Portland slaag cement in n 2011 werre Turkey, China,
C Germ
many,
Pakistann and Thailand. Total world expo orts of Porrtland slag cement in 2011 had been
worth USD
U 6698.3 Mn wheree India expo orted the commodity
c worth of USD
U 190.799 Mn,
holding the
t share off 2.84% to total
t world exports.
e
D. LIMES
STONE PRO
ODUCTION IN JHARKH
HAND
Mineral Value
e added prod
duct D
Districts
Limeston
ne Ceme
ent West Singhb
W bhum, Dhan nbad, West Singhbhum,
S
R
Ranchi, Ram
mgarh and Palamau
P
Source: Department
D of
o Mines and Geology, Government off Jharkhand, 2011-12
2
In Jharkhand, the limestone deposits occur in Hazaribagh, Singhbhum, Pakur, Garhwa,

Ranchi, Giridih and Bokaro districts. The State contributed 34% hike in the production of
limestone from 1.42 million tonnes in 2005-06 to 1.91 million tonnes in 2009-2010. The
reserves of cement grade lime stone from this region is well suited for creating additional
capacities, both in large modern cement plant utilizing granulated slag from steel plants
which is available in satisfactory quantity and mini cement plants utilizing smaller lime
stone deposits together with pre cast concrete structure production facilities. Presently,
there are six large and five tiny cement plants operating in this state.
E. ISSUES AFFECTING CEMENT INDUSTRY IN INDIA
 Infrastructure projects across the country have been affected by the issues
pertaining to land acquisition; delays in securing the requisite approvals and
problems in achieving financial closure as well as sector-specific issues such as fuel
security for power projects and delays in awarding contracts in road projects.
 In the last two years, subdued demand and significant capacity addition had put
pressures on capacity utilisation of the cement industry with All-India capacity
utilisation declining to around 76% in FY11 and FY12 as compared to 100% in
FY07. The southern region which witnessed one of the highest capacity additions
(largely due to its highest share of cement-grade limestone reserves) experienced
the steepest decline in utilisation levels. The existing capacity has forced the
companies to go slow on capacity expansion.
 Apart from unfavorable demand-supply scenario, the industry is also reeling under
the pressure of rising input costs. The prices of key raw materials – limestone and
gypsum have increased. The increase in domestic coal prices and non-availability of
low cost linkage coal has increased the power & fuel cost for cement manufacturers.
Off late, cement companies depending on imported coal have seen some easing in
cost pressures due to decline in the price of imported coal. However, the benefit of
declining prices has been offset by rupee depreciation to some extent. The freight
costs have also increased due to increase in surcharge and cess by Indian Railways
in Oct 2011 and increase in freight rates for some commodities in Mar 2012.
CHAPTER 4 HANDICRAFTS
4.1 SILK
A. SILK INDUSTRY IN INDIA
India has tremendous unexploited potential for silk development. India has the unique
distinction of being the only country in the world producing all the commercially known
varieties of silk, namely Mulberry, Tropical tasar, Oak Tassar, Eri, Muga. Silk obtained from
sources other than mulberry are generally termed as non mulberry or Vanya silk. Unlike
other countries, where climate related factors allow not more than a couple of cocoon
crops a year, in India even four to six crops are possible. Fortunately, India has the
technology to produce bivoltine silk with desired traits but the only thing which is lacking
is investment in new technologies.
PERFORMANCE OF SERICULTURE SECTOR DURING XI PLAN:
Particulars 2007-08 2008-09 2009-10 2010-11 2011-12(p) 2012-13* P

Mulberry 1.85 1.78 1.84 1.7 1.81 1.92
Plantation
(Lakh Ha)
Production of Raw silk (in MTs)
Mulberry
Bivoltine 1, 175 1, 250 1, 200 1, 400 1, 685 1, 300
Crossbreed 15, 070 14, 360 15, 122 14, 960 16, 587 1, 2691
Total (Mulberry) 16, 245 15, 610 16, 322 16, 360 18, 272 1, 3991
Vanya Silk
Tasar 428 603 803 1, 166 1, 590 1, 469
Eri 1, 530 2, 038 2, 460 2, 760 3, 072 2, 320
Muga 117 119 105 124 126 106
Total (Vanya) 2,075 2, 760 3, 368 4, 050 4, 788 3, 895
Total raw silk 18, 320 18, 370 19, 690 20, 410 23, 060 17, 887
production
(mulb+ vanya)
Employment 61.2 63.1 68.17 72.5 75.6 _
generation
(lakh persons)
Exports (in Cr Rs) 2, 727.87 3, 178.19 2, 892.44 2, 863.76 2353.33 1663.67**
P- Provisional (* refers to April to January- 2013) (** refers to April to December- 2012)
Source: Central Silk Board
As may be seen from the table above, area under mulberry plantation was increased from
1.85 lack ha in 2007-08 to 1.92 lakh ha in 2012-13. Mulberry silk production (including
Export Com
Bivoltinee and crossb

breed) was decreased from 16, 24
45 metric to
onnes in 20007-08 to 1, 3991
3
metric tonnes in 20 012-13. Van
nya silk pro
oduction (in
ncluding Taasar, Eri an
nd Muga) was
w 2,
075 mettric tonnes in 2007-8 an
nd 3, 895 metric
m tonnes in 2012-13.
B. PROD
DUCT ANAL
LYSIS
From the graph bellow, it is ob

bserved thaat in silk secctor, India earns
e its maximum forreign
exchange through the
t exports of woven faabrics of sillk (HS code: 5007) and d silk wastee; nes
(HS codee: 5003). CA
AGR analysiss with respeect to India and world is
i further an
nalysed.
PER
RCENTAGE SH
HARE OF IND
DIA’S EXPORTTS OF SILK PR
RODUCTS TO WORLD IN 2010 & 2011
(AT 4 DIGIT, DISA
AGGREGATED D); Source: ITC
5007 5003 5004 5005 5002 5006 5001
Silk
k worm cocoonss, suitable for reeeling 0
0
S yarn and yarn spun from siilk waste, otherr than
Silk 0.3
retail sale 0.3
Raaw Silk (not thrown) 0.3
0.2
Y
Yarn spun from silk waste, not put up for retaiil sale 0.8
1.1
Silk yarn (oth
her than yarn sp
pun from silk waste)
w 0.9
1
Silk wastee, nes 6.6
6
3.8
Woven
W fabrics of
o silk and silk waste
w 91.1
9
93.6
0 10 20 30 40
0 50 60 7
70 80 90 100
India
a's export sha
are in 2012 (%
%) Ind
dia's export sh
hare in 2011
1 (%)
PRODUC
CT DESCRIP
PTION
HS code Product
P desccription
5007 Woven
W fabriics of silk annd silk waste
e
500720 Other
O fabrics containing g 85% or mo ore by weight of silk orr of silk wastte
other
o than noil
n silk
500790 Woven
W fabriics of silk, nees
500710 Woven
W fabriics of noil sillk
PERFORMANCE OF INDIA’S EXPORTS

(AT SIX DIGIT, DISAGGREGATED)
Code 2005 2006 2007 2008 2009 2010 2011 India's CAGR
share(at 4 (%)
digit
denomination)
Value in USD Mn
5007 243.05
500720 335.8 302. 287.8 301.3 235.3 260.9 187.8 77.3 -9.2
0
500790 40.3 47.8 38.6 35.0 18.4 50.9 45.4 18.7 2.0
'500710 9.1 15.8 8.2 12.2 7.9 7.4 9.7 4.0 1.0
Source: ITC ad FIEO analysis
It is clear from the above table that around 77% of HS code 5007 was contributed by HS
code 500720, HS code 500790 contributed 18% while HS code 500710 contributed only
4%. Although the CAGR had been reported as negative from the period of 2007-2011 for HS
code 500720, India earns its foreign exchange through exports of this commodity. The
market of HS code 500720 is further analysed.
INDIA’S EXPORT DESTINATIONS IN THE WORLD

HS CODE: 500720, Woven fabrics of silk/silk waste, other than noil silk, 85%/more of such fibres
(Values in USD Mn)
World 235.318 260.957 187.837
Hong Kong, China 64.439 92.625 34.337
United States of 31.272 33.784 33.394
America
United Kingdom 24.758 25.772 24.801
Germany 12.748 12.536 13.507
Italy 8.921 7.235 6.872
France 6.031 6.164 5.765
Spain 7.537 5.718 4.613
Belgium 3.026 3.759 3.863
Singapore 4.785 7.01 3.774
Source: ITC
The top three destinations for India’s exports in 2011 were Hong Kong, China, USA and UK
accounting 35.5%, 12.9% and 9.9% respectively out of the total exports of India to world.

HS CODE: 500720, Woven fabrics of silk/silk waste, other than noil silk, 85%/more of such
fibres
(Values in USD Mn)
World 1301.903 1365.135 1557.404

Italy 135.969 171.963 224.102
United States of 118.227 130.855 149.711
America
Hong Kong, China 139.206 160.86 105.835
India 147.842 128.001 90.57

Viet Nam 10.664 4.494 82.825
France 63.491 64.511 75.367
China 78.65 83.39 74.63
Japan 47.432 54.905 64.623
Source: ITC
The top three world importers of silk in 2011 were Italy, USA and Hong Kong, China. On
matching India’s exporting destinations with leading importers from the world, it is found
that countries like Vietnam, China, Republic of Korea and Japan can emerge as future
markets for India.

from world import from Country’s total
(in USD Mn) India (In USD world imports (in
Mn) %)
Vietnam 2010 4.49 0.002 0
China 2011 74.63 5.83 7.8
Republic of 2011 73.50 0.52 0.7
Korea
Japan 2011 64.62 0.71 1.1
Source: ITC
OBSERVATIONS
It is observed that for countries like Vietnam, Republic of Korea and Japan, India’s
export share was almost negligible or very low. As compared to all these countries,
India’s export share in China was 7.8% in 2011. So these countries can serve as future
markets for India.
Export Com
C. TOP EXPORTERS
E S OF SILK IN WORLD
Top twoo countries exporting

e w
woven fabriccs of silk to
o the world are China followed
fo by Italy
having th
he share of 48.5% and 12% respecctively in 20011.
Pie chart showing topp 5 countries exporting Wo

oven fabrics of silk/ silk waste
w
in world
w (HS co
ode: 500720) Source: ITC
Hong Jap
pan, 5.0%
Kong,, China, 5.1
%
Indiia, 9.1%
Italy, 12
2.0% China, 48.5%
India’s exports
e stoo
od at 3rd poosition withh 9.1% sharre in the tottal world exxports. In 2011,
2
India’s export of wo
oven fabricss of silk was around USDD 187.83 Mn to the world.
D. SILK SECTOR
S IN
N JHARKHAND
In Jharkkhand, mainnly Tassar silk is pro oduced. Sin nghbhum, Santhal,

S Praaganas, Duumka,
Giridih, Hazaribagh
h, Ranchi, Paalamau and d Dhanbad are a the major silkworm m rearing areas.
a
Reeling and
a weavin ng areas are Bhagaiya, Kharsava,
K C
Chaibasa, Pu
uraini and Katoria.
K In 2011-
2
12, Jharkkhand prod
duced 1025 tonnes of silk, which is more than n the planned target off 900
tonnes. During
D the next
n five-yeear period, the
t State is targeting
t to increase silk productioon to
8,000 to
onnes. US, UK,
U Germany y, France, Turkey,
T Japaan, Australiaa, Sweden, and
a Switzerrland
are the main
m exportt destinationns of Tassarr silk from Jhharkhand.
E. ISSUE
ES TO BE AD
DDRESSED
 One of the major

O m probleems which affects
a expo
orts is that, colour
c of co
ocoon variess due
too which uniformity of the
t finished product cannot be maintained. Th he silk prod
duced
frrom multivooltine races of silk worm ms is poor in
i quality an nd is known n to have deefects
in
n neatness and clean nliness and d is of verry poor qu uality when n compareed to
in
nternational parameterrs. So manu ufacturers are
a bound to ower rates. This
o sell it at lo
ultimately reesults in a lo
oss to the arrtisan.
 T
There is no demarcation between handloom and powerlloom sectorr. Incentives are
given under handloom sector,
s but powerloom
p sector is geetting beneffitted.
 Exporters are not receiving VAT refund of their product. There is no coordination
between industries and revenue department.
 Availability of export finance in Jharkhand is a big issue.
 There is no air cargo facility available at Ranchi airport.
RECOMMENDATIONS
INFRASTRUC  Dyeing and finishing units: More number of mechanized dyeing and finishing
TURE units need to be set up in the state as weavers face problems with manual
dyeing because of lack of uniformity.
 Reeling units: At present, 3000 reeling machines are being installed in the
Jharkhand. More number of reeling machines should be installed in order to
improve quality of yarn. This will increase exports in future.
 Silk bank: Silk bank is needed in order to maintain a balance between supply
and demand.
 Air cargo facility should be provided at Ranchi airport. This would provide
boost to export oriented industries, especially those operating in the area of
high value and perishable commodities.
MARKETING  Nodal agency: Nodal agencies need to become more active in spreading the
AND knowledge and awareness to the exporters.
PROMOTION  Handloom sector needs to be properly marketed for export. More and more
number of overseas exhibitions needs to be conducted.
 Sampling and product Development Fund needs to be initiated by state govt.
 Distribution outlets- in different overseas markets should be provided by the
government by establishing display cum retail outlet in important markets
both the traditional one like united states, United Kingdom, United Arab
Emirates, Germany and Singapore and new markets like Japan, Australia and
Brazil (hub for Latin America).
 Full support on R& D needs to be done for the overall development of silk
sector.
 Marketing plan should be developed by state government for organic silk
POLICY  Subsidies on testing: At present, Azo free dyeing tests are required to be
performed in silk products which are quiet expensive. Due to this, exporters
have to bear huge costs for getting their samples tested.
 For testing of Handloom products, subsidies should be given under
Technology Up gradation Fund Scheme (TUFS).
 Value added products of silk to be covered under VKGUY Scheme.
 State level brand promotion fund needs to be introduced for silk sector
 Support schemes may be introduced to save the farmers from large price
fluctuation.
 Sampling and Product Development Fund should be provided to exporters:
75% of the cost of development of sample or product development be
reimbursed to the unit by the State Government and a planned scheme may
be drafted by the State
CHAPTER 4.2 LAC

A. LAC PRODUCTION IN INDIA
India is the leading lac producing country in the world and it continues to maintain its
leadership despite the fluctuations in production. Increasing the lac production has been
constrained as it is done in backward regions of the country by resource-starved farmers.
In view of the economic returns to the growers and global interest for safe natural
materials, lac is seen as an inevitable tool for livelihood support in the lac growing areas of
country. National production of sticklac during 2010-11 was approximately 9,035 tonnes.
Uses of Lac:-
 It is used in wood finishing. Bleached shellac is used to produce a transparent finish
to bring out the natural beauty of light coloured wood.
 The excellent electrical properties of shellac, its freedom from tracking, its good
adhesion and thermoplastic properties have established for this resin a very
important place in electrical industry.
 Leather and footwear industry: Shellac is used in tanning process. It is suitably
pigmented to produce a flexible, glossy finish on leather. Shellac is also used applied
for final durable non tracky and glossy finish to leather articles. Shoe polish can be
made with shellac wax.
 Shellac for Pharmaceutical, Confectionary Glazes and fruit coating: Superior grades
of shellac dissolved in special denatured alcohol are the glazes employed for coating
pharmaceutical tablets and confectionaries.
Table showing lac production in India during 2010-11 (in tonnes)
Name of States/ Districts Total % change

Name of the crops
production with last
Baisakhi Jethwi katki Aghani year
production
TOTAL 2504 2336 1812 2383 9035 -45.2
Jharkhand 405 1400 425 1750 3980 -42.5
Chhattisgarh 495 710 370 410 1985 -60.3
West Bengal 830 50 500 55 1435 67.8
Madhya Pradesh 313 90 215 67 685 -71.3
Maharashtra 265 0 170 0 435 -16.3
Odisha 35 75 35 85 230 -42.5
Uttar Pradesh 125 0 50 0 175 -12.5
Assam 20 0 30 0 50 -50
Gujarat 5 10 5 15 35 -46.2
Andhra pradesh 9 1 9 1 20 -42.9
Meghalaya 2 0 3 0 5 -50
Source: Indian Institute of Natural Resins and Gums, Ranchi
Export Com
Amongstt the differrent crops, Baisakhi iss ranked firrst at 27.71 1% followed by Aghani at
26.38%, Jethwi at 25.86%
2 and Katki at 20 0.06% in naational lac production. Jharkhand
J i the
is
leading state
s in the lac producttion, followeed by Chhatttisgarh and
d West Benggal.
Piie chart sho

owing top 5 Lac produ
ucing states in India
Madhya Maharashttra, 4.8

Pradesh, 7.6% %
W
West
Benga
al, 15.88%
Jha
arkhand, 44.1%
Ch
hhatisgarh, 22.0
%
Source: Ind
dian institute of
o Natural resiins and gums, Ranchi
Jharkhan nd state is ranked

r at 1st position with
w 44.1% share, follo owed by Chh hattisgarh, West
W
Bengal, Madhya
M Praadesh and Maharashtra
M a. These fivee states conttributed aro
ound 94 perrcent
of the naational lac production.
p
B. PROD
DUCT ANAL
LYSIS
WORL
LD IMPORTS vis-a-vis IND
DIA’S EXPORT
TS
PRODUUCT PRODUCT
P WORLD TO INDIA'S EXPORTS IN
NDIA'S SHAR
RE
CODE
E DES
SCRIPTION D IMPORTS
WORLD TO WOR RLD (%)
2010 2011 2010 2011

Values in
n USD Mn
1301 Lac; natural
n gum
ms, 638.438
8 761.413 65.997 146.102
1 1
10.3 19..2
resins, gum-resins &
balsam
ms
INDIAA’S EXPORT PERFORMANCCE FROM 2007-2011 (Valu
ues in USD Mnn)
PRODUUCT PRODUCT
P 2007 2008 2009 2010 2011 CAG
GR
CODE
E DES
SCRIPTION (%
%)
1301 Lac; natural

n gum
ms, 45.3 61.9 42.2 66.0 14
46.1 34.0
02
resins, gum-resins &
ms
balsam
Source: ITC & FIEO an
nalysis
World requirement as well as India’s exports of lac, natural gums, resins and balsams has
been continuously increasing. On calculating CAGR, this commodity has recorded a positive
growth of 34.02% from year 2007 to 2011.
INDIA’S EXPORT DESTINATIONS IN THE WORLD

HS CODE: 1301 Lac; natural gums, resins, gum-resins & balsams
(Values in USD Mn)
INDIA’S MARKET 2009 2010 2011
World 42.23 65.997 146.102
United States of 12.559 13.703 37.217
America
Mexico 0.177 1.453 22.446
Egypt 1.515 6.418 9.6
Germany 2.418 7.963 8.752
Pakistan 2.299 3.25 7.494
Indonesia 1.712 2.865 7.189
France 3.909 6.344 7.173
Jordan 0.855 2.582 4.97
Japan 0.885 1.2 4.916
Spain 0.574 0.389 4.352
Source: ITC
USA, Mexico and Egypt are the top three export destinations for India in 2011, holding the
share of 25.5%, 15.4% and 6.6% of the total exports from India.

HS CODE: 1301 Lac; natural gums, resins, gum-resins & balsams
(Values in USD Mn)
World 530.579 638.438 761.413
France 59.013 70.368 85.506
India 54.421 86.389 81.285
United States of 65.08 61.501 77.219
America
Netherlands 18.57 22.537 44.537
Germany 25.897 36.514 43.144
Italy 19.381 23.53 32.13
United Kingdom 28.548 25.907 31.955
China 18.379 20.049 25.692

Singapore 13.02 13.386 19.905
Japan 10.603 12.235 18.589
Source: ITC
India is at present one of the largest importer of Lac. The top three importers of lac, natural
resins and gums in 2011 were France, India and USA. On matching India’s exporting
destinations with leading importers from world, it is found that countries like Netherlands,
Italy, UK, China and Singapore can emerge as future markets for India.

