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India: Punjabi growers hit by oversupply of oranges

In the current season, kinnow growers in Punjab (India) have seen their income drop by 50%. The kinnow sector has been hit by an oversupply of oranges from Maharashtra. Growers in Punjab fetched Rs. 6-7 per kg for their crop in December, as opposed to the Rs. 12-13 per kg they received last season.

“We are unable to compete with oranges grown in Maharashtra, which have all but ousted our kinnows from potential markets like Tamil Nadu, Mumbai, Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh,etc.,” says Yashpal Singh of IG International.

“The supply of kinnow to southern states costs us about 18-19 per kg, which involves cost of waxing, packing, grading and transportation. On the other hand, oranges are available at Rs. 12-13 per kg. There is just no way for us to compete with that,” continues Singh.



Disgruntled growers now want the local government of Punjab to come forward with financial aid, so they can set up the logistics for the export of kinnow to other states.
 
IG also worked hard to export kinnows for the first time to various destination, which is very successful for us. "Last year we exported 40 containers of kinnows to Ukraine, Saudi Arabia, UAE and Russia. We received good feedbacks from consignees, all parties were really happy. This year we are planning to export grapes and bananas."

Kinnow vs. oranges

The Punjab kinnow season starts in December and goes on until March. Compared to the orange, the kinnow mandarin is vulnerable to bruises during handling because of its loose skin. As such, the price of the kinnow fruit is lower than that of the orange.



Another reason why kinnows are cheaper than oranges is because of the amount of seeds that kinnow contain. Consumers prefer fruit with less seeds, such as oranges, and are willing to pay more for them. The kinnow orange is mainly exported to developing countries, where there is a huge demand for cheap fruit. In the western markets, there is a demand for seedless kinnow orange. Varietal research for seedless kinnow is currently in progress. If Pakistan were to create a seedless kinnow orange, the export value of the fruit could increase significantly.

Import

According to Yashpal, the import of citrus to India has been quite good this season, lending support to the Indian market. “We have imported citrus from Egypt, Turkey, Australia and South Africa. Egyptian oranges are particularly good in quality and taste. Because of this, the demand for Egyptian oranges has been quite high in India.”
 
The demand has its peak during February and April, as this is when the crops get harvested and the oranges become available for import. The citrus season for this year will last from January to June. “I’m expecting that consumer response will be huge during these months. The oranges from Egypt and South Africa will be more expensive due to their good quality,” concludes Singh.
 
Yashpal Singh
IG International Pvt Ltd
Tel : 022-66272000 Extn : 2033
Email: yashpal.singh@igindia.net
http://iginternational.net/