India produces around 17,000 MT of Kiwi fruit in an area of 19.31 sq mi in states like Arunachal Pradesh, Himachal Pradesh, Mizoram, Manipur, and Nagaland and remains a net importer of Kiwi fruit. Arunachal Pradesh covers 69% (13 sq mi) of the total cropped area in India and produces 6,740.38 MT of Kiwi and became India’s only certified organic producer of Kiwi in 2021.

1. 1
Value Chain Analysis for Kiwi Fruit in
Arunachal Pradesh, India
To,
Shri Pema Khandu
Chief Minister of Arunachal Pradesh, India
From:
Aaditya Tiwari

2. 2
Background
Arunachal Pradesh is the largest state in the North East region of India with a population of
1,382,611 and an area of 32,333 sq mi1
. It borders three countries, Bhutan in the West, Tibet
Autonomous Region of China in the North, and Myanmar in the East. It is a land-locked state with
virtually no cross-border trade due to historic geopolitical challenges and border disputes2
.
Endowed with the wealth of nature, rivers, and mountains, the state is inhabited entirely by
indigenous communities3
and has a forest cover of 79.33%4
. Arunachal has only 1085 sq mi5
(3.4%) as the gross sown area with over 70%6
of its population dependent on agriculture for their
livelihood. The state is among the least developed in the country with a projected gross state
domestic product (GSDP) for 2023-24 at 4.6 billion USD7
and its own revenue being a mere 417
million USD8
. It wasn’t very well connected with the rest of the country and the infrastructure is
gradually improving now, the first airport9
in the capital city, Itanagar was inaugurated only in
2022.
1
Home | Government of India. Accessed May 6, 2023. https://censusindia.gov.in/census.website/.
2
Curtis, Lisa. 2023. “India-China Border Tensions and U.S. Strategy in the Indo-Pacific.” CNAS.
https://www.cnas.org/publications/reports/india-china-border-tensions-and-u-s-strategy-in-the-indo-pacific.
3
Sulu, Dani. 2021. “How many tribes are there in Arunachal Pradesh?” The Arunachal Times.
https://arunachaltimes.in/index.php/2021/08/12/how-many-tribes-are-there-in-arunachal-pradesh/.
4
“Forest Survey report 2021.” 2022. Press Information Bureau. https://pib.gov.in/PressReleasePage.aspx?PRID=1789635.
5
“State-wise Pattern of Land Use - Gross Sown Area.” n.d. Handbook of Statistics on Indian States. Accessed May 6, 2023.
https://rbi.org.in/scripts/PublicationsView.aspx?id=21442.
6
State Farmers Portal Agriculture Department. Accessed May 6, 2023. https://agri.arunachal.gov.in/.
7
Arunachal Budget 2022-23. Accessed May 6, 2023. https://www.arunachalbudget.in/.
8
“Statement laid before Assembly As required under the Fiscal Responsibility March 7,2023.” 2023. Arunachal Budget.
https://www.arunachalbudget.in/docs/fiscal.pdf.
9
Tiwari, Aaditya. 2022. “Why Donyi Polo Airport is flight of aspirations for Arunachal Pradesh.” India Today.
https://www.indiatoday.in/news-analysis/story/donyi-polo-airport-inauguration-itanagar-arunachal-pradesh-2294442-2022-11-07.

