Sikkim can exploit Chinese void in export of mandarin oranges: EXIM Bank


GANGTOK, September 7: Projecting a drastic fall in the exports of mandarin oranges from China, the Export Import Bank of India (EXIM) has expressed its confidence that Sikkim where mandarins are endemic, can initiate to exploit this void in the global market.

“In fact, mandarin is the most important commercial fruit of Sikkim and its cultivation has witnessed a consistent increase”, said EXIM Bank in its ‘Sikkim: Export Potential and Prospects’ report recently released by Chief Minister Pawan Chamling.

The Bank in its dossier pegged the area under mandarin plantation in Sikkim as 5818 hectares with the production increased to 9672 tonnes recording an annual average growth of 5.1 percent. A more promising fact is that yield has increased continuously up to 2006-07, from 1599.6 kg/ha to 1667.1 kg/ha.

The Bank also noted in its report that Sikkim is ideally suited to the extension of acreage under orange as the State has favourable topography and climate.
“However, due to the extreme age of mandarin orange orchards (nearly 80 percent of them have crossed the most productive age) and an inadequate replantation rate, productivity declined in 2007-08”, the Bank said. These orchards lack vigour and are prone to diseases and pest attacks, more so considering that the State has declared itself as organic.

The Bank has recommended to the State government for rejuvenation of orchards of about 20 years of age, gradual replanting of the older ones, soil reclamation and manuring around the tree and planting of new orchards with saplings from certified nursery that can go a long way in helping to realize the untapped export potential of mandarin orange.

The Bank has also called for setting up an autonomous board for mandarin growers which would act as a nodal point for extension work, help in farmer education and work closely with farmers’ cooperatives to improve farm management practices and the quality of farm produce. The board can also help with credit, marketing and information on the market.

“A customer export cell may be set up to deal with formalities and simplify documentation procedures”, the Bank noted. It also advocated the need for creating awareness among the farmers that the entry of large investors is to the benefit of the entire industry.

“So far, farmers have been reluctant to replant their orchards, preferring to live off the little income generated by the old trees. The entry of large firms, who will guarantee the purchase of good quality mandarin oranges, is likely to encourage replanting at a faster rate. Once success has been achieved with citrus, fruit and vegetable processing can be extended to other fresh produce grown in the State”, the Bank said.

The report pointed out that processing of mandarin oranges in the form of juices, squash, marmalade and jam is critical as it results in increased shelf life and a far higher per unit value realization. Such processing lends itself to easy transportation thereby facilitating its exports.

The Bank also raised doubts over the Sikkim Fruit Preservation factory at Singtam stating that the amount and quality of the factory are not adequate from an international perspective. Besides, the factory itself needs an overhaul as the equipment and machinery are obsolete, it said.

The Bank summed up its study on mandarin orange export potential of Sikkim by concluding that a facility needs to be established for sorting, grading and processing of mandarin oranges and other horticulture products which could be simultaneously used so as to achieve optimal utilization of the unit. This would entail creating an enabling environment for private sector investments in the State, it said.


Mandarin oranges
Global production: 90.4 mn tonnes (2007)
India: 3.9 mn tonnes (sixth largest producer)
Sikkim: 9672 tonnes (2007-08)
Area under mandarin plantation in Sikkim: 5818 hectares with yield of 1667.1 kg/ha