Grapes exports to hit a record on EU push

PUNE: On good monsoon, India is likely to export a record quantity of grapes for the second consecutive year as Indian crop is in good demand in Europe and Russia. This is a cause of concern for the Indian exporters as the record shipments last year had led to a price crash in Europe.

"As India is the only supplier to Europe during February to April, Indians competed against each other by exporting more, leading to a price crash towards the end of the 2012-13 season," said a Mumbai-based exporter.

Russia has emerged as a prominent market for Indian grapes from last year. "From just about 100 containers in 2010, we exported 1,000 containers to Russia last year. We have now started getting direct orders from the supermarkets in Russia," said Jagannath Khapre, chairman, All India Grape Exporters Association.

"Unlike the past, when our grapes reached Mosco through the middlemen, now they are going directly from the Indian exporters." Last year, the record exports had brought down the prices in Europe by 50% towards the end of the season. As against the normal requirement of 3,500 containers, India exported more than 4,500 containers to the European market, said the traders. Nitin Agrawal, managing director at Euro Fruits, said: "Thanks to good rainfall, we expect good quantity of grapes this year. I hope we do not face the similar situation this year."

However, the organised exporters, who do planned exports with prior orders, did not suffer much loss. Mahindra Shubhlabh, the agri-commodity arm of Mahindra group, was the biggest exporter in 2012-13, sending about 7,800 tonne grapes.

According to the industry sources, Mahindra recorded over 55% growth in grape exports last year. This year, they have started exports by sending two containers to Europe. Ashok Motiyani, managing director at Nashik-based Fresh Trop, the listed processing and export company, said: "Our company recorded a growth of 40% in exports to Europe last year. But we did not suffer much from the decline in prices as we have planned exports."

The industry insiders think that the crop size this year could be higher due to good rainfall. "We had record exports last year despite drought, which had curtailed the production from south Maharashtra. This year, grapes will come from all parts of the state," said an exporter.

In fact, the prices in domestic market may also crash in March due to bumper production. In 2012-13, India exported 1.72 lakh tonne grapes of which, 56,572 tonne was to Europe. The European Union is the most preferred destination for Indian exporters as it offers good returns but the quality parameters are stringent there. Govind Hande, horticulture and phyto-sanitory officer in Maharashtra, said more and more countries are now demanding grapes from the registered orchards.