Although the outlook of the Indian grape season looked really positive, trade has been rather slow at the start, says Amit Chopde, CEO of Indian fresh produce exporter Chopde Farms and Exports: “The early grape season in India started at a slow pace, which was not expected beforehand. It won’t come as a surprise, but the issues surrounding the red sea route was one of the main reasons for the slower start. Shipments of grapes headed to both Europe and Russia are affected by the current situation. Most shipping lines have chosen the longer route to Europe, via the Cape of Good Hope. However, this results in 13 to 15 days of more transit time, as well as higher freight rates and even a war surcharge by shipping lines to the exporters.”
Overall demand is quite strong at the moment, but exporters in India are just not taking any risks in regards to the red sea, Chopde explains. “The export volume to Europe for the early packing has been reduced due to this. Counting the increased sea freight, which is almost double from last year, on top of that, and it’s easy to see that Indian grapes are not cheaper in any way this season. Currently, demand for India grapes is good from the Gulf countries, Europe and Russia as well. But despite this demand, many exporters do not want to take a risk with these high freight rates and the longer transit route. Instead, they opt for exporting to Asian markets over Europe. So, some players will have reduced volumes initially to Europe. As a result, the volumes compared to last year are reduced up to 30% for early season shipments.”
As of now, the weather in India isn’t great either, which could mean some delays in the later crops: “Last month, there had been unseasonal rains and hail in some areas, but this should not affect overall crop availability. Currently, India is dealing with a cold wave and there is cloudy weather in the grape growing area. This is also going to delay maturity and affect brix levels, because of less sunlight reaching the crop,” Chopde concludes.
For more information:
Amit Chopde
Chopde Farms and Exports
Tel: +91 98230 86907
Email: amit@chopdefarms.com