Importing Iranian Red Delicious apples into India is tough at the moment with landing costs now exceeding wholesale selling prices in South India, says Syed Salehus Sabah of fruit importer Al Fatah Impex. "50% import duties, hikes in freight, and inflationary pressures from political disputes in Iran have driven up expenses by USD 1.1 to 1.7 for a 10 kg box, leaving traders like us struggling to clear stocks without losses."
According to Syed, volumes are down 10 to 20% from last season, despite ample supply and unchanged quality, sizes, and firmness. "Last year, Al Fatah bought at USD 10.5 per 10 kg and sold between USD 12 and 13; now buying costs have jumped to USD 13, with sales reaching just USD 13.8 in Mumbai, Pune, and Hyderabad to protect wholesaler relationships. We're maintaining slim margins to keep quality flowing and build loyalty," Syed explains, adding that peak sales even hit USD 17.5 in high-demand southern areas, but most markets are falling short of break-even.
© Al Fatah Impex
The crunch stems from high import duty, elevated freight, and broader inflation, not crop shortages as Iran's production remains strong, Syed observes. "Fewer importers are accepting high port landing charges at Mumbai's Nhava Sheva (JNPT), shrinking supply and forcing buyers to accept whatever rates are offered just to restock." He highlights that India absorbs 60% of Iran's apples and that fresh arrivals are en route. Al Fatah has stepped up its container bookings for January, forecasting market stability in the next 5 to 10 days as bulk shipments will hit Indian ports and ease prices. "More containers mean more apples and lower rates. We've been in a similar situation in the initial weeks of January 2025."
Syed notes that Iran typically enjoys a monopoly in the Indian mass apple segment in January, amid dwindling domestic volumes: "As supply normalizes within the next two weeks, Iranian reds should regain traction in this opportunistic window, filling the gap until domestic volumes rebound. In the meantime, we'll be enduring thin margins as this ensures loyalty when margins grow later," Syed concludes.
For more information:
Syed Salehus Sabah
Al Fatah Impex
Tel: +91 95154 01368
Email: [email protected]
