For most Indians, thinking about bananas rarely takes us anywhere far.
In almost every market in our country, we find fresh bananas, which we use to make smoothies, desserts or simply munch on when we are feeling peckish.
But for the people of North Garo Hills of Meghalaya, banana might mean much more than just a fruit.
With the right ecosystem, the local produce can be transformed into value-added products, which can, in turn, be marketed to a much larger audience.
It fits right into the philosophy of the One District One Product (ODOP) scheme – of looking to create opportunities around a product which has a certain association with a region.
Banana-based products are a fascinating opportunity for North Garo Hills and the people living there.
North Garo Hills is one of the districts of Meghalaya, which lies towards the western part of the state.
Agriculture is one of the main sources of livelihood for people living in this region.
Meghalaya has a wide variety of agro-horticultural products and crops, which can contribute to the local economy.
Among these, banana can definitely have a special place, as long as the local government, entrepreneurs and farmers work together towards a common goal.
But when it comes to the produce of any kind, the question of what to do with the surplus always remains.
It is a challenge for many farmers who sell their produce in local vegetable markets to get remunerative prices for their goods.
This is especially true for perishable goods, such as fresh fruits and vegetables.
A well-thought value addition process can solve this problem, as well as open new economic opportunities for the local population.
Let’s imagine a farmer in North Garo Hills, who grows a healthy bunch of bananas every year.
Some of these bananas can be sold in local markets or to local shops for a decent price.
But what happens to the surplus?
If there is not enough demand, the bananas will simply rot.
But what if some of these bananas could be transformed into something else?
Something which would have a longer shelf life and could be sold at a higher price?
That something else is called value addition.
The fresh produce of the local farms can be transformed into chips, flour, dried banana products, puree, etc.
It gives the local producers and entrepreneurs an opportunity to look beyond fresh produce and create products with a much wider customer base.
Value addition does not take away the opportunity to sell fresh fruits and vegetables.
It simply creates another opportunity, which can be beneficial in case of a surplus.
It can also help create demand for a product with a relatively short shelf life.
A proper value addition also means more jobs for the local workers.
Sorting, cutting, dehydrating, grinding, packing, labelling, transporting, marketing – these are just a few of the steps which go into the production of a banana chip.
A banana processing industry can potentially create economic opportunities for many locals, beyond the farmers.
From Fresh Banana to Value-Added Products
The fascinating thing about bananas is that the possibilities are endless.
A banana can be eaten whole or processed into a variety of products.
A banana chip is, perhaps, the most well-known value-added product made from banana.
Depending on the variety, bananas can either be sliced and fried or processed further.
Local banana chips can target local and regional markets, as well as national online marketplaces and specialty shops.
Proper flavours and good packaging can also play an important role in making the local product appealing to a much larger audience.
From the consumer’s point of view, a packet of banana chips made in North Garo Hills has the potential to be much more interesting than a generic packet of banana chips.
Another interesting possibility is banana flour.
It is essentially a fine powder made by grinding dried banana.
Depending on the banana variety and the grinding process, banana flour can be used as an ingredient in a variety of dishes.
It has a much longer shelf life than fresh banana, which means that it can potentially reach much farther markets.
One of the simplest ways to extend the shelf life of banana is drying.
It can also be used to make interesting products for the local market.
Modern packaging makes it possible to target much wider markets, including online specialty shops and hypermarkets.
Bananas can also be turned into puree, which can, in turn, be used as an ingredient in a variety of local and commercial bakeries and food processing units.
Local banana puree producers can target both B2C (business to consumer) as well as B2B (business to business) markets.
One District One Product (ODOP) is all about identifying the strengths of a region and building an ecosystem around them.
When it comes to products, every district is unique in its own way.
ODOP encourages everyone to think from the perspective of their own district and focus on its strengths.
In the case of banana-based products, North Garo Hills has an opportunity to connect several key players, such as:
• Banana farmers
• Farmer producer organisations (FPOs)
• Local banana processing units
• Food entrepreneurs and value addition units
• Packaging units
• Transporters
• Local and online retailers
• Digital marketers
• E-commerce sellers
• Tourism-related businesses
All of these elements together can build a much larger economic activity around a single agricultural product.
Helping Farmers Realise More Value
Value addition creates an opportunity for farmers to realise more value from their produce.
Most farmers do not have much control over the price of their produce.
It is largely dictated by the market.
But when it comes to value-added products, the picture changes.
Local entrepreneurs can purchase raw materials (such as banana) from the local farmers and process them into a finished product.
That means more opportunities and control for the farmers.
The local food entrepreneurs can target both local and national markets.
The key is to build a strong value chain around the local product.
Creating Opportunities for Entrepreneurs
Entrepreneurs also have an important role to play in the local banana-based value chain.
Many entrepreneurs in North Garo Hills still tend to look at the most obvious opportunities.
But in the case of banana-based products, there is a wide variety of possibilities.
An aspiring entrepreneur does not have to go into large-scale manufacturing.
They can potentially start with banana chips or dried bananas, and scale up as demand grows.
Other entrepreneurs can focus on branded packaging. Some can target local markets, while others can go after online customers.
There are also business opportunities for transporters, machinery sellers and service providers, as well as food inspectors and graphic designers. In a sense, this is where the ODOP scheme helps everyone think outside the box.
Many businesses would be necessary to build a strong value chain around local banana-based products.
From the consumer’s point of view, good branding can make all the difference.
