The production of one Indian farmer based co-operative is expected to grow by about 20% compared to the previous season, says Ganesh Kale, director of business development at Om Gayatri: "The progress of the 2024 Indian grape season has been good up until now, as far as production and packing goes. There are a couple of logistical challenges, but those are unavoidable with everything that is going on right now. The volumes for this season are good and production is almost 20% higher compared to previous seasons. The season started with unseasonal rainfall, but the situation has improved since and we're seeing better quality production."
Dealing with the logistical issues in the Red Sea is mandatory, as a significant share of Om Gayatri's grapes are sent to the European continent, Kale explains. "Our main market for grapes is in Europe and the UK specifically. About 80% of our volumes are sent to the European market, hence the challenges with logistics, as the Red Sea crisis does pose issues. Our other markets are South East Asia and the Middle East. But we find the European market is more reliable than the Far East and Southeast Asia when it comes to both price and demand for Indian grapes."
With the logistical issues, as well as later arrivals of the South African grapes, European clients are searching hard for their required volumes of grapes, Kale states: "The demand for Indian grapes is at a high level in Europe and the UK, due to the shortage of white seedless grapes in Europe, which in turn is caused by late arrivals in South Africa as well as the Indian arrivals being impacted by the Red Sea issue and showing up 10 to 15 days later than usual. Indian grape production will grow more in the near future, as new breeder companies are coming to India and having successful trials in the production of new varieties. As a grower-based co-operative, we're willing to plant new patented varieties, which will help growers to sustain economically against the environmental challenges and markets up-downs. In the upcoming years it will be interesting to see the increase in new plantations of patented varieties. This will increase the demand for Indian grapes to increase in near future as well."
The costs of shipping from India to Europe has increased by about four times now according to Kale. "The logistic hurdles created on account of the Red Sea issue will remain to be a strain on the rest of the season, as long as the situation is not resolved. The freight rates of shipping lines have increased by four times compared to the start of the season. The season will go until mid-April and it will hopefully be a good season for the grape industry."
For more information:
Ganesh Kale
Om Gayatri Group
Tel: +91-9272904293
Email: [email protected]
https://fpc.omgayatri.in