Banana chips market in Kerala is going to expand further

KOCHI: Banana chips market in Kerala , considered to be of the size Rs 600 crore, is going to expand further as national and international brands have shown interest in taking Kerala’s ‘humble’ banana chips to other parts of the country, said an industry expert.

“Kellogg’s is sourcing banana chips from us for their ‘Real Banana’ cornflakes and they are using chips fried in coconut oil as an input for that particular product. Within a two-year period, we have supplied 100 tonnes to them,” said Alex Thomas, managing director, Tierra Food India Pvt Ltd. Similarly, Paper Boat, a beverage and snacks company, is also sourcing banana chips from Thomas’ firm and is planning to sell in Bengaluru and Hyderabad markets.

Three years ago, Thomas had conducted a survey to ascertain the size of banana chips market in Kerala. “We had surveyed the local producers in Ernakulam and extrapolated the data to find that the banana chips market is worth Rs 600 core in state,” he said.

Over the past few years, local consumption of banana chips has grown significantly, he added. “People are increasingly consuming the product and the reason could be the easy availability. Earlier chips were sold through bakeries, mainly, but now the number of roadside shops selling the same is growing rapidly. Also, small packets worth Rs 10 – 50 are widely available now,” he said.

This growth in local demand, coupled with the interest shown by the national and international brands are fuelling the growth of banana chips market in Kerala, said Thomas.

“It is believed that 2.7 lakh tonnes of raw banana are cultivated in Kerala annually, of which 50% is directed towards banana chips. The final yield will be one third of that 50%, which is nearly 40,000 tonnes. This entire production might not be consumed locally and a part might be going to other states and the Middle East,” he said.

Apart from supplying product to others, Thomas’ firm is also marketing their own branded banana chips in the local market – both as plain roasted and flavoured ones. “Initially, we had been focusing on tapioca chips, but then we found that we had been missing a big market, that of banana chips. We entered this segment in 2015,” he said.

