Grapes become cheaper in Maharashtra, India; heavy arrivals hit prices

Wholesale prices of grapes in Maharashtra are on a downward spiral, thanks to the heavy arrivals in the market and lack of demand from the North due to the prolonged cold weather.

According to All India Grape Exporters Association, prices of grapes have gone down by nearly 30 per cent in the domestic markets to Rs 10-16 per kg for average quality and Rs 25/kg for export markets. For retail consumers, prices are in the range of Rs 40-50/kg depending on the quality.

Because of the drop in domestic prices, even exporters have now begun bargaining with grape growers and are seeking the produce at a lower price. In export markets, prices have dropped from Rs 90 per kg to Rs 40 per kg.

Taking a cue from the previous year when some heavy showers took place, this season, grape growers went in for late pruning because of which the flowering also got delayed and all the fruit arrived in the market simultaneously, leading to heavy arrivals.

Earlier, cold wave weather condition in the state had badly affected the demand of grapes during the first half of February which again reduced the size of the fruit and it led to a drop in wholesale prices.

Now, the grape harvest season is in full swing and the supply has increased simultaneously from all sides that eventually led to a further drop in the wholesale prices in the domestic market. Moreover, there is continued chill in the North which has led to a drop in demand and therefore, growers are forced to sell at lower prices, he said.

Significantly, Russia and Sri Lanka have halted the export of grapes from India seeking a pest-free area certificate from growers, leaving stocks lying at the ports for a couple of weeks.

There also has been a bumper crop in Peru and Chile, and grapes from these nations are posing heavy competition to Indian grapes export market.

India is currently on track for a record export year with a projected 11 per cent increase in volume for April 2018 to March 2019. So far, some 42,458 tonnes have been exported. India exports mainly to European countries. Russia and China are other major markets.

Shekhar Ghosh is consulting editor, Indoasiancommodities.com. He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at shekhar.ghosh@indoasiancommodities.in.

Share

Leave a Reply

Your email address will not be published. Required fields are marked *