Consumers have endless options when it comes to buying agricultural products and packaged food.
Most of them tend to go for the most appealing options.
That is why branding is so important.
When it comes to local products, the brand can potentially utilise the unique location to tell a compelling story.
Most customers are willing to pay more for a well-known brand.
But when it comes to local products, the brand has to compete with products made elsewhere.
That is why a local banana-based product has to clearly communicate its unique identity.
It can be as simple as writing “Made in Meghalaya” on the package.
The goal is to make the consumer think about the local product in the same way as they think about, say, a famous international brand.
Digital Marketing Can Help the Local Product Reach Wider Markets
In today’s world, digital platforms play a critical role in marketing and selling any product or service.
Many local customers would not have discovered a local product, if it was not for e-commerce marketplaces.
A local food product can target not only local shops and hypermarkets, but also online stores.
Some entrepreneurs can utilise social media to market their product.
Many customers these days are influenced by bloggers and vloggers, who review local products and post photos and videos of them on social media.
In fact, a simple video about how banana chips are made can help market the product. It can potentially connect the consumer with the local product, which has a unique story to tell.
That is the power of storytelling, which is especially important for products which are tied to a region.
Meghalaya has a fascinating history, culture and food, which can be a great way to market almost any local product.
Challenges in Processing Banana-based Products
Of course, many might argue that setting up a banana processing industry is not as simple as setting up a small-scale manufacturing unit.
There are significant infrastructure and quality control challenges.
A value addition process requires proper machinery and equipment.
Without the proper infrastructure, such as electricity, water supply, storage, etc., the process can become prohibitively expensive.
Consistency in quality is also a key concern.
There are several steps in processing any food product.
At each stage, there is a risk of compromising on quality.
That can affect the final product, which ultimately determines its success with the consumer.
Proper packaging is necessary for almost any food product.
Even after the value addition process, banana-based products will require proper packaging, in order to ensure that they do not get damaged during transportation.
Another key consideration is the target market.
Many local entrepreneurs might hesitate to invest in a proper value addition process, due to the high risks.
But in order to target larger markets, such as e-commerce platforms, they will need to think about the most viable business models.
Entrepreneurs will need to consider various factors, such as consumer preferences, online vs. offline sales, branding, etc.
Finally, proper training in food processing, quality control and online marketing can help local entrepreneurs take their product to a much wider audience.
One opportunity which is often overlooked is the local tourism industry. Meghalaya is a fascinating state and it attracts many tourists, who are interested in its landscape, culture, food and unique experiences.
The local banana-based products can play a significant role in this regard.
Local restaurants and hotels can utilise these products to prepare unique meals and desserts for the tourists. That, in turn, can create more demand for the product.
Local shops can sell packaged products to the tourists as well.
This can also be a great opportunity for e-commerce businesses.
A tourist who discovers a local banana-based product in Meghalaya might look for it on social media or an e-commerce website after returning to their home country.
That is how a local product can gain incredible popularity among consumers in distant parts of the country.
The Future of Banana-based Products in North Garo Hills
The future of banana-based products in North Garo Hills will be determined by the connection between various links in the value chain.
Farmers will need to find reliable buyers for their raw produce. Entrepreneurs will need to think about the most viable product formats, such as banana chips.
Producers will need to invest in proper equipment and machinery. Good branding will be essential to differentiate the local product from similar products in other regions.
Consumers will need to develop a lasting preference for a local banana-based product.
But if all of these elements are brought together in the right way, banana-based products can potentially play a significant role in the local economy. They can also contribute to an increased level of value creation, as compared to fresh banana.
Banana-based products have the potential to become an integral part of the local economy of North Garo Hills, Meghalaya.
The region has an opportunity to look beyond fresh banana and utilise the existing infrastructure to create a much wider value chain around the product.
Products such as banana chips, banana flour, dried bananas, puree or other ingredients can create additional economic opportunities for various stakeholders.
Good packaging, branding and digital marketing can help local products reach much wider audiences, both offline and online. The connection between local banana-based products and the One District One Product (ODOP) scheme makes the opportunity even more interesting.
ODOP is all about discovering and building an ecosystem around local strengths. In the case of banana-based products, the local strengths can be leveraged to connect various stakeholders, such as farmers, processors, entrepreneurs, packers, transporters, local and online retailers, etc.
There are undoubtedly several challenges ahead, but they will also present several unique opportunities for development.
At the end of the day, banana-based products are not just about a fruit.
They are about creating lasting value for various stakeholders, one link in the value chain at a time.
From the banana farms of North Garo Hills to the local and national markets, banana-based products have the potential to create incredible opportunities for everyone in the value chain.
1. What banana-based products can be made in North Garo Hills?
Banana chips, dried banana products, banana flour, puree, etc. are some of the value-added products which can be made from banana.
2. How can banana processing benefit farmers in North Garo Hills?
Processing can create additional markets for farmers, beyond fresh produce.
3. How does banana-based production connect with ODOP?
ODOP encourages the development of products around local strengths.
Processing banana can create a much wider value chain, beyond just fresh produce.
4. Why is value addition important for bananas?
Fresh banana has a relatively short shelf life and needs to reach the end-consumer quickly.
Processing can create opportunities to extend the shelf life of the product.
5. What is the future potential of banana-based products in North Garo Hills?
With proper infrastructure, branding and marketing, banana-based products can target much wider markets. They can also create economic opportunities for various stakeholders in North Garo Hills.