Countries Year Total imports Country’s India’s share
from world (in import from in Country’s
USD Mn) India (In USD total imports
Mn) from world
(in %)
Netherlands 2011 44.53 0.76 1.7
Italy 2011 32.13 2.1 6.6
UK 2011 31.95 2.88 9
China 2011 25.69 0.32 1.3
Source: ITC
OBSERVATIONS
It is observed that India’s export share in Netherlands and China had been very low in
2011. UK imported Lac and natural resins worth of USD 31.95 Mn from world, but only
USD 2.8 Mn from India. Similarly, Italy imported Lac and natural resins worth of USD
32.13 Mn from world, but only USD 2.1 Mn from India. So, India needs to increase its
export share in all these countries.
C. LAC PRODUCTION IN JHARKHAND
Jharkhand is the leading state in lac production. The state has various lac processing
centres in many districts viz Daltonganj for seedlac products, Ranchi (Khunti, Bundu,
Murhu) for seedlac, button lac, shellac, lac dye and bleached lac products, Simdega for
seedlac products, Saraikela- Kharsawan(Chandil) district for shellac products.
D. ISSUES AFFECTING LAC SECTOR IN JHARKHAND
 FLUCTUATING PRODUCTION: One of the biggest concerns in lac cultivation is

fluctuation in the production of lac. Despite good demand for lac (both domestic as
well as overseas), the lac production growth has not been very healthy. This can be
attributed to lack of penetration of scientific lac cultivation technologies and
prevailing marketing practices. The seed (broodlac) for lac production cannot be
stored and is very short lived. Therefore, whenever, there is a dip in lac production
due to adverse climatic conditions in an area, resilience in production is constrained

by broodlac supply.8
 INEFFECTIVE RESOURCE UTILISATION: About half of the total lac-host trees are
still lying un-exploited and there are areas where in spite of large number of host
trees, lac cultivation is not carried out at all. If these lac hosts could be utilised for
cultivation of lac, it would not only increase the national production of lac and add
to the income of the farmers but also help prevent indiscriminate felling of trees for
fuel and timber purposes.9
RECOMMENDATIONS
R&D  Advanced lac production technology needs to be adopted.
INFRASTRUCTURE  Broodlac promotion centres needs to be set up which would help in:-
Enhanced/higher return to the lac grower and thereby reducing
dependence on seasonal migration.
 Stabilising lac production
 Creating favorable environment for growth in lac production.
POLICY  Vendor development policy needs to be initiated by State in order to
have new market access to exporters.
 Price support scheme on the pattern of minimum support price may
be extended to LAC producers to save from the international price
fluctuation.
 Special incentive to producer of value added products in specified
markets as has been done for coffee under the scheme “export
promotion of coffee during XI th plan period” which is likely to be
extended under XII th plan period.
CHAPTER 5 AGRICULTURE
Jharkhand State is endowed with vast and rich natural resources with abundant supply of
minerals and forest reserves. About 70% of population of state depends on agriculture and
72% of farmers are small and marginal farmers. The contribution of agriculture to GSDP of
Jharkhand is 11% with poor per capita net sown area (0.083 ha) in relation to per capita
land holding (0.14 ha approximately). For agriculture purpose, on the basis of agro climatic
conditions, following three sub zones are decided:
Central & North Western Plateau South Eastern Jharkhand

Eastern Plateau Plateau
Number of Districts 13 8 3
8
Lac development Scheme, Jharkhand
9
Lac development Scheme, Jharkhand
Name of districts Hazaribagh, Chatra, Giridih, Palamu,Garhwa, East Singhbhum,

Dhanbad, Godda, Pakur, Gumla, Latehar, West Singhbhum,
Ramgarh,Deoghar,Sahebganj Simdega,Ranchi, Saraikela
, Dumka, Bokaro, Koderma, Lohardaga,
Jamtara, Khunti
Major Crops Rice, Wheat, Maize, Urad, Rice, Maize, Arhar, Rice, Maize, Niger
Linseed Gram, Toria
Source: State Action Plan, Jharkhand
The major crops of the State are Maize and Paddy. Jharkhand is also self sufficient in
vegetable production and can export surplus, however it suffers due to the poor harvest
technology with acute shortage of cold storage units, processing units etc.
As per the Department of Agriculture, Government of Jharkhand, majority of land/ soil in

Jharkhand is acidic in nature-an inherent advantage suitable for agriculture development.
However, the concern is that the water holding capacity of the soil is very low due to
porous nature of the soil and undulating topography, this needs installation of water shed
irrigation systems.
INTER-CROPPING PATTERN FOR JHARKHAND
Depending upon topography, soils are broadly classified into: upland, medium land and
lowland.
Upland: Upland soils are generally red, acidic (pH 5.5-5.9) with poor water holding
capacity (WHC). Moisture is easily saturated during rains but release of moisture is very
fast under upland. It is suitable for Kharif pulses (pigeon pea, urd, moong & kulthi).
Medium land: Medium land soils are generally yellowish, slightly acidic (pH 6.0-6.5) and
with intermediate water holding capacity. It is suitable for Rabi pulses (chickpea, lentil &
pea) and sequential cropping system like rice-chickpea/lentil, maize-chickpea/lentil. Under
intercropping pattern, with adequate irrigation, wheat + chickpea/mustard +
chickpea/lentil can be taken.
Low land: This type of soil is grayish, slightly alkaline (pH 7.0-7.3) and has high water
holding capacity. Low land is generally vacated after the harvest of transplanted paddy in
2nd week of December to 2nd week of January and it takes time for removal of moisture.
Farmers can use transplanted rice-spring/summer moong.
The state also needs research and development in the field of seed production of all crops
to be self sufficient in cereals, pulses, oil seeds and vegetables. At present state is procuring
seeds from outside agencies/ resources. The State also suffers from poor farm
mechanization and effective extension system due to lack of manpower.
India, at present, imports heavy amount of pulses from the world, amounting to USD 1850
Mn USD, spending precious foreign exchange, whereas, we do have the capability of
increasing our own productions by utilising the land effectively in soil rich areas. In 2009-
10, Jharkhand had total cultivated area of 38 lakh hectares (47.67% of total land) with
additional 19.32 lakh hectares (24.33%) reserved or lying as agricultural wasteland. This
needs to be utilised further to bank upon good potential for oil seeds, pulses, vegetables
and other horticulture crops. Horizontal and vertical production pattern approach would
have to be adopted for this.
Due to the poor per capita, net sown area coupled with traditional irrigation facilities and
poor variety of seeds, the State has gotten stuck in a vicious circle with low productivity,
low farm income, low investment, low capital formation and stagnant rural economy.
Similar is the situation with the livestock enterprises with respect to increasing milk, meat
and egg production. There is vast scope in the state for establishing food processing units
including those of fruit and vegetable preservation, milk and meat preservation and for
processing of minor forest produce.
5.1 RICE
A. NATIONAL SCENARIO
Rice is the staple food for 65% of the population in India. It is the largest consumed
calorie source among the food grains. With a per capita availability of 73.8 kg, it meets
31% of the total calorie requirement of the population. India is the second largest
producer of rice in the world, next to China. In India, paddy occupies the first place both
in area and production. Indian Basmati Rice has been a favorite amongst international
rice buyers. This provides India with ample opportunity for development of rice based
value-added products for earning more foreign exchange. Apart from rice milling,
processing of rice bran for oil extraction is also an important agro processing activity for
value addition, income and employment generation. The Indian non basmati rice is priced
competently in the international market:
Price advantage of Indian rice in 2011 (in USD/ tonne): Non Basmati
Avg price of Indian non-basmati rice 360
Avg price of Vietnam non-basmati rice 450-55
Avg price of Thailand non-basmati rice 575
Avg price of Pakistan non-basmati rice 480
Source: Economic times dated 14th Aug 2012
The reason Indian non basmati rice is priced cheaper is because of the domestic polices at
play in competing countries. India could not have returned to exporting non-basmati rice at
a more opportune time than in September 2011. The price of Thailand rice got inflated due
to speculation about rice production in 2011, coupled with the Government launching a
subsidy programme to buy paddy from farmers at a hefty premium of 50% over market
prices. This gave a major break to India, recommencing export of non-basmati rice after
four years. India’s rice came cheaper than the one of Thai origin, in particular. It also
enjoyed a competitive edge over Vietnamese rice.10 Vietnam is dealing with food security
issues as the total reserves of food grain as per FAO should be 17 % and Vietnam’s reserves
are 13%, hence they cannot be reliable supplier.
Whereas in case of Basmati Rice, India is commanding lucrative price.
Average Basmati rice export prices for India and its competitors for period covering
March 2012 to June 2012 (in USD/tonne)
India 1065
Vietnam 615-630
Thailand 1005-1055
Pakistan 1025
Source: All India rice exporters association
To increase production: In order to increase production further for meeting domestic

and international demand, India needs to reduce the loss of harvest. About 9 percent of
paddy is lost due to use of old and outdated methods of drying and milling, improper and
unscientific methods of storage, transport and handling. It has been estimated that total
post harvest losses of paddy at producers’ level was about 2.71 percent of total
production. To minimize post harvest losses, precautions should be taken to follow
proper post harvest practices.
These include:
 Harvest: Timely harvest at optimum moisture percentage (20 percent to 22
percent), use of proper method of harvesting; avoid excessive drying, fast drying
and rewetting of grains. Drying of wet grain after harvest, preferably within 24
hours to avoid heat accumulation needs to be ensured.
 Threshing and winnowing: The losses in threshing and winnowing can be
avoided using better mechanical methods.
 Processing: Proper sanitation during drying, milling and after milling to avoid
contamination of grains and protect from insects, rodents and birds and use of
proper technique of processing i.e. cleaning, parboiling and milling helps in
reduction in post harvest losses.
 Storage: To avoid storage losses maintaining optimum moisture content i.e. 12
percent for longer period and 14 percent for shorter storage period is essential.
10
As reported in Business Standard
Export Com
As per the
t release by Press Innformation Bureau,
B thee production
n of rice forr the year 2010-
2
11 was 95.98 Millio
on tonnes, whereas
w thee 2011-12, 2 advancee estimates rice production
nd
was 1022.75 MT.
With bu
umper crop, focus should now be on
o value add
ded productts from rice:
 Processed products likee expanded rice, puffed

P d rice, poppeed rice and rice flakes
 F
Fermented products
p baased on rice like idlis.
 Instant mixees of rice
 S
Supplement tary food miix based on rice
 E
Extruded prroducts likee rice noodlles-very pop pular in oriiental countries, esp. Japan
a China
and
 G
Germinated brown ricee (GBR) and rice bread (RB) are tw wo exampless of value-added
p
products thaat attract co onsumers. GBR
G and RB B currently are becom ming increasingly
p
popular settting up fair sized
s industtries in Japaan during thhe last severral years.
B. RICE EXPORTS FROM

F INDIA
India’s rice
r exportss (includingg basmati an
nd non basm mati) crossed 7 Million Metric to
onnes
(Mn MT)) in 2011-1 12 as reportted by APEDDA, rising from
f 2.71 Million
M MT. The reasonns for
such higgh exports are: Free trrading enviironment and a price advantage in non bassmati
variety. The Non Basmati rice variety has seen a hu uge jump frrom 0.1 Milllion MT to 3.99
Million MT
M in 2011 1 from prevvious year. Also the exxports of Baasmati rice have also been
increasin
ng over thee years. Saudi Arabia is the bigggest importter of Indiaan basmatii rice
followedd by UAE an nd Kuwait. The
T US and thet UK are thet other major
m buyerss of basmati rice
from Inddia. It is also
o exported to
t other West Asian and d European states.
Grap
ph showing Rice exportts from India a
(Quanttity in metriic tonnes); Source:
S APEDA
4000000 3997
7917.6
3178174.42
3000000 2016775 2370658.41
2000000
1000000 139540
0.76
1006
685.79
0
2009-10
2010-11
2011-12
2
Basmati Non-- basmati

Metric Tonnes Metrric Tonnes
Iran is considered as the biggest buyer of Pusa 1121, a rice variety which commands almost
50% of basmati exports from India. There is great scope of increasing the consumption of
basmati worldwide. This is possible by identifying new potential markets and strategically
promoting this unique variety.
C. MARKET ANALYSIS
WORLD IMPORTS vis-à-vis INDIA’S EXPORTS
(AT 6 DIGIT, DISAGGREGATED)
PRODUCT PRODUCT WORLD IMPORTS INDIA EXPORTS TO INDIA’S SHARE TO THE

CODE FROM WORLD WORLD TOTAL IMPORTS FROM
(value in USD Mn) (value in USD Mn) WORLD (%)
2010 2011 2010 2011 2010 2011

100620 Rice, husked 1519.34 1677.622 0.088 1.433 0.01 0.08
(brown)
100640 Rice, broken 1456.149 1884.764 0.072 64.788 0.00 3.43
100610 Rice in the husk 958.347 1006.9 13.202 23.799 1.38 2.36
(paddy or rough)
100630 Rice, semi-milled 15960.78 17407.17 2282.45 3983.311 14.30 22.8
or wholly milled,
whether or not
polished or
glazed
Source: ITC
INDIA’S EXPORT PERFORMANCE OF SEMI MILLED AND WHOLLY MILLED RICE

HS code Product 2005 2006 2007 2008 2009 2010 2011 YOY
2010-
11 (%)
Values in USD Mn
10063020 Basmati 683.1 616.0 1064.7 2171.5 2239.6 2317.6 3285.1 41.7
rice
10063010 Parboiled 698.15 726.3 1249.4 311.8 21.1 20.4 1249.1 6015.4
10063090 Other 198.93 149.50 488.4 89.1 35.3 13.7 349.1 2441.2
Source: ITC and FIEO analysis; YOY- year on year
From the above tables it is noteworthy that India’s exports were highest for semi milled or
wholly milled rice, whether or not polished or glazed (HS code: 100630). At 8 digit
disaggregated HS code, the exports of basmati rice registered an year on year increase of
41.7% in 2011 from 2010.
Export Com
CAG
GR COMPAR
RISON FROM 2007-2011
1
35
30 29.9
25
20
15
10 10.1 9.8
8 CAGR (%)
(
5
0
e
Basmati rice Parboiiled O
Other
10063020 100630
010 10
0063090
From thee 3 commod dities exporrted by India for rice (aat 8 digit, dissaggregated
d), it is obseerved
that the CAGR of basmati
b ricce (HS codee: 10063020) registered the high hest growth h. So
India’s export
e desttinations an nd top importers of world
w for thhis commod dity is anallysed
further.
INDIA
A'S TOP 10 DE
ESTINATIONS S FOR EXPORRT OF RICE FOOR YEAR 201 11
HS code: 100630, Rice
e, semi milled
d or wholly milled,
m whether or not poliished
(Valuues in USD Mn
n)
In
ndia’s marke
et 2009 2010 2011
World 2380.349
9 2282.45 3983.311
United Arab
A Emirate
es 627.375 643.052 792.985
Saudi Arrabia 661.019 686.886 736.238
Iran (Isllamic Republlic of) 494.909 369.003 581.019
Kuwait 195.495 195.477 331.039
Nigeria 0.222 0.408 216.711
United Kingdom
K 75.099 46.358 133.172
Iraq 9.526 19.627 125.158
United States
S of Ame
erica 47.933 36.08 104.706
Yemen 60.858 54.591 97.034
South Africa 7.419 12.563 67.513
Source: ITC
I
The top three expo ort destinatiions for Ind

dia in the yeear 2011 were
w UAE, Saaudi Arabiaa and
Iran hold
ding the shaare of 19.90
0%, 18.48% and 14.58% % of the total rice (Basmati) exporrts to
world from India.
TOP IMPORTERS OF RICE IN WORLD

HS code: 100630, Rice, semi milled or wholly milled, whether or not polished
(Values in USD Mn)
World 14588.26 15960.78 17407.17
Indonesia 57.523 289.618 1339.513
Nigeria 355.452 403.576 1103.471

Saudi Arabia 1302.762 1248.219 1026.702
Iran (Islamic 0 941.368 852.656
Republic of)
United States of 549.762 566.513 609.164
America
Malaysia 538.048 489.718 602.333
Iraq 454.812 554.288 570.432
Japan 565.071 501.713 560.613
South Africa 435.506 408.327 481.135
Source: ITC
It is clear from the above table that Indonesia, UAE and Nigeria are the major importers of
Rice from world, importing around 7.7%, 6.7% and 6.3% of the total imports from the
world. On comparing India’s top exporting destinations with leading importers of the
world, it is found that Countries like Indonesia, Malaysia and Japan are the emerging
markets for India in future.
Countries Year Total imports Country’s import from India’s share in

from world (in India (In USD Mn) Country’s imports
USD Mn) from world (in %)
Indonesia 2011 1339.51 0.15 0.1
Malaysia 2011 602.33 9.73 1.6
Japan 2011 560.61 0.13 0
Source: ITC
OBSERVATIONS
It is found that India’s export share in Indonesia, Malaysia and Japan is very negligible.
So these countries can become emerging markets for India in future.
D. TOP EXPORTERS IN WORLD
Top 5 countries exporting semi milled or wholly milled rice in world are Thailand, India,
Vietnam, Pakistan and USA.
Pie chart showing top 5 countries exporting

semi-milled or wholly milled (HS code: 100630)
rice to world in 2011
USA, 7.5%
Pakistan, 10.2
%
Thailand, 30.9
%
Vietnam, 11.3
%
India, 21.50%
Source: ITC
The total world imports of semi milled or wholly milled rice in 2011 were worth USD
18521.18, where India stood at 2nd position, exporting rice worth USD 3983.31 Mn.
E. RICE SCENARIO IN JHARKHAND
In Jharkhand, under cereals, Rice is the major crop of the state, covering 80% of the
cropped area. Jharkhand recorded rice production of 33.0 lakh tonnes in 2011-12, up
from 11.1 lakh tonnes in the previous year. The Government had allocated an additional
Rs 400 crore in 2011-12 under Rashtriya Krishi Vikas Yojana for extending green
revolution to the eastern region comprising of Assam, Bihar, Jharkhand, Eastern UP,
Chhattisgarh, Orissa and West Bengal. Rice was a priority crop under the scheme.
Jharkhand has a progressive farming community who are engaged in organic farming. It
can play a major contributor in increasing the exports of organic products to markets such
as US, Europe and Japan.
F. NON TARIFF BARRIERS IN EXPORT OF RICE
Country Non tariff barrier

Russia  Non recognition of EIC conformity certificates
 Stringent requirement about documentation by individual farmers
regarding use of pesticides
Korea Minimum market access quota of 408,698 MT in 2014
Brazil Both Governments working on establishing phytosanitary requirements
G. ISSUES AFFECTING RICE EXPORTS FROM JHARKHAND
 Exporters face problems with respect to ICD requirement. At present, container

depot at Tatanagar is closed down due to less traffic.
 Quality seeds are not sufficiently available or produced for cultivation of rice for
export purposes.
 There is lack of proper infrastructural facilities. Many times when exporters carry
their stock to sea port and if the stock is not loaded due to some reason or the other,
exporters do not find godown or proper place in Jharkhand to store their stocks
properly. On their transit towards Haldia port, cargo has to pass through or nearby
to Purulia, which is a naxalite disturbed area, hence posing major safety concerns
both to the man and material. At present, they seek help of the local community by
hiring them as guards which further adds to the total expenditure to the exporters.
 Rice production meant for export purpose is supported by subsidies in other
countries, which reduces the cost of production and thereby reducing the cost of
rice. Therefore, the export price of rice of such countries is more competitive in the
international markets compared to Indian rice.
 Post harvest handling of produce is another important aspect. There is difference in
moisture level, of harvested crop and stored crop which impairs the intensity of
aroma.
 Rice mills have not been fully modernized to ensure high milling recovery and
reduced the percentage of broken rice. The conventional rice mills use rubber roll
sheller in which percentage of broken rice is more than the modern rice mills that
are using Runner Sheller. Hence, head rice obtained from milling of conventional
mills becomes costly due to recovery of higher percentage of broken rice.
RECOMMENDATIONS
INFRASTRUCTU  ICD: ICD should be provided in Ranchi as most of the export quality rice
RE is produced in Ranchi, it should be immediately created.
 Unavailability of rakes: The rake facility is not available in Ranchi,
exporters are bound to load their consignments via trucks.
 Testing facility for bran: Facilities for testing rice along with bran is
needed. For rice testing, moisture content and average length of rice is
tested, the testing equipment of which are quite cheaper. But for bran
testing, oil content and presence of free fatty acids needs to be tested,
the equipments for which are expensive.
 Know how centres: Know how centres should be set up for rice so that
the exporters learn about various terms and terminologies (like HS
code, Incoterms, LC, LOC, FOB) used while exporting.
 Modernisation of rice mills: Conventional mills are required to be

modernized to get recovery of higher percentage of head rice suitable
for export.
 Better post harvest management practices should be applied so as to
reduce losses.
MARKETING  Requirement of a nodal agency: It is required in Jharkhand to share
AND Market Information and provide advice on various laws of importing
PROMOTION Countries.
 Breeding programmes: Breeding programme may be initiated to
develop high yielding export quality rice (non-basmati rice) to enable
the exporters in order to compete in the world markets.
 Extension activities may be strengthened to educate the cultivators for
production of quality rice to match the standards of international
markets
POLICY  VAT and service tax refund should be provided to the exporter. Their
refund should be made online.
PART II
EMERGING SECTORS
OF
JHARKHAND
A MINERALS
A.1 GRAPHITE
A. GRAPHITE RESERVES IN INDIA
Graphite deposits are reported from various states but the sizeable ones of economic
importance are located in Andhra Pradesh, Jharkhand, Karnataka, Kerala, Odisha, Rajasthan
and Tamil Nadu. The total resources of graphite are about 174.85 million tonnes,
comprising 8.03 million tonnes in the reserves category and 166.82 million tonnes under
remaining resources category.
GRAPHITE RESERVES IN INDIA

(as on 1.4.2010)
India 174.84 State’s share in India
Arunachal Pradesh 72.7 41.6
Jammu and kashmir 62.74 35.9
Jharkhand 12.91 7.4
Odisha 8.67 5.0
Tamil Nadu 8.23 4.7
Gujarat 3.35 1.9
Rajasthan 1.91 1.1
Kerala 1.58 0.9
Maharashtra 1.16 0.7
Madhya Pradesh 1 0.6
Karnataka 0.67 0.4
Andhra Pradesh 0.4 0.2
Uttarakhand 0.01 0.0
Source: Indian Minerals Yearbook, 2011; Govt of India, Ministry of Mines
Arunachal Pradesh accounts for 42% of total resources, followed by Jammu & Kashmir
(36%), Jharkhand (7%), Tamil Nadu & Odisha (5% each). However, in terms of reserves;
Tamil Nadu has leading share of about 45% followed by Odisha (41%) and Jharkhand
(14%).
B. PRODUCT ANALYSIS
PRODUCT PRODUCT WORLD TO WORLD INDIA EXPORTS TO INDIA'S SHARE

CODE LABEL IMPORTS THE WORLD TO TOTAL IMPORTS
FROM WORLD (%)
Values in USD Mn
2010 2011 2010 2011 2010 2011
2504 Natural 433.651 608.76 1.283 2.531 0.29 0.41
graphite
INDIA EXPORTS TO THE WORLD (Mn USD)

Product Product 2007 2008 2009 2010 2011 CAGR
code label
2504 Natural 0.932 2.199 1.797 1.283 2.531 28.3
graphite
India’s share in exports of natural graphite rose marginally from 0.2% to 0.4% from 2010
to 2011. CAGR registered a positive increase of 28.3 percent from 2007 to 2011.
INDIA’S TOP EXPORTING DESTINATIONS, HS CODE: 2504, Natural graphite

