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This is an archive article published on November 9, 2022

Prolonged rains, uncertainty in global markets make grape traders wary before export season

Grapes form a key constituent of India’s export basket. A majority of the grapes are from Nashik, Pune and parts of Ahmednagar district of Maharashtra, which account for around 90 per cent of grapes exported from India.

grape market, global grape market, grape traders, grape exports, Pune news, Maharashtra government, Indian Express, current affairsLast year, India had exported around 2. 30 lakh tonnes of grapes and this year, Shinde expressed hope, the exports would touch the same quantity.

Ahead of the grapes season, exporters and farmers are wary about the prospects of both overseas trade and price of the fruit in the market. Even as the crop conditions and freight rates have improved since last year, uncertainty about the European markets along with increased food inflation, many feel, can play spoilsport this season.

Grapes form a key constituent of India’s export basket. A majority of the grapes are from Nashik, Pune and parts of Ahmednagar district of Maharashtra, which account for around 90 per cent of grapes exported from India. Sahyadri Farms, the Nashik-based Farmer Producer Company, is the largest grapes exporter from the country.

Vilas Shinde, Chairman and Managing Director (CMD) of Sahyadri Farms, said his company has adopted “wait and watch” attitude before the start of the grapes season. The early season that starts in November, Shinde said, was completely wasted due to heavy rains in September-October. Growers from the Satana taluka of Nashik are the ones who usually harvest grapes during this period which is mainly exported to Russia and also fetches good prices in domestic market. “But this year, we have hardly seen any harvest from that region,” he said.

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Following the heavy rains in October, the climatic conditions have been conducive for good growth, Shinde said. Reports from the fields have indicated that crop quality is good, he added. Another factor which has given some hope to exporters is the gradual decrease in freight costs. Due to the global logistics bottleneck, freight charges had increased at astronomical rates in the past year. But now, they have significantly reduced. “From $8,000/tonne, charges have now come down to $4,000/tonne,” he said.

However, the situation in the European Union markets is a concern. Due to the Russia and Ukraine war, freight services to Russia and other countries in the region have been disrupted. Also, given the inflation faced by majority of the European countries, exported products might find lesser favour with the consumers. “Most exporters are wary about the prospects and have adopted wait and watch policy for the season,” said Shinde.

This season, grapes would be available little later than the usual January end, Shinde said. The season would not start before February and the exports would kick off only then, he added.

Last year, India had exported around 2. 30 lakh tonnes of grapes and this year, Shinde expressed hope, the exports would touch the same quantity.

Partha Sarathi Biwas is an Assistant Editor with The Indian Express with 10+ years of experience in reporting on Agriculture, Commodities and Developmental issues. He has been with The Indian Express since 2011 and earlier worked with DNA. Partha's report about Farmers Producer Companies (FPC) as well long pieces on various agricultural issues have been cited by various academic publications including those published by the Government of India. He is often invited as a visiting faculty to various schools of journalism to talk about development journalism and rural reporting. In his spare time Partha trains for marathons and has participated in multiple marathons and half marathons. ... Read More


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