India has had a good import season for apples from Washington, with good quality, competitive prices and a strong volume of shipments. “Last year, we had a large domestic production of apples and prices for Washington apples were rather high. The total import volume for 2016 was lower when compared to 2015. This year however, we should see the same levels of 2015 or maybe even higher,” says Keith Sunderlal of The SCS Group which works as the in-country representative for Washington Apple Commission in India region.
Apart from Washington, other producing countries that have been exporting apples to India are Belgium and Italy. “Italy has been an established source for apples in the last 3 to 5 years. Belgium is still only a small exporter for India, though there has been a strong marketing push for Belgian apples. I think Belgium is trying to find new markets due to the Russian ban,” says Sunderlal.
Rebecca Lyons, Director, International Marketing, Washington Apple Commission and Keith Sunderlal with importers, wholesalers and retailers in the Kothapet Fruit Wholesale Market in Hyderabad, India.
According to Sunderlal, the Indian market is mainly focused on price. If apples from Washington get higher prices due to a diminished supply, it immediately has an impact on Indian sales volumes. A major factor for prices on the Indian market has to do with the high tariffs that the Indian government levies on imported goods. “The prices increase by 50% due to the tariffs. We’ve been trying to convince the government to re-evaluate their customs policy, but I’m afraid this isn’t something that’s going to change in the near future.”
Though there were some issues the Indian economy due to the demonetization of rupee bills, the currency rate is right now stable. “India is doing well economically and the rupee should become stronger. A strong currency rate is a good thing, from the perspective of import,” says Sunderlal.
India also hasn’t had any issues with regards to phytosanitary requirements. There was some confusion between shippers in how to correctly comply with phytosanitary and labeling standards a couple of years ago, but these issues have been resolved.
Sunderlal admits there were some issues at the ports of India as in the beginning of 2015 certain apples were barred from entry into the country. “We’re not sure why the government didn’t allow these apple volumes into India. Fortunately, there was a huge volume of domestic produce, so there was less need for Washington apples. The issue was resolved when a large number of different blocs, like the EU, the US, Australia and New Zealand, Chile and China appealed to the Indian government to allow the import of apples,” concludes Sunderlal.
Rebecca Lyons, Director, International Marketing, Washington Apple Commission, Adam Branson, Senior Agricultural Attache, US Consulate Mumbai along with Keith Sunderlal and Mansi Ahuja of the India team of Washington Apple Commission
The SCS Group is a consulting agency, that represents a number of co-operator groups in India. Some of these groups are the California Table Grape Commission, Pear Bureau Northwest, the Washington Apple Commission and the California Walnut Commission. The SCS Group is currently involved with a promotion campaign for Washington Apples, during which a large number of branded vehicles travel to 89 Tier II & III cities across India to let consumers become familiar with the produce and its attributes.
For more information:
Keith Sunderlal
SCS Group (India)
Tel: 0091 124 434-45 00
Email: [email protected]
www.scs-group.com
