In Tamil Nadu, India, farmers are confronted with a challenging scenario, despite an impressive mango yield. Factors such as plummeting prices, exacerbated by a freeze on exports due to the Iran-Israel conflict, have put farmers in Krishnagiri, Tiruvallur, and Vellore districts under strain. Protracted protests have led to legal issues, further complicating the situation for these farmers.
Farmers, receiving offers as low as $0.04 per kg for varieties like Banganapalli, have engaged in several days of protests, including dumping fruit on roads and tree felling, to express discontent with low procurement prices. State-wide cultivation across approximately 360,800 acres has led to an output of 950,000 tons, nearly doubling the usual 500,000-600,000 tons. This surplus has caused a decrease in prices of premium varieties to around $0.12-$0.14 per kg, with juice-grade mangoes fetching only $0.05-$0.06 per kg.
Madhavan from the Krishnagiri-Dharmapuri Mango Pulp Production Association noted, "The war has stalled export orders. Ocean freight costs have skyrocketed due to the Russia-Ukraine conflict and Red Sea attacks, and the Iran-Israel tensions have made matters worse." Export of mango pulp, of which Iran is a major buyer, plays a crucial role, but geopolitical conflicts have disrupted trade.
Additionally, a 12% GST on mango pulp has impacted producers, coupled with decreased demand for natural mango juice in favor of carbonated drinks. External sourcing due to low domestic yields further influences the market dynamics. "In 2022, low yields led to high procurement prices, pushing buyers to source from countries like Mexico, South America, and Africa," Madhavan explained.
Farmers are demanding intervention, including a minimum support price, compensation for damaged crops, and the establishment of a processing unit in Krishnagiri. Sector advocates suggest promoting mango juice as a Vitamin C-rich product and enhancing export incentives. The idea of instituting a Mango Board to oversee price regulation and streamline logistics also garners support.
Source: The Federal