(Values in USD Mn)
Importers 2009 2010 2011
World 1.797 1.283 2.531
Germany 0.168 0.104 0.801
Netherlands 0.092 0.095 0.201
Italy 0.008 0.129 0.162
Bangladesh 0.004 0 0.137
Japan 0.076 0 0.129
Saudi Arabia 0.015 0.026 0.076
United Republic of 0.018 0.019 0.072
Tanzania
Paraguay 0 0 0.07
Source: ITC
The top three export destination for India in 2011 were Germany, UK and Netherlands
holding the share of 31.6%, 21.5% and 7.9% to the total exports by India to the world for
natural graphite.
TOP IMPORTERS IN WORLD, HS CODE: 2504, Natural graphite

(Values in USD Mn)
Importers 2009 2010 2011
World 280.882 433.651 608.76
Japan 62.226 99.113 133.831
Germany 26.364 47.369 65.432
China 14.795 16.243 33.523
Austria 7.649 20.837 32.498
Turkey 4.864 8.361 18.038
Italy 5.552 7.787 17.591
India 7.092 9.958 17.585

Chinese Taipei 8.88 11.484 14.298
Source: ITC
Top countries importing natural graphite in 2011 were Japan, USA and Germany with the
import share of 22%, 14.3% and 10.7% respectively, to total World imports. On matching
India’s top exporting destinations with leading importers in World, it is found that
countries like Chinese Taipei, Republic of Korea, China, Austria and Turkey can become the

Countries Year Total imports from Country’s India’s share in
world (in USD Mn) import from Country’s total
India (In USD imports from
Mn) world (in %)
China 2011 35.53 0.003 0
Austria 2011 32.49 0.125 0.4
Republic of 2011 29.65 0 0
Korea
Turkey 2011 18.03 India did not
figured
Chinese Taipei 2011 14.29 0.007 0
OBSERVATIONS
It is observed that in China, Austria, Republic of Korea and Chinese Taipei; India’s
export share was considerably low or nil in 2011. In Turkey, India did not figure as an
exporter from 2009-2011. So, these countries are the emerging markets for India. Since
Jharkhand has around 12.9 million tonnes of reserves of natural graphite and
contributes around 7% nationally, exports of natural graphite can be increased in
future.
C. TOP EXPORTERS OF GRAPHITE IN THE WORLD
Pie chart showing top 5 countries exporting natural graphite (HS code: 2504)
to world in 2011; source: ITC
Germany, 4.9 Canada, 4.3%

%
Brazil, 5.7%
Japan, 6.8%
China, 60.9%
As per pie chart above shows the leading exporters in natural graphite in 2011 were China,
Japan, Brazil, Germany and Canada. World exports of natural graphite (HS code: 2504) in
2011 were worth USD 599.21 Mn, from which India constituted USD 2.53 Mn in 2011; a
share of 0.42% to the total exports from the world.
D. GRAPHITE RODUCTION IN JHARKHAND
Jharkhand is producing 0.02 million tonnes of Graphite annually and contributes about
20% of the national annual production which is 0.10 million tonnes. Letehar and Palamau
are the main districts having reserves of natural graphite.
GRAPHITE PRODUCTION IN INDIA vis-à-vis JHARKHAND

(2009-10)
State/ district No of mines Quantity (in
million tonnes)
India 32 0.12
Public sector 1 0.05
Private sector 31 0.07
Jharkhand 9 0.026
Latehar 1 0.003
Palamau 8 0.02
Source: Indian Minerals Yearbook, 2011; Govt of India, Ministry of Mines
E. NON TARIFF BARRIERS
Product Country Non tariff barrier

Graphite Russia  Excessive packaging standards, quality criteria
Electrodes  Delay in issuance of hygiene certificate by Health
Department.
F. ISSUES TO BE ADDRESSED
 The graphite reserves having +40% fixed carbon are rather limited in the country.
Detailed exploration of graphite deposits in Odisha, Jharkhand, Jammu & Kashmir
and Kerala should be carried out.
 Cost-effective technologies for low-grade graphite ore need to be developed. Silicon
carbide-graphite crucibles are being diversified and manufactured to improve upon
the use of inferior grade material with less quantity and at the same time ensuring
longer life of crucible.
RECOMMENDATIONS
POLICY  Low import cost: Proper policy should be formulated for equalizing the
price difference of low imports versus high export cost.
 Non refund for VAT: It should be made available to exporters.
 Higher diesel prices: Exporters have requested to reduce the diesel prices
as it is increasing the cost of production.
 Pending leases: The lease applications should be granted at a faster rate so
that plant could run at its full capacity and can go for expansion. This will
ultimately increase the exports.
TECHNOLOGY  Cost effective beneficiation technology for low grade graphite ore needs to
be developed.
B-HANDICRAFTS
B.1 BAMBOO
A. BAMBOO PRODUCTION IN INDIA
India has huge natural bamboo stocks that have been an integral part of Indian culture for
many millennia. Area under Bamboo production in the world estimated around 11.36
million hectares. India has 136 species of bamboos across 22 genera. It is the second
richest country in the world, in terms of genetic resources, after China. Bamboo in many
ways is the mainstay of the rural Indian economy, sparking considerable social and
ecological spin-offs.
B. USAGE OF BAMBOO
The multiple uses of bamboo highlights the utility of bamboo for house construction,
bamboo ply, agricultural implements, handicraft, irrigation, brooms, medicine, food, fuel,
fodder, paper & pulp etc, especially bamboo as a perfect substitute for some wood based
products. The products that can be made from Bamboo can be broadly be categorized into:
 Wood Substitutes and Composites,

 Industrial Use and Products,
 Food Products,
 Construction and Structural Applications.
C. PRODUCT ANALYSIS
PRODUCT PRODUCT LABEL WORLD TO WORLD INDIA EXPORTS TO INDIA'S SHARE IN

CODE IMPORTS WORLD TOTAL IMPORTS
FROM WORLD(%)
2010 2011 2010 2011 2010 2011
Values in USD Mn
940381 Furniture of bamboo or 200.21 178.7 0.2 0.48 0.1 0.3
rattan (excl. seats and
medical, surgical, dent
INDIA EXPORTS TO THE WORLD
Product Product label 2007 2008 2009 2010 2011 CAGR
code (%)
940381 Furniture of bamboo or 0 0 0.341 0.203 0.484 19.13
rattan (excl. seats and
medical, surgical, dent
Source: ITC
From the above table, it is noteworthy that there is a huge gap in the total imports from
world and exports from India. India’s export of furniture of bamboo has grown from 0.1%
to 0.3% from 2010 to 2011. The CAGR of the same commodity is increasing at the rate of
19.1% from 2007-2011.
INDIA’S TOP EXPORTING DESTINATIONS IN THE WORLD

HS CODE: 940381, Furniture of bamboo or rattan (excl. seats and medical, surgical, dent)
Values in USD Mn
India market 2009 2010 2011
World 0.341 0.203 0.484
Malaysia 0 0 0.217
Brazil 0 0 0.026
United Arab Emirates 0 0 0.021
China 0 0 0.013
Area Nes 0 0 0.009
Maldives 0 0.001 0.009
Viet Nam 0 0 0.007
United Republic of 0 0 0.006
Tanzania
Source: ITC
The main export destinations of India in 2011 were Malaysia, USA and Brazil. From the
total export figures, it is revealed that India had exported just 0.48 USD Mn of Bamboo,
against the world demand of 178.7 USD Mn in the year 2011; leaving a lot of potential for
the exports to take place.
TOP IMPORTERS OF BAMBOO IN THE WORLD

HS CODE: 940381 Furniture of bamboo or rattan (excl. seats and medical ,surgical, dent)
Values in USD Mn
World 210.17 200.217 178.78
France 28.76 21.976 14.539
Germany 16.152 16.094 13.908
United Kingdom 18.227 15.657 11.517
Canada 5.695 6.812 6.194
Japan 6.75 6.132 5.989
Switzerland 4.029 6.23 5.893
Spain 8.614 8.118 5.781
Belgium 9.526 7.193 5.482
Singapore 1.612 4.302 5.183
Source: ITC
Top importers of furniture of bamboo or rattan in 2011 were USA, France and Germany
having the share of 22.6%, 8.1% and 7.8% to the total World requirement. On matching
India top exporting destinations with leading importers in the world, countries like France,
Germany, Canada, Japan and Switzerland, Spain, Belgium, Singapore can become the
emerging markets for India’s exports. India’s share in the top 3 importing countries is
further analysed:-

USD Mn) India (In USD imports from
Mn) world (in %)
France 2011 14.53 0.015 0.1

Germany 2011 13.90 0 0
Canada 2011 6.19 0.034 0.5
Source: ITC
OBSERVATIONS
It is observed that in France, Germany and Canada; India’s export share was
considerably low or nil in 2011. Since USA is also the leading importer of Bamboo
based furniture, India should increase its export share in this country. In 2011, USA
imported furniture of bamboo or rattan worth around USD 40.4 Mn from World, from
which imports from India were only USD 0.02 Mn.
D. BAMBOO PRODUCTION IN JHARKHAND
The Chota Nagpur plateau region is thickly populated with bamboo grooves and the tribes
of the region are masters in making exquisite baskets, cane products and other utility
items. The tropical climate of this region has a tradition of bamboo craft and the availability
of abundant raw material has enabled the locals to master this ancient craft. Bamboo
products are available everywhere in Jharkhand. There are innumerable types and shapes
of the bamboo basket, varying with the use for which they are intended. Various products
of bamboo which are manufactured in Jharkhand includes Bamboo housing, Bamboo pulp,
paper and cloth, Bamboo panels, Bamboo flooring, Bamboo weaving products and crafts,
Bamboo shoots and Bamboo furniture.
E. ISSUES FACED BY BAMBOO INDUSTRY IN INDIA
 Irregular supply: The biggest impediment towards a bamboo based sector from
developing has been the irregular and scant supply of bamboo for entrepreneurial
use. The paper and pulp industry in India, which has been traditionally using
bamboo for over half a century, has constantly innovated to reduce the use of
bamboo for its manufacturing process due to this uneven and scant supply. And
after the consumption by the paper mills (who usually have long term contracts
with the forest departments), very little is left for any other application. This pattern
is true for all Indian States.
 Inefficient regulatory regime: The present regulatory regime in India is the
unambiguous culprit for this irregular and inadequate supply. The regulatory
structure, as regards to the bamboo industry, has remained caught in the quagmire
of archaic forest laws, whereby bamboo is defined to be a tree, and therefore felled
bamboo is classified as timber; which is subject to transit and trade restrictions.
Bamboo is also subjected to harvesting permissions in many parts of the country if
grown on private lands and which then becomes the basis for imposing the need for
transit permits. This has resulted in chocking of the bamboo sector and has
discouraged private plantations.
 Problems in availing finance: Bamboo artisans reported financial problem as the
major constraint. At present, there is no such institute in the state who can finance
bamboo artisan.
 Lack of training: There is no such institute which gives training to artisans.
 Lack of awareness: There is lack of awareness about various schemes of the
Government for the benefit of the handicraft ( Bamboo) artisans.
 Poor market linkage: Since the sector is highly unorganized, weak market linkages
lead to an unrealized export potential from the state.
RECOMMENDATIONS
POLICY  Regulatory institution: An efficient regulatory institution is essential
for markets to grow in a sustainable manner, especially where
environment concerns are coupled with business development.
 Nodal Agency: Nodal agency needs to be set up that can aware the
artisans regarding schemes provided by the Government in
handicraft sector.
 Finance is required for bamboo.
MARKETING AND  There should be a coordinated approach. Convergence and synergy

PROMOTION should be there should be there among R&D, marketing agencies in
public as well as private sectors at all levels.
 Cooperatives and self help groups should ensure support and bring
adequate returns to farmers.
 State and sub state level structures should be established for getting
adequate returns for the produce of the farmers and eliminating
middlemen to the extent possible.
INFRASTRUCTURE  Technology upgradation: Technology application for new product

design needs to be done. This will further encourage setting up of
manufacturing units. There is requirement of Common Facility
Centre for bamboo artisans.
 Training Centres: Training centres need to be set up in Jharkhand
for bamboo artisans. They can also provide immediate solutions to
local problems and help disseminate the information.
C-AGRICULTURE
C.1 MAIZE
Maize is produced in high concentration in the states of Karnataka, Uttar Pradesh,

Rajasthan, Madhya Pradesh, Bihar, Himachal Pradesh and Punjab which together account
for two-third of the total area and output of the crop. In India, maize is the third most
important food crop after rice and wheat, and is a promising option for diversification in
agriculture since it is more resilient to changing climate. In recent years, it has seen a
notable growth rate and has contributed significantly to the national economy. India
consumes 17-18 million tonnes of corn annually, while maize production reached at 21
million tonnes in the 2011-12 crop year (July-June), marginally lower than 21.28 million
tonnes in the previous year. Indian maize has been accepted in the World market and will
continue to be traded in the close by markets of South-East and West Asia.
B. VALUE ADDED PRODUCTS OF MAIZE
Maize is generally processed to manufacture corn starch by wet milling method. The by-
products during starch manufacturing are corn oil, corn steep liquor, gluten etc. which are
the important value added products.
 Maize Starch: Maize starch is widely used for thickening sauces, gravies, puddings
and pie fillings. Maize starch finds numerous uses in the baking industry for the
production of cakes, cookies, in ice cream preparations etc. In Paper industry a large
quantity of starch is consumed as a surface-sizing agent, as a binder, as a paper
coating agent etc. In textile industry, starch is used in sizing to strengthen the warp
yarn, in finishing and changing the appearance of fabric after it is bleached, dyed or
printed, in printing and increase the consistency of printing pastes. Also starch is
used as a component in finishing agent to glaze and polish sizing thread.
 Maize (Corn) Steep Liquor: It contains amino acids, proteins and is used by
antibiotics drugs manufacturers. Also it is a large source of biogas, which is being
used as fuel for driers, boilers etc.
 Maize Gum: Corn Oil is produced by expelling oil from the germs. Corn Oil finds
applications in food and other chemical industries. Maize oil cake obtained after
expelling oil is used as cattle and poultry feeds.
 Maize Gluten: Maize Gluten contains high protein content and it is used as cattle
and poultry feeds.
 Maize Husk: It contains starch, protein and fat as minor components and mainly
consumed as cattle feed.
C. MARKET ANALYSIS
(at 6 digit, disaggregated)
PRODUCT PRODUCT WORLD IMPORTS EXPORTS FROM INDIA’S SHARE
CODE LABEL FROM WORLD INDIA IN TOTAL
IMPORTS FROM
Values in USD Mn Values in USD Mn WORLD (%)
2010 2011 2010 2011 2010 2011
100590 Maize 22318.07 33004.65 513.955 1067.102 2.3 3.2
(corn) nes
100510 Maize 3362.097 2915.499 19.865 16.924 0.5 0.5
(corn)
seed
Source: ITC
India’s share of the exports of Maize (corn), nes rose from 2.3% to 3.2% as compared to
maize corn seed, whose exports share was stagnant during the two consecutive years.
EXPORT PERFORMANCE OF INDIAN MAIZE

Code Product 2007 2008 2009 2010 2011 CAGR (%)
label
Values in USD Mn
100590 Maize 297.512 848.646 504.532 513.955 1067.102 37.6
(corn) nes
100510 Maize 16.044 75.191 28.251 19.865 16.924 1.3
(corn) seed
From the above tables, it is noteworthy that India’s exports were highest for maize corn,
nes (HS code: 100590). From the 2 commodities exportable by India for maize (at 6 digit,
disaggregated), it is observed that the CAGR of maize corn, nes registered the highest
growth. The world market for this code is further analysed.
INDIA’S TOP EXPORTING DESTINATIONS OF MAIZE

HS code: 100590, maize (corn), nes
(Values in USD Mn)
India market 2009 2010 2011
World 532.78 533.82 1084.03
Indonesia 14.29 37.24 325.08
Malaysia 121.09 141.72 214.72
Vietnam 113.46 126.79 166.14
Bangladesh 100.57 155.28 138.16
Chinese Taipei 33.52 9.91 53.45
United Arab 18.64 10.03 40.87
Emirates
China 0.75 0.62 40.63
Nepal 4.57 16.89 17.02
Oman 5.91 4.01 16.57
Source: ITC
India’s top three export destinations for maize in 2011 include Indonesia, Malaysia and
Vietnam, holding the share of 30%, 19.7% and 15.32% respectively to the total exports to
the world by India.
HS code: 100590, maize (corn), nes
(Values in USD Mn)
World 22363.631 25680.156 35920.16
Japan 3769.964 3959.821 5355.175
Mexico 1436.754 1583.297 2989.322

Republic of Korea 1637.985 1990.142 2498
Egypt 833.724 1270.65 2096.105
Spain 935.704 968.772 1576.247
Chinese Taipei 958.316 1225.458 1385.361
Netherlands 709.317 656.672 1148.647
Indonesia 77.841 369.076 1028.527
Iran (Islamic Republic 0 919.643 1028.316
of)
Algeria 407.494 637.653 998.55
Source: ITC
The top three importers for maize in 2011 were Japan, Mexico and Republic of Korea. On
comparing the top ten export destinations of India with the world’s top 10 importers, there
are several countries viz. Japan, Mexico, Egypt, Spain, Netherlands, Iran and Algeria which
are not figuring in India’s export destinations. The table below shows the India’s export
share in all these countries:-
ANALYSING INDIA’S EMERGING MARKETS IN MAIZE

Countries Year Total imports Country’s import India’s share in Country’s
from world (in from India (In total imports from world
USD Mn) USD Mn) (in %)
Japan 2011 5355.17 3.199 0.05
Mexico 2011 2989.32 0 0
2010 1583.29 0 0
Egypt 2011 1583.29 0 0
2010 1270.65 0.017 0.001
Spain 2011 1576.24 0.004 0.00025
Netherlands 2011 1148.6 0.071 0.006
Iran 2011 - - -
2010 919.64 3.366 0.36
Algeria 2011 998.55 - -
Source: ITC
Note: “-“ denotes data unavailability
1. for Iran, data was not available for 2011
2. for Algeria, India did not figured as an importer from 2009-2011
OBSERVATIONS
As shown from the table above, India’s export share in all the above countries is very
low, so these countries can become emerging markets where India can increase its
export share.
C. MAIZE SCENARIO IN JHARKHAND
Maize is the 2nd important crop of the State occupying 6% cropped area. The current area
under maize is around 2.37 lakh ha, production 3.56 lakh tones and yield is 1500 kg/ha.
Maize does possess tremendous potential in diversified agriculture prospects in terms of
feed for dairy, poultry, piggery and agro-industries. A growing preference for poultry-based
food has also increased domestic consumption, and prices, of corn, which is used in animal
feed. Maize is used as Feed (63%), Food (23%), Starch (12%), Seed, breweries and
miscellaneous uses which accounts for 2% in India.11
Area, Production and Productivity of Maize in Jharkhand

Productivity
Year Area(ha) Production (tons) Remarks
(kg/ha)
1999-00 118,107 186,609 1,580
2001-02 139,881 209,187 1,495 Drought Year
2002-03 157,603 269,181 1,708 Max. yield
2003-04 187,517 300,027 1,600 Max production
2004-05 185,870 268,400 1,444 Drought Year
2005-06 181,240 229,497 1,266 Drought year
2006-07 240,863 296,410 1.504 Normal
2007-08 237,410 356,115 1500 Normal
2008-09 198935 267728 1345
Source: National Food Security Mission
The table above gives the year wise Area, Production and productivity of Maize.
RECOMMENDATIONS
CROPPING  Area under Single Cross Hybrid (SCH) seeds of maize should
PRACTICES be increased. At present, only 30% of maize area in India is
under hybrid seeds. A decade ago, the average productivity was
one tonne per hectare but now due to hybridization, it has crossed
two tonne per hectare12. The cost of single hybrid seed production
in India is lowest and therefore after meeting the requirement of
the country, the seed export to neighboring countries will be
profitable to the Indian farmer and seed industry.13
 Integrated crop management practices: Integrated crop
management in the terms of integration of irrigation, nutrient and
post harvest management practices should be encouraged to
sustain and increase the yield.
 Maize intercropping system: Maize can be intercropped with
11
Directorate of maize research, vision 2030
12
http://articles.economictimes.indiatimes.com/2010-09-28/news/27596422_1_maize-production-hybrid-area-
under-maize-cultivation
13
Pea, Potato, Cole crops, Fenugreek, Coriander, beetroot, spinach

and gladiolus in order to increase the productivity.
MARKETING AND  Promotion of seed industries: Large demand for single cross
PROMOTION hybrid seed is an opportunity for seed industry growth.
Promoting self help groups, small indigenous seed companies,
encouraging MOU’s of public sector hybrids and participating in
Public Private Partnership (PPP) will help to meet the required
demand of seed in the country. Adequate seed production taken at
sites will help in making timely availability of seed to the farmer.14
 Promotion of specialty corns and their value addition for
exports promotion: The demand of baby corn, sweet corn and
popcorn is increasing every year. Along with it, large number of
value added products like starch and its derivatives, baby corn etc
is being exported annually. The development of suitable hybrids
and their production for specialty corn maize should be
strengthened. This will promote small scale entrepreneurship and
future exports.
INFRASTRUTURE  Setting up of wet milling plants: The wet milling industry in
India is limited to certain pockets like Maharashtra, Gujarat,
Madhya Pradesh, Punjab, Karnataka and Chhattisgarh. More
number of wet milling plants should be set up in different parts of
India, including Jharkhand for the production value added
products like corn starch and corn gluten.
C.2 PULSES
A. PULSE PRODUCTION IN INDIA
India is the largest producer, consumer and importer of pulses. Although it is the world’s
largest pulses producer, India has been importing 3-4 million tons (mt) of pulses every
year to meet its domestic demand. However, during the last decade, growth in
pulses production has increased significantly. India’s domestic consumption of pulses is
very high and is not met by its own production.
Pulse production in India in 2009-10
Below graph shows that Madhya Pradesh has been the largest producer of pulses followed
by Maharashtra, Uttar Pradesh and Andhra Pradesh in 2009-10. Jharkhand stood at the
11th position in the pulse production producing around 0.2 million tonnes of pulses in
2009-10.
14
Export Com
40
35
30
State'ss share in produ
uction(%)
25
Produ
uction (in million
n tonnes)
20
15
10
5
0
Madhh A
Andhr
Uttar Chhhat West
ya Mahar a Karna Ra
ajast Gujar Jhark Tamil Harya
Prade tisg
gar Bihar Orisssa Benga
Prade
e ashtra Prade taka h han at hand Nadu na
sh h l
sh sh
State'ss share in produ
uction(%) 29.91
1 16.47 13.21 9.93 7.77 4
4.96 3.59 3..4 3.28 2.78
8 1.55 1.42 1.04 0.69
Produ
uction (in million
n tonnes) 4.3 2.37 1.9 1.42 1.11 0
0.71 0.51 0.4
49 0.47 0.39
9 0.22 0.2 0.15 0.1
Sou
urce: APEDA
B. DEMA
AND SUPPL
LY MISMAT
TCH
Imports of
o dried vege etables by Ind dia, HS code: 0713
(at 6 digiit, disaggrega
ated)
(valu
ues in USD Mn n)
Code Pro
oduct label 2009
9 2010 2011
071310 Peas dried, shelled, whether
w or noot skinned orr 565.3332 501.2
259 783..768
split
071331 Urd, mun ng, black/gre
een gram bea ans dried 560.3884 615.5
549 387..203
shelld, whether/not
w s
skinnd/split
071390 Legumin nous vegetables dried, she elled, whethe er 433.3779 293.7
771 324..769
or not sk
kinnd or splitt,nes
071339 Beans drried, shelled,, whether or not
n skinned or o 150.22 93.04
42 118..733
split, ness
071320 Chickpea as, dried, she
elled, whetheer or not 149.07
75 85.78
83 108..715
skinned or split
071340 Lentils dried,
d shelledd, whether orr not skinned 152.99
98 208.9
919 68.0
074
or split
071333 Kidney beans
b &whitee pea beans dried
d shelled,, 49.231 67.23
36 59.3
341
whetherr o not skinnd d or split
071332 Beans, small red (Adzuki) dried, shelled,
s 1.396
6 0.04
47 0.0
064
whetherr or not skinn ned or split
Source: IT
TC
At preseent, India is
i meeting its deman nd for pulses by importing heav vily from other
o
countriees. In 2011, India impported pulsses amountting to USD
D 1850 Mn USD, spen nding
preciouss foreign exxchange, where
w as wee do have the
t capabillity of increeasing our own
productions by utilising the land effectively in soil rich areas. Canada, Myanmar and
Australia are the top exporters of pulses to India.
EXIM SITUATION OF PULSES IN INDIA FROM 2009-2011