3. 3
Arunachal Pradesh has a huge potential in agriculture, it is endowed with five agro-climatic zones.
The weather patterns in the state vary based on the altitude. Regions situated at lower altitudes
(100-1500 m) experience a humid subtropical climate, whereas high altitude and very high altitude
areas (3500-5500 m) have a subtropical highland climate and alpine climate. Arunachal Pradesh
receives rainfall of 2000 to 5000 mm. In the humid subtropical regions, the average maximum and
minimum temperatures are 29.5°C and 17.5°C, respectively. On the other hand, in cold humid
regions, the average maximum and minimum temperatures are 21.5°C and 2.5°C, respectively10
.
Source: Fodder Resource Development Plan for Arunachal Pradesh
Traditionally various tribes in Arunachal Pradesh practiced jhum11
cultivation, a slash-and-burn
practice of shifting cultivation. Although still practiced in large agricultural areas, it is becoming
less productive and causing soil erosion and depletion in forest cover12
. With improved
connectivity, modern equipment, and greater awareness people in the state are shifting away from
practices like jhum and taking up cultivation of high-yield crops like aromatic and medicinal
10
Mohapatra, Trilochan. n.d. “Fodder Resource Development Plan for Arunachal Pradesh” IGFRI. Accessed May 7, 2023.
https://igfri.icar.gov.in/wp-content/uploads/2022/08/Arunachal-Pradesh.pdf.
11
“Arunachal Pradesh - People | Britannica.” n.d. Encyclopedia Britannica. Accessed May 7, 2023.
https://www.britannica.com/place/Arunachal-Pradesh/People#ref486814.
12
“Road map and strategies for Doubling Farmers' Income in Arunachal Pradesh by 2022.” n.d. Ministry of Agriculture.
Accessed May 7, 2023.
https://agricoop.gov.in/Documents/Road%20map%20and%20strategies%20for%20Doubling%20Farmers'%20Income%20in%20
Arunachal%20Pradesh%20by%202022.pdf.

4. 4
plants, vegetables, fruits, and floriculture. At a conference of the ‘Indian Society of Labour
Economics’ in Itanagar, NITI Aayog member, Prof. Ramesh Chand emphasized the potential of
horticulture and floriculture in the state with special emphasis on Kiwi fruit13
. The Indian
horticulture industry today holds a substantial position in the country's economy by contributing
33% of the total value of agricultural output. Its significance lies not only in providing nutritional
security to the population but also in creating diverse employment opportunities in rural areas,
expanding farm activities, and boosting the income of farmers. Currently, India's horticulture
production stands at 306.82 million tonnes14
. In Arunachal Pradesh, horticulture contributes to
around 30%15
of the total agricultural sector value but faces certain institutional, infrastructural,
and geographical constraints16
.
● Due to scattered landholdings farmers face challenges in aggregation and marketing their
surplus product. The poor road network is the main cause of the lack of food processing
plants.
● Due to indigenous traditions, land rights are customary and there are no formal ownership
rights to land. This restricts farmers from securing loans from financial institutions.
● Access to markets remains a challenge due to the remote and scattered villages.
Kiwi Fruit in India
Known as “China's miracle fruit” and “Horticulture wonder of New Zealand”17
Kiwi is native to
the Yangtze Valley and Zhejiang Province of China18
. Kiwifruit was initially introduced to India
in 1960 at Lalbagh Garden in Bangalore. However, the plant failed to bear fruit due to inadequate
chilling conditions. Subsequently, in 1963, the National Bureau of Plant Genetic Resources
13
Mundle, Sudipto. 2023. “Arunachal Pradesh: A short visit is enough to identify its potential.” Mint.
https://www.livemint.com/opinion/columns/arunachal-pradesh-a-short-visit-is-enough-to-identify-its-potential-
11679594535233.html.
14
“Home | Mission for Integrated Development of Horticulture.” n.d. MIDH. Accessed May 7, 2023.
https://midh.gov.in/Rti.html.
15
“Statement laid before Assembly As required under the Fiscal Responsibility March 7,2023.” 2023. Arunachal Budget.
https://www.arunachalbudget.in/docs/fiscal.pdf.
16
Mani, G., A. Kundra, and A. Haque. 2018. “Kiwi value chain in Arunachal Pradesh: issues and prospects.” Agricultural
Economics Research Review. https://ageconsearch.umn.edu/record/274833/files/12-G-Mani.pdf.
17
Lal, S., N. Ahmed, S. R. Singh, D. B. Singh, J. I. Mir, and R. Kumar. 2010. “Kiwifruit: Miracle Berry.” CSIR.
https://nopr.niscpr.res.in/bitstream/123456789/9870/1/SR%2047%287%29%2052-54.pdf.
18
“Kiwi Fruit.” n.d. Horticulture & Landscape Architecture. Accessed May 7, 2023.
https://hort.purdue.edu/newcrop/morton/kiwifruit_ars.html.

