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APPLE - A FRUITFUL BUSINESS
An apple a day may do more than just keep the doctor away! Be it a bite of the Fuji apple from Japan, a slice of the green Granny Smith from Washington or a mouthful of the Royal Gala from New Zealand – the world can certainly be your oyster here. Or to be more apt, the apple of your wallet’s eye

 
  Whether you are an importer in the apple trade or a curious customer, chances are that you would have been privy to those rich and round red apple varieties sourced from all over the world for the Indian market. But is importing apple really a lucrative business, despite the taste and price of the imported varieties being in sharp contrast with the local ones?

Feeding a billion souls

India is the world’s fifth biggest producer of apples, with almost all of its apples produced in just the three hilly states of Jammu & Kashmir, Himachal Pradesh and Uttarakhand. What’s interesting though is productivity. While the area under apple cultivation in both J&K and Himachal Pradesh is roughly the same, the former produces more than five times of that of the latter. In fact, J&K accounts for almost 80% of India’s apple production. The question that remains though is why does the world’s fifth largest producer of apple, import $200 million worth of the fruit every year? The answer to this question is very obvious. The fifth biggest producer also has the second highest population. Then there’s also the case of the upwardly mobile, who prefer the exotic varieties grown in the distant corners of the world.Source of India's apple importsVijay Kshirsagar of Kshirsagar Cold Storage, though, has an altogether different theory for India’s rising love for imported apples. “Imported apples catch consumers’ attention as their colour is deep red and the packaging is attractive. It is an instant pull,”. Prices of international varieties of apple in India can go as high as Rs.250-Rs.260 per kg, more than double that of the Indian varieties. Ministry of Commerce, GoI, data reveals that India imported apples worth over $200 million (1,75,355.70 MT) in FY2014, with China and US together accounting for close to 80% of the total imports. While globally, Italy, Chile and France are also major exporters of apple, not much of their exports find its way to India. One of the main reasons for increasing imports from China is that its apple season lasts very long and, hence, supplies are available almost all through the year, unlike India.

No pushover

Despite the interest and intrigue for imported apples, the domestic market is still dominated by the Indian varieties. “Indian apples have much higher demand in the market because of factors like their low price, freshness and high quality,” said the retail salesperson at a Reliance Fresh outlet in Tardeo, Mumbai, which stocks both varieties of apples. Amongst the imported lot, the outlet had stocks of the Apple Fuji from Japan and Apple Red Delicious from New Zealand, as well as the Turban Apple Royal Gala imported from California. As a part of its sales strategy, the retail chain places imported apples in the bottom shelf, just below other exotic products such as broccoli, which are placed at eye level. And it’s a strategy that does gets the desired attention. Ask housewife Reena Patel who does her grocery shopping at the same outlet every month. Quiz her if she has ever noticed the ‘different’ rack of apples, and her response comes swiftly. “We, as a family, are avid lovers of veggies and fruits. Though, most of the time, I pick up Indian apples, quite a few times I ended up buying the imported ones stocked here, since they look so ripe and exotic,”

India's apple imports 

Paradise lost

Besides China and US, other exporting nations are also looking at capitalising on the India opportunity. Polish apple growers, for instance, are now looking at India as the next big market, after Russia banned import of fruits and vegetables for Poland. Moreover, according to a study done by ASSOCHAM, the recent floods in Kashmir have devastated its apple crop. The report claims that the main apple producing districts of Baramulla, Kupwara and Sopore have also been the worst hit by the floods, and losses are expected to be north of Rs.1,000 crore. This means India will have to import more apples this year.

Apple imports India - Despite being the fifth biggest producer of apple, India is one of the top importers of it
Here to stay Despite being attractive, imported apples don’t appeal to Indian taste buds as much as the local varieties. Similarly, price fluctuation in the local market, much higher prices, high duties, volatility in the rupee and a clash with the Indian apple season, are some of the other challenges that they face in India. Summing up the apple import business, Kshirsagar said, “Indian apple’s peak season is between August and December. During the off season, apples are imported. While the profit margins vary from 10-15%, losses can be unlimited.” But these minor concerns notwithstanding, rising health awareness and disposable income, higher aspirations, and the unfortunate floods in J&K means that India’s apple imports are set to continue rising in the foreseeable future. And that’s a very ‘healthy’ way to make some dough.  

Interview with Sunil Sachdev, CEO, Aayush Impex next page...

 
“Imported apples have to be sold in less than 30 days, else their quality gets affected” - Sunil Sachdev, CEO, Aayush Impex

Sunil Sachdev CEO, Aayush Impex Q & A

India’s apple’s imports have grown at a CAGR of 32.91% in the last 10 years. Do you expect this trend to continue?