(Trade values in USD Mn)
2500
2062
1865.6 1850.6
2000
1500
1000
500 193.29 228.48

79.1
0
-500 2009 2010 2011
-1000
-1500
-2000 -1671.7 -1621.5

-1982.9
-2500
Pulses exports from India Pulses imports by India Trade deficit
It is clear from the above graph that India’s trade deficit from 2009 to 2011 in the case of
pulses is very high because as compared to imports, exports are very less.
C. EXPORTS FROM INDIA
Though exports of pulses are restricted from India, but some of the organic varieties of
pulses are being exported to many countries of the world. As per the notification no 109
(RE – 2010)/2009-2014 issued by Govt of India, Ministry of Commerce and Industry, the
exports of Kabuli chana and Organic Pulses are allowed up to the prescribed quantity of 10,
000 tonnes per annum .

HS CODE: 0713- Dried vegetables, shelled
(values in USD Mn)
World 79.108 193.295 228.489
Algeria 11.436 29.425 49.322
Pakistan 17.238 58.397 41.809
Turkey 4.137 24.306 37.326
Sri Lanka 11.472 15.909 22.862
Saudi Arabia 4.246 7.507 8.849
Tunisia 4.405 7.403 6.127

Portugal 0.494 3.874 5.42
Spain 0.38 2.173 5.259
Kuwait 2.076 3.648 4.163
Source: ITC
India’s top three exporting destinations for pulses in 2011 were Algeria, Pakistan and
Turkey. India’s export share to these top 3 countries had been 21.6%, 18.3% and 16.3%
respectively.
TOP IMPORTERS OF PULSES IN WORLD;
HS CODE: 0713- Dried vegetables, shelled
(Values in USD Mn)
World 7374.086 8153.43 8756.433
India 2062.014 1865.61 1850.668
Egypt 280.078 319 424.912
China 136.41 272.899 397.87
Pakistan 254.468 368.031 395.157
United States of 251.416 264.467 365.779
America
Algeria 162.411 208.638 286.464
Turkey 207.428 257.844 282.654
United Arab 201.599 213.823 255.847
Emirates
Italy 197.817 224.085 249.679
Japan 147.461 172.896 239.369
Source: ITC
On comparing the data for India’s exports and top importers of pulses in world, countries
like Egypt, China, USA, Italy and Japan are not appearing in India’s export destinations.
India can definitely explore the opportunity to export organic pulses to these countries.
ANALYSING INDIA’S EMERGING MARKETS IN PULSES

from world import from Country’s total
(in USD Mn) India (In USD imports from world
Mn) for pulses (in %)
Egypt 2011 424.9 4.08 0.9
China 2011 582.0 78.23 19.6
USA 2011 365.77 68.72 18.7
Italy 2011 249.6 2.86 1.14
Japan 2011 201.8 0.38 0.18
Source: ITC
OBSERVATIONS
As shown from the table above, India’s export share in China and USA is considerably
high as compared to Egypt, Japan and Italy. So, India needs to increase its export share
in these three countries.
D. PULSES SCENARIO IN JHARKHAND
Crop 2009-10 2010-11 2011-12
A P Y A P Y A P Y
Pulses 172.98 114.85 649 278.26 187.47 673 287.47 243.792 848
(Kharif)
Rabi 128.78 104.88 814 127.02 124.96 984 251.31 248.458 989
Area in ‘000 ha Production in ‘000 tonnes Yield in kg/ha
Source: Deptt of Agriculture, GOJ, Ranchi
During the period of 2009-10 to 2011-12, the area, production, productivity of pulses in
Kharif season has increased to 287.47 thousand ha, 243.79 thousand tonnes and 848 kg/ha
respectively. In Rabi season also, the area, production and productivity has increased to
251.31 thousand ha, 248.45 thousand tonnes and 989 kg/ ha respectively.
Crop 2009-10 2010-11 2011-12
A P Y A P Y A P Y
Arhar 61.181 53.277 870 103.81 71.156 685 137.74 125.91 914
Urad 63.177 35.079 650 89.592 71.856 802 99.591 88.851 892
Moong 14.044 7.724 550 46.891 23.473 500 17.261 11.682 696
Kulthi 36.575 22.759 622 29.402 17.015 578 15.772 9.46 625
Bengal 63.001 57.59 913 69.924 73.536 1052 149.47 154.82 1036
Gram
Masur 42.726 34.461 806 20.939 17.21 822 50.03 42.235 844
Pea 24.097 21.311 884 36.157 34.21 946 41.505 46.315 1116
Area in ‘000 ha Production in ‘000 tonnes Yield in kg/ha,
Source: Deptt of Agriculture, GOJ, Ranchi
Top three pulses of Jharkhand are Bengal Gram, followed by Arhar and Urad. The area,
production, productivity of Bengal Gram has grown to 149.47 thousand ha, 154.82
thousand tonnes and 1036 kg/ha respectively in 2011-12. The area, production and
productivity of Arhar and Urad have also shown a significant increase from 2009-10 to
2011-12.
E. ISSUES AFFECTING PULSE PRODUCTION IN INDIA
 The real problems with pulses are the low productivity of existing strains, a virtual
absence of technological progress and the inability of modern science to address the
problems of high vulnerability of pulses to pests and diseases.
 Moreover, being protein-rich crops, pulses require far more energy to bear grains
than cereals like wheat and rice do. Farmers end up not investing enough in the
required inputs also; because the risk element is high in this heavily rain-dependent
crop.
RECOMMENDATIONS
INFRASTRCUTURE  Pulses production should be encouraged in Jharkhand because the

productivity of pulses from Jharkhand state is 7.94 quintal/ha which is
more than the national average of 7.54quintal/ha. Since Jharkhand has
the potential to become organic hub in international market, pulses
can be organically cultivated so as to attract exports and fetch better
export pricing.
 Since the real problem is related to absence of suitable technology,
increased investment in R&D is another possible solution.
POLICY  Effective price regulation is the key to ensure higher production of
pulses.
D HORTICULTURE
FRUITS
A. NATIONAL SCENARIO- FRUITS
India ranks second in the world after China in the production of fruits and vegetables. Its
diverse agro-climatic regions are ideal to grow a large variety of crops. Occupying 7 per
cent of the total cropped area, their contribution to gross agricultural output is more than
18 per cent. The major horticulture crops that are exported from India are – mango, grapes,
orange, apple, banana, mosambi, onion, potato, tomato and pumpkins. The biggest buyers
of Indian horticulture products are Bangladesh, Nepal, UAE, UK and Malaysia.
Apart from bringing in revenue from exports, horticulture plays a significant role in
improving the livelihood of the rural populace. Being labour intensive, it generates a lot of
direct and indirect employment opportunities. According to estimates, there is more than
200 million hectares of wasteland in India which can be brought under cultivation. This
move, if implemented, will help the country in a big way to tackle the nutritional crisis.
Horticultural products are a rich source of vitamins, proteins and carbohydrates and
minerals.
B. EXPORTS SITUATION OF FRUITS FROM INDIA vis-à-vis WORLD

Graph showing exports of fruits from India to world
(Values in USD Mn)
100000 1.7%
90000
1.5% 1.4%
80000
70000
60000
50000 India exports to world
40000
Total world exports
30000
20000
10000
0 India's share in
global exports
2009 2010 2011
Graph above shows that India’s share in the global exports of fruits is very low. It was 1.5%
in 2009, which rose to just 1.7% in 2011.
C. HORTICULTURE SCENARIO OF THE JHARKHAND

Jharkhand Horticulture Production in 2010-11
Item Production ('000 Availability/capit Requirement Deficit/ % of
tonnes) a(Kg per year (000 tonnes) surplus surplus/
deficit
Fruits 734.6 15.55 978.93 (-)244.33 (-)33.26
Vegetables 3843.1 111.86 2936.8 (+) 906.3 (+)23.58
Source: Directorate of Horticulture, Govt of Jharkhand, Ranchi
As can be seen from the table above, the total production of fruits and vegetables in
Jharkhand in 2010-11 were 734.6 thousand tonnes and 3843.1 thousand tonnes, but there
is a huge difference between demand and availability in the state, particularly in fruits for
which there is a deficit of 33.26%. Vegetables had a surplus of 23.58%. In Jharkhand, the
major fruit crops grown in the state are Mango, Jackfruit, Citrus, Litchi, Banana, Sapota,
Papaya etc. The mango varieties cultivated in the state of Jharkhand are Jardalu, Amrapali,
Malika, Bombai Green, Langra, Himsagar, Chausa & Gulabkhas whereas the major litchi
varieties grown are China and Shahi.
Production of fruits in Jharkhand vis-à-vis India

Commodity A P Y A P Y Production in Jharkhand's share
India (2010- in national
11) production (in
2010-11)
2009-10 2010-11
Litchi 4.3 51.1 12 4.3 35.9 8.4 497.3 7.2%

Mango* 15.1 254.3 16.84 38.9 427.9 11 15188 2.8%
All fruits 37.7 577.6 15.3 72 779.6 10.8 74878 1%
Source: National Horticulture Board
For Mango, data is taken from India horticulture Database, 2011
A- Area in '000 ha, P- Production in '000 MT, y- productivity in MT/ HA
Jharkhand contributes 1% share in the national production of fruits, out of which Litchi
and Mango contributes 7.2% and 8.2% in the national production.
PERCENTAGE GROWTH OF FRUITS FROM 2008-09 TO 2010-11 IN JHARKHAND
Commodity Production YOY YOY ( 2009-

( 2008-09 - 10 - 2010-
2008-09 2009-10 2010-11 2009-10) 11)
litchi 20.3 51.1 35.9 151.7 -29.74

Mango 91.52 254.30 427.9 177.8 68.26
All fruits 395.9 577.6 779.6 45.89 34.97
P- Production in '000 MT; YOY- year on year
Source: National horticulture Board and FIEO analysis
From the major fruits, the percentage growth of Litchi has declined from 151.7% to a
negative growth of 29.74% from the period of 2008-09 to 2010-11. In the case of Mango,
there was a percentage decrease in its production from 177.8% to 68.26%. Mangoes are
grown in Ranchi, Dumka, Deogarh, Lohardaga and Gumla. Guava is mainly grown in Ranchi,
Lohardaga, Gumla, Hazaribagh and Giridih.
Compared with Bihar, Jharkhand lags way behind in Litchi production though they share
the same semi tropical climate needed for fruit. Bihar grows over 2 lakh tonnes of litchi
annually, which is around 74 per cent of the country’s produce. Jharkhand produces around
16, 000 tonnes of litchi globally.
The table below shows the data for India exports vis-à-vis world requirement of certain
fruits that are grown in Jharkhand.
EXPORTS OF FRUITS FROM INDIA
HS code Product description Year India’s Total world India ‘s

exports (in requirement share in
USD Mn) total
imports
from
world (%)
08 Edible fruits, nuts, peels of 2009 1035.35 75984.87 1.3
citrus , melons 2010 1088.7 83867.53 1.2
2011 1448.99 94284.20 1.5
080450 Mangoes, guavas and 2009 205.43 1396.43 14.7
guavasteens 2010 228.71 1556.20 14.6
2011 200.95 1755.24 11.44
8045040 Mango pulp 2009 153.5 NA
2010 178.32 NA
2011 133.4 NA
8109060 Lichi 2009 0.17 NA
2010 0.29 NA
2011 0.08 NA
Source: ITC
Reasons for selecting fruits for further analysis
Mango Mango contributes the major share in generating revenue from India in the
category of fruits. Requirement of Mangoes, Guava and Mangosteens (HS code:
080450) have been increasing since 1.2 Mn tonnes to 1.5 Mn tonnes.
PRODUCT ANALYSIS
D.1 MANGO
Mango is grown almost in all the states of India. Uttar Pradesh tops the list of mango
producing states. Other major producing states are Andhra Pradesh, Maharashtra,
Karnataka, Bihar and Gujarat. Uttar Pradesh is the leading mango producing state with
production of 3,623.22 thousand tons followed by Andhra Pradesh state which has
production of 3,363.40 thousand tons. Then comes Karnataka 1,778.75 thousand tons,
followed by Bihar and Gujarat i.e. 1,334.87 and 911.30 thousand tons respectively. Area,
production and productivity of mango in different states are given in the table below.
Area, production and productivity of leading mango growing states in India

STATE AREA (000’ha) PRODUCTION (000’tons) PRODUCTIVITY
(tons/ha)
2008- 2009-10 2010- 2008-09 2009-10 2010-11 2008- 2009- 2010-
09 11 09 10 11
Uttar Pradesh 271.2 276.42 267.22 3465.95 3588 3623.22 12.78 12.98 13.56
Andhra 497.7 480.41 391.09 2522 4058.35 3363.4 5.07 8.45 8.6
Pradesh
Karnataka 141.29 153.8 161.57 1284.42 1694 1778.75 9.09 11.01 11.01
Bihar 144.07 146.03 147.01 1329.8 995.94 1334.87 9.23 6.82 9.08
Gujarat 115.69 121.52 130.1 299.82 856.74 911.3 2.59 7.05 7
Total 2308.9 2312.30 2296.8 12749.77 15026.6 15188.38 5.52 6.50 6.61
(including 8 0 9
other states)
Source: Indian horticulture database, 2010-11
B. MARKET ANALYSIS

PRODUCT PRODUCT LABEL WORLD IMPORTS EXPORTS FROM INDIA'S SHARE IN
CODE FROM WORLD INDIA TOTAL IMPORTS
FROM WORLD (%)
Values in USD Mn Values in USD Mn
2010 2011 2010 2011 2010 2011

080450 Guavas, mangoes 1556.2 1755.2 228.7 201.0 14.7 11.4
and mangosteens,
fresh or dried
Source: ITC
INDIA’S EXPORT PERFORMANCE OF MANGOES, GUAVAS AND GUAVASTEENS
Code Product label 2007 2008 2009 2010 2011 CAGR

(%)
Values in USD Mn
'080450 Guavas, mangoes 162.7 214.6 205.4 228.7 201.0 5.4
and mangosteens,
fresh or dried
The commodity (carrying HS code 080450) is selected for further analysis. This commodity
has been growing at a compounded annual growth rate of 5.4% from 2007 to 2011.
INDIA’S TOP EXPORTING DESTINATIONS IN WORLD

HS code: 080450, Fresh or dried guavas, mangoes and mangosteens
Values in USD Mn
India markets 2009 2010 2011
World 205.436 228.717 200.958
Saudi Arabia 49.958 49.027 41.439
Netherlands 19.99 29.013 23.691
United Kingdom 13.803 15.699 12.51
Bangladesh 11.651 4.859 11.253
Yemen 14.983 12.531 10.43
Kuwait 10.258 9.105 8.455
Japan 5.742 6.212 7.479
Canada 3.006 3.366 3.904
Source: ITC
The top export destinations of India for HS code 080450 in 2011 were Saudi Arabia, UAE
and Netherlands holding the share of 20.61%, 17.48% and 11.78% respectively.
Hs code 080450: Guavas, mangoes, mangosteens; fresh and dried
(Values in USD Mn)
World 1396.432 1556.203 1755.242
United States of 301.527 345.355 401.976
America
Netherlands 135.417 159.27 171.635
China 152.789 154.585 154.828
Germany 70.734 88.036 119.724
United Kingdom 77.308 74.663 89.621
Saudi Arabia 26.856 48.766 77.493
Hong Kong, China 112.782 93.257 75.787
France 55.557 60.296 72.286
Canada 55.887 62.875 69.624
Source: ITC
From the above table above, USA, Netherlands and China were the top importers of HS code
080450 in 2011, holding the major share of 22.90%, On matching India’s leading export
destinations with top importers of HS Code 080450 in world, it is found that China,
Germany, Hong Kong China and France can emerge as the export markets for India in
future.
Countries Year Total imports from Country’s India’s share in

world (in USD Mn) import from Country’s total
India (In USD imports from
Mn) world (in %)
China 2011 154.82 0 0
Germany 2011 119.72 0.45 0.4
Hongkong, China 2011 75.78 0.12 0.2
France 2011 72.28 0.25 0.5
Source: ITC
OBSERVATIONS
As shown from the table above, India’s export share in China , Hongkong, Germany and
France is very low in the year 2011. So, India needs to increase its export share in these
three countries.
C.TOP EXPORTERS OF MANGOES

Pie chart showing exports of Mangoes, Guava and Mangosteens
by top 5 countries in world, HS code: 080450 (in 2011); Source: ITC
Peru
13.62% Mexico
24.37%
Brazil, 9.4
India
Netherlands 23.84%
21.33%
World imports of Mangoes, Guavas and mangosteens (HS code: 080450) for the year 2011
were worth USD 1508.62. Mexico is the topmost country exporting mangoes, guavas and
guavasteens worth USD 205.65 Mn, followed by India whose export figures for the year
2011 was USD 200.958 Mn.
D. NON TARIFF BARRIERS FACED BY INDIA FOR MANGOES
Australia Import ban due to presence of fruit flies and stone weevil.
New Zealand High food safety standards and bio-security issue
Australia Mangoes should be heated with vapour heat at 46-49 degree celcius
for 20-30 minutes depending upon the variety to eradicate fruit fly.
After the vapour heat treatment, the fruits should be treated with hot
water fungicidal solution and allowed to cool and dry before grading
and packing.
USA  The mangoes must be treated in India with irradiation by
receiving a minimum absorbed dosage of 400 gamma rays.
 The mangoes must also be given post harvest hot water
fungicidal treatment (Prochloraz at 500 ppm) at 52 degree
celcius for 3-4 minutes.
 Each consignment must be inspected formally by USDA-APHIS
and NPPO of India as part of the required pre-clearance
inspection activities.
 Each consignment of mangoes must be accompanied by a
Phytosanitary Certificate issued by NPPO of India certifying that
fruits received the required irradiation treatment and confirming
that:
o Mangoes were subjected to post-harvest mitigation
option as above
o Mangoes were inspected and found free of Cytosphaera
manigiferae, Macrophoma mangiferae and
Xanthhomonas campestris .
E. MANGO PRODUCTION IN JHARKHAND
Mango in Jharkhand is cultivated in 9,905 ha, but its productivity is only 6.0 tonnes/ha. The
approach is to use modern cultivation practices as some orchardists are harvesting yields
up to 15-20 tonnes/ha depending upon plant spacing used. Thus, there is an urgent need to
adopt better growing practices like use of inputs, balanced nutrition, IPM practices, in the
mango pockets. Deogarh, Dumka, Saraikela and East Singhbhum are the main concentrated
pockets for mango production in Jharkhand.
RECOMMENDATIONS
RESEARCH AND  Indian mango processors should strengthen their R&D
DEVELOPMENT facilities so as to process value added products of mango like;
facial creams, mango butter, etc. from such intermediary
products or byproducts like; mango kernel, mango kernel oil,
mango flour, etc. This strategic move will have a strong and
positive impact on Indian economy in terms of employment
generation, increased exports, stronger BoP (Balance of
Payments) position, and reduction in post harvest losses to
international standards (from existing level of 35 – 40% to
20%). India needs to follow the footsteps of Brazil in this
regard.15
15
Research paper on Mango processing Industry of India
TECHNOLOGY  Indian fruit processors should undertake and speed up

technology Upgradation. They should bring in advanced
technology from the developed countries or the leading
countries like Brazil. Mechanization, automation,
computerization, and integration of the processes involved
have become mandatory if the fruit processors want to
compete in the international markets. (30% of Brazilian
imports pertaining to FPI constitute food processing
machines and other agricultural machines, whereas the same
is 10% for India.
INFRASTRUCTURE  Irradiation plants need to be set up.
VEGETABLES
A. NATIONAL SCENARIO- VEGETABLES
Vegetable production in India during 2010-11 was 146554.5 thousand metric tonnes.
Leading states for the production of vegetable include West Bengal, UP and Bihar which
constituted 18.2%, 12.1% and 10.0% to the national production in 2010-11.16
B. EXPORTS SITUATION OF VEGETABLES IN INDIA vis-à-vis WORLD
70000
1.61% 1.61%
60000 1.60%
50000 World to world