5. 5
(NBPGR), Regional Station in Shimla introduced the plant, which eventually bore fruit in 196919
.
Some of the popular kiwifruit varieties in India are Hayward, Allison, Abbott, Monty, Bruno,
Jintao, Chuhong, and Sanuki Gold.
India produces around 17,000 MT of Kiwi fruit in an area of 19.31 sq mi in states like Arunachal
Pradesh, Himachal Pradesh, Mizoram, Manipur, and Nagaland20
and remains a net importer of
Kiwi fruit. Arunachal Pradesh covers 69% (13 sq mi) of the total cropped area in India and
produces 6,740.38 MT of Kiwi21
and became India’s only certified organic producer of Kiwi 22
in
2021.
Table 1. Major Kiwi Producing States of India
State Year Area (in sq mi) Production in MT
Arunachal Pradesh 2021-22 13.01 6,740.38
Himachal Pradesh 2021-22 0.73 1,052.33
Manipur 2021-22 1.20 2,730.63
Mizoram 2021-22 1.16 934.40
Nagaland 2021-22 1.16 979.76
Sikkim 2021-22 1.58 1,959.52
(Source:(First Advance Estimates) of Area and Production of Horticulture Crops)
19
Pandey, G. and Tripathi, A.N. 2014. Kiwifruit – A boon for Arunachal Pradesh, Programme Coordinator, Krishi Vigyan
Kendra, Yachuli (Indian Council of Agricultural Research), Govt.of.Arunachal Pradesh, Lower Subansiri District-791120
(Arunachal Pradesh). Pp 17
20
“Department of Agriculture and Farmers Welfare, Government of India.” n.d. 2021-22 (First Advance Estimates) of Area and
Production of Horticulture Crops. Accessed May 7, 2023. https://agricoop.nic.in/sites/default/files/2021-
22%20%28First%20Advance%20Estimates%29%20%281%29_0.pdf.
21
Ibid.
22
“Organic Certification For Kiwis|Major Cash Crop of Arunachal.” 2021. MyGov Blog. https://blog.mygov.in/kiwi-the-next-
major-cash-crop-of-arunachal-pradesh/.

6. 6
Global Trends in Kiwi Production
(Source: FAOSTAT)

7. 7
Although it has its origin in China, over 50% of Kiwi globally is exported by New Zealand which
first exploited its commercial value. Turners & Growers an agricultural exporter based in New
Zealand first started calling their consignment of ‘Chinese Gooseberries’ as ‘Kiwifruit’ on June
15, 1959, to avoid any ill connotations related to the word ‘gooseberries’. The name was chosen
as a marketing strategy based on the similar-looking New Zealand national bird23
.
India’s horticulture production of 306.82 million tonnes has surpassed the food grain production
of 284.83 million tonnes but the lack of clear linkages and value chains is a hindrance in realizing
the full potential of this sector and aid farmers in increasing their incomes.
23
Lui, Kevin. 2017. “How the Chinese Gooseberry Got Rebranded as the Kiwifruit | Time.” TIME.
https://time.com/4662293/kiwifruit-chinese-gooseberry-new-zealand-history-fruit/.