Sunil Sachdev (SS): India’s apple imports have grown at a CAGR of 32.91% in the last 10 years because domestic production has failed to keep pace with the demand of a rising population. The buying power of the Indian consumer has also increased considerably in this period, which means that more and more people are buying apples.

India mostly imports apple from China and US. Do you expect other major exporters like Chile and Italy to emerge in a big way in the near future?

SS: Other than China and US, we also import apple from Chile, Italy, France, New Zealand and Brazil. But the volume of imports from these countries is much less. The problem with Chile is that their apple season starts just four months before the Indian apple season starts. Out of these four months, 45 days go away in transit. Therefore, the scope for Chile to emerge in big way is very less. In case of other countries like France, Italy and Brazil, if they maintain the quality of the apple they produce, they can emerge as major apple exporters to India.

India has one of the highest import duties (50%) in the world when it comes to apple. How has this impacted the volume of trade? Do you expect any reduction in the near future?

SS: Our high import duty on apple has played a major role in the volume of trade. Because of higher duty, the cost of importing apple increases significantly, which means the buying capacity of the Indian consumer gets reduced. To protect the interest of local apple growers in India, I don’t think the government is going to reduce the import duty anytime soon.

Apple production in India has barely been growing at 1% per annum. Will we continue to import apple in large quantities or do you expect local production to play catch up?

SS: Like most other things, our apple economy too depends on demand and supply. At present, the demand for apple is more but supply of local apple is less. Therefore, we will continue to import apple in large quantities until local apple production improves.  

"Apple imports will continue due to low growth in domestic production"
 Which varieties of imported apples are the most sought after in India?

SS: If I can give just one name, it has to be Red Delicious – by far, India’s favourite apple.

 Which port(s) do you use for importing apples? Since it’s a perishable item, is lack of storage facilities in India a major concern?

SS: We use Nhava Sheva for importing apples, since our wholesale fruit market is located in Navi Mumbai.

 What kind of margins are available to apple importers in India?

SS: Most Indian apple importers like us operate at single digit margins. But sometime, if the market is not in our favour, we end up losing money.

 What are the main challenges in the apple import business?

SS: The main challenge in this business is to maintain the quality of the apples. Since apple is perishable, we have to sell them within one month. Else, they start rotting. When the demand is high, selling doesn’t take time, but when demand is low, selling them before their quality starts getting affected is a challenge.

Introduction:

India's fruit market is on the verge of a remarkable transformation, as it prepares to welcome a diverse array of delectable apples from Iran, Poland, Italy, Brazil, and Chile, as well as luscious sunshine oranges from Egypt and South Africa. This blog aims to delve into the enticing flavors, distinctive qualities, and numerous benefits offered by these imported fruits. By highlighting their exceptional attributes, we will demonstrate how they have the potential to elevate the Indian fruit market and generate a high level of interest among importers.

Iranian Apples: A Delightful Tradition

Iran's apple cultivation industry has a rich heritage, with a long-standing tradition of producing a diverse range of flavorful varieties. Iranian apples are highly regarded for their unique characteristics, making them an enticing option for importers in India.

Distinct Sweetness: One of the standout features of Iranian apples is their distinct sweetness. The favorable climate and soil conditions in Iran contribute to the development of apples with a delightful natural sweetness. This sweetness sets them apart from other varieties and enhances their overall flavor profile.

Crisp Texture: Iranian apples are known for their crisp and firm texture. The apples have a satisfying crunch when bitten into, providing consumers with a pleasant eating experience. This appealing texture adds to the overall enjoyment of consuming Iranian apples.

Exceptional Storage Capabilities: Another advantage of Iranian apples is their exceptional storage capabilities. These apples have the ability to be stored for extended periods without compromising their quality. This attribute is particularly advantageous for importers, as it allows them to offer Iranian apples to consumers throughout the year, ensuring a consistent supply of premium-quality fruit.

Captivating Importers in India: The prospect of importing Iranian apples holds immense appeal for importers in India. The unique sweetness, crisp texture, and excellent storage capabilities of Iranian apples present a lucrative opportunity to cater to the growing demand for high-quality fruit in the Indian market. By introducing these premium Iranian apples, importers can capture the interest of Indian consumers who are eager to savor the distinct flavors of these delectable fruits. Additionally, the year-round availability of Iranian apples ensures a consistent supply, making them an attractive option for importers looking to establish a reliable source of premium apples for the Indian market.