40000 imports (in USD
Mn)
30000
India exports to
20000 world (in USD Mn)
10000
0 India's share to
global exports
2009 2010 2011
Graph above shows that India’s share in the global exports of vegetables is almost constant
from 1.60% in 2009 to 1.61% in 2011.
16
Indian horticulture database report, 2011
Export Com
C. TOP EXPORTERS
E S OF VEGET
TABLES IN WORLD
Exportss of Edible veg

getables, roo
ots and tuberss by
top 5 countries
c in world
w (in 201
11); Source: ITC
16.00% 14.1%
14.00% 12.1%
12.00% 9.3%
10.00% 8.0%
8.00% 6
6.4%
6.00%
4.00%
2.00%
0.00%
World trrade in the export of vegetable

v (HHS code 07
7- Edible vegetables, ceertain rootss and
tubers) in
i 2011 weere worth USD U 61796.3 31 Mn, from
m which Chiina, Netherlands and Spain
S
are the top
t three exxporting nations. Indiaa’s presencee in the worrld market for
f the expo ort of
vegetablles was neglligible i.e fro
om 1.64% to
t 1.63% fro
om 2009 to 2011.
D. VEGE
ETABLE PRO
ODUCTION
N IN JHARKH
HAND
In Jharkkhand statee, about 1.4 492 lack hah is underr cultivatio on. The areea coveragee for
vegetablle crops iss increasin ng year aftter year dued to bettter returnss compared to
cereals/pulses. Thee major veggetable crop ps grown arre potato, cauliflower,
c cabbage, onion,
tomato, chillies, brinjal, bhindii and leafy vegetables.
v Villages aroound Ranchhi and few other
o
districts have been described as a the “vegeetable bowll” of Jharkhaand from where
w trucklloads
of greenn vegetables are transsported to different parts
p of Jhaarkhand, Bihar, Orissaa and
Kolkata. 17
Prroduction of
o vegetable
es in Jhark
khand vis-à-vis India
A P Y A P Y Commod dity's Jh
harkhand's sh hare
Commodity total pro
oduction in
n production
in countrry (in (iin 2010-11)
2010-11))
2009-10 2
2010-11
Potato 38.2 573 15

1 43 656 15.2
2 423339.4 1.54%
Peas 20.5 287 1
14 21 329 15.4
4 351
17.4 9.35%
okra 29 406 1
14 30 422 14.1 578
84 7.29%
cabbage 26.8 429 1
16 27 452 16.7 794
48.9 5.68%
17
Jharkhan
nd state Agricu
ulture developm
ment plan 2008
8-9 to 2011-12
2
cauliflower 20.6 330 16 22 355 16 6744.9 5.26%

All 212 3469 16 260 4112 15.8 146554.5 2.80%
vegetables
Source: National horticulture board
A- Area in '000 ha, P- Production in '000 MT, y- productivity in MT/ HA
Jharkhand contributes 2.8% in the national production of vegetables, out of which

vegetables like Potato, Peas, Okra, Cabbage, Cauliflower contribute 1.54%, 9.35%, 7.29%,
5.68%, 5.26% and 2.8% respectively in the year 2010-11.
PERCENTAGE GROWTH OF VEGETABLE PRODUCTION FROM 2008-09 TO 2010-11 IN

JHARKHAND
Commodity Production YoY growth YoY growth

from 2008-09 to from 2008-09 to
2008-09 2009-10 2010-11 2009-10 (%) 2009-10 (%)
Potato NA 573.1 655.5 14.38

Peas 241.4 287 329.1 18.89 14.67
Okra 417.2 406 421.7 -2.68 3.87
cabbage 246 429.3 451.7 74.51 5.22
cauliflower 436.9 329.8 355.4 -24.51 7.76
All vegetables 3637 3469.2 4112.4 -4.61 18.54
Source: National horticulture board & FIEO analysis
P- Production in '000 MT
It is noteworthy that out of 5 major vegetables present in Jharkhand, cauliflower has

registered a fair percentage growth of 7.76% in 2010-11 from the -24.51% in 2009-10.
EXPORT OF VEGETABLES FROM INDIA FOR COMMODITIES PRODUCED IN

JHARKHAND
HS code Product description Year India’s world to India's share

exports to world in total
world (in imports imports from
USD Mn) World
07 Dried Vegetable, shelled 2009 797.13 49783.47 1.60

2010 962.3 57587.47 1.67
2011 1009.01 62463.57 1.62
070810 Peas, shelled or unshelled, 2009 1.085 321.04 0.34
fresh or chilled 2010 0.597 299 0.20
2011 0.424 358.27 0.12
070190 Potatoes fresh or chilled, 2009 12.8 2353.3 0.54
nes 2010 26.9 2854.5 0.94
2011 35.3 3967.9 0.89
070490 Cabbages, kohlrabi, kale and 2009 0.3 999.38 0.03

sim edible brassicas nes,
fresh or chilled
2010 1.1 1237.82 0.09
2011 2.2 1411.01 0.16
070410 Cauliflowers and headed 2009 0.2 722.75 0.03
broccoli, fresh or chilled
2010 0.1 837.36 0.01
2011 0.2 880.44 0.02
Source: ITC
Reasons for selecting vegetables for further analysis
Potatoes Even if Jharkhand is contributing 1.54% to national production of potatoes, India’s

share in the total world imports of fresh and chilled potato is continuously
increasing from 2009 to 2011.
Cabbages Jharkhand holds a 5.6% to the national production of cabbages; the world
requirement is also continuously increasing.
Cauliflower Jharkhand holds 5.26% share in national production of cauliflower. Moreover, the
growth in production has also increased from a negative growth of 24.5% to
7.76%. The world requirement of cauliflower is also continuously increasing
Peas Jharkhand holds 9.35% share in the national production of peas. Despite India
decreasing exports share, the world requirement is continuously increasing.
PRODUCT ANALYSIS
D.2 POTATO
India produced around 42339.4 thousand metric tonnes of potatoes in 2010-11. West
Bengal and Uttar Pradesh are the leading states in potato production as they contribute
50% to the national potato production. Any minor deviation in these two states affects the
total potato production.
B. MARKET ANALYSIS
PRODUCT PRODUCT LABEL WORLD IMPORTS EXPORTS FROM INDIA'S SHARE TO

CODE FROM WORLD INDIA WORLD IMPORTS
Values in USD Mn Values in USD Mn (%)
2010 2011 2010 2011 2010 2011
070110 Potatoes seed, 791.2 1023.4 1.7 1.7 0.214 0.166
fresh or chilled
070190 Potatoes, fresh or 2854.6 3967.9 26.9 35.3 0.942 0.889
chilled nes
India’s exports for fresh and chilled potatoes rose higher that potatoes seed, fresh and
chilled (HS Code: 070110); both in the year 2010 and 2011.
(%)
070190 Potatoes, fresh or 12.9 24.4 12.8 26.9 35.3 28.5
chilled nes
070110 Potatoes seed, 0.7 3.3 1.0 1.7 1.7 26.2
fresh or chilled
The commodity (0701190) reported higher growth in terms of CAGR. Therefore, it is

selected for further analysis.
INDIA’S TOP EXPORT DESTINATIONS TO THE WORLD
HS CODE: 070190, Potato fresh chillled nes
Values in USD Mn
World 12.81 26.931 35.317
Nepal 5.985 11.489 12.437
Sri Lanka 2.567 9.176 8.906
Russian Federation 0 0.037 8.28
Mauritius 0.74 1.55 1.601
Maldives 0.488 0.764 1.103
Malaysia 0.108 1.73 0.938
Viet Nam 0 0.087 0.509
Singapore 0.12 0.284 0.202
Seychelles 0.229 0.222 0.06
Source: ITC
India’s top 3 export destinations of vegetables in 2011 were Nepal, Sri lanka and Russian
Federation holding the share of 35.20%, 25.20% and 23.44% respectively.
HS CODE: 070190, POTATO FRESH CHILLLED NES
VALUES IN USD Mn
World 2355.334 2854.588 3967.929
Netherlands 162.174 207.903 369.295
Belgium 239.149 252.553 310.621
Germany 189.637 201.151 236.115
Spain 161.17 197.412 206.687
Italy 152.912 198.845 205.549
United Kingdom 126.504 110.026 127.485

Canada 83.656 85.885 119.932
Poland 33.733 55.426 91.938
Source: ITC
Leading importers of fresh potato in world were Russian Federation, Netherlands and
Belgium, holding the share of 17.3%, 9.30% and 7.8%. On matching India’s top export
destinations with top importers in world, it is observed that countries like Netherlands,
Belgium, Italy, Germany, Spain, USA, UK, Canada, Germany and Poland can serve as
emerging markets for India in future.

Countries Year Total imports Country’s import from India’s share in
from world India (In USD Mn) Country’s total imports
(in USD Mn) from world(in %)
Belgium 2011 310.62 0 0
Spain 2011 206.68 India not figuring
Italy 2011 205.55 India not figuring
USA 2011 166.76 0 0
UK 2011 127.48 India not figuring
Poland 2011 91.938 0.055 0.1
Canada 2011 119.85 0.012 0.0001
Germany 2011 236.11 0 0
Source: ITC
OBSERVATIONS
The world requirement for Fresh and chilled potatoes in 2011 was USD 3967.92 Mn. It
is observed that for countries like Belgium, USA, Germany , Canada and Poland, India’s
export share is almost negligible. For Spain, Italy and UK, India did not figure as an
importer in 2011. Hence, all these countries can emerge as future markets for India.
C. TOP EXPORTERS OF POTATO IN WORLD
Leading exporter of fresh and chilled potato in 2011 were France, Netherlands, Germany,
USA and Canada holding the major share of 17.6%, 13.4%, 9.9%, 6.1% and 5.6%
respectively. India had only 1% share to the total world exports in 2011.
Export Com
Pie chart showinng top exportters of fresh

and chilled
d potatoes in world
HS CODE: 070190 0
Canada, 5.0%
%
Egypt, 5.6%
5
Nethe
erlands, 2
Germany, 8.8%
% 3
3.2%
France
e, 15.1%
S
Source: ITC
D. POTA
ATO PRODU
UCING DIST
TRICTS IN JHARKHAN
J ND
Ranchi, Parts of Haazaribagh, Lohardaga,

L Gumla and
d Simdega are
a the disttricts produ
ucing
potato in
n Jharkhand
d.
D.3 CABBA
AGE
A. CABB
BAGE PROD
DUCTION IN
N INDIA
India prroduced around 6745 5.0 thousan

nd metric tonnes
t of cabbage
c in 2010-11. West
W
Bengal, Orissa and d Bihar weere the leadding states producingg cabbage and havingg the
productiion share off 27%, 14% and 9% to the nationaal production of cabbagge.
B. PROD
DUCT ANAL
LYSIS
WORLD
D IMPORTS vis-à-vis
v IND
DIA’S EXPOR
RTS
(at 6 digit, disaggreg
gated)
Product Prroduct label W
World importts from India exportts to India's
code world world share
(%)
Values in US
SD Mn V
Values in USD
D Mn
2010 2011 2
2010 2
2011
070420 Brussels sprouts, fresh or
o 106.7 107.1 0.0 0 0
0.001
chilled
070410 Cauliflowers and headed 837.4 880.4 0.1 0.1 0.01

070490 Cabbages, kohlrabi, kale and 1237.8 1411.0 1.1 2.1 0.08
or chilled
Source- ITC
India’s exports for cabbages (HS code: 070490) were highest in the year 2010 and 2011,
followed by Cauliflowers (HS code: 070410).
INDIA’S EXPORT PERFROMANCE OF COLE CROPS
(%)
070490 Cabbages, kohlrabi, kale and 0.22 0.274 0.34 1.06 2.19 75.9
or chilled
070410 Cauliflowers and headed 0.007 0.026 0.16 0.09 0.16 120.0
070420 Brussels sprouts, fresh or 0.03 0.001 0.06 0.002 0 -59.4*
chilled
Note: *- values taken from 2007-2010.
It is noteworthy that India’s export of cabbages and cauliflower rose from worth USD 0.2
Mn to 2.1 Mn and USD 0.007 Mn to 0.1 Mn respectively. On calculating CAGR, cabbages and
cauliflowers registered a growth of 75.9% and 120% respectively from 2007 to 2011.
INDIA’S TOP EXPORT DESTINATIONS IN WORLD
Product : 070490 Cabbages
Kohlrabi kale and sim edible brassicas nes fresh or chilled
Values in USD Mn
World 0.34 1.066 2.194
Nepal 0.046 0.486 1.1
Maldives 0.133 0.458 0.765

Russian Federation 0 0 0.069
Pakistan 0 0 0.044
Sri Lanka 0 0 0.003

Singapore 0 0 0.002
United States of 0 0.007 0.001
America
Australia 0 0 0
Austria 0 0 0
Source: ITC
It is observed that India’s export of Cole crops like Cabbage and edible brassicas were very
low since 2009-2011. Nepal, Maldives and UAE are the top 3 export destinations for India.
Product : 070490 Cabbages, kohlrabi, kale and sim edible brassicas nes, fresh or chilled
Values in USD Mn
World 999.4 1,237.8 1411.01
United States of 124.0 169.2 209.403
America
Canada 138.1 146.2 157.096
Germany 116.8 134.6 136.855
Hong Kong, China 85.6 83.2 97.865
Japan 57.3 79.5 85.592
Netherlands 52.4 54.2 55.249
Viet Nam 1.7 1.9 34.188
Malaysia 26.7 29.1 32.939
Source: ITC
World requirement of cabbage in 2011 was around USD 1411.01 Mn with USA, Russia and
Canada as the leading imports holding the share of 14.84%, 11.13% and 10.10%
respectively.
Countries Year Total world Country’s import India’s share in

imports (in USD from India (In USD Country’s total world
Mn) Mn) imports (in %)
Canada 2011 157.09 0 0

Russian 2011 142.54 0.034 0
Federation
Germany 2011 136.85 India not figuring NA
Hong Kong, 2011 97.86 India not figuring NA
China
Japan 2011 85.59 India not figuring NA
Netherlands 2011 55.25 India not figuring NA
United 2011 49.17 0 0
Kingdom
Viet Nam 2010 1.89 India not figuring NA
Malaysia 2011 32.94 0 0
NA- Not applicable, Source: ITC
OBSERVATIONS
The world requirement for cole crops and edible brassicas (cabbage) in 2011 was USD
1411.01 Mn. It is observed that for countries like Canada, Russian federation, United
Kingdom and Malaysia, India’s export share is 0. For Germany, Hong kong China, Japan
and Netherlands and Vietnam, India did not figured as an importer in 2011. Hence, all
these countries can emerge as future markets for India.
C. TOP EXPORTERS OF CABBAGE IN WORLD
Pie chart showing exports of Kohlcrops like

cabbage and edible brassicas (HS code: 070490)
by top 5 countries in 2011 (Source: ITC)
Italy, 5.3%
Spain, 5.8%
China, 22.7%
Netherlands, 10
.8%
USA, 18.6%
World trade in the export of cabbage (HS code: 070490) in 2011 was USD 1143.7 Mn.
China, USA, Netherlands, Spain and Germany were the top five exporting countries which
contributed 22.7%, 18.6%, 10.8%, 5.8% and 5.3% to the total world exports. India’s share
in the global exports was only 0.2% in 2011.
D. CABBAGE PRODUCING DISTRICTS IN JHARKHAND
Ranchi, Parts of Hazaribagh, Lohardaga, Gumla and Simdega are the districts producing
cabbage in Jharkhand.
D.4 CAULIFLOWER
A. CAULIFLOWER PRODUCTION IN INDIA
India produced around 6744.9 metric tonnes of Cauliflower in 2010-11. The top three
states in cauliflower production in 2010-11 were West Bengal, Bihar and Orissa,
accounting 19%, 17% and 12% to the country’s total production.
B. PRODUCT ANALYSIS
INDIA’S TOP EXPORT DESTINATIONS OF CAULIFLOWER

Product : 070410 Cauliflowers and headed broccoli, fresh or chilled
Values in USD Mn
World 0.165 0.094 0.164
Pakistan 0 0 0.106
Maldives 0.021 0.02 0.02
Nepal 0.01 0.006 0.012
Saudi Arabia 0.008 0.004 0.006
United States of America 0 0 0.001
Canada 0 0 0
Qatar 0 0 0
Source: ITC
It is observed that world market for the exports of cauliflowers and headed broccoli from
India is very small with only USD 0.164 Mn. Pakistan, Maldives and UAE were the top three
export destination for India in 2011.
Product : 070410 Cauliflowers and headed broccoli, fresh or chilled
Values in USD MN
World 722.751 837.365 880.44
United Kingdom 142.673 172.109 156.261
Canada 67.76 77.637 90.169
Germany 65.712 68.621 72.109
Malaysia 35.811 42.956 46.856
France 48.495 49.546 46.297
Netherlands 29.189 38.084 44.769
Norway 25.947 28.549 28.873
Belgium 23.86 29.337 24.701
Czech Republic 18.352 20.508 22.479
Source: ITC
World requirement for cauliflower and headed broccoli in 2011 were USD 880.44 Mn.
United Kingdom, Canada and Germany were the top three importers in 2011, accounting
17.7%, 10.2% and 8.2% to the total world requirement. On matching the top importers
from world with India’s top exporting destinations, it is found that countries like UK,
Germany, Malaysia, France, Netherlands, Norway, Russian Federation, Belgium, Czech
Republic can become emerging markets for India in future.
Countries Year Total imports Country’s import India’s share in

from world (in from India (In USD Country’s total
USD Mn) Mn) imports from world
(in %)
UK 2010 172.10 India not figuring
2011 161.14 India not figuring -
Germany 2010 68.62 India not figuring
Malaysia 2010 42.95 India not figuring
2011 46.86 0 0
France 2010 49.54 India not figuring
Netherlands 2010 38.08 India not figuring
Norway 2010 28.54 India not figuring
Russian 2010 16.66 India not figuring
Federation 2011 27.82 India not figuring -
Belgium 2010 29.33 India not figuring
Czech Republic 2010 20.50 India not figuring
Source: ITC
OBSERVATIONS
It is observed that in 2010 & 2011, India’s export share was 0 in Malaysia. In countries
like UK, Germany, France, Netherlands, Norway, Russian Federation, Belgium and
Czech Republic, India did not figured as an exporter in 2010 as well as 2011. So these
countries can become future markets for India.
C.TOP EXPORTERS OF CAULIFLOWER IN THE WORLD
World trade in the export of cauliflower (HS code: 070410) in 2011 was USD 1131.32 Mn.
Spain, France, Mexico, USA and China were the top five exporting countries which
contributed 29.8%, 12.7%, 11.6%, 11.2% and 8.1% to the total exports to world. India’s
share in the global exports was almost negligible in the year 2011.
Export Com
Pie chart showin

ng exports off Cauliflower
70410) by top
(HS code: 07 p 5 countriess in 2011; Sou
urce: ITC
China, 8.1%
8
USA,, 11.2%
Spain, 29
9.8
%
Me
exico, 11.
6%
e, 12.
France
7%
%
D. CAUL
LIFLOWER PRODUCIN
P NG DISTRICT
TS IN JHAR
RKHAND

L Gumla and
d Simdega are
ucing
n Jharkhand
potato in d.
D.5 PE
EAS
A. PROD
DUCTION OF
O PEAS IN INDIA
India pro
oduced around 3517.0 0 thousand metric tonn
nes of peas in 2010-111. Leading states
in pea production
p during
d 2010 0-11 were Uttar Pradeesh, Jharkhaand and Himachal Praadesh
with the production
n share of 43
3.6%, 9.4% and 7.2% respectively
r y.
B. PROD
DUCT ANAL
LYSIS
WORL LD IMPORTS vis-à-vis IND

DIA’S EXPORTTS
T, DISAGGREG
(AT 6 DIGIT GATED)
PRODUCTT PROD
DUCT LABEL WORRLD IMPORTS S INDIA EXPORTS
E IINDIA'S SHAR
RE TO
CODE FRO
OM WORLD TO WORLD
W W
WORLD IMPO
ORTS
Value
es in USD Mn
n Values in
n USD Mn
201
10 2011
1 2010 2011 2010 2011
070810 Peas, shellled or 299.0
00 358.27 0.59 0.42 0.19 0.11
unshelledd, fresh or
chilled
Source: IT
TC
INDIA’S EXPORT PERFROMANCE OF PEAS

070810 Peas, shelled or unshelled, fresh 0.527 1.606 1.085 0.597 0.424 -5.2
or chilled
On calculating the percentage share year wise, it is evident that though India’s share in
global exports of peas has declined from 0.19% to 0.11% from year 2010 to 2011, the
commodity recorded highest growth in terms of CAGR; from the period of 2007-2011. The
export markets are analysed further:-
INDIA’S TOP EXPORT DESTINATIONS IN WORLD
Product : 070810 Peas, shelled or unshelled, fresh or chilled
VALUES IN USD Mn
World 1.085 0.597 0.424
Saudi Arabia 0.779 0.467 0.199
Nepal 0.106 0.048 0.082

