The overall import of apples to India was going relatively well, says Prashant Gidwani, founder of Indian fruit importer Fresh Fruit Alliances: "The market for importing apples has certainly gained momentum since January. We are seeing a healthier appetite for volume, and the overall sentiment among traders has improved as we move further into the first quarter."
The conflict in the Middle East may have stopped at that moment, though, as Gidwani emphasizes that this new situation comes with a lot of challenges. "Logistics are currently our biggest hurdle. The ongoing conflict in the Middle East has severely disrupted traditional shipping routes, creating a highly uncertain environment. We are currently navigating a 'wait and see' situation regarding shipments in the pipeline; there is very little clarity on definitive arrival schedules, and we are bracing for fluctuations in freight costs and significant transit delays."
© Fresh Fruit Alliances
According to Gidwani, as a result of the conflict and lower supply, the prices have increased across the board: "The combination of logistical hurdles and tightening supply has naturally pushed prices upward. Over the past few weeks, we've observed a steady increase across key varieties, including Italian, Polish, and Iranian imports, with average prices rising by approximately 10% to 20%. The lower-tier segments have felt the impact of these hikes most acutely."
Normally, the Polish apple exporters supply a large chunk of the demand in India, but this year they seem to have missed the boat, Gidwani explains. "The Polish industry essentially missed its window by holding the fruit in storage for too long, resulting in quality levels that are no longer suitable for long transit markets like India. While this has caused a minor, temporary shortage in the immediate market, it is not a long-term deficit. We expect the market to rebalance shortly, as we transition to fresh arrivals from the Southern Hemisphere, specifically from South Africa and New Zealand."
Iran would usually supply a significant amount of apples to the lower-tier segment, but given the circumstances, the prices for these apples have also skyrocketed, Gidwani states. "The impact on the lower-tier segment, which Iran traditionally serves, has been substantial. This sector has seen a sharp price hike of nearly 20%. However, the primary issue is the sheer unpredictability of the supply. With the current geopolitical tension, the flow of goods is limited and highly uncertain, making it difficult to rely on consistent delivery schedules for the time being. It's far too early to make a definitive call on the long-term outlook. The future of trade with Iran depends entirely on the duration and resolution of the current conflict. Once the situation stabilizes, we will have to reassess the new trade dynamics and see how the market recalibrates."
"At Fresh Fruit Alliances, we have continued to evolve our operational framework. We have recently invested significantly in our IT infrastructure, specifically integrating the latest AI capabilities into our ERP systems. This digital transformation is designed to streamline our internal processes and provide the scalability required for our next phase of growth. By automating complex workflows and improving data accuracy, we are better positioned to navigate the current global supply chain challenges and ensure a consistent supply for our partners," Gidwani concludes.
For more information:
Prashant Gidwani
Fresh Fruit Alliances Pvt. Ltd.
[email protected]
www.freshfruitalliances.com