Apples from Poland:

• Prominent Apple Producer: Poland has established itself as a leading producer of apples, earning recognition for its high-quality fruit in the international market.
• Diverse Cultivars: Poland cultivates a wide range of apple varieties, offering importers a diverse selection to choose from. These cultivars showcase various flavors, textures, and colors, catering to different consumer preferences.
• Exquisite Taste: Polish apples are favored for their exceptional taste, often described as sweet, tangy, and well-balanced. The flavors are carefully developed through Poland's favorable climate and cultivation practices, resulting in a delightful eating experience.
• Vibrant Colors: Polish apple varieties are known for their vibrant colors, ranging from shades of red to yellow and green. The visually appealing hues enhance the attractiveness of these apples, making them stand out in the market.
• Excellent Juiciness: Polish apples are renowned for their juiciness, making them an excellent choice for consumers who enjoy a refreshing bite. The juiciness contributes to the overall sensory experience and adds to the desirability of Polish apples.
• Boost in Consumer Demand: By introducing Polish apples into the Indian market, importers can anticipate a significant boost in consumer demand. The reputation of Polish apples for their high quality and diverse flavors makes them an attractive option for Indian consumers seeking premium fruit options.
• Market Differentiation: Importing Polish apples offers a valuable opportunity for importers to differentiate their offerings in the Indian fruit market. By providing a unique selection of Polish apple varieties, importers can cater to the evolving tastes and preferences of Indian consumers, setting themselves apart from competitors.
• Culinary Versatility: Polish apples are prized for their culinary versatility. They can be enjoyed fresh, used in baking, or incorporated into a variety of dishes and recipes. Importers can highlight the versatility of Polish apples, appealing to both consumers and foodservice establishments in India.

Apples from Italy:

Italy, renowned for its culinary excellence, extends its expertise to apple production, offering a range of unique and flavorful varieties. Italian apples are known for their distinctive flavor profiles, which can range from sweet and tangy to slightly tart. These apples often exhibit aromatic qualities, with hints of floral or citrus notes, adding to their sensory appeal. Importers can capitalize on Italy's culinary reputation and position Italian apples as a premium choice for discerning Indian consumers who appreciate high-quality and flavorful fruit options. The versatility of Italian apples allows them to be enjoyed in various forms, including fresh consumption, cooking, baking, or juicing, further enhancing their appeal in the Indian market.

Apple from Brazil and Chile

Brazil and Chile present an exciting opportunity to diversify the apple offerings in the Indian fruit market. Both countries have distinct apple varieties with unique taste profiles. While specific export figures may vary, here is an overview of Apple exports:

Brazil:

Brazil is known for its rich agricultural resources, including apple production. The country's apple exports have been steadily growing in recent years. According to data from the World Apple and Pear Association, Brazil exported approximately 37,000 metric tons of apples in 2020.

Chile:

Chile is renowned as a major exporter of high-quality apples worldwide. The country benefits from favorable geographical conditions, such as a Mediterranean climate and fertile soils, which contribute to the exceptional taste and quality of Chilean apples. In 2020, Chile exported around 1.2 million metric tons of apples, making it one of the largest apple exporters globally.

Sunshine Oranges from Egypt:

Egypt's favorable climate and agricultural practices make it an ideal region for cultivating high-quality oranges. While specific figures may vary, here are some technical details related to Egypt's orange exports in terms of value:

Export Value: Egypt is a significant exporter of oranges, and its export value reflects the demand for its citrus produce. In recent years, the export value of Egyptian oranges has reached millions of dollars annually.

Indian Market: India is a potential market for Egyptian oranges due to its large consumer base and demand for citrus fruits. The import value of Egyptian oranges to India has seen a consistent increase, reflecting the growing interest and demand for these sun-kissed fruits.

Sunshine Oranges from South Africa:

• Agricultural Excellence: South Africa is globally recognized for its agricultural excellence, including the cultivation of exceptional citrus fruits like oranges. The country's favorable climate, fertile soils, and expertise in agricultural practices contribute to the superior quality of South African oranges.
• Rich Flavor: South African oranges are known for their rich and distinct flavor profiles. They offer a delightful balance of sweetness and tanginess, providing a satisfying taste experience for consumers.
• High Juice Content: South African oranges are renowned for their high juice content. They are juicy and bursting with flavor, making them ideal for consumption as refreshing, thirst-quenching beverages or for culinary purposes.
• Nutritional Benefits: Oranges are widely known for their nutritional benefits, and South African oranges are no exception. They are rich in essential vitamins, particularly vitamin C, which supports the immune system and overall well-being. South African oranges also contain dietary fiber and various antioxidants that contribute to a healthy diet.
• Reputation and Trust: South African agricultural products, including oranges, have built a reputation for excellence and reliability in international markets. Importers can leverage the trust associated with South African produce to attract health-conscious Indian consumers who prioritize quality and nutritional value.
• Market Differentiation: By offering South African oranges, importers can differentiate their citrus offerings in the Indian market. The distinct flavor, high juice content, and nutritional benefits of South African oranges provide a unique selling point, appealing to consumers seeking premium and health-conscious fruit options.