United Kingdom 0 0 0.029
Pakistan 0 0 0.028
Oman 0.004 0.001 0.003
Qatar 0 0 0.002
Australia 0 0.003 0
Bahrain 0 0.026 0
Bangladesh 0.010 0 0
Source: ITC
India’s exports of shelled and unshelled peas in 2011 were only USD 0.424 Mn, where the
top three exporting destinations were Saudi Arabia, Nepal and UAE.
Product : 070810 Peas, shelled or unshelled, fresh or chilled
Values in USD Mn

World 321.04 299.01 358.28
Canada 35.027 42.066 45.009
United Kingdom 47.785 39.503 44.971
Netherlands 41.509 34.225 42.319
Belgium 49.114 25.83 37.823
France 14 12.678 15.321
Germany 12.542 13.111 14.459

Norway 7.83 8.366 11.536
Japan 2.623 6.653 7.584
Viet Nam 0.579 0.452 6.489
Source: ITC
The world requirement of shelled or unshelled peas in 2011 was around USD 358.28 Mn,
where the top importers were USA, Canada and United Kingdom holding the share of
18.10%, 12.56% and 12.5% in world. On analyzing India’s export destinations and leading
importers of world, it is found that countries like USA, Canada, Netherlands, Belgium,
France, Germany, Norway, Japan and Vietnam can serve as emerging markets for India in
future.
Countries Year Total imports Country’s import India’s share in Country’s total
from world(in from India (In imports from world (in %)
USD Mn) USD Mn)
United States 2011 64.9 0 0
of America
Canada 2011 45.0 0.001 0.002
Netherlands 2011 42.3 0 0
Belgium 2011 37.8 0 0
France 2011 15.3 0 0
Germany 2011 14.5 0 0
Norway 2011 11.5 India not figuring
Japan 2011 7.6 India not figuring
Viet Nam 2010 0.5 India not figuring
Source: ITC
OBSERVATIONS
The world requirement for peas in 2011 was USD 320.77 Mn. It is observed that for
countries like USA, Netherlands, Belgium, Canada, France, Germany, India’s export
share is nil or almost negligible. For Norway, Japan and Vietnam, India did not figure
as an importer in 2011. Hence, all these countries can emerge as future markets for
India.
C. TOP EXPORTERS OF PEAS IN WORLD
From the pie chart below, world trade in the export of peas (HS code: 070810) in 2011 was
USD 320.7 Mn. China, Netherlands, USA, Guatemala and Kenya were the top five exporting
Export Com
countriees which coontributed 14.8%,

1 13.9
9%, 13.4%, 12.1% and d 9.2% to the total world
w
exports. India’s sharre in the glo
obal exportss was only 0.1%
0 in 2011.
Pie chart showing exports of Peas (HS
( code: 070
0810)
by top 5 countries
c in 2011
2
Kenya, 9.2%
%
China, 14.8
8%
2.1%
Guatemala, 12
USA, 13.4%
Netherlands, 13.9%
S
Source: ITC
D. PEA PRODUCING
P G DISTRICT
TS IN JHAR
RKHAND

L Gumla and
d Simdega are
ucing
peas in Jharkhand.
E. NON TARIFF
T BAR
RRIERS FA
ACED BY IND
DIA
New Zealand
Z High
h food safety
y standards and bio-seccurity issuee
F. ISSSU
UES FACED BY
B HORTIC
CULTURE SECTOR IN INDIA
I
 Inndia stored only two peer cent of itss horticultu

ure productss in temperaature-controlled
coonditions, while
w China stored 15 per
p cent and d Europe an nd North Am merica storeed 85
per cent of thheir produccts in such conditions.
c India is among the foremost coun ntries
inn horticultu
ure productiion, just beh
hind China. However, despite
d the rise,
r India iss way
behind its neearest rival in per-hectaare yield annd processin ng of horticuulture produ ucts.
 D
Despite the rise in prod
duction, Inddia is way behind
b its nearest
n rivaal in per-hectare
yield and prrocessing of horticultu ure productts. In India,, 218.2 milllion hectares of
laand was ussed to prod duce almostt 240 millio on tonnes of o fruits annd vegetablees in
2010-11.
G. ISSUE
ES FACED BY
B HORTICU
ULTURE SE
ECTOR OF JHARKHAND
 Rain fed irrrigation: A large partt agriculturaal land in India

R I is stilll dependen
nt on
m
monsoons. Developing
D i
irrigation faacility must be a prioritty area for thhe Governmment.
 Infrastructural support: The back-up infrastructure facilities like cold-storages,

Cold Chain transportation facilities and distribution and management of
horticulture products are also not available in Jharkhand. They require urgent
attention.
 Awareness programmes: There are no such frequent awareness training
programmes that are organized in the state. They need to be organized in every
district in order to teach the farmer regarding usage of agri-input and machinery.
RECOMMENDATIONS
INFRASTRUCTURE The following infrastructure is needed to promote horticulture sector in the
state:-
 Railway Refrigerated van
 Incentive for Rural godowns,
 Commercial grading centre at every mandi
 Promote Agri Horticultural Produce Exports from Jharkhand Agri
export zone is required.
 Industry of CFB boxes needs to set up for packing of fruits
 Modified atmospheric packing technology for vegetables
 Fruit Ripening Chamber Unit for fruits
TECHNICAL Farmers in Jharkhand need to be provided the right technical inputs so that
SUPPORT the yield is optimum and of a high quality
AGRICULTURAL Organic farming must be encouraged so that horticultural commodities of
PRACTICES Jharkhand are able to compete with those arriving from other countries in
the international market.
R& D SUPPORT Research and development is critical and must be promoted in the sector in
areas like development of high-yielding variety of seeds and soil testing.
EASY FINANCE The farmers involved in horticulture sector should have easy access to
financial instruments like micro-credits and loans. Incentive may be provided
to farmers to motivate them to produce organic and horticulture products.
POLICY  Incentive to farmers for use of 'Pusa Zero Energy Cool Chamber' for
on-farm storage of horticultural crops. It can retain the freshness of
the fruits and vegetables for a short period.
 Setup Domestic and Export Market Intelligence Cell
SPICES
India is known as the home of spices and produces a wide variety of spices like Black
Pepper, Cardamom (small and large), Ginger, Garlic, Turmeric, Chilli etc. It is the largest
producer, consumer and exporter of spices and spice products. Out of the 109 spices listed
by the ISO, India produces as many as 75 owing to its varied agro climatic regions. Almost
all the States and Union Territories (UTs) of the country grow one or the other spices. In
the World Spice Trade, India acquires 48% of the global export volume and 44% of the
export value. It exports more than 0.40 million tons of spices annually.
Area, Production and Productivity of spices from 2008-09 to 2010-11

Spices 2008 – 09 2009 – 10 2010 – 11
Area Prodn. yield Area Prodn. yield Area Prodn. yield
Chilli 779.05 1269.85 1.6 767.23 1202.94 1.6 792.1 1223.4 1.5
Ginger 108.64 380.1 3.5 107.54 385.33 3.6 149.1 702 4.7
Turmeric 181.09 821.16 4.5 180.96 792.98 4.4 195.1 992.9 5.1
All spices 2629.44 4144.91 1.6 2463.29 4015 1.6 2940.4 5350.5 1.8
Area: '000 Ha, Production- '000 MT, yield: MT/HA,
From the above table it is clear that for Chilli, there has been 1.6% increase in area, 3.6%
decrease under production and 6.25% decrease in yield from the period of 2008-09 to
2010-11. For Ginger, there has been 37.24% increase in area under production, 84.6%
increase in production of ginger and 34.38% increase in its yield. Similarly for Turmeric,
there has been 7.7% increase in area under production, 20.9% increase in the production
of turmeric and 13.33% increase in its productivity from the period of 2008-09 to 2010-
11. The area, production and productivity of all spices (viz Chillies, Garlic, Ginger,
Coriander, Cumin, Fennel, Fenugreek, Cinnamon, Ajwain, Pepper and Several other seed
spices) have increased from 11.8%, 29.08% and 12.5% respectively from 2008-09 to
2010-11.
B. SPICES EXPORTS FROM INDIA
The countries that import the maximum of spice products from India are Malaysia for chilli
and Coriander, USA for Pepper, Celery, Spice oils and Oleo resins, China for mint products,
Saudi Arabia for Cardamom, UAE for Turmeric, Bangladesh for ginger and garlic, Pakistan
for Cardamom large and Fennel, UK for cumin, Japan for Fenugreek, Nigeria for curry
powders and Nepal for other seed spices.
Export Com
S
SPICES EXP
PORTS FROM
M INDIA
800000..00 749019.92
2
6
680595.82
700000..00
600000..00 504160.44
500000..00
400000..00
300000..00
200000..00
100000..00
0..00
2008-09 2009-10 2010-11
Quanttity exported in metric
m
tonnes (MT) 5041
160.44 680595.82 749019.92
Source: APEDA
A
The totaal export of Spices from

m the countrry during 2010-11 had
d crossed 74
49019.9 tonnnes
as comp pared to 504160.44
5 tonnes inn 2008-09, therefore registeringg a signifiicant
percentaage increasee of 48% duuring three years.
y
C. SPICE
ES SCENARIIO IN JHARK
KHAND
AREA UND DER SPICE PRODUCTIO

P N IN JHARK
KHAND
YEAR SPICES
2001-02 2 0.5
2006-07 7 1
2010-11 1 4
AREA( INN '000 HA),
Source: NHM
N databasse 2011
Area unnder spice production

p in Jharkhaand had increased froom 500 hectares to 4,000
4
hectaress which means that th here is a considerable percentagee increase of
o 700% in area
under sppices from the period of 2001-02 to
t 2010-11.
D.6 GING
GER
A. GINGE
ER PRODUC
CTION IN IN
NDIA
India is the largestt producer and consu umer of Gin nger in the world. In India, Gingger is
produced in the States of Orrissa, Kerala, Karnatak ka, Arunach hal Pradeshh, West Beengal,
Sikkim and
a Madhyaa Pradesh. Kerala is th he largest Ginger
G prod
ducing statee, accounting for
about 333 per cent of the total production
p i India. Cocchin Gingerr (NUGC) an
in nd Calicut Giinger
(NUBK) are the two popular varieties of Indian Ginger in the world market. Ginger is
available in the forms of oil, oleoresins, ground ginger and fresh ginger. Light-coloured
ginger has traditionally been more priced for its subtle lemony aroma. Dark ginger has
more heat and is favoured for extraction purposes. Fresh ginger is used as a vegetable. Out
of the total production, about 30 per cent is converted into dry ginger, while 50 per cent is
consumed as green ginger and the rest as seed materials. Dry ginger is produced mainly in
Kerala, a major share of which is exported.
B. PRODUCT ANALYSIS
WORLD IMPORTS VIS-À-VIS INDIA’S EXPORTS

Product Product label WORLD IMPORTS INDIA'S EXPORTS INDIA'S SHARE IN
code FROM WORLD TO WORLD TOTAL IMPORTS
Values in USD Mn Values in USD Mn FROM WORLD (%)
2010 2011 2010 2011 2011 2011
91099 Spices nes 628.53 573.605 91.00 125.43 14.4 21.8
91010 Ginger 608.74 669.968 23.87 55.24 3.9 8.2
91091 Mixtures of two/more of 294.54 361.09 28.69 38.80 9.7 10.7

the prods of different
headgs to this chapter
91030 Turmeric (curcuma) 187.57 233.759 145.32 194.4 77.4 83.1
91020 Saffron 313.23 157.081 1.49 1.516 0.4 0.96
Source: ITC
India’s share in exports of ginger has grown from 3.9% to 8.2%, while in turmeric; it has
grown from 77.4% to 83.1% respectively from the year 2010 and 2011.
INDIA’S EXPORT PERFORMANCE OF SPICES

(%)
Values in USD Mn
091030 Turmeric (curcuma) 37.63 56.51 69.99 145.33 194.40 50.8
091099 Spices nes 55.03 82.88 69.82 91.01 125.43 22.9

091010 Ginger 8.95 10.52 11.50 23.88 55.25 57.6
091091 Mixtures of two/more of 12.49 20.45 25.65 28.70 38.81 32.8
the prods of different
headings to this chapter
091020 Saffron 0.38 1.48 0.95 1.50 1.52 41.0
From the above table, it was observed that Ginger and Turmeric recorded the CAGR of
57.6% and 50.8% respectively. Analysis of these two commodities with market analysis is
detailed further:
INDIA’S EXPORTS OF GINGER (HS CODE 091010) TO WORLD (USD Mn)
World 11.499 23.876 55.246
Saudi Arabia 1.363 1.796 5.48
Bangladesh 1.012 5.433 5.451
Morocco 0.711 1.536 4.782

Spain 0.957 0.886 1.995
Germany 0.271 0.461 1.934
Egypt 0.1 0.277 1.848
Nepal 0.241 0.068 1.837
Source: ITC
In 2011, around USD 55.24 Mn worth of Ginger was exported from India, where the top
exportable commodities of Ginger were dried, unbleached Ginger (USD 24.96 Mn) and
Ginger powder (USD 11.42 Mn).The top three export destinations for Indian Ginger in 2011
were USA, Saudi Arabia and Bangladesh having the share of 14.8%, 9.9% and 9.8%
respectively, from the total world exports.
TOP 10 IMPORTERS OF GINGER, HS CODE 091010 IN WORLD (Values in USD Mn)

World 388.831 608.745 669.968
Japan 73.857 96.795 123.666
United States of 43.194 68.778 68.076
America
Pakistan 32.83 46.407 51.015
Netherlands 22.131 40.77 42.276
Germany 15.98 27.463 38.12
Bangladesh 30.791 47.453 33.972
United Kingdom 24.239 34.946 28.479
Malaysia 21.035 37.307 27.041
Saudi Arabia 0.328 14.067 24.317
Source: ITC
The leading importers of Ginger from world in 2011 were Japan, USA and Pakistan holding
the share of 18.4%, 10.16% and 7.61% respectively from total World imports. On analyzing
India’s market for Ginger and the world ginger market, it is found that countries like Japan,
Pakistan, Netherlands and Malaysia can become the emerging markets for ginger exports
from India.

Countries Year Total Country’s import India’s share in
imports (in from India (In USD Country’s total
USD Mn) Mn) imports from
from world world for
ginger(in %)
Japan 2011 123.66 0.64 0.5
Pakistan 2011 51.015 2.35 4.6

Netherlands 2011 42.276 1.84 4.4
Malaysia 2011 27.041 0.59 2.4
Source: ITC
OBSERVATIONS:
It is found that India’s export share is low in all four countries, but lowest in Japan,
followed by Malaysia. So, India needs to increase its export share in these four
countries. The leading exporter and competitor for India in all these four countries is
China.
C. TOP EXPORTERS OF GINGER IN THE WORLD
Pie chart showing top 5 countries exporting Ginger

(HS code: 091010) in world; Source: ITC
Thailand, 4.1%
Ethiopia, 3.7%
Netherlands, 5.9
%
India, 8.6%
China, 63.7%
World trade in Ginger in the year 2011 was at USD 643.16 Mn, out of which China was the
leading exporter of Ginger having the export trade value at USD 409.4 Mn, accounting
63.6% share in the world for ginger exports. India stood at second position with an export
trade value at USD 55.24 Mn, accounting the share of 13.4% in the total world exports.
D. GINGER PRODUCING AREAS IN JHARKHAND
In Jharkhand, Ginger is produced mainly in three districts viz. Ranchi, Lohardaga and
Hazaribagh.
D.7 TURMERIC
A. TURMERIC PRODUCTION IN INDIA
Turmeric is grown as a kharif crop in India. The crop-harvesting season starts between end
of January and March in India. The country is the leading producer, consumer and exporter
of turmeric in the world. It has near monopoly in this commodity. India accounts for 78%
of world production and 60% in world export share. Major turmeric growing states are
Andhra Pradesh (57%), Tamil Nadu (23%), Karnataka (6%) and Orissa (4%). Indian
turmeric is considered as the best in the world because of its high curcumin content.
B. PRODUCT ANALYSIS
INDIA’S TOP 10 EXPORT DESTINATIONS OF TURMERIC TO WORLD

(HS code: 091030; Values in USD Mn)
Importers 2009 2010 2011
World 69.988 145.325 194.4
Bangladesh 3.094 7.774 13.629

Malaysia 5.496 12.7 12.832
Japan 6.387 11.572 12.788
Iran (Islamic Republic of) 6.732 9.549 7.798
Tunisia 0.189 4.015 6.838
Sri Lanka 3.334 6.679 6.388
Saudi Arabia 2.118 3.297 6.194
Germany 2.308 5.74 6.153
South Africa 2.767 7.451 6.144
Morocco 1.934 2.869 5.842
Netherlands 1.917 5.26 5.658
Egypt 2.499 3.193 3.516
Source ITC
Since the export market of turmeric is largely owned by India, the top 15 export
destinations were selected where India is at present exporting turmeric, so as to see India’s
import share in these countries. The top three export destinations for Indian turmeric in
2011 were UAE, USA and Bangladesh having the share of 17.8%, 8% and 7% respectively.
It is noteworthy that India being the leader of turmeric, India’s export basket is almost
identical to World’s import basket.
ANALYSING THE IMPORT MARKET OF INDIA’S EXPORT DESTINATIONS

(IN TURMERIC)
IMPORT MARKET OF INDIA'S EXPORT DESTINATIONS
(HS code: 091030, Values in USD Mn)
WORLD YEAR TOTAL COUNTRY’S INDIA’S SHARE INDIA'S
IMPORTERS IMPORTS BY IMPORT FROM IN COUNTRY’S STATUS
THE COUNTRY INDIA TOTAL IMPORTS
FROM WORLD FROM
WORLD(%)
United States of 2011 19.55 17.06 87.26 leading
America
Malaysia 2011 13.49 12.52 92.81 leading
Japan 2011 19.61 14.82 75.57 leading
United Kingdom 2011 11.96 10.05 84.03 leading
Iran (Islamic 2010 8.74 2.15 24.60 Competitor:
Republic of) UAE,
Tunisia 2011 1.23 1.22 99.19 leading
Sri Lanka 2011 7.19 7.09 98.60 leading
Saudi Arabia 2010 3.37 1.86 55.19 leading
Germany 2011 8.05 5.77 71.67 leading
South Africa 2011 3.9 3.86 98.97 leading
Morocco 2010 1.26 1.24 98.41 leading
Netherlands 2011 7.19 5.45 75.79 leading
Egypt 2011 3.71 3.6 97.03 leading
Source: ITC
Note
1. NA denotes data unavailability for year 2011
2. For countries like Iran, Saudi Arabia and Morocco data for 2010 is taken because data for
2011 was not available.
OBSERVATIONS:
On analysing the import market of India’s top 15 destinations, it is found that India is
the leading player and has monopoly for turmeric exports in most of the countries. The
top exportable commodities of turmeric were dried turmeric and powdered turmeric
having an export value of USD 79.716 Mn and USD 73.300 Mn respectively.
Out of the 13 top importers, it is observed that India is leading the exports market with
more than 70% export share in 11 countries. However Iran and Saudi Arabia can be
explored further to increase the exports share.
C. TOP EXPORTERS OF TURMERIC IN WORLD
India is holding a major chunk in exports of turmeric, with around 80% contributions to
Global exports.
Export Com
GRAPH SHOWING TOPP 5 EXPORTE

ERS OF TURM
MERIC
IN
N WORLD
90.00%
9 80..30%
80.00%
8
70.00%
7
60.00%
6
50.00%
5
40.00%
4
30.00%
3
20.00%
2
10.00%
1 3% 2.20% 1.90% 1.60%
0.00%
S
Source: ITC
World trrade of turm

meric in the year 2011 wasw at USD 242.08 Mn,, out of whicch India waas the
leading exporter
e off turmeric having
h the export
e tradee value at USD
U 194.4 Mn, M accountting a
major 800% share in n the world for turmerric exports. India stoodd at first possition, exporting
dried turmeric and d powdered turmeric with w an exp o USD 79.716 Mn and USD
port value of
73.300 Mn
M respectiv vely in the year
y 2011.
D. TURM
MERIC PRODUCING AR
REAS IN JHA
ARKHAND
Lohardaaga, Hazaribagh and Ran

nchi are thee main turm
meric produccing centress in Jharkhaand.
D.8 CHILLI
A. CHILL
LI PRODUC
CTION IN IN
NDIA
Chillies are
a the mosst common spice cultiv vated in India. India con
ntributes ab
bout 36% to o the
total woorld producttion. In India, Chillies are grown in almost all
a the state throughou ut the
country. The majorr chilli prodducing statees are India, namely, Andhra
A Praddesh, Karnaataka,
Maharasshtra, Orissa, Rajasthan and Tamil Nadu, contributing around 86 per cent of the
total areea under Ch
hilli crop cu
ultivation inn the countrry and 90 per
p cent of the total Inndian
produce.
B. PRODUCT ANALYSIS
WORLD IMPORTS VIS-A-VIS INDIA’S EXPORTS

Code Product label 2010 2011 2010 2011 India’s share to total
World imports from India exports to imports from world
world world (%)
Values in USD Mn 2010 2011

070960 Peppers of the genus 4299.99 4521.93 13.26 20.95 0.308 0.463
Capsicum or of the
genus Pimenta,fresh
or chilled
Source: ITC
India’s share in the exports of peppers of genus capsicum, fresh and chilled has increased
from 0.308% to 0.463% respectively from 2010 to 2011.
INDIA’S EXPORT PERFORMANCE OF GREEN CHILLY

07096010 Fresh or chilled fruits of the 10.70 11.03 13.02 13.43 21.07 18.47
genus Capsicum or Pimenta:
Green chilly
Green chilly recorded a CAGR of 18.47% from 2007-2011.
ANALYSIS AT SIX DIGIT LEVEL FOR HS CODE: 070960- PEPPERS OF GENUS CAPSICUM OR OF GENUS
PIMENTA, FRESH OR CHILLED
INDIA’S TOP EXPORT DESTINATIONS TO WORLD

