Export market for Indian grapes set to decrease in 2021; know why

Grape exporters from India predict a fall in shipments in 2020-21 to Europe  because of the ongoing pandemic situation that is keeping the demand restrained. Increment in export prices is leading the exporters of the country to alter their attention to the marketplace of domestic origin for fruits with premium quality.

Data received from Agricultural and Processed Foods Export Development Authority (APEDA) demonstrated that the annual export growth rate of grapes to Europe has been decreasing from 32% for the fiscal year 2016-17 to a negative 12% in the fiscal year 2019-20. The export value has increased from Rupees 431 crore for the fiscal year 2009-10 to Rupees 2,176 for the fiscal year 2019-20, that is the highest in the last decade that recorded Rupees 2,335 crore in 2018-19.

The farmer and exporter margins are set to be compressed as the production prices for the same have increased, whereas the foreign patrons are trying to slash costs by around 20 to 30% over the past years. Exporters commented, shipping corporations are citing high freight rates, whereas packaging corporations too are citing greater rates indicating high paper costs.

"The scenario is difficult for grape business this current year. Export of grapes to Europe during 2020 had reduced by around 25% over the past year. Exports might further decline by around 10 to 15% as there is no aggressive demand from the European importers. Chairman, Sahyadri Agro, the largest farmer producer company and the grape exporter from India, Vilas Shinde, commented that the demand for hotel, restaurant and other out-of-home consumption segments has not recovered as well.

Growers of grape mentioned that this year’s grape season has been deferred by around 25% because of lengthened rainfall. But, the grape quality is better this season. This cloudy weather along with heavier precipitation going down in Maharashtra, the largest producer of grapes, has raised the worries of the farmers whose orchards presently bear tiny fruits. The dominant conditions will result in damage and dropping of the fruit along with higher expenditure on pesticides.

Grape exporters are looking out for the domestic market to fix for the losses in their export businesses. "There are no exports of grapes during the month of December and instead is sold through e-commerce in the country itself and further expect to extend the domestic marketplace for premium fruits,'' added Shinde.