India is the largest mango producer in the world. In June and July each year, Indian mangoes become available on mass and some are exported to China. This year, due to Covid, the production and sales chain of the Indian market is disrupted, resulting in a huge volume of products in India not able to find buyers.
June and July are the months where a large volume of mangoes are on the market, but without smooth sales, the fruit is likely to rot in the field as the marketed volume is large and the product is not easy to store. The second spike in Covid cases that began in March this year severely disrupted the production and sales chain. Although the Indian government has removed the restrictions on long-distance transportation between states, it is not easy to reopen the sales channels.
Growers in Karnataka said that they are facing a situation where there is neither a market for sales nor a way to export mangoes. It is currently a good time for harvest and if the fruit cannot find buyers, they have to leave the fruit in the field to rot. Karnataka is one of the states with the largest production. At least 1.2 million tons are harvested each year, and 70% of the production is from the Koral district. In the past, the fruit produced there not only were marketed in India but also exported to European and American markets.
Now, it's not just growers who are worried about the sales performance, but wholesalers also see poor sales in domestic and foreign markets due to Covid. In addition, mango juice and pulp processors did not purchase large volumes this year because of the economic downturn. Due to the pandemic, there is almost no opportunity for mangoes to be exported, resulting in oversupply and consequently a sharp drop in prices. In the past, one kilo could sell for 25 rupees but it can now only sell for 5 rupees, and still, sales performance is very poor.
Source: CCTV Finance