India Hydrocolloids : Emerging Leader In Production And Export

Hydrocolloids are polysaccharide-based gums, starches, and cellulose derivatives that are used widely in the food  as thickeners, gelling agents, emulsifiers, and stabilizers. Some major types of hydrocolloids used in food include gelatin, agar, carrageenan, alginate, pectin, guar gum, xanthan gum, and locust bean gum. These hydrocolloids help improve texture, control moisture, suspend particulates, stabilize emulsions, and increase shelf life when added to foods.

Rising Production And Export From India Hydrocolloids

India has emerged as one of the top producers and exporters of hydrocolloids globally in recent years. According to data from the Ministry of Commerce and , India’s annual production of hydrocolloids has increased from 450,000 metric tons in 2010 to over 750,000 metric tons in 2020. Major hydrocolloids produced in India include guar gum, guar splits, locust bean gum, and xanthan gum. India accounts for around 80% of the global guar gum production with an annual output of over 350,000 metric tons. Other hydrocolloids like gum arabic and psyllium husk are also produced in significant quantities.

On the exports front, hydrocolloid shipments from India have grown exponentially. India exported hydrocolloids worth Rs. 12,500 crores in 2019-2020 compared to just Rs. 4,500 crores in 2015-2016. This is notable growth of approximately 180% over 5 years. The US, Europe, Korea, and Southeast Asia are the key export s. China, which was earlier a major importer, significantly reduced purchases after developing indigenous production capacities. However, Indian exporters are finding new to cater to the growing global demand.

Reasons For Rising India Hydrocolloids Production And Export Trends

There are several factors that have contributed to India’s increasing prominence in the hydrocolloids sector:

– Agro-climatic Conditions: States like Rajasthan, Gujarat and Haryana provide excellent growing conditions for guar and locust bean. This enables reliable large-scale cultivation.

– Low Production Costs: Compared to imported alternatives, Indian hydrocolloids have a cost advantage due to lower raw material and labor expenses. This makes Indian products competitive globally.

– Policy Support: The federal and state governments have recognized the export potential and provided support through incentives, infrastructural development, and trade policy measures like phytosanitary certifications.

– Setting up of Processing Units: Many farmers, cooperatives, and private companies have made heavy investments in setting up guar splitting and refining units near the field areas. This value addition improves output and exports.

– Development of Port Infrastructure: Major ports like Kandla, Mundra, and Navlakhi in Gujarat facilitate easier exports of hydrocolloids to global buyers.

– Focus on Quality and Research: There is increasing emphasis on quality compliance, R&D for new applications and optimization of extraction technologies to produce high purity products.

Emerging Segment Of India Hydrocolloids

With rising health consciousness, the demand for organic and natural products is on the rise globally. Indian firms are responding to this opportunity by venturing into the cultivation and exports of organic guar gum and other hydrocolloids. Companies are using organic certification from agencies like Ecocert and Bioland to  their organic hydrocolloid products in the European Union and the United States. Export earnings from organic guar gum are projected to touch Rs. 1,000 crores by 2025 according to  experts. Research is also ongoing to develop new organic gums from indigenous plants like cassia, fenugreek, and psyllium through sustainable extraction mechanisms. If successful, this can help diversify exports basket as well as farmers’ income.

Prospects And Challenges Ahead

 

Given the strong agro-climatic and cost advantages, India’s hydrocolloids sector has bright prospects for further growth in the long run to emerge as a key player globally. However, there are challenges as well such as uncertainties arising from factors like changing trade policies of importers, fluctuations in guar seed production, and increasing competition from new origins like Australia and Africa. Indian players will need to focus on quality up-gradation, development of value-added products, contract farming to ensure steady raw material supply, and tap emerging functional food segments for sustained leadership. Ongoing R&D to identify alternate native gums, development of global supply chain networks, and collaboration with customers will be important strategies. If these aspects are strengthened, India’s hydrocolloid exports could surpass 1 billion dollars in value within the next 5 years.

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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it