HS CODE: 070960
(Values in USD Mn)
World 12.653 13.264 20.96
Bangladesh 0.142 0.081 2.194
Pakistan 0.367 0.07 1.607
Saudi Arabia 0.131 0.23 0.776
Bahrain 0.228 0.269 0.284
Qatar 0.069 0.096 0.225
Nepal 0.097 0.158 0.222
Kuwait 0.047 0.259 0.131
Oman 0.042 0.083 0.086
Source: ITC
The top exporting destination of India at six digit code (HS 070960) were UAE, Bangladesh
and Japan accounting 68.5%, 10.5% and 7.7%.
TOP IMPORTERS OF CHILLI TO WORLD
HS CODE: 070960
(Values in USD Mn)
World 3550.361 4299.994 4521.933
United States of 807.621 993.246 1015.701
America
Germany 654.994 759.484 825.544
United Kingdom 289.916 348.318 372.221
Netherlands 160.921 185.665 250.976
France 188.007 226.402 246.092
Canada 185.874 215.751 221.24
Italy 136.222 154.03 165.652

Japan 89.186 111.045 127.31
Austria 94.702 105.753 105.335
Source: ITC
The leading importers of world at six digit HS code level were USA, Germany and United
Kingdom in 2011. On matching India top export destinations with leading importers from
world, it is found that countries like USA, Germany, Netherlands, France, Canada, Russian
Federation, Italy, Japan and Austria can become the emerging markets for India for HS code
070960.
ANALYSING INDIA’S EMERGING MARKETS AT SIX DIGIT LEVEL
HS CODE: 070960
from World (in from India (in USD Country’s total
USD Mn) Mn) imports from World
(in %)
USA 2011 1015.7 0.051 0.01
Germany 2011 825.54 0.042 0.01
Netherlands 2011 250.97 0.078 0.03
France 2011 228.39 0.667 0.29
Canada 2011 221.24 0.003 0
Russian federation 2011 186.42 India not figuring NA
Italy 2011 165.652 0 0
Japan 2011 127.31 India not figuring NA
Austria 2011 105.335 0.018 0.02
Source: ITC
NA: Not applicable
OBSERVATIONS AT SIX DIGIT HS CODE
It is clear from the above table that India is having very low export share in countries
like USA, Germany, Netherlands, France, Canada and Austria. Countries like Canada,
Russian Federation and Italy can become the emerging markets where India is not
exporting at present.
For all these existing and emerging countries where India can export or needs to
increase its export share, we have further analysed them at country specific 8 digit HS
code.
C. TOP EXPORTERS OF CHILLI IN WORLD
India has immense potential to export different types of chillies required by various
markets around the world. It is the leader in export, with 25% share in world trade,
followed by China with 24% share in total global export. Clearly, China is a serious
competitor to India in the international markets, penetrating all major markets like
Indonesia and the US.
Currently, India is the main source of red chilli in the international market. It exports in
different forms like chilli powder, dried chilli, pickled chillies and chilli oleoresins.
ANALYSING INDIA’S EMERGING MARKETS IN 2011 FOR GREEN CHILLI
(AT COUNTRY SPECIFIC HS CODE LEVEL FOR CHILLI)
Countries Year HS CODE Total imports Country’s import from India’s share in
from world (in India (in USD Mn) Country’s total
USD Mn) imports
from World(in
%)
USA 2011 0709602090 246.984 0.041 0.01
Germany 2011 07096099 26.738 0.038 0.14
Netherlands 2011 07096099 35.3 0.078 0.22
France 2011 07096099 11.116 0.151 1.36
Canada 2011 0709609010 75.846 India not figuring NA
Russian 2011 07096099 2.054 0 0
federation
Italy 2011 07096099 2.611 India not figuring NA
Japan 2011 070960090 3.623 India not figuring NA
Austria 2011 07096099 17.841 0.023 0.13
Source: ITC
Note: NA denotes not applicable
OBSERVATIONS AT 8 DIGIT LEVEL: CHILLI
At 8 digit country specific HS code, it is observed that India needs to increase its export
in USA, France, Netherlands and Austria as these are the existing markets where
India’s export share is very low.
However for the countries like Canada, Italy and Japan India did not figure as an
importer since 2009-2011. India did not export to Russia in 2010 and 2011. So these
countries can become emerging markets for India’s export.
INDIA’S PRESENT LEADING EXPORT DESTINATIONS OF GREEN CHILLI
INDIA’S EXPORTS OF CHILLI TO WORLD (HS CODE: 07096010, Values in USD Mn)
World 13.019 13.426 21.074
Bangladesh 0.126 0.076 1.955
Pakistan 0.161 0.068 1.811
Saudi Arabia 0.11 0.304 0.865
Bahrain 0.265 0.25 0.285
Qatar 0.081 0.108 0.261
Nepal 0.099 0.105 0.199
Oman 0.061 0.065 0.089
Maldives 0.051 0.061 0.068
Source: ITC
The top three export destinations of Indian green chillies in 2011 had been UAE, Bangladesh
and Pakistan with the share of 69.15%, 9.29% and 8.6% from the total export to world from
India. If we see the export market of different countries where India is at present exporting
chillies, we have found that India’s export share in countries like Saudi Arabia (in 2010), and in
United Kingdom and Oman (in 2011) had been 20.7%, 2.3% and 4.6% respectively to the total
imports by these countries in 2011. So India needs to increase its share in all these countries.
D. NON TARIFF BARRIERS OF SPICES AND OLEORESINS OBTAINED FROM GINGER, TURMERIC AND CHILLI
COUNTRY PRODUCT NON TARIFF BARRIERS

RUSSIA Ginger, saffron,  The imported produce has to confirm the phytosanitary
turmeric requirements of the Russian Federation. The products are
(curcuma), to be transported in packages, made without use of natural
thyme, bay plant fibers and accompanied with the information about
leaves, curry preventive disinfection of packages and containers
And other spices made by the agencies, authorized by the Indian National
Quarantine and Plant Protection Organization18.
18
Source: Spices board of India, circular dated 4-3-2008
MALAYSIA Chillies  According to the Food Safety and Quality Division,

Ministry of Health, Malaysia, the monitoring level for
Chillies as stated in FoSIM [Food Safety Information
System] is at level 5 (Hold, Test and Release) due to the
frequent violations of pesticide residues. It is reported that
“Ethion” in Chillies has been found to frequently exceed
the administrative permitted level of 1 mg/kg. in
Malaysia.19
EC Chillies  The EC standards on aflatoxin levels on chili powder
(namely 5 ppb) is more stringent that necessary and acts
as an unnecessary barrier to trade. The standards are not
based on scientific principles, are being maintained
without sufficient scientific evidence and the assessment
of risk does not seem to have been carried out.
EC Oleoresins  Permitted level of MRL for oleoresins and extracts is high
 A concentration factor needs to be fixed to estimate MRL
for spice extracts since raw materials are extracted for
manufacturing oleoresins
 Despite absence of Rhodamine during testing in Indian
(Spice Board) labs, presence of 11 -15 ppb shown when
done in EU (EUROFINS) lab. Residue limit is also not
known resulting in cancellation of export orders
EC Spices  Pesticide residue varies from country to country and new
regulations imposed at short notice despite no validated
analytical methods for determination of contaminations in
spices. Cost prohibitive and creates undue delay
UKRAINE Spices  Compulsory Certification i.e. (a) Certificate of acceptance
of foreign certification by Derzh Standard or (b)
Conformance certificate by Ukrainian agency. ISO 9000
standards adopted by Derzh Standard on production
systems. Foreign certification recognition only to the
extent of international treaty obligations of Ukraine
E. CHILLI PRODUCING AREAS IN JHARKHAND
Jharkhand is self-sufficient in production of green chilli, cultivated across Ranchi pockets

such as Pithoria, Kanke, Namkum, Mandar, Chanho, Budmu and Bero, besides Latehar
Dumka and Hazaribagh. In Jharkhand, around 500 hectares is under green chilli cultivation
per annum. The total yield is 500 tonnes.20
19
Spice board of India circular dated August 20, 2010
20
http://www.telegraphindia.com/1120710/jsp/jharkhand/story_15708325.jsp#.UTW7FKJHLqE
F. ISSUES AFFECTING SPICE INDUSTRY OF JHARKHAND
 Inadequate Surplus for Exports: The major reason is increasing domestic demand.
Demand for spices from the upwardly mobile middle-class is on the increase.
Changing eating habits and the population explosion are also factors. This huge
domestic demand leaves behind little surplus for export. This is the main reason for
the meager exports of spices from Jharkhand.
 Also, there are insufficient quantities of quality Spices in Jharkhand. In addition,
there is lack of awareness among farmers of the latest technologies in production
and post harvest operations.
 Facilities at the grading and packing centers are also rudimentary and the
merchants in this sector do not possess modern equipment for cleaning and grading
or for storage of spices. On farm processing facilities are also not available.
 There is inefficient post harvest management. Proper drying of spices within 8-12
per cent of moisture is not done after harvesting, resulting in microbial
contamination. Further, drying of spices on non-hygienic surfaces causes
contamination from microbes.
 There is unavailability of agri-inputs like suitable fertilizers and plant protection
chemicals. Spices cultivation also suffers from suitable irrigation facilities.
 There is lack of extension facilities so as to focus on exports. The available market
information service is limited to a few areas and to a few sections and often fails to
recognize indigenous methods and factors to get a competitive edge in export of
spices.
 Exporters face stiff competition from other producing countries that supply spices
in whole form. Most of these countries have no domestic market for the spices so
whatever they produce, export at very competitive/ low prices.
 There is insufficient mechanization while producing and processing spices. Lack of
desired level of value-addition at the primary processing level results in lesser
returns to the farmers and farm labor.
 Farmers of spices like ginger are heavily dependent on chemicals for pest and
disease control and fertilizers. Indiscriminate use of chemicals results in pesticide
residues beyond tolerable limits making the product unacceptable in international
markets.
 There is no testing lab for spices as well as no availability of CHA in Jharkhand.
RECOMMENDATIONS
INFRASTR  There is requirement of a testing lab for spices.
RUCTURE  Nodal agency should be set up so as to provide extension facilities to the
exporters.
 Proper post harvest practices should be adopted for spice cultivation.
Facilities at grading and packing centers should be provided.
 Agri inputs like fertilisers and plant protection chemicals should be
provided to the farmers.
For Chillies:-
 Adequate cold storage & other facilities: Due to inadequate cold storage
facilities farmers are forced to sell their produce at lower rate. Due to
inadequate marketing infra-structural facilities with producers, traders
and at market level, the marketing efficiency is affected adversely.
 Inadequate processing units: Due to the inadequate number and capacity
of processing units, excess production during peak season is sold at
distress rate or even gets perished at farm level.
For Ginger
 Introduction of HYV: Introduction of high yielding varieties in Ginger like
Suruchi, Suprabha and Surabh should be introduced so as to increase the
production.
 Processing units: Processing fresh ginger: processing units should be set
up so as to set value added products like Ginger oil, paste, oleoresin and
allied products.
D.9 MUSTARD
A. MUSTARD PRODUCTION IN INDIA
In the agricultural economy of India, oilseeds are important next only to food grains. The
diverse agro-ecological conditions in the country are favourable for growing all the nine
annual oilseeds, which include seven edible oilseeds, viz. groundnut, rapeseed–mustard,
soybean, sunflower, sesame, safflower and niger, and two non-edible oilseeds, viz. castor
and linseed. Apart from annual oilseeds, a wide range of other minor oil-bearing plants of
horticulture and forest origin, including in particular coconut and oilpalm are cultivated in
the country. In addition, substantial quantity of vegetable oils is also obtained from rice
bran and cotton seed, and a small quantity of oil from corn and tobacco seed.
Production of oilseeds from 2008-09 to 2010-11
Values in Million tonnes
Oil seed 2008-09 2009-10 2010-11
Soyabean 9.9 9.96 12.73
Groundnut 7.16 5.42 8.26
Rapeseed And Mustard 7.2 6.6 8.17
Castor 1.17 1 1.3
Sesamum 0.64 0.58 0.89
Sunflower 1.15 0.85 0.65
Safflower 0.18 0.17 0.15
Linseed 0.16 0.15 0.14
Nigerseed 0.11 0.1 0.1
Total 27.7 24.8 32.4
Source: Agricoop
The total oilseed production of 9 oilseeds was reduced by 11.9% from 2008-09, the
production was then boosted in 2010-11 and was increased to 30.64%. Among the
production of 9 oilseeds in the country, the top 3 commodities under oilseeds produced
were Soyabean, Groundnut, Rapeseed and Mustard.
B. PRODUCT ANALYSIS
PRODUCT PRODUCT LABEL WORLD INDIA INDIA'S SHARE IN

CODE IMPORTS FROM EXPORTS TO TOTAL IMPORTS
WORLD WORLD FROM WORLD
2010 2011 2010 2011 2010 2011

Values in USD Mn
120750 Mustard seeds, whether or not 202.1 213.8 8.6 22.9 4.3 10.7
broken
120720 Cotton seeds, whether or not 280.1 429.0 1.7 2.5 0.6 0.6
broken
120799 Oil seeds and oleaginous 591.1 645.6 13.4 36.5 2.3 5.7
fruits, nes, whether or not
broken
120740 Sesamum seeds, whether or 1841.2 1923.8 455.6 563.9 24.7 29.3
not broken
120791 Poppy seeds, whether or not 135.4 155.7 0.4 0.4 0.3 0.3
broken

(%)
120750 Mustard seeds, whether or not 10.8 29.0 12.8 8.6 22.9 20.4
broken
India share in the export of mustard seeds has grown from 4.3% to 10.7%. On calculating
CAGR, it has come up to 20.4% from 2007-2011.
INDIA’S TOP EXPORT DESTINATIONS IN THE WORLD
Values in USD Mn
HS code : 120750 Mustard seeds, whether or not broken
World 12.883 8.603 22.945
Nepal 9.639 5.064 17.536
Belgium 0.006 0.239 0.97
Sri Lanka 0.341 0.232 0.261
Viet Nam 0.011 0.013 0.239

Philippines 0.001 0.071 0.212
Chinese Taipei 0.001 0.001 0.198
Japan 0.052 0.084 0.187
Source: ITC
It is clear from the above table that India’s exports of Mustard to world have been
fluctuating since 2009-2011. India’s leading export destination in 2011 were Nepal,
Belgium, USA holding the share of 76.41%, 4.22% and 2.17% respectively.
HS code : 120750 Mustard seeds, whether or not broken
Values in USD Mn
World 254.186 202.056 213.792
United States of 56.233 47.688 52.551
America
Germany 49.245 42.89 40.9
France 35.226 26.195 25.392
Nepal 2.119 2.595 16.542
Netherlands 20.184 11.962 11.507
Belgium 7.691 9.118 7.276
Thailand 5.488 2.464 5.839
Japan 7.591 6.124 5.297
Poland 5.645 5.467 4.278
Source: ITC
Leading importers of Mustard in world were USA, Germany and France holding the share of
24.58%, 19.13% and 11.87% respectively. On analyzing the India’s export destinations and
leading importers of world, it is found that countries like Germany, France, Netherlands,
Thailand and Japan can serve as emerging markets for India in future.
Countries Year Total imports from Country’s import India’s share in

World (in USD Mn) from India (In Country’s total
USD Mn) imports from
World (in %)
Germany 2011 40.9 0.051 0.1
France 2011 25.392 0.016 0.1
Netherlands 2011 11.5 0.01 0.1
Thailand 2011 5.839 0.003 0.1
Japan 2011 5.297 0 0
Source: ITC
OBSERVATIONS
The world requirement for Mustard in 2011 was USD 213.79 Mn. It is observed that for
countries like Germany, France, Netherlands, Thailand and Japan, India’s export share
is almost negligible or 0. Hence, all these countries can emerge as future markets for
India.
C. MUSTARD PRODUCTION IN JHARKHAND
1200
1000
800 Productivity in kg/ha
600 Production in '000

tonnes
400
Area in '000 ha
200
0
2007-08 2008-09 2009-10 2010-11 20011-12
Source: Department of Agriculture and Cane development, govt of Jharkhand
During the span of five years i.e. from 2007-08 to 2011-12, area under mustard cultivations
was increased from 60.3 thousand ha to 198.0 thousand ha, while production was 37.4
thousand tonnes to 125.6 thousand tonnes. The productivity of mustard rose from 620
kg/ha to 635 kg/ha.
D. ISSUES AFFECTING MUSTARD PRODUCTION IN JHARKHAND
 Production of mustard and rapeseed in Jharkhand is far below the national average.
As against national productivity of 1145kg per hectare, productivity in Jharkhand
has been 635Kg per hectare in 2011-12. This poor productivity or yield loss to the
tune of 30-40 percent is linked to several biotic and abiotic stresses like disease,
pest infestation.
RECOMMENDATIONS
There is a need to increase area under oilseed production in Jharkhand. This can be done by:-
 Use of fallow / barren land under pulses and oilseed through land reclamation and use of
INM.
 Rice – fallow can be used for oilseed crops.
D.10 FLOWERS
A. FLOWER PRODUCTION IN INDIA
India’s annual flower production stands at around 1,000 tonnes and the country’s
floriculture industry have a miniscule 0.01 per cent share in the international market. The
flower trade in India is limited to two cities-Bangalore and Pune. These include the
ubiquitous rose, carnations, and bird of paradise. Lucky bamboos are imported from
Thailand, like Orchids.
The merry marigold comes from Kolkata. Gladioli converge at Delhi from all over the
country, while Bangalore and Thailand again are hometown for lilies. Rajnigandhas
originate in Muzaffarnagar while tulips abound in the hills of Shimla and Kullu. In the year
2010-11, the production of loose flowers in India was 1031.3 thousand metric tonnes,
while the production of cut flowers was 69027.4 thousand metric tonnes.
Flower production in India
Year Area Production
Loose Cut
2008-09 166.52 987.4 47942
2009-10 182.9 1020.6 66671.4
2010-11 190.9 1031.3 69027.4
Area in ‘000 ha, Production (loose) in thousand MT,
Production (cut) in lakh no.
From the table above, area under flower production rose by 14.64%, while production of
loose and cut flowers rose by 4.4% and 4.3% respectively from 2008-09 to 2010-11.
B. PRODUCT ANALYSIS
product Product label WORLD TO INDIA’S EXPORTS INDIA’S SHARE TO

code WORLD IMPORTS TO WORLD TOTAL IMPORTS
FROM WORLD
2010 2011 2010 2011 2010 2011
Values in USD Mn
060312 Fresh cut carnations and 471.30 543.05 0.18 0.18 0.04 0.03
buds, of a kind suitable for
bouquets or for
060313 Fresh cut orchids and buds, 259.07 280.25 0.00 0.01 0 0
of a kind suitable for
bouquets or for orn
060314 Fresh cut chrysanthemums 716.48 784.80 0.00 0.00 0.00 0.00
and buds, of a kind suitable
for bouquets or
060390 Cut flowers & flower buds 321.14 245.58 16.62 25.64 5.18 10.44
for bouquets or ornamental
purposes,ex fresh
060319 Fresh cut flowers and buds, 2873.59 3165.51 3.19 0.74 0.11 0.02
of a kind suitable for
bouquets or for orn
060311 Fresh cut roses and buds, of 2555.37 2875.75 4.48 4.75 0.18 0.17
a kind suitable for bouquets
or for ornam
CAGR
Code Product label 2007 2008 2009 2010 2011
(%)
Cut flowers & flower buds
for bouquets or ornamental
060390 purposes, ex fresh 18092 15855 13447 16623 25642 91.1
Source : ITC
India’s share in exports of cut flowers and flower buds for bouquets and ornamental
purpose was highest for HS code 060390. It reported a CAGR of 91% from 2007-2011.
Focus markets for India for this HS code is detailed below.
INDIA’S TOP 10 EXPORT DESTINATIONS
(Values in USD Mn)
HS CODE- 060390 : Cut flowers and flower buds for bouquets or ornamental purpose, ex fresh
World 13.447 16.623 25.642
United States of 3.503 3.206 7.22
America
Germany 1.838 3.998 5.792
Netherlands 2.286 2.287 2.623
Italy 1.489 1.077 1.021
Japan 0.072 0.252 0.865
China 0.09 0.007 0.669
Belgium 0.307 0.72 0.552
Latvia 0 0.244 0.488
Australia 0.139 0.239 0.454
Source: ITC
The top three exporting destinations where India exported cut flowers in 2011 are United
States of America, Germany and Netherlands which constituted 28.15%, 22.81% and
10.21% respectively from the total exports by India to world.
TOP IMPORTERS OF CUT FLOWERS IN WORLD
(Values in USD Mn)
HS CODE- 060390 : Cut flowers and flower buds for bouquets or ornamental purpose, ex
fresh
World importers 2009 2010 2011
World 346.677 321.136 245.582

France 49.564 49.516 47.602
United Kingdom 54.118 36.001 28.459
Belgium 21.481 19.851 22.194
Japan 24.554 21.656 21.797
Denmark 8.059 8.318 12.884
Germany 61.323 58.251 11.757
Singapore 8.389 7.547 9.307
United States of 10.099 8.35 8.745
America
Netherlands 7.548 6.266 8.721
Poland 3.646 4.741 8.629
Source: ITC
On comparing the top 10 export destination of India and leading importers of cut flowers in
world, it is found that countries like France, Denmark, Singapore and Poland can become
the emerging markets for India’s export.