Conclusion:

The introduction of a wide variety of delectable apples from Iran, Poland, Italy, Brazil, and Chile, along with sunshine oranges from Egypt and South Africa, is poised to revolutionize India's fruit market. Importers have a unique opportunity to satisfy the growing demand for diverse and premium-quality fruits by offering this fusion of flavors. The infusion of these exotic fruits will not only enrich the fruit market but also cater to the discerning tastes of Indian consumers. By bringing together these international delicacies, importers can captivate consumers and establish themselves as leaders in providing a delightful range of fruits from around the world. The future of India's fruit market is indeed bright and filled with the sweetness and sunshine of these exceptional imports.

In the grand tapestry of international trade, the intricacies of fruit import and export might seem like a minor thread. But delve a little deeper, and you'll find stories of nations, cultures, and economies interwoven in the delicate dance of buying and selling. Apples, the iconic fruit of temptation and health alike, stands at the center of this narrative for many countries. The USA, a leading producer, exports this juicy delight to various corners of the world. India, a nation that cherishes its fruits and acknowledges their nutritional value, remains a prominent name in the list of potential apple importers. This article aims to showcase why India should consider strengthening its apple-importing ties with the USA and what new experiences the American orchards have in store for Indian consumers.

The world of apple export is vast and varied, with the USA emerging as one of the frontrunners in quality and production. When we talk about top-notch apples that find their way into international markets, it's intriguing to note the nations that stand out as top importers. Canada, Mexico, India, and several European countries consistently rank as the top importing nations for American apples. This isn't a mere coincidence. It's a testament to the USA's dedication to cultivating high-quality produce that meets the standards of diverse consumer bases.

For India, importing apples is not a new endeavor. The vast Indian subcontinent, with its multifaceted climate zones, produces its own varieties. Yet, there remains a consistent demand for international breeds that offer distinct flavors and textures. By bolstering apple imports from the USA, India doesn't just import fruit; it imports an experience—a bite that carries with it the legacy of American orchards, years of agricultural expertise, and a taste that's unique to its foreign soil. As we dive deeper, let's explore the unmatched proposition the USA brings to India's apple table.

Q1: What is the flow of exporting USA apples to India?

A1: The export flow includes:

1. Harvesting & Post-Harvest Processing: After picking, apples undergo cleaning, sorting by size, and quality checks.
2. Certification & Quality Checks: Apples are checked for compliance with both USA and Indian agricultural standards.
3. Packaging: Specialized packaging is used to ensure the apples remain fresh during transit.
4. Logistics & Shipping: The consignment is then handed over to a freight forwarder for sea or air shipment.
5. Customs Clearance: Once the shipment reaches India, it undergoes customs checks before being released for distribution.

Q2: Which competitor countries are exporting apples to India, and how does the USA fare against them in terms of quality, quantity, and rates?

A2: Major competitors are China, New Zealand, and Afghanistan. While China offers a competitive price, the USA boasts superior quality, diverse apple varieties, and consistent supply. New Zealand has a distinct flavor profile, but the USA provides apples with a broader range of tastes and textures. Afghanistan offers proximity and price, but the USA has a clear advantage in advanced agricultural practices and overall fruit quality.

Q3: What is the best time or season (month-wise) to export USA apples to India to maximize profit margins?

A3: USA apples are harvested primarily from August to November. Exporting during September to December can offer fresh produce to India, coinciding with a potential gap in local supply, maximizing profit.

Q4: How to quickly sell containers of USA apples in India, and what is the typical turnaround time? What are quick strategies to market?

A4: Engaging with major fruit distributors, running promotional campaigns in wholesale markets, and collaborating with supermarkets can expedite sales. Typically, a container of apples can be sold within 2-4 weeks. Using digital marketing to target retailers and offering initial discounts can also be effective strategies.

Q5: During which time or season is there a risk while exporting USA apples to India?

A5: Late winter to early spring (February to April) poses a risk as local Indian apple harvest begins, and the market might be flooded with fresh local produce, making competition stiff.

Q6: When do competitors typically dominate the Indian market? Why is the USA better?

A6: Competitors, especially China and Afghanistan, dominate during early summer due to proximity and off-season harvesting. However, USA apples offer consistent quality, a unique taste profile, and reliable supply chains, making them a preferred choice for many.