8. 8
Relevant actors in the Value Chain Analysis of Kiwi Fruit in Arunachal Pradesh
● Kiwi Farmers: Kiwis in Arunachal Pradesh grow in orchards. Farmers here perform
various activities such as land preparation, digging pits, sourcing and planting new seeds,
application of nutrients, weeding, pruning, thinning, harvesting, and post-harvest
management, including sorting, grading, and packing the fruits at the farm gate. In certain
scenarios, the farmers transport the kiwis to nearby markets to sell to traders, but this
practice is not widely adopted within the kiwi growing clusters24
. A major factor here is
the Government that supports Kiwi growers through subsidies/incentives in cooperatives
or farmer producer companies (FPC). Private players are also gradually becoming part
through the process of contract farming25
.
(Source: Internet)
● Trader: These traders buy kiwi at the farm gate and sell them to larger markets called
Mandis. Here there is a chain of traders where a local person procures from the farm gate
and then sells to a bigger trader who is responsible for selling the kiwi fruits in larger
24
“Kiwi Value Chain Analysis And Market Assessment For Lower Subansiri District Arunachal Pradesh Ccs National Institute
Of Agricul.” n.d. Mission for Integrated Development of Horticulture (MIDH). Accessed May 7, 2023.
https://midh.gov.in/VCS%20Reports/Arunachal%20Pradesh%20Value%20Chain%20Analysis%20and%20Market%20Assessme
nt%20Report%20on%20Kiwi.pdf.
25
GHOSAL, SUTANUKA. 2022. “IG Fresh Produce to invest Rs 100 crore for cultivation of exotic fruits in Arunachal.” The
Economic Times. https://m.economictimes.com/industry/cons-products/food/ig-fresh-produce-to-invest-rs-100-crore-for-
cultivation-of-exotic-fruits-in-arunachal/articleshow/93614225.cms.

9. 9
markets of Guwahati, Delhi, or Kolkata. Here in the case of pre-harvest contractors, they
procure kiwi from the farm and supply them directly to larger markets.
● Processor/Industry: There aren’t many processors in the state due to poor linkages and
scattered farms but certain local entrepreneurs have started production of wine from Kiwi
and they procure kiwi from the farms to process them and manufacture wine. These are
Naara-Aaba26
and Norphel27
in the last decade.
● Retailer: From the trader, kiwi fruit is sold to the retailer who sells them directly to the
consumer. The kiwi fruit may undergo further processing to prepare dried kiwi, kiwi jams,
smoothies, salads, and kiwi wine.
● Consumer: This is the end user who consumes kiwifruit directly or in the processed form.
● Exporters: These procure the kiwifruits from the market or directly from the farm gate to
export kiwi to foreign markets.
● Financial Institutions: Commercial Banks and National Development Banks like the
National Bank for Agricultural and Rural Development (NABARD)28
play a crucial role
by providing loans to farmers and industries to procure the latest technologies, high-yield
varieties, and set up processing facilities.
● Informal Money Lenders: In the absence of financial institutions, farmers are dependent
on informal money lending institutions and families for loans. Many times traders
themselves become informal money lenders.
26
Naara-Aaba. Accessed May 7, 2023. https://naaraaaba.com/.
27
“Norphel Winery (@norphelwinery) • Instagram photos and videos.” n.d. Instagram. Accessed May 7, 2023.
https://www.instagram.com/norphelwinery/?hl=en.
28
NABARD - National Bank For Agriculture And Rural Development. Accessed May 7, 2023. https://www.nabard.org/.

10. 10
● Agriculture Institutions: Institutions like the Indian Agricultural Research Institute29
play
a very important role in disseminating information about horticulture and the latest
technologies in agriculture. For a state like Arunachal Pradesh where there is still a
prevalence of practices like jhum, it is very important to create awareness and move
farmers to methods that improve their economic outcomes.
● Insurance Companies: Insurance companies are important institutions to secure farmers
from sudden shocks that may happen due to various natural or human-made reasons.
● Government: State as well as Union Government, play a critical role in improving value
chains. By improving air, road, and railway connectivity they make it easier for the product
to reach from farm to table. Also, by providing subsidies, tax benefits, and other incentives
they create an enabling environment for farmers to take up horticulture and industries to
set up processing plants in the region.
● International Trade Treaties: They are an important component in providing a global
enabling environment for trading kiwifruit.
Graphical representation of Structural Elements of Value Chain*
29
भा.क
ृ .अ.प. - भारतीय क
ृ षि अनुसंधान संस्थान | ICAR-Indian Agricultural Research Institute - भा.क
ृ .अ.प. - भारतीय क
ृ षि अनुसंधान
संस्थान | ICAR-Indian Agricultural Research Institute. Accessed May 7, 2023. https://www.iari.res.in/index.php/en/.

