Rise in mango prices as Middle-East demand up; production drops by 20%

Mango lovers may have to spend more money this year due to the short supply of the fruit in the domestic market, due to the significant crop damage and the rise in export orders from the United Kingdom, Bangladesh and such Middle-Eastern nations as the United Arab Emirates (UAE), Saudi Arabia, Qatar and Kuwait.

This was stated in a report on the national fruit of India (which cultivates over 1,000 of the 1,300-plus mango varieties cultivated globally) by the Agri-business Council of the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“There was unseasonal rainfall and hailstorms in Andhra Pradesh, Bihar, Gujarat, Maharashtra and Uttar Pradesh, which collectively account for about 2/3rd of India’s total mango production. These weather conditions damaged more than 50 per cent crop. This is likely to hold up the mango arrivals, resulting in the upward spiralling of prices,” the analysis stated.

Clocking a compounded annual growth rate (CAGR) of over five percent, the production of mangoes across India increased from 13.9 million tonne (MT) in 2007-08 to 18MT in 2012-13. Besides, the cultivated area and productivity also grew at a CAGR of 2.6 percent and 2.4 percent respectively during the aforementioned period.

“Mango production across India, in all likelihood, will be about 15-20 percent lower than last year’s level of 18MT. Even the exports could remain muted this year,” said D S Rawat, secretary general, ASSOCHAM.

The export of mangoes from India has grown at a CAGR of over 27 percent in the past three years (from Rs 1.64 billion in 2010-11 to Rs 2.67 billion as of 2012-13). Rawat said that's had a significant impact on the domestic demand for mangoes, thereby leading to the rise in their prices. (1 Rs= $0.016 USD)

The UAE is the topmost export destination for India's mangoes, accounting for over a 61 percent share. The UK’s share is 12 percent, and that of Saudi Arabia is five percent. Qatar, Kuwait and Bangladesh are other leading export destinations for Indian mangoes.

With a CAGR of about 110 percent in mango imports from India, Qatar is the leader. The United States’ share is 88 percent, while that of Oman is 84 percent. Nepal’s share is 70 percent, and Kuwait’s share is 46 percent.

Source: fnbnews.com