Rising competitiveness of Indian grapes in the global market

May 15, 2023

The global fruit and vegetable export market is a significant contributor to the global economy, with countries around the world exporting a wide variety of fruits and vegetables to meet the growing demand from consumers. The global fruit and vegetable export market is valued at over $100 billion annually, with Asia, Europe, and North America being the leading exporters. The increase in demand for fresh fruits and vegetables is due to various factors such as rising population, increased health awareness, and changing dietary habits. As a result, countries such as China, the United States, Spain, the Netherlands, and Mexico have emerged as the top exporters of fruits and vegetables in the world.

In terms of product categories, bananas, apples, grapes, oranges, and pineapples are the most commonly exported fruits, while onions, potatoes, tomatoes, and peppers are the most commonly exported vegetables. Other fruits and vegetables such as avocados, berries, citrus fruits, and melons are also gaining popularity in the export market due to their health benefits and versatility.

Health Benefits of Grapes

Grapes are one of the most nutritious fruits, with several health benefits. They are rich in antioxidants, which help protect the body against free radicals. Free radicals are molecules that can cause cell damage and increase the risk of diseases such as cancer. Grapes also contain vitamins A, C, and K, as well as minerals such as potassium, calcium, and iron. These nutrients help boost the immune system, promote bone health, and maintain healthy blood pressure levels. Grapes are also a versatile fruit that can be eaten raw or used in several recipes. They can be made into juice, jam, and wine, among other things. This versatility has contributed to the high demand for grapes worldwide.

Global Grapes Market

The global grape market is a significant contributor to the global fruit export market, with countries around the world exporting a wide variety of grapes to meet the growing demand from consumers. The global export volume of grapes has been increasing steadily over the years, and it is expected to reach 28.2 million metric tons by 2026, according to a report by Mordor Intelligence. The export value of grapes is also expected to grow, with a projected value of $30.7 billion by 2025. This indicates the significant demand for grapes in the world market.

According to the data from the International Trade Centre, the global export of grapes was worth $8.79 billion in 2021, with a total volume of 6.64 million metric tons. The top three exporters of grapes in 2021 were Chile, Peru, and the United States, which together accounted for around 56% of the global grape export market. Chile was the largest exporter of grapes with a total value of $2.8 billion, followed by Peru with a value of $1.6 billion, and the United States with a value of $1.3 billion. In terms of product categories, seedless grapes are the most commonly exported grapes, accounting for more than 70% of global grape exports. Other grape varieties such as muscat grapes, black seedless grapes, and red seedless grapes are also gaining popularity in the export market due to their unique flavours and versatility.

The global grape market is driven by factors such as rising population, increasing health awareness, and changing dietary habits. As a result, the demand for fresh and healthy fruits like grapes is on the rise, leading to an increase in global grape production and exports.

Indian Grape Export

India has emerged as a leading exporter of table grapes, with significant export volumes to Europe, the UK, and South East Asia. The grape season in India starts in January and ends in April, with the peak season being in February and March. In the financial year 2019-20, India exported 1,67,928.75 metric tonnes of grapes worth USD 186.37 million. This indicates a growth in both volume and value compared to the financial year 2018-19 when India exported 1,59,928.76 metric tonnes of grapes worth USD 169.39 million. According to the data from the Agricultural and Processed Food Products Export Development Authority (APEDA), India exported 1,85,869.41 metric tonnes of grapes worth USD 214.84 million in the financial year 2020-21. The trend in the last three years shows an increasing demand for Indian grapes in the international market, resulting in a significant increase in both the value and volume of grape exports from India.

The major markets for Indian grape exports are the European Union (EU) countries, Russia, and the Middle East. According to APEDA, in 2019-20, the EU accounted for the largest share of Indian grape exports, with a volume of 105,439 MT and a value of USD 134.53 million. Russia was the second-largest market, with a volume of 41,195 MT and a value of USD 44.29 million. The Middle East was the third-largest market, with a volume of 28,523 MT and a value of USD 9.18 million.

Unique Features of Indian Grapes

Indian grapes are known for their unique features, which make them superior to grapes from other countries. One of the key factors that make Indian grapes competitive in the global market is their high quality. Indian grapes have emerged as a competitive product in the global fruit export market, due to a variety of reasons:

Soil: Indian grapes are grown in alluvial soil, which is rich in nutrients and ideal for grape cultivation. The soil in the Nashik district is particularly well-suited for grape cultivation due to its composition.

Sunlight: Indian grapes are grown in a tropical climate, which provides abundant sunlight throughout the year. This sunlight helps grapes grow larger and sweeter than grapes from other regions.

Farming Practices: Indian farmers use traditional farming practices, which have been passed down from generation to generation. Indian grape growers use advanced cultivation methods, including drip irrigation and fertigation, which help to produce high-quality grapes with consistent size, shape, and color. Moreover, Indian grapes are largely free from chemical residues, making them safe for consumption and meeting international food safety standards.

Quality Consciousness: Indian grape farmers are known for their attention to detail when it comes to grape cultivation. They ensure that the grapes are harvested at the right time, sorted carefully, and packaged properly to maintain their freshness.

Supply Chain: Another factor that has contributed to the competitiveness of Indian grapes in the global market is the development of efficient cold chain logistics systems. India has invested significantly in cold storage facilities and transport infrastructure, which has helped to maintain the quality of grapes during transit and storage. As a result, Indian grapes are able to reach distant markets with minimal damage and maintain their freshness and taste.

Government Support: Furthermore, the Indian government has implemented various policies to promote grape exports and increase competitiveness. These policies include subsidies for grape growers, streamlined export procedures, and the establishment of export promotion councils to facilitate market access and promotion.

Summary

The competitiveness of Indian grapes in the global market is the result of a combination of factors, including high-quality production, advanced logistics infrastructure, and government policies. With continued investment in research and development, production, and marketing, India’s grape industry is expected to continue its growth and expand its market reach in the future.

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