Local pomegranate prices keep back Indian exports

A strong local Indian market has made growers prioritize the local market over the export one. The falling value of the ruble and stiff European Union standards are also obstacles Indian exporters have to deal with.

“There were more than 1,500 tons of pomegranates exported from India last year to Europe and Russia. However, with the Russian market not picking large volumes like last year, we will see a sharp drop in export volumes. Local prices continue to be very fruitful for the farmers and hence, even though supplies are available year round, the export season kicks in only when there are limited origins serving the European markets” said Kaushal Khakhar of Kay Bee Exports.

“We struggle to offer the same prices to farmers as the local market does during the other months. Russian market prices are low and exports to Europe are limited to a few months out of the year.” Khakhar noted that current prices are between $2.00 and $2.50 a kilogram, which, though a little lower than prices from last year, are still high enough to keep most fruit at home. The difference between last year's exports can be explained by the situation in Russia.

Russia has been a significant part of Kay Bee's export plan in previous years, and the falling value of the ruble has diminished the importance of that market this season. Indian Pomegranates are shipped to the continent only during the window periods. To add to that, strict standards by the European Union have made many Indian suppliers wary of trying to ship to Europe. Several pesticide MRLs are unrealistically low because of lack of data. E.g. Spinosad has an MRL of 1.00 or above for many vegetables but 0.02 for Pomegranates.

Most of the world also prefers the Wonderful variety, which is not the most popular variety in India. Put together, the current situation makes many Indian growers believe that it's not worth the effort trying to export fruit – in their minds, it's easier to sell it for good prices at home. But with a group effort, Khakhar believes the situation can change.

“Several importers have commented that the Indian Bhagwa variety is visually more appealing, soft to eat and has the right sugar-acid ratios. This makes it the best-eating Pomegranate variety in the world. Its only limitation is its size, which ranges from 200g to 350g. However, the weight of the arils (seeds) in a Bhagwa constitute 55% of the total weight of the fruit while other varieties range from 35% to 40%. This also makes it a far greater value for money compared to any other variety in the world”.

Khakhar feels that the Indian growers, exporters and government authorities should unite and promote the superiority of the Bhagwa variety in various markets around the world.

Kay Bee Exports’ own farming operations are going to yield a 500 tonne pomegranate harvest from last week January up until April. It has also started a high-care factory for pomegranate arils where it extracts the seeds from the fruit for the processors and for the consumer markets. Khakhar adds that Kay Bee owning the entire supply chain infrastructure has given it an edge in terms of cost efficiencies and quality to go to Europe.”

For more information:

Kaushal Khakhar
Kay Bee Exports
Tel: +91 22 41578900
Mob: + 91 9870405667
Fax: +91 22 25376610
info@kaybeeexports.com

Author: Carlos Nunez / Yzza Ibrahim