Table grapes form an important component in India's export basket, with growers from Maharashtra the largest contributor to the basket. Grape growers in Maharashtra have taken an united stand against alleged slashing of prices by traders. The Maharashtra Rajya Draksha Bagayitdar Sangh — the apex body of grape growers in the state — has decided not to sell export-quality grapes below the price of Rs 82/kg this month.
Vilas Shinde, CMD of Nashik-based Sahyadri Farmers Producer Company — the largest exporter of grapes in the country — said the decision was taken so that growers can avoid incurring losses.
Table grapes form an important component in India’s export basket, with growers from Maharashtra the largest contributor to the basket. Nashik, Pune, Ahmednagar, Sangli and some parts of Marathwada are the main growing centres for the fruit. While exports start from January, the pace picks up only around February.
Shinde said the cost of production this year was approximately Rs 75/kg. “With a bare minimum 10 per cent profit, we think this cost is more than reasonable,” he said.
He said this was the first time growers have taken a stance to fix their selling price. “Every other commodity in the world has a price but when it comes to agricultural commodities, the grower has no say. We aim to change this with the export market, where premium rates can be commanded,” he said.
Meanwhile, India’s export season has started with higher than expected freight cost and logistical bottlenecks looming large over exporters. Freight costs have more than doubled in the last one year and global logistical issues due to the Covid-19 pandemic and lockdown are yet to be solved.
Shinde pointed out that their decision was aimed at the export markets as only 20 per cent of the produce is exported, and this makes it easier to take a stand on the final price.
Last financial year, India had exported 2.46 lakh tonnes of grape, with the total export bill pegged at $313.57 million. UAE and Middle-East are the main export markets but European Union is the most preferred market due to the better rates the exporters command there. Shinde said they had decided that prices for export market, for February and March, would be Rs 72/kg and Rs 62/kg respectively.
While the early pruning variety, especially in Satana taluka of Nashik, had faced vagaries of unseasonal rains, overall the quality and quantity of grapes available for exports this season will not be very different from last season, said Shinde.
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