Q7: Can you provide resources for finding genuine buyers for USA apples in India?

A7: While avoiding B2B websites, one can approach the Agricultural and Processed Food Products Export Development Authority (APEDA) in India. Additionally, joining hands with local trade chambers, attending fruit expos, and leveraging USA's embassy trade departments can be resourceful.

Exemplification on limitations of other nations: Take China for example: Although China is the largest apple producer, it has faced challenges with pesticide residues leading to bans in some countries. This creates a trust deficit. The USA, on the other hand, has stringent quality checks and a reputation for delivering safe, high-quality agricultural products.

Question 1: What is the flow of exporting apples from the USA to India?

Answer:

• Initial Research and Compliance: Start by understanding India's import regulations for fresh fruits, ensuring that apples from the USA comply with the phytosanitary measures. The USA has a robust and transparent agricultural system, making it easier for exporters to provide all necessary compliance documents.
• Identify Potential Indian Importers: Engage with the U.S. Agricultural Service's Exporter Directory, which lists potential importers across the globe, including India.
• Set Up Pricing and Payment Terms: Given the competitive nature of the apple market, consider setting up flexible payment terms. The USA's banking infrastructure supports seamless international transactions, making it convenient for Indian importers.
• Shipping & Logistics: Once an order is confirmed, use cold-chain logistics to ensure the freshness of apples during transit. The USA's advanced logistics systems support refrigerated shipping, ensuring apples remain crisp upon arrival.
• Customs Clearance: Work with a customs agent familiar with Indian customs processes to ensure a smooth clearance of goods in India.

Question 2: Which competitor countries are exporting apples to India, and how does the USA's quality, quantity, and rates compare?

Answer:

• Competitors: The primary competitors for apple exports to India include China, New Zealand, and Afghanistan.
• USA's Unique Proposition: American apples, especially varieties like Red Delicious and Granny Smith, are globally recognized for their crispness, flavor, and shelf life. The vast apple orchards in the USA ensure consistent supply and competitive pricing. Moreover, the USA's stringent agricultural practices guarantee apples free from harmful chemicals and pesticides, offering a healthier alternative.

Question 3: What is the best time or season (month-wise) to export apples from the USA to maximize profit margins?

Answer:

• Optimal Season: The prime season for harvesting apples in the USA is from September to November. Exporting during these months ensures the freshest supply and competitive prices.

Question 4: How to quickly sell containers of apples, and what are the typical turnaround strategies for the market?

Answer:

• Market Analysis: Understand the preferences of Indian consumers. Offer apple varieties that cater to Indian tastes and cooking habits.
• Sampling and Pop-ups: Organize apple tasting events in major Indian cities. Sampling allows direct feedback and builds trust with potential bulk buyers.
• Leverage Existing Distribution Channels: Collaborate with established food distributors in India, tapping into their existing retail networks for quicker turnarounds.

Question 5: During which time or season is there a risk while exporting apples from the USA?

Answer:

• Risky Season: The months between June and August can be tricky due to the summer heat in India, potentially affecting the freshness of apples during transit. Moreover, this period aligns with the monsoon in India, leading to potential transport and storage challenges.

Question 6: When do competitors typically dominate the market, and why is the USA better positioned?

Answer:

• Competitor Dominance: Competitors like China and New Zealand often dominate during the early months of the year, capitalizing on the off-season of US production.
• USA's Advantage: The USA, with its diverse climatic zones, ensures a longer harvesting season for apples, allowing for consistent supply. Moreover, the taste, texture, and health quotient of American apples give them a distinct edge over competitors.

Question 7: Can you provide resources for finding genuine buyers for apples in India?

Answer:

• Industry Associations: Engage with the Federation of Indian Export Organizations (FIEO) or the Agricultural and Processed Food Products Export Development Authority (APEDA) for contacts and leads.
• Engage with Trade Consultants: Reputed trade consultancy firms specializing in the Indo-US trade can provide genuine buyer databases and contacts.

Question 8: Discuss the limitations of other nations (in comparison to the USA) for these products.

Answer:

• China: While China is a major producer, concerns about pesticide residues and inconsistent quality can be deterrents.
• New Zealand: Limited apple varieties and higher prices can make New Zealand apples less attractive.
• Afghanistan: The lack of advanced cold-chain logistics and the political instability can lead to inconsistent supply and quality.

The USA, with its state-of-the-art agricultural practices, vast orchards, and consistent quality, stands as a formidable competitor in the global apple export market, especially for India. The key is to effectively communicate these strengths and ensure seamless collaboration with Indian importers.