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Exim Bank urges Sikkim to tap mandarin orange market.


Date: 09-09-2009
Subject: Exim Bank urges Sikkim to tap mandarin orange market
 Gangtok, Sept. 8 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 mandarin oranges are abundant, can take steps to fill this void in the global market.

“In fact, mandarin orange 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 the Sikkim Chief Minister, Mr Pawan Chamling.

The bank in its report pegged the area under mandarin orange plantation in Sikkim at 5,818 hectares with the production at 9,672 tonnes, recording an annual average growth of 5.1 per cent. A more promising fact was that yield had increased continuously till 2006-07, from 1,599.6 kg/ha to 1,667.1 kg/ha.

The bank also noted in its report that Sikkim was ideally suited to the extension of acreage under orange as it has favourable topography and climate.

“However, due to the extreme age of mandarin orange orchards (nearly 80 per cent 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 since 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 a certified nursery. These steps can go a long way in helping to realise the untapped export potential of mandarin orange.

The bank has also called for setting up an autonomous board for mandarin orange 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 about the benefits of the entry of large investors.

“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, which 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 bank also raised doubts over the Sikkim Fruit Preservation factory at Singtam stating that the amount and quality of the factory did not meet international standards. Besides, the factory itself needs an overhaul as the equipment and machinery are obsolete, it said.

Source : Business Line

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