Glut in EU markets hits grape prices.

NASHIK: The prices of table grapes in Europe have declined by around 33%in the current grape season in comparison to the same time last year due to a glut in the European market.

India exports grapes to European countries in large quantities and Indian exporters get better prices in markets there. But, the grapes exporters of the country are disappointed this year to the decline in prices of grapes. Grape prices in European markets have declined to Rs 40 a kg, against Rs 55-60 last year.

"Indian grape exporters get better prices in European markets, but the rates of grapes have collapsed in European countries due to a glut in the markets. The prices of Indian grapes, which were being sold at Rs 55-60 per kg last year, have declined to Rs 35-40 this year," said Jagannath Khapare, president of the grapes exporters' association of India (GEAI).

"Grapes from Argentina and South Africa had started arriving in European countries three months ago in large quantities, causing a glut in the markets. Moreover, Chile also started exporting its grapes to European countries at the same time as India, worsening the situation. This has led to declining prices in Europe," he added.

Though the contribution of European countries in total grapes export from India is around 30-40%, value-wise its contribution is around 50 to 55%, as Europe pays better prices for Indian grapes. In 2010-11, India's total grape export was 99,278 metric tonne, amounting to Rs 412 crore. Of this, 30,284 metric tonne of grapes amounting to Rs 200 crore were exported to European countries.

Grape export from Nashik district has already commenced. So far, 330 containers of grapes (3,960 metric tonne) have been exported to UK, Holland, Sweden, Thailand, Vietnam, Indonesia, Sri Lanka, Cambodia, Singapore, Malaysia, Egypt, and Hong Kong, sources said.

"Germany, which had blocked the import of Indian grapes for the last two years due to the presence of chemical residue (in 2010), has started placing orders with Indian exporters. Of the total grape export to Europe, Germany contributes around 40%. While exporters are happy on the one hand due to the opening of the German market, they are disappointed on the other due to the decline in grape prices in the European markets," said an official from agriculture department.

Maharashtra contributes 90% to the country's export of grapes. Nashik district, which is known for producing large quantities of grapes, contributes 75% of Maharashtra's grape export. Nashik district is registering continuous growth in the export of grapes every year. In the last nine years, Nashik's grape exports have increased seven-fold from 3,775 metric tonne (2002) to 35,671 metric tonne (2010). In 2011, grape exports declined by 58% to 15,000 metric tonne following unseasonal rains, which affected vineyards badly.

Around 15,499 vineyards with a total area of 10,600 hectares have been registered for the export of grapes by the office of the district agriculture supperintendent officer.

Source : timesofindia.indiatimes.com