Valencia oranges imported from Egypt and South Africa faced a difficult season in India this year, says Shakeel Ahmed of Mahira International. "Imports increased significantly with nearly 500 to 600 extra containers arriving compared to the previous year. However, the fruit did not move through the market as quickly as expected."
According to Ahmed, "The slow movement was largely because of persistent heavy rain and the early arrival of the local Nagpur orange season, which put serious pressure on demand and prices." He details how the market got overwhelmed. "Initially, South African suppliers warned that stocks were low, so importers ordered cautiously. However, shipments were extended to many new and inexperienced importers this season, causing an oversupply that triggered a market crash."
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Quality also played a part in the market's struggle, Ahmed observes. "We saw a lot of damage and poor hygiene in the lower-grade fruit, especially class 2. Many shipments that were meant for markets like Saudi Arabia and Dubai, where lower grades are accepted, ended up in India, which impacted the overall quality perception."
Ahmed shares that this season's price swings reflect these issues clearly. "Valencias started the season strong at USD 22.5 and went up to USD 28 per 15 kg box, but prices dropped sharply about six weeks ago to around USD 10.1 to USD 11.2 as a result of oversupply and adverse weather."
He highlights that he has about 60 containers worth of unsold stock at present. "The local Nagpur oranges, selling for USD 0.28 to USD 0.34 per kg, continue to curtail demand. We are trying to clear stock before prices fall further, especially with the Nagpur orange season expected to last until February."
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Egypt supplies fruit primarily from December through May, while South Africa's shipments typically arrive from May to October. Ahmed explains, "Egyptian Valencias have generally offered a consistent supply, but this season, both origins contributed to the oversupply challenge. If the supply chain had been better managed, the market might have avoided such a sharp decline."
As Ahmed sums it up, "More caution will be exercised in planning for Egypt's upcoming season next month, with hopes that importers will learn from the difficulties of the season gone by."
For more information:
Shakeel Ahmed
Mahira International
Tel: +91 99 99 101 038
Email: [email protected]
www.mahirainternational.com
