Exporting Grapes....
HS Code : 08061000
Grape has cemented its place in cuisines and wines over time, across the world. The grown-in-India varieties haven’t missed out on getting popular either. Exports are a proof. Grape exporters, smile.
Once known as the food of gods and kings, grapes today have evolved to be a fruit that has found favour, be it in the form of the main ingredient in your favourite bottle of wine or the fruit that makes your rather bland but healthy bowl of salad palatable, across the globe. Grapes are also available in a myriad of colours – red, blue, amber, green and black to add a touch of colour to our food. To add to that, grapes are rich in antioxidants, making them a popular snacking alternative. Naturally, the demand for grapes across the world has been increasing. While India still lags behind countries like China, Italy and US in production of the fruit, the growth in demand for Indian grapes shows that there are opportunities aplenty for both farmers and exporters.
In India, the major grape producing state is Maharashtra with the regions of Nasik and Sangli being the main cultivation areas. Apart from Maharashtra, other states that produce grapes are Andhra Pradesh, Karnataka, Tamil Nadu and Mizoram. When it comes to varieties produced in India, according to the Agricultural and Processed Food Products Export Development Authority (APEDA), Thompson Seedless white and its variants, is the most cultivated variety of grapes. Others varieties that are cultivated are Bangalore Blue, Anab-e-Shahi, Dilkhush, Sharad Seedless and Perlette.
While production and exports have been growing over the last couple of years, India remains the 11th largest exporter of grapes in the world. Our export volume in CY2016 was as low as 1/6th of the largest exporter Chile. But just because we are so far behind, is no cause for despair. Between FY2012 and FY2017 India’s exports of fresh grapes have seen a growth of 46.08% — although in FY2015 the exports had dropped 34% y-o-y, due to the global economic slowdown, before increasing 28% y-o-y in FY2016.
Some of India’s largest export markets include Russia, Netherlands, UK and Germany with Netherlands accounting for more than a third of India’s exports – in FY2017, Netherlands imported $91.84 million worth of grapes from India. India also happens to be the country’s fourth largest source of imported grapes. Other important export markets for India include US and various Asian countries like Bangladesh, China, Thailand and Malaysia. Amit Kalya, Business Development Manager at Nasik-based Kalya Exports explains, “UK has always been a stable market for us. Volumes are also growing in the Russian market. In Asia, China has opened up.” Exporters say, Australia and New Zealand are also emerging as potential export markets.
"Since FY2012, India’s export of fresh grapes has grown 46.08%"
While EU accounts for a major share of our exports of fresh grapes. Grape farmers have had to learn about the acceptable safe farming practices as per EU guidelines to be able to produce grapes that would qualify for the required EU certifications. In order to assist exporters, APEDA launched GrapeNet in 2007, an online platform for exporters to share information and track their entire supply chain. Exporters are also these days more aware of the regulations after having had some of their consignments that did not pass the stringent tests returned. The Indian government has also become a lot stricter when it comes to exports as a single consignment failing a test attracts intense scrutiny and hurts the entire exporting fraternity. Exporters have also taken it on themselves to train and educate farmers.
Merchant Exporter procures the grapes from approved farm and provides that lot to government-approved APEDA Packed house, so the game of exporting it has become an easy one. Exporter only needs IEC Code and APEDA Certificate to export this product.
Indian exporters have overcome the regulatory issues through education and efforts, and now have to cross the hurdle of producing the varieties of grapes that are in high demand in international markets. So, if not variety, what has been fuelling the demand? - price has a big role to play. If we compare our products to that of the products of other major producing nations, we do not have many of the varieties that are are in demand. What usually drives demand for our produce is that Indian grapes are cheaper than that produced in South Africa, Peru, Brazil, etc. India mostly exports white (green) grapes, nowadays India is also exporting black grapes which are in demand in the market, having acquired the expertise to farm them. Internationally, there is more of a demand for coloured grapes but India does not have these varieties but it could be done by educating the farmers.
Cultivating the new varieties that are in demand however is not easy as the seeds are usually patent protected. “These patented varieties also cost a lot and work on the basis of royalty. So, the person who creates the variety, the breeder, has to be given a royalty, every year. Also, because of the law of intellectual property (IP) regulations in India, breeders located outside India are concerned about violation of IP rights. Some exporters, are now trying to import these new varieties. These varieties of grapes have special features such as low production cost, better yield, bright colour and of course good taste. They also have a longer shelf life and can change the fortune of an exporter.
The government has also been taking interest in helping exporters acquire the technology and processes to cultivate the new varieties that are in demand, It will take at least 3-4 years for the process to get completed and cultivation to start. Early Sweet is a variety that was introduced by GRAPA in South Africa and these grapes are being exported from South Africa to Europe during January-February. Now, if that variety is given to India, we will also grow the same and export them to the same market in the same period, giving tough competition to South African exporters. South African producers may therefore not want to sell the product to India.
The vagaries of the trade not withstanding, with the demand for grapes rising around the globe, exporting grapes remains a profitable venture. Exporters say that exhibitions that the government bodies facilitate are of great help when it comes to interacting and finding stable, long-term buyers. Exporters participate in many of the big fruit exhibitions across the world like Gulf Food. At these exhibitions, they interact with new buyers & invite these prospective buyers to see Indian facilities. That is how new business develops.
New markets are also opening up for Indian grape exporters, and new buyers are keen to try our products. Grape exporters, producers and the government have begun a concerted effort towards cultivating the newer varieties of grape that are now in demand the world over. The regulatory hurdles have been mostly overcome. The sector has tremendous potential with the demand for fresh grapes as well as wine on the rise. With sustained efforts towards acceptable and safe cultivation practices and aggressive marketing push, it may soon be time for grape exporters to raise a toast!