Potatoes and grapes in the spotlight for India in Russia

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Potatoes and grapes in the spotlight for India in Russia

Many Indian table grape exporters got their fingers burnt in Europe at the end of last season, while potato shippers face challenges at the moment because of a high minimum export price (MEP) of US$500 per metric ton (MT). While this may not sound ideal, growers of both these crops face a positive situation come winter, according to IG International director Tarun Arora. He tells www.freshfruitportal.com how Russia's closure to some competitors has opened doors four the South Asian country, and will change the way European, Turkish and Iranian growers could view the Indian market.

For importer-exporter IG International, calls have been coming in that show promise for new prospects. From Spanish stonefruit growers looking for fresh markets to Russian buyers aiming to shore up potato and grape supplies, Arora is in a desirable position.

"The market for fresh potatoes will start in December, so there's a huge opportunity for potatoes into Russia this year. I'm very sure about it," he says. potatoes_78434380 - panorama

Arora says the MEP for the tuber is currently very high but this is only because supply is in cold storage rather than fresh. Growers are expecting sufficient rainfall to have a good crop, and he forecasts the industry will then be ready to cater to Russian demand in the absence of any adverse weather events.

"I feel that before the upcoming season the MEP will definitely come down because prices will drop as soon as we head into the new season," he says.

"Russia is a good market for us and it requires a specialized job as well. You need to have the proper systems in place, proper pre-cooling, and you need to properly fumigate the product."

For grapes, Arora forecasts a different attitude from exporters who had a tough recent season in Europe that they won't want to repeat. He expects this could combine well with strong Russian demand in a market without EU-grown supply.

"The recent season this year in the end was a disaster for Indian grapes. There was too much oversupply primarily into Europe. People lost a lot on that market - they could not even recover €2 (US$2.68) per carton delivered after expenditures.

"There will be very few people who will be exporting bigger volumes, which is actually good because what that does is reduces the total amount of product that is going into market and it increases the price.

"This year there is a greater opportunity with product [grapes] going into Russia and bigger demand coming out of Russia; prices will be very competitive from India because of external factors which are predominantly currency, and pricing for farmers."

With this in mind, the company has ambitious export targets for the next season early in 2015.

"This year we closed very strongly. We are targeting close to one million cartons in the coming season for grapes.

"God forbid if any natural calamity does not hit, I foresee that prices will remain very stable this year for Indian grape growers because there will be good supply."

Orientation adjustments for imports

When asked about how Russia's ban would affect some produce-growing countries' outlook toward India, Arora doesn't see any drastic changes, but has seen some effects from what have been emerging suppliers to his market - Turkey and Iran.

However, he feels any lost supply from these two countries could potentially be compensated by fruits from France, Italy or Spain.

"I’ve already started seeing an increase in pricing in these markets, because for apples and kiwifruit they are immediately throwing cash to try and get as much product as they can get," Arora says.

"These are the products where definitely there can be an impact, but if you're talking about a serious impact I think not, because there are alternatives like Italy where there is a lot of kiwifruit available.

"Poland shipped quite a lot of apples to Russia and where all that product is going to go is quite a concern."

He adds he would be open to importing Polish apples but is not sure whether Indian authorities would allow this, and encourages growers from the country to contact the Plant Quarantine Service to see whether they comply with regulations.

He concludes that he has also received calls from Spanish stonefruit companies he has never heard from before, which shows just some of the effects this ban is having on the Iberian nation.

"The person I buy stonefruit from in Spain is a very strong supplier and was never too exposed to the Russian market. His biggest market was Brazil and I've not seen his price drop.

"However, I saw Italian product now coming in at a cheaper price, and I see some pressure on some of the other Spanish stonefruit companies who have tried to touch base with me, which they've never done before.

"So possibly, some of the other Spanish stonefruit companies might be feeling the heat. I can feel that."

Readers can visit our Russian Ban tag page for more information on one of the biggest events faced by the produce industry in recent memory.

Photo: www.shutterstock.com

www.freshfruitportal.com

 

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