In today’s Finshots, we tell you why India ― the largest mango producer, struggles with exports and how Uttar Pradesh is trying to change that.

Before we begin, if you’re someone who loves to keep tabs on what’s happening in the world of business and finance, then hit subscribe if you haven’t already. We strip stories off the jargon and deliver crisp financial insights straight to your inbox. Just one mail every morning. Promise!

If you’re already a subscriber or you’re reading this on the app, you can just go ahead and read the story.


The Story

India grows a jaw-dropping 20 million tonnes of mangoes every year. And we’re the world’s largest mango producer by a mile.1

But despite this supremacy, we export less than 0.5% of our total production. Even Pakistan manages to export more mangoes than we do!2

Now, you might think it’s because we love our mangoes a bit too much to share. And you’d be right to an extent. We eat a lot of them, consuming the most mangoes in the world!

But that’s only part of the story. Our love for mangoes alone can’t explain why our exports are so dismal. There’s a deeper problem at play.

One of them may be Uttar Pradesh (UP). And no, we’re not blaming the state itself, but its infrastructure or rather, the lack of it.

You see, UP is a mango powerhouse, producing close to 5 million tonnes a year.3 That’s over a quarter of India’s total mango output. Yet, its export contribution isn’t as exciting.4

The reason is simple. UP doesn’t have the facilities to preserve its mangoes for export.

Mangoes, especially the Indian varieties, are delicate fruits. They have thinner skins compared to those from Mexico or Brazil, which means that they can’t handle long trips without a bit of tender loving care. And to keep them fresh, they need to go through radiation treatment to remove bacteria and pests, and then be stored in dry, temperature-controlled facilities before they’re ready for export.

And that’s where the problem escalates. UP has some amazing mango varieties, but lacks these facilities to extend their shelf life. So, its mangoes have to be sent to cities like Mumbai or Bengaluru, where radiation treatment plants are available, before they can be exported.5 Now, just imagine what happens during that journey. These mangoes have a short shelf life, sometimes as little as two days to two weeks after harvest. And by the time they reach those cities, they’ve already started losing their freshness, and the chances of spoilage go up. This extra transport also translates into higher costs.

And here’s the thing. These mangoes have to be flown by air to reach far-off markets like the US or Europe quickly. Cheaper shipping methods just aren’t an option. So, the costs keep piling up, making the mango exports business much less profitable.

To make things worse, this delay sometimes drives growers to use banned chemicals and pesticides in an attempt to preserve their mangoes for longer.6 But global markets, especially the US and Europe, have strict regulations, and any trace of these chemicals could lead to entire export shipments being rejected.

So, not only are we struggling with infrastructure, but we’re also risking our reputation as a reliable exporter.

And guess who’s benefiting from our struggles?

Well, none other than China.

Yup!

China has been quietly growing several Indian mango varieties like Alphonso, Dasheri, Chausa and Langra, many of which are also grown in UP. And, believe it or not, China has actually surpassed India’s mango exports for the past two years. To give you some context, in 2023, China exported $59 million worth of mangoes, which is about 6% more than India’s exports that same year.

And here’s the kicker. Some of this might be our own doing.

Because it’s not just that our mango producers struggle with extending the shelf life of their fruit. It all goes back to a friendly diplomatic gesture India made to China way back in the 1950s.7

China wasn’t always this good with mango farming and exports. But in 1955, things took a friendly turn. The Indian Prime Minister at the time sent eight mango saplings of the Alphonso, Dasheri, Chausa and Langra varieties as a goodwill gesture to his Chinese counterpart. It was a sweet return gift for the pair of spotted deer, red-crested cranes and 100 goldfish China had sent us.

But that friendship didn’t last long. Wars and border clashes soured relations. And those mango saplings? Well, they may have thrived in China’s southern provinces like Hainan and Guangdong, where the climate is perfect for mango cultivation. And now, years later, that diplomatic gift is coming back to haunt us, as China’s mango exports are taking a bite out of our own!

But India, and specifically UP, isn’t ready to give up just yet. The state is gearing up for a mango revolution, and it’s starting with infrastructure.

Last week, the UP government announced plans to build North India’s first radiation treatment plant near the Jewar International Airport, just outside Noida.8 It’s going about it through a Public-Private Partnership (PPP) model. And honestly, it makes perfect sense. By keeping the facility close to a major transportation hub, UP can streamline the export process, reduce delays, cut costs and make it easier to reach big markets like the US and Europe.

The state isn’t stopping there. It’s also planning to promote its visually striking red mango varieties, which are packed with health benefits. These antioxidant-rich fruits are being marketed as a catalyst to combat obesity and age-related cognitive decline — a message that could resonate with health-conscious consumers around the world.

But this isn’t UP’s first attempt to boost its mango export game.

A couple of months ago, the government made it easier for farmers to prune their mango trees without needing permission.9 Now, pruning simply means cutting back parts of the tree, which helps it grow better. This might seem like a small change, but it’s important for older mango orchards. By trimming the trees regularly, farmers can manage the tree’s canopy — the top, leafy part of the tree — better. And over time, this can lead to higher mango yields and better-quality fruit for export.

So yeah, UP could be on the verge of turning the tide for India’s mango exports. And the timing couldn’t be better as Indian mango growers and trade bodies are already optimistic about 2024, hoping to outpace China in mango exports. For context, by May this year, India already exported fresh mangoes worth $49 million — more than the entire year’s exports in 2022!

Will it be enough to help India up its game as a mango export powerhouse?

We certainly hope so. But as with any good mango, only time will tell how sweet the outcome will be.

Until then…

Don't forget to share this story on WhatsApp, LinkedIn and X.

📢 Ready for even more simplified updates? Dive into Finshots TV, our YouTube channel, where we break down the latest in business and finance into easy-to-understand videos — just like our newsletter, but with visuals!

Don’t miss out. Click here to hit that subscribe button and join the Finshots community today!

Story Sources: Livemint [1] [6], Deccan Herald [2], Agriculture Review [3], APEDA [4], Economic Times [5], The Print [7], The Times of India [8], Hindustan Times [9]


🚨 Get a Term Plan Now OR Lose This Key Feature

By 30th September, many prominent life insurers will significantly dilute or remove a key feature of term insurance plans — the Critical Illness (CI) Rider.

With a CI rider, you and your family are given a lump sum if you're diagnosed with a critical illness — giving you enough financial strength to tide over the crisis.

The good news is that if you lock in your plan now, most insurers are still offering the original benefits of this rider.

Click here to speak to our team at Ditto for spam-free, term insurance guidance.