India produces nearly 37 million tons of bananas annually, but exports remain at about 8.2 million tons.
The commerce ministry reported banana exports worth US$377.5 million in FY25, a 30 per cent increase year-on-year. Exporters continue to face challenges in maintaining fruit quality during long-distance shipments.
Plant scientist Taraka Ramji Moturu and microbiologist Venkata Ravi Sankar Ummidi co-founded PeelOn to address packaging-related losses. “If the packaging of your food items isn’t up to the mark, it doesn’t just risk spoilage, it can also shut the door on export opportunities,” Moturu said.
PeelOn has developed biodegradable packaging made from PLA (polylactic acid) and PBAT (polybutylene adipate terephthalate), which the company claims extends the green shelf life of bananas by up to 60 days. The products are positioned as alternatives to plastic, supporting exports of bananas as well as other produce such as broccoli, okra, coriander, and fruit to Central America and the U.S.
The startup was launched in 2022 after earlier work on coating solutions for fresh produce was found impractical for commercial use. PeelOn currently offers seven packaging products and has filed four U.S. patents for its processes and formulations.
The company is registered in the U.S., with manufacturing in Vijayawada and Bengaluru and a facility in Visakhapatnam. Operations began in the US and Central America, supplying exporters in Honduras, Colombia, and Costa Rica, before entering the Indian market in FY26. PeelOn has raised US$1 million from GrowX Ventures, Boston Venture Group, and Clean Energy Venture Group and received US$130,000 in grants from the Chilean government and the U.S. Department of Agriculture.
Raw material supply remains dependent on China, which is the largest producer of biopolymers like PBAT. PeelOn sources 5–10 tons of biopolymers per month, paying INR 120–150 (US$1.44–1.80) per kilo through Indian distributors. High input costs continue to affect pricing in India’s price-sensitive market.
The company faces challenges from U.S. tariffs on Indian exports. “The 50% tariff will raise the landed cost for PeelOn since we manufacture in India, but our packaging still pays for itself by saving produce by a factor of 2-3 times,” Moturu said.
PeelOn plans to expand capacity at its Visakhapatnam facility and diversify to GCC and Latin American markets to reduce reliance on the U.S. It is also piloting its packaging with quick commerce operators in India, a sector valued at US$5.38 billion and projected to reach US$11.08 billion by 2030.
News Courtesy : Freshplaza