Exports of processed tomato from India is a relatively recent phenomenon. While exports of tomato paste only touched the level of 68 thousand tonnes as against the target of one-lakh tonnes, this is a substantial jump from the base of 30 thousand tonnes. This increases of about 127 per cent in tomato paste exports between 1990-91 and 1991-92 is certainly encouraging. In terms of value, exports do show an increase of about 122 per cent. However, it is difficult to conclude anything on this basis, since the information holds for both chutney and paste.

While the level of exports has been raising both in value and volume; India has also begun to export processed tomato to a variety of countries. For tomato paste and chutney, the USA, Saudi Arabia and Japan appear to be some major markets. Other forms of preserved tomatoes are exported in small quantities to Kuwait, Sri Lanka and the UAE.

Of the various processed tomato items, the most important form of Indian exports are tomato ketchup/sauce and paste/chutney. As regards the exact standing of tomato paste among these items, it is difficult to pin it down, since the information available pertains to both chutney and paste.

Processed tomato is a major trade item in the world, but we have seen that India does not figure anywhere among the top exporters of any of its many forms. However, India has been exporting processed tomato in the form of tomato paste and ketchup. Of there two items, it is more interesting to study paste, since its importance in the world market is growing. This is the item on which we shall focus in our discussion of export competitiveness. In order to assess the export competitiveness of tomato paste, we should first determine it the Indian prices are competitive in the larger world market. India does possess moderate export competitiveness on the world market for tomato paste. Other positive indications are that, as in the case of canned mushroom, the domestic market is expanding, and there is also world demand for this product. These factors combined, that tomato paste is another item in which Indian possesses export competitiveness, and Indian policy structure should focus on building the network and infrastructure to expand its export market in this item.