With the 2011 Indian grape export campaign getting under way, key trade sources are forecasting a drop in shipments to the EU market in the wake of the chlormequat chloride residue issue last season.
The 2010 export season to Europe was thrown into turmoil in its early stages, following the discovery of residues of the plant growth regulator chlormequat chloride component (CCC) on Indian grape supplies to Lidl in Sweden.
The EU had no maximum residue level (MRL) in place for CCC, which it turned out is used only by grape growers in India to replicate winter conditions. EU authorities therefore applied the default MRL of 0.05ppm, which amounts to virtually no trace and sits well below where it would have been set had a bespoke MRL been in place. As a result, many shipments failed residue tests or had to be diverted to other markets, causing sizeable financial losses, especially for growers and exporters.
Indian government and industry stakeholders have undertaken a number of measures to prevent a repeat occurring this year and to rebuild India’s reputation for safe grapes.
The CCC episode highlighted the need to significantly expand the system of chemical residue testing and monitoring set up by India’s Agricultural and Processed Products Export Development Agency (APEDA) in 2003.
While the Residue Monitoring Programme (RMP) had grown to include 98 pesticides as of last year, it did not test for other agrichemicals such as plant growth regulators (PGRs). APEDA has since increased the list to 171 chemicals, including PGRs, and it has also invested heavily in upgrading and up-skilling Indian laboratories.
Exporters are also taking a more selective approach to sourcing this year, and some are providing technical inputs to farmers and tightening up on their own testing procedures.
Many growers have managed their orchards without using CCC this season, but whether residues can be eradicated remains to be seen.
“A study we conducted shows the CCC residue progressively reduces as farmers have largely abstained from using CCC this season, but the actual sample testing will prove the hypothesis,” said Chaitanya Rajwade of leading exporter Mahindra Shubhlabh Services.
Indeed, despite the measures taken, both buyers and exporters remain in a cautious mindset ahead of the new season, which is just getting under way, according to Mayank Tandon of major exporter Freshtrop Fruits.
“While steps have been taken to mitigate risks such as last year’s CCC issue, we’re awaiting test results from early sampling to get greater confidence in the measures adopted so far,” he told Fruitnet.com in late January.
With EU buyers in a cautious mode, Mr Rajwade said Indian export volumes to Europe are forecast to fall to around 2,800-3,200 containers this year, down from 3,757 containers in 2010.
Mr Tandon also predicted that some of the less serious or committed Indian operators would drop out of exporting grapes to Europe this year.
Crop volumes also look set to decline this year, and post-Monsoon rains appear to have claimed around 20 per cent of yields, though damage is confined to earlier production available in February, according to Mr Rajwade.
“The current season is just around the corner but there are concerns about the overall quantities available this year,” Mr Tandon said. “We expect a nominal drop in volumes of good quality produce.”
Another factor that could influence Indian grape exports to the EU this year is growing demand from other markets, notably the flourishing domestic market.
“Exports of table grapes from India are becoming more challenging with each passing year due to the strong and growing domestic market,” said Rajesh Menon of major shipping line APL. “Besides the increase in domestic consumption, the burgeoning wine industry provides another avenue to farmers to sell their produce.
“Exporters are also beginning to develop alternative markets such as the Middle East, Asia, eastern Europe and South Asia,” Mr Menon added.
While growers have laid off using CCC this year, efforts are under way to negotiate a dedicated EU MRL for CCC. However, trade sources warn that it will be at least a season or two before any breakthrough is achieved as the manufacturers must first gather the required data. In the meantime, the industry will be hoping its control measures prove enough to maintain a clear run during 2011.
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