The domestic market for grapes in India currently has low volumes and high prices. Indian growers in the Nashik region were hit by cold weather in December and January, with temperatures of 5 °C to 7 °C. This has led to a lack of production in the early season. According to Arun Aher of the Indian export company, Task Fruits India, quality is still quite good, though the berry sizes are predominantly smaller. With sizes around 18 to 20, the grapes are mainly going to be exported to European markets.
The lack of volumes has led to higher than usual prices. A kilo of grapes is currently being sold on the domestic market for Rp 100 to Rp 110 (€1.37 to €1.51), while in the same period of 2015 these prices ranged from Rp 76 to Rp 80 (€1.04 to €1.10). Aher expects prices to go down in February as the production of grapes by then is set to pick up, though he admits this will depend on demand.
Indian grape exporters are currently in a great position, as the current market for grapes is nearly empty. The usual competition from South Africa and Chile has been marred by a harvest of low quality. This means that companies like Task Fruits mainly have to compete with other Indian companies.
The Indian grape sector has also been improving its quality standards. Phystosanitary regulations have been put in place by the Indian government. Exporters are only allowed to ship their products if they are registered by the government, which in turn has provided assistance for improving quality standards.
Indian grapes currently have a CIF-price in Rotterdam of €14, which according to Aher is enough to cover all expenses. For Task Fruits, Europe is the main market with 65% to 75% of its produce being sent there. “Each year, we manage to increase our volume by 10% to 15%,” concludes Aher on a positive note.
For more information:
Tarun Aher
Task Fruits India Private Limited
Mob: 91 94220 07491
Email: [email protected]