from World import from Country’s total
(in USD Mn) India (In USD imports from World
Mn) (in %)
France 2011 47.602 0.121 0.3
Denmark 2011 12.884 0.016 0.1
Singapore 2011 9.307 0.1 0.1
Poland 2011 8.629 0.011 0.1
Source: ITC
OBSERVATIONS
It is observed that in all the above listed countries, India’s export share in all these
countries is very low. There is a huge difference in the trade value between the imports
requirement from world and exports from India in these countries. So India should
increase its export share in these countries.
C. TOP EXPORTERS OF CUT FLOWERS IN WORLD
World exported flowers of worth USD 487.2 Mn Leading countries in the export of cut
flowers were Netherlands, Israel, India, Malaysia and Colombia. India stood at 3rd position,
contributing 5.3 %( USD 25.6 Mn) to the total exports to world in 2011.
Export Com
Pie chart de
epicting top 5 countries ex
xporting cut flowers
and flowerr buds for bo
ouquets or ornamental pu urpose,
ex fre
esh (HS code:: 060390) to world
w in 201
11
Colombia, 2.
Malaysia, 4.4 4
India, 5.3
Israel, 17
7.1
Netherlan
nds,
48.7
So
ource: ITC
D. FLOW
WER PRODU
UCTION IN JHARKHAN
ND
Jharkhannd presenteed its succcess stories achieved in floricultture with special focu us on
plastic mulching
m and cultivation of Rose, Gerbera,
G Glaadiolus, Carn
nation and Marigold.
M
Flower prod
duction in Jha
arkhand
Year Area Productio
on
Loo
ose Cut
200
08-09 1.6 22
2 1711
200
09-10 1.6 22
2 1711
201
10-11 1.6 22
2 1711
Are
ea in '000 ha,, Production (loose) in tho
ousand MT,
Pro
oduction (cut) in lakh no..
Sou
urce: National Horticulture Board
It is observed that there has been

b no chaange in areaa under pro oduction annd productio on of
loose annd cut floweers from 20 008-09 to 2010-11 in Jharkhand.
J Jharkhand contributed d the
share of just 0.83 peercent in th
he flower prroduction naationally, while
w its sharre in production
of loose and cut flow
wers is 2.13% and 2.47 7% respectiv vely.
E. NON TARIFF BA
ARRIERS IN
N EXPORT OF
O FLOWER
RS
Country Non ta
ariff barrier
Colombia
a Exportt subsidies
Japan Impracctical plant quarantine prrocedures inccluding zero tolerance fo
or the insectss/pests.
Consignments refumigated desp pite SPS certtificates.
Japan Unfair trade practice in items of placing imported flowers in the auctions after
domestic supply is auctioned
Korea Direct export subsidies to lower marketing costs
European Most farms exporting floricultural products in India have a very stringent pest control
Union management system operational which adheres to International standards. Most farms
have adopted Good Agricultural Practices (GAP). Some of them even have MPS-A
certification. Many of them are at the certification stage.
Despite high quality procedures prevalent on the exporting farms and very stringent
phytosanitary inspection procedures, Indian floricultural produce is being subject to 50
% checks at entry points in the Netherlands. This is a time consuming process and
results in unwanted delays in clearances, processing and delivery of the consignments
to the end clients.
F. ISSUES AFFECTING FLOWER SECTOR IN JHARKHAND

 There is no soil testing facility at Ranchi. At present, the soil samples are getting sent
to Nainital for testing. Birsa agricultural university in Ranchi is not very well
equipped to test soil parameters.
 There is no established cold chain for flowers in Jharkhand.
 Floriculture industry is facing with a number of challenges mainly related to trade
environment, infrastructure and marketing issues such as high import tariff vis-a-vis
African countries, low availability of dedicated perishable carriers, higher freight
rates, inadequate support infrastructure, constraint in achieving economies of scale,
and inadequate cold chain management
 At the production level the industry is faced with challenges mostly related to
availability of basic inputs, including quality seeds and planting materials, quality
irrigation and skilled manpower, and ageing plantations.
 With regard to marketing, major challenges faced by the Indian flower exporters are
related to low level of product diversification and differentiation, vertical
integration and innovation, and challenges associated with quality and
environmental issues. With increasing involvement of supermarkets in flower trade,
organizing logistics is also becoming a critical factor for the Indian flower exporters.



Training is lacking in this field due to low literacy levels of the florists.


RECOMMENDATIONS
POLICY  Subsidy for poly houses: Infrastructure development subsidy
should be announced for larger poly houses also apart from
the 50% subsidy allowed to farmers with 60,000 sq. ft.
INFRASTRUCTURE  Testing facility: Enhanced soil testing facility at Ranchi should
be created. It should be well equipped with modern
equipment facilities.
 Cold chain: Cold chain and storage facility near Ranchi airport
is required.
 Low cost green houses should be developed using indigenous

R&D.
 Flower specific area should be identified as part of Agri
Export zone and necessary infrastructure viz. testing & cargo
handling facilities and inland container depots to be
established.
 Air connectivity: Exporters face problems while airlifting the
flowers from Jharkhand to Kolkata international airport because
there are no regular flight services from Jharkhand to Calcutta. Due
to lack of international airport in Jharkhand, flowers are first sent to
Kolkata international airport, but from Kolkata, there is no proper
flight connectivity. Number of flights should be increased from
Jharkhand to Kolkata as well as proper connectivity should be given
from Kolkata international airport so as to expand the markets. At
present flowers are generally getting exported to Middle East.
MARKETING AND  Training should be given to the florists in terms of flower
PROMOTION arrangement and delivery to the final destination.
 The sector needs to have proper marketing with respect to
product diversification, vertical integration of markets and
new innovations.
D.11 CASHEW
A. CASHEW PRODUCTION IN INDIA
India was the first country in the world to exploit the international trade of cashew kernels
in the early part of 20th century. India’s share in world cashew area is 22.50 per cent and
share in world cashew production is 20.74 per cent. Cashew is presently grown in an area
of 0.923 million hectares with annual production of about 0.613 million tonnes of raw
cashew nuts in the country21. Indian cashews are consumed in as many as 60 countries all
over the world, the major markets being the United States, the United Kingdom, Japan,
Netherlands, Australia, Canada, Germany Hong Kong, Singapore, New Zealand and Middle
East countries.
The Indian cashew kernel is well acclaimed for its good quality, taste and appearance. The
Indian cashew kernel is highly appreciated in other countries for good quality, taste, and
appearance; and is consumed in more than 60 countries across the world.
21
Directorate of Cashew research, vision 2030
Table showing production of cashew nut in India

Area Production Productivity
2008-09 893 695 0.8
2009-10 923 613 0.7
2010-11 953.2 674.6 0.7
Area: '000 ha, production- '000 MT, Productivity in MT/HA
India is the largest area holder of this crop. From the period of 2008-09 to 2010-11, the
area under cashew cultivation registered a 6.7% increase from 893 thousand hectares to
953.2 thousand hectares, the production figures registered a percentage decrease of 2.9%,
from 695 thousand metric tonnes to 674 thousand metric tonnes, while productivity of
cashews registered a percentage decrease of 12.5% from 0.8 MT/HA to 0.7 MT/HA.
MAJOR STATES PRODUCING CASHEW NUTS IN 2009-10.

STATE 2009-10
A P APY
Kerala 72 66 957
Karnataka 118 53 461
Goa 55 26 473
Maharashtra 175 198 1186
Tamil Nadu 133 60 472
Andhra Pradesh 183 99 544
Orissa 143 84 641
West Bengal 11 10 909
Gujarat 0 0 0
NE States 0 0 0
Others 33 17 680
TOTAL 923 613 695
A - Area in '000 Ha., P - Production in '000 MT, APY - Average Productivity in Kg per Hectare.
Source: Directorate of Cashew and Cocoa development
Cultivation of cashew in India confines mainly to the peninsular areas. It is grown in

Kerala, Karnataka, Goa and Maharashtra along the west coast and Tamil Nadu, Andhra
Pradesh, Orissa and West Bengal along the east coast. To a limited extent it is being
cultivated in Chattisgarh, North Eastern States (Assam, Manipur, Tripura, Meghalaya and
Nagaland) and Andaman & Nicobar Islands. From the table above, the cashew production
is highest in Kerala, followed by Karnataka and Goa.
B. EXIM SITUATION OF CASHEW IN INDIA
2500
Trade vaues in USD Mn
2000
1500
1000
500
0
-500
-1000
2009 2010 2011
Cashew exports from India 1035.35 1088.7 1448.99
Cashew imports to India 1102.35 1315.99 2091.52
Trade deficit -67 -227.29 -642.53
As clear from the graph above, imports of cashew were higher than exports. There is a
constant increase in the trade deficit from 2009-2011.
C. MARKET ANALYSIS
From ITC data, for HS code 0801 India’s total exports in 2011 was worth USD 937.39 Mn.
On further expanding it to six digit levels, India’s exports for HS code 080131 was worth
USD 1.04 Mn, while 080132 contributed USD 893.37 Mn. Hence from the data, it is clear
that HS code 080132 played major role and contributed around 95% in generating revenue
and foreign exchange to India. Therefore we have selected HS 080132 for further analysis.
INDIA’S EXPORT DESTINATIONS OF CASHEW TO WORLD
Product : 080132 Cashew nuts, without shell, fresh or dried
Values in USD Mn
World 576.287 561.895 893.373
Netherlands 53.188 58.514 75.55
Japan 30.787 32.939 45.418
Saudi Arabia 20.839 22.731 37.623
France 17.411 17.051 24.955
United Kingdom 23.545 14.601 23.463
Spain 14.857 15.11 21.306
Germany 6.942 7.905 18.945
Belgium 16.941 14.349 17.16
Source: ITC
In 2011, the top three exporting destinations for Indian cashews were USA, UAE and
Netherlands holding the share of 33.9%, 14.2% and 8.5% respectively from the total
exports to world. Among the exportable commodities of cashew, mainly fresh or dried
cashew nuts: Cashew kernel whole and broken was exported in huge quantities having an
export share of 93.79% and 6.1% respectively in the year 2011.
TOP IMPORTERS OF CASHEW IN WORLD
Product : 080132 Cashew nuts, without shell, fresh or dried
Values in USD Mn
World 1838.588 2050.228 2600.31
United States of 596.942 706.597 894.78
America
Netherlands 223.697 199.019 299.85
Germany 147.265 150.009 192.932
United Arab 103.611 115.931 133.593
Emirates
Australia 67.711 87.829 111.237
United Kingdom 82.755 81.09 102.906
Canada 46.373 57.296 74.176
Japan 35.04 42.879 54.134
Russian 36.32 47.915 50.565
Federation
China 98.953 73.367 50.384
Source: ITC
The leading importers of cashew from world in 2011 were USA, Netherlands and Germany
holding the share of 34.4%, 11.5% and 7.4% respectively from total world imports. On
matching the markets where India exports cashew and top importers of cashew from
world, it is found that countries like Australia, Canada and Russia can become the emerging
markets for cashew exports from India.

from World (in from India (In Country’s imports
USD Mn) USD Mn) from World (in %)
Australia 2011 111.24 9.135 8.2

Canada 2011 74.17 9.512 12.8
Russia 2011 50.56 7.320 14.9
Source: ITC
OBSERVATIONS
It is observed that among the three above listed countries, India’s export share in
Australia had been lowest followed by Canada and Russia. If we see the total import
market of Australia from world, cashews of around USD 111.24 Mn were exported,
where exports from India were of only USD 9.135 Mn. Similarly in Canada and Russia,
Cashews of around USD 9.51 Mn and USD 7.32 Mn were exported from India; whereas
Export Com
the tota
al import to
o these countries from m world in 2011 weree USD 74.166 Mn and 50.56
5
Mn. So, India
I needss to increasse its exportt share in these
t counttries.
D. CASH
HEW PRODU
UCTION IN JHARKHAN
ND
In Jhark
khand the pllantations of
o cashew nu uts are wideely evident in the south
hern part off the
state esp
pecially in Saraikela
S an
nd East Singghbhum, weest Singhbh hum and Pak kur districtts. In
Jharkhannd, East Siinghbum offers a tem mperate cliimate with laterite soil for casshew
cultivation.
h showing area
Graph a underr cashew prroduction in
i Jharkhan
nd
500
00
400
00
Area in Ha
300
00
200
00
100
00
0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2
2011-12
Area in
n ha 1000 450 610 420
0 850 3825 3000
Sourcee: Deptt of Horticulture

H and cane deevelopment, SHM, Ranchhi
During the
t five yeears, from 2007-08 to o 2011-12, area undeer cashew production
p has
increaseed from 610 0 ha to 3000
0 ha, registtering a com
mpounded annual
a grow
wth of 37.5%
% in
the last five
f years.
E. EXPORT SPECIFIICATION OF CASHEW

W FROM IND
DIA
Standard
d specifications for Ind
dian cashew
w kernels foor export have been laaid down by
y the
Governm
ment of India under thee Export (Qu
uality Contrrol And Insp
pection) Act 1963.
 GRADING: Cashew
G C Kerrnels are grraded into white/scorc
w ched wholees, pieces, splits,
butts etc. dep
pending on the shape, size & colour of the keernel. The Govt.
G of India Act
prescribes 33 different grades of cashew
c kern
nels. Only 26
2 grades arre commerccially
av
vailable andd exported. They are:
a. W - 180, is the ' King
K of Cashhew ' - They
y are larger in
i size and very
v expenssive.
b. W - 210, are popularly know wn as ' Jumbbo ' nuts.
c. W - 24 40, it is an attractive
a grrade which is reasonabbly priced.
d. W - 320, are the mostm popular among caashew kern nels and highhest in term
ms of
availaability, worlldwide
e. W - 450, are the smallest
s and cheapest white whole kernels an nd hence the
favoriite among lo ow priced whole
w gradees.
 Quality Control and Pre-shipment Inspection: Exports of cashew kernels from

India are normally subject to voluntary quality control and pre-shipment inspection.
Inspection of cashews is being conducted under the consignment-wise inspection. It
is ensured that the product is processed and packed as per the standards
prescribed, by drawing samples from the finished product. Export of roasted and
salted cashew kernels are also normally subjected to voluntary quality control.
 Packing and Standard Weight: Cashew kernels in bulk are packed in four gallon
prime tins with a net weight of 11.34 Kg (Or 25 lbs) in each tin. The filled tins are
then vacuumised and filled with carbon-di-oxide gas and sealed. Two such tins of
the same grade are packed in a carton for export. The net weight of each carton is
thus 22.68 Kg. (50 lbs.).
 Shipping Specifications: The overall dimensions of a carton are about:
Length 490mm
Breadth 240mm
Height 350mm
Overall 0. 041 Cu. M/Carton
volume
 Non Tariff Barrier: Saudi Arabia and Dubai demands for certificate of origin and
legalized invoices for processed cashew kernals. All such countries where India
cashew is being exported (like US, UK, Netherlands, Spain, Germany, Saudi Arabia,
Belgium, Singapore, Italy, Thailand etc) demand for certificate of origin, Aflatoxin
certification and certificate of analysis which confirms that the product is free from
any microbiological infection.
F. ISSUES AFFECTING CASHEW INDUSTRY IN INDIA
 Infrastructural facilities: The cashew industry in India has been suffering from poor
quality of cashew grown in some states, which is mainly due to wrong harvesting
technique, unsatisfactory drying of the nuts and inadequate storage and warehouse
facilities for storing dried cashew nuts.
 The productivity level is not increasing over the years as expected as against the
new technologies available for adoption.
 There is an ever increasing demand for cashew kernel both in international market
and also in the domestic market. Countries such as Vietnam and Brazil are
competing with India in the international market. Since, African countries have
started processing raw cashew nuts themselves, availability of raw cashew nuts for
importing by India may gradually decline or may altogether stop.22
22 Directorate of Cashew research; vision 2030

RECOMMENDATIONS
 Domestic raw cashew nuts production should be encouraged in order to become
self sufficient to provide adequate raw cashew nuts to the processing industries.
 Raw cashew nuts should to be produced at cheaper rate in order to compete with
other cashew growing countries of the world.
 It is also important to develop and expand domestic market for cashew kernels so
that there will be continued good price for the nuts and thereby farmers are
encouraged to grow cashew. Unless remunerative price is offered to the raw
cashew nuts, farmers might switch over to other plantation crops such as rubber,
which fetches very high price for its product.
 VKGUY benefits to Cashew exports on sustainable basis in view of stiff
competition Vietnam and African countries : Cote D’ Ivoire, Tanzania, Benin and
Guinea Bissau
ANNEXURES
QUESTIONNAIRE FOR
JHARKHAND EXPORT COMPETITIVENESS STUDY
TRADE POLICY ISSUES
Q1. Are you exporting? If not, what are the factors discouraging you to enter into exports? If
you are exporting, what has been the trend of exports of your company in last 3 years (going
up or down or remaining same) and reasons for such trends?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
_________________________________________________________________________________________________________________
Q2. With the opening of domestic economy and reduction of import duties, how do you plan to
survive in such stiff competition?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
Q-3 What Policy/regulatory issues you are facing for your product category? What do you
suggest to improve the same?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
Q4: Are you receiving VAT refund of the export of your product?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
Q5. What support you expect from the Government or Public Institutions to encourage
entrepreneurs into the field of exports?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
Q6. What are the major problems faced by you in availing finance for exports? Do you have any
problem with banking services?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
Q7. What kind of support of Government Authorities or marketing network is available for
your product? What else do you suggest?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
Q8. What additional subsidy is required from State Government for your product to increase
the exports?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
Q9. What suggestions do you have for a proposed export promotion policy in Jharkhand?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
TRADE INFRASTRUCTURE ISSUES
Q-10 What problems you are facing for raw materials? What support is required from State
Government?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
Q-11(a) Please specify the National/State highway needs immediate attention in your district?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
(b) Which Railway line or route needs to be strengthened for boosting the exports? How is the
availability of rakes?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
(c) Are there sufficient tool rooms/ design centres/ Exhibition centres/ Warehouses for your
product?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
(d) Are there any ICD/ CFS available for your products? What are your suggestions to improve
their services?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
(e) Do you face power problems both with regard to quality and availability of power? If so,
what could be done to augment the same?
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
EXPORTER’S DETAILS
Product Category: _____________________________________________________________________________________________

Name:___________________________________________________________________________________________________________
Designation: ___________________________________________________________________________________________________
Organisation: __________________________________________________________________________________________________
Tel: _______________________________________________________; Fax: _______________________________________________
Address:________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
REFERENCES
1. Jharcraft ( Jharkhand Government Undertaking )
2. Jharkhand State Horticulture Mission
3. Federation of Jharkhand Chamber of Commerce
4. Jharkhand Small Industry Association (JSIA), Ranchi
5. Adityapur Small Industries Association
6. The Automotive Manufacturers Association of India
7. Adityapur Auto Cluster
8. Dhanbad Zila Chamber Of Commerce
9. Bokaro Chamber Of Commerce And Industries
10. Non Government Organisations in Jharkhand
11. Exporters members of FIEO
Notes
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________

Study On Jharkhand Export Competitiveness

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STUDY ON

EXPORT COMPETITIVENESS OF JHARKHAND

Federation of Indian Export Organisations

We would like to thank all the stakeholders who have

PART II EMERGING SECTORS WITH EXPORT POTENTIAL

3. INLAND CONTAINER DEPOT

consumption, whereas agriculture consumption is only 1.50%.1 T&D losses in Jharkhand

capacities and the transformation capacity of 2760 MVA.

OBJECTIVE OF THE STUDY

SECTORS CONTRIBUTION TO GSDP EMPLOYEMENT GENERATION

Agriculture 13% 60%

Mining 14.29% 2.25%

Manufacturing 27.3% 9.80%

Source: Annual state plan report for Jharkhand 2011-12

FOCUSSED PRIMARY RESEARCH

 Secondary research involved an extensive Desk Research and Secondary Data

RCA = (Xij / Xit) / (Xnj / Xnt)

STEP 2: In order to study the comparative advantage of the specific commodity in

RCA CALCULATION AT 4 DIGIT DISAGGREGATED HS CODE LEVELS

RCA CALCULATION AT 4 DIGIT DISAGGREGATED HS CODE LEVELS

HS Product description India’s India's World World's RCA

070810 Leguminous vegetables, 0.424 301483 320.779 17855727.1 0.08

On analyzing the comparative advantages at 4 and 6 digit disaggregated HS code levels, it is

Further, a comprehensive market review of a wide range of secondary data from

GENERAL ISSUES RECEIVED FROM ALL SECTORS

electronic data interchange between bank, exporters and DGFT. It

MAJOR RECOMMENDATIONS FOR VARIOUS SECTORS- POLICY

POLICY INPUTS TAKEN FROM FIELD VISITS

(Exports in last FY/Total production in last FY) X Workers

For every additional worker employed, Government should provide equivalent

b) For technology up gradation, modernization, diversification, creating

MAJOR RECOMMENDATIONS FOR VARIOUS SECTORS- INFRASTRUCTURE

INFRASTRUCTURE INPUTS TAKEN FROM FIELD VISITS, SECTORWISE

Special incentive to producer of value added products in specified markets

RECOMMENDATIONS FOR MSME SECTOR

LIMITATIONS OF THE STUDY

CHAPTER 1 AUTO COMPONENTS AND ENGINEERING

EXPORT OF ENGINEERING GOODS & SERVICES DURING 2010-11 TO 2011-12

B. GROWTH OF INDIAN ENGINEERING EXPORTS

60000 CAGR- 7.2% 60108

Source: Engineering export promotion council & FIEO analysis

CAR EXPORTS FROM INDIA

During April-March 2012, the industry exported 2,910,055 automobiles registering a

Automobile Exports Trends

Source: Society of Indian Automobile Manufacturers (SIAM)

PRODUCT PRODUCT DESCRIPTION WORLD TO WORLD INDIA'S EXPORTS INDIA'S SHARE

2010 2011 2010 2011

INDIA’S TOP EXPORT DESTINATIONS

TOP IMPORTERS IN THE WORLD

ANALYSING INDIA’S EMERGING MARKETS

Countries Year Total imports Country’s India’s share in

In 2011,, the total exports

i) Low outp put to expo

ii) Low techhnology inttensity of engineering

F. NON TARIFF BARRIERS IMPOSED BY DIFFERENT COUNTRIES

Country Non tariff barrier

Latin American  Problems with regard to technical certification in various countries.

European  CEMEP standards, machinery tolerance increases cost of compliance, CE

G. ISSUES AFFECTING ENGINEERING SECTOR IN JHARKHAND

(Exports in last FY/Total production in last FY) X Workers

For every additional worker employed, Government should provide

INFRASTRUCTURE  Setting up an authority on Infrastructure development: There is a