11. 11
Upgrading the Value Chain:
There are various aspects in the value chain structure of Kiwifruit in Arunachal Pradesh that need
to be upgraded. Based on the two x two impact-feasibility matrix they can be further divided into
I. High Impact-High Feasibility:
a. Improve the state-enabling environment- This is a low-hanging fruit given the
Government’s push30
to improve infrastructure by building railway lines,
highways, and airports, it will deliver very high impact on the entire value chain of
kiwifruit in the state.
b. Insurance Cover- Currently there are four insurance schemes enabled by the
Government of India- National Agricultural Insurance Scheme (NAIS), Pilot
Modified National Agricultural Insurance Scheme (MNAIS), Pilot Weather Based
Crop Insurance Scheme (WBCIS), and Pilot Coconut Palm Insurance Scheme
(CPIS) being implemented by Agriculture Insurance Company of India (AIC)
Ltd31
. A special scheme for Kiwi growers can also be created to benefit the farmers.
c. Improve Institutional Financial Support- If farmers can access low-interest loans
from financial institutions, it will be a big support for them.
d. Contract Farming-Arunachal Pradesh has already reformed its Arunachal Pradesh
Agriculture Produce Marketing Committee Act32
to allow for contract farming. If
more companies like IG Fresh come, it will produce an enabling environment in
the state and encourage others as well.
e. Improve Packaging Infrastructure- There is a lot of wastage of kiwifruit due to
improper packaging which could lead to high economic loss for the farmers. Central
Institute of Horticulture, Medziphema, Nagaland has developed packages for
transporting kiwifruit that could cut down on potential losses. This could be
implemented in the neighbouring state of Arunachal Pradesh very promptly.
30
“North Eastern Region witnesses rapid development due to Centre's thrust on infrastructure, connectivity.” 2023. ThePrint.
https://theprint.in/india/north-eastern-region-witnesses-rapid-development-due-to-centres-thrust-on-infrastructure-
connectivity/1296366/.
31
AGRICULTURE INSURANCE: At present four crop Insurance schemes namely National Agricultural Insurance Scheme
(NAIS), Pilot Modifi. Accessed May 7, 2023. https://agricoop.nic.in/sites/default/files/AGRICULTURE%20INSURANCE-
Credits.pdf.
32
“Reforms in Agricultural Marketing.” 2016. Press Information Bureau.
https://pib.gov.in/newsite/printrelease.aspx?relid=137359.

12. 12
II. High Impact-Low Feasibility
a. Land Ownership Rights- Due to customary traditions, land ownership remains
community-based, even though Permanent Resident Certificates (PRCs) have been
given by the Government which act as Land Possession Certificates, still there is a
lot of work that needs to be done and opposition on who should or should not be
given PRCs33
.
b. Direct linkage between the farmer and the market- Due to the presence of strong
intermediaries in the agricultural sector, implementing this would be very
challenging.
c. Technological Improvements in Farming Practice- Introducing modern farming
equipment will help farmers increase their productivity but given the socio-
economic status of the people of Arunachal Pradesh, it will be difficult for all to
adapt to such methods.
III. Low Impact-High Feasibility
a. Ease of Doing Business-While the policy framework has been established by
passing the Arunachal Pradesh Ease Of Doing Business Bill, 202134
but it will take
33
Saha, Abhishek. 2019. “Explained: Protests in Arunachal Pradesh and the politics over PRC.” The Indian Express.
https://indianexpress.com/article/explained/explained-the-protests-in-arunachal-pradesh-and-politics-over-prc-5599714/.
34
“The Arunachal Pradesh Legislative Assembly.” n.d. PRS. Accessed May 7, 2023.
https://prsindia.org/files/bills_acts/bills_states/arunachal-
pradesh/2021/Bill%20No.%204%20of%202021%20Arunachal%20Pradesh.pdf.

