Indian grapes

This could be a year to forget for Indian grape exporters. Troubled economic conditions in Russia (a key export market), combined with unfavourable exchange rates (a weak rouble and euro, and strong rupee) are hurting exporter margins.

To make matters worse, Indian grape volumes are down 10-15 per cent overall and quality is mixed because of hail damage in certain producer regions in December and subsequent cold, wet weather.

Berries have developed cracks, and brix levels developed slowly in affected areas, which could reduce the crop’s shelf-life and limit availability towards the end of the season, some shippers said.

“The currency is a problem, output is a problem and quality is a problem,” said Neeraj Anand, president of grape packer-shipper Neeraj International. “Some Russian customers are simply not paying, and not picking up their containers.”

It has been a depressing start to the season, echoed Nagesh Shetty, director of Indian fruit shipper Deccan Edibles, whose early-season grapes to Asia met weak demand due to over-hang of Southern Hemisphere fruit.

“We hope that by the end of the season things won’t look so bad,” he said.“Volumes are down, so if demand is there later on, prices will pick up. India’s grape industry will ride it out.”

In an effort to mitigate losses caused by the weak euro and devalued rouble, many Indian grape growers are chasing markets in Asia. But, as yet, the sector doesn’t produce enough volumes of the varieties favoured by consumers in that region.

“The devalued rouble and weaker euro is a big setback for Indian grape shippers this season,” said Nitin Agarwal of import-export firm KBC Agro. “The Indian rupee has appreciated by 20 per cent against the euro as compared to last season. I believe exporters will play safe and load fewer volumes to Europe. I am looking for buyers outside Europe, but again we have very limited grape varieties as compared to our competing countries.”