Belgian pears to India again?

India is a huge country with 1.2 billion inhabitants. The country has a strong middle class of around 200 million people, which will double over the coming years. Not surprising then that India is seen as the new export destination. At the moment there are already Belgian apples going to India. The possibilities of exporting pears are also being looked at.

At the end of 2014 the first Belgian apples were exported to India. A welcome new destination for top fruit after the Russian boycott. The Flemish apple export increased by 330 percent in 2015. At the start of the season there was a noticeable dip, due to the increased competition of other exporting countries. “In April we still saw a catch up movement which meant that in 2016 more apples were exported to India again. We expect to be able to export 8,000 to 10,000 tonnes of apples this season,” according to Veerle Van der Sypt. I asked her about the biggest challenges for the export of top fruit to India at the end of May. 

 

Peren in een Indiase supermarkt.

The Belgian fruit sector is convinced that India could become an important market for the fruit on the long term. This doesn’t mean there isn’t a lot of work to do. The country has a limited cold chain which means that a lot of their own apple production is lost. Veerle says that in recent years there has been investment in cooling warehouses around the ports. But this is still insufficient to get all of the fruit to its destination under the right conditions. The fruit is transported from the ports towards the wholesale market, from where it is transferred to shops and such like. Especially due to the warm and damp climate a load really has to have top quality to guarantee quality at its final destination. “We try to guide it on the premium segment,” she remarks.

 

Belgian apples are mainly imported after clearing the Indian stock around the end of January. This year there was more competition from cheaper Chinese and Iranian apples at that time, which meant the Belgian apple export got going later. The arrival of Poland on the Indian market was tangible. The exchange rate is also influencing the export possibilities. India imports up to around 200 million kilo per year. China, the United States and Chile are the main suppliers, with 75, 59 and 47 million kilo respectively. The import tax in India is also 50 percent of the value, which makes it a considerably expensive product in the end. “This tax is for all countries. We will continue to try and bring attention to this in the hopes that a new government will lower the tax,” explains Veerle. “This would mean that the apples become cheaper for the consumer, which will certainly stimulate consumption.” 

The export to India is now mainly focused on the apples, but the Belgian fruit sector is hoping to also be able to export pears in the long term. Veerle says that this process is more difficult than that of apples. “Indians have to get used to our pears. The taste of Conference fits into the picture, but the bronze colour and the coarse peel don’t. Besides the fact that less pears are eaten, people choose a pear with a red blush above the green Conference. We certainly see opportunities for the future, but it takes a lot of effort. We are looking at the opportunities to present the Conference more and better on the Indian market, for instance with the aid of tastings on the shop floor.”

At the end of April a Belgian delegation went on a trade mission to India, which included a number of growers. At the Fresh Produce India the Belgian apples were presented in a collective VLAM stand. Veerle: “A useful visit in which there was also space to meet Indians directly. Personal contact is very important for this market. “We now know that ‘yes’ doesn’t always mean ‘yes’. Building up relationships is a must. There was positive responses to the Belgian products, which gives us hope for the future.”

•Red apples are the Indian favourite. Whereas we opt for a fresh, slightly sour apple, people in India prefer sweet apples. It is mainly the Jonagold mutations such as Red Prince and Jonagored that are exported.

•European producers export to India through the port and airports of Calcutta, Chennai, Mumbai, Cochin en Delhi. Most Belgian apples go by container to the ports of Mumbai and Chennai. The boat is on its way for 24 (Mumbai) to 30 (Chennai) days. This gives Europe a favourable position compared to other exporting countries such as the United States and Chile, from which the apples travel for 50 days. 

•The domestic apple production is modest considering India’s size. In 2013 the Indian apple production was around 1.5 million, a volume equal to that of Italy. The Indian market therefore has much larger sales opportunities for European apples. In Europe, Italy, France and Belgium belong to the largest exporters of apples to India.

 

•Last year Poland exported apples to India for the first time. It was a first test to research the quality, packaging and arrival. It concerned Polish Royal Galas, an apple known on the Indian market and attractively priced. 

•In February this year Spain also exported apples to India for the first time. Not long before this the Indian market opened to both Spanish apples and kaki. The Spanish apple sector is focusing on India, Hong King and Singapore, the gateways to the Asian market.

•Within the European Union Belgium is the third most important trade partner for India, after Germany and the United Kingdom. It is mainly diamonds (80%) that are exported from Belgium to India, but also other products are increasingly finding their way to India, including fruit, machines and plastics. 

•1.2 billion people now live in India. The population will increase over the coming years by 400 million people. The average age is 25 year old. This also means that there will be more consumers, who all have to eat. 80% of the population is also vegetarian.

More information:
Fresh Trade Belgium
Veerle Van der Sypt