13. 13
more than that to create an enabling environment for more industries to come and
would need a lot of other parallel reforms.
IV. Low Impact-Low Feasibility
a. Export for a targeted market- While the farmers and traders aspire for maximum
returns on their produce, targeting specific foreign markets like the Middle East,
Europe or America will not be very feasible. The reason for this is that there are
countries like New Zealand, Chile, etc. that have established market linkages and
hence are more competitive. Moreover, India is a net importer of Kiwifruit and
provides a huge market to supply Kiwis.
Resilience Plan
There are certain climatic and market challenges that can influence the value chain of kiwifruit in
Arunachal Pradesh and it is important to be prepared, be able to predict, and prepare a recovery
plan in such a situation.
● Natural Disasters- Arunachal Pradesh falls in Zone V35
of the earthquake vulnerability zone
of India which is the zone at the highest risk of an earthquake. The state suffered very badly
when an earthquake of magnitude 8.6 struck the region in 195036
. The state also suffers
disasters like landslides, and flooding every year due to excessive rainfall. In such a
scenario, kiwi plantations as well as the human resources involved in the production should
be covered using insurance by companies or Governments.
● Lesson from the decline in Orange Production- Arunachal Pradesh had once seen an
abundance of oranges in one part of the state but for many decades but the production has
been on the decline over a few years. Certain assessments narrow down this decline due to
monoculture causing the soil to degrade37
. Another possible reason attributed to this decline
35
“Vulnerability Zones in India (7 March 2001) - India.” 2001. ReliefWeb. https://reliefweb.int/map/india/vulnerability-zones-
india-7-march-2001?OpenDocument=.
36
“1950 Assam Earthquake: Shaking Hills, Swollen Rivers And Perished Homes...” 2023. Outlook India.
https://www.outlookindia.com/national/1950-assam-earthquake-revisiting-stories-of-shaking-hills-swollen-rivers-and-perished-
homes-news-264169.
37
Deka, Rifa. 2022. “'Orange Bowl' of Arunachal is under threat, but it's not too late.” EastMojo.
https://www.eastmojo.com/arunachal-pradesh/2022/03/08/orange-bowl-of-arunachal-is-under-threat-but-its-not-too-late/.

14. 14
is falling water-table during winter and inadequate manure application38
. Periodic analysis
of the soil and inter-cropping can prevent the same to happen with Kiwifruit.
● Market Volatility- Fluctuations in market demand, price volatility, and shifts in consumer
preferences can impact the demand for kiwifruit in the market and create instability in the
value chain. Therefore diversification of kiwi fruit products should be explored and
implemented.
● Changes in Government Policies- Changes in government policies related to trade, taxes,
or regulations can impact the competitiveness of kiwifruit in the market and affect the
demand and supply dynamics of the value chain. Ensuring a feasible international trade
environment without any country or company trying to create a monopoly39
should be
ensured.
● Geo-political threat: Kiwi value chain in Arunachal Pradesh could be potentially threatened
by certain geo-political events on the India-China border and cause disruptions. Predicting
such events is difficult but a possible solution to this threat could be creating linkages with
the Armed Forces and providing dried kiwifruit to the forces on the border.
38
“Shallow water table, lack of maintenance reasons for dip in orange production: Arunachal minister.” 2022. ThePrint.
https://theprint.in/india/shallow-water-table-lack-of-maintenance-reasons-for-dip-in-orange-production-arunachal-
minister/873239/.
39
Knowles, Mike. n.d. “Zespri monopoly must go, says OECD | Article.” Fruitnet. Accessed May 7, 2023.
https://www.fruitnet.com/eurofruit/zespri-monopoly-must-go-says-oecd/10624.article.