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India’s Apple And Pears Supply To Fall, Grapes To Increase

Prabodh Krishna Dec 12, 2017

India’s deciduous fruit supply is projected to decrease by little margin post temporary import ban from the People's Republic of China. They may have a little comeback due to better imports from the USA. Estimations for Apples, pears, and grapes are shared.

The Apple Production & Consumption

In India’s marketing year (MY) 2017-18, apple production is forecast at 2.3 MMT, an increase in production over the previous year owing to favourable growing and weather conditions. Indian apple production is limited to the hill states of Jammu & Kashmir (J&K), Himachal Pradesh (HP), and Uttarakhand. The North-Eastern hill states of Arunachal Pradesh, Nagaland, Meghalaya, Manipur, and Sikkim also grow smaller quantities of deciduous fruits. Production is primarily for domestic consumption, but limited exports go to the neighbouring countries of Nepal and Bangladesh. The Government of India is working on avenues to increase yield and to rejuvenate orchards in the major apple-producing states of J&K and HP. Most of the orchards, which focus on the popular Red Delicious, Royal Delicious, and Rich Red varieties, are 30 to 35 years old. Harvesting in these areas of India generally occurs between July and October.

Even though India is one of the world’s largest producers of apples, domestic supply cannot meet demand. Increased consumption from the growing middle class is unmet by production, which is limited by seasonality, geographical separation, and insufficient infrastructure. As a result, the apple is the most heavily consumed imported fruit in India. The major factors fuelling apple demand are increasing population, growing disposable incomes, improving lifestyle, health awareness, and a large percentage of vegetarian consumers.

Given the current production and consumption scenario, the processed apple sector is poised for growth, although this will greatly depend upon the stability of supply as well as the expansion of necessary transportation infrastructure and cold chains. Consumption is estimated at 2.24 MMT in MY 2017-18, up from 2.23 MMT the previous year. The fruit is consumed fresh; just two percent is processed and 12 per cent is lost to spoilage or waste.

Pears Production & Supply

India cultivates over 20 varieties of pears throughout Punjab, Himachal Pradesh, and Jammu and Kashmir; domestic supply is available from late summer to early winter. In MY 2016/17 pear production was down owing to unfavourable weather in the major pear-producing northern states of India. Domestic pear production for MY 2017-18 also is forecast down slightly to 0.35 MMT on the lower yields in the alternate year.

India produces a limited volume of pears domestically; imported fruit satisfies the remaining consumer demand. Drivers of increased consumption include: rise in disposable incomes, dual income households, and improved awareness that healthier diets should include fresh fruit. Consumption is projected to reach 327,500 MT in MY 2017-18, down from 332,200 MT in MY 2016-17. With limited domestic production, high unit cost of imported fruit, and increased consumption of fresh fruit, the market for processed fruit remains small at about two percent of supply. Waste or spoilage still constitutes almost 12 per cent of the annual pear supply.

Grapes Production & Consumption

Grapes are an important fruit produce in India and planted area totals over 138,000 HA. More than 20 varieties of grapes are grown; Thompson seedless variety constitutes about 55 percent of the total cultivated area. The area under cultivation is up just 1.5 per cent, but production is projected up by seven percent to 3.0 MMT in MY 2017-18, from 2.78 MMT on an area of 136,000 HA in MY 2016-17. Major grape-growing states are Maharashtra, Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, and the north-western region, which includes Punjab, Haryana, Uttar Pradesh, Rajasthan, and Madhya Pradesh. Maharashtra dominates production with over 80 per cent of the total production area and volume.

India is a major producer and consumer of grapes; India consumed 90 per cent of its own production or 2.33 MMT grapes in MY 2016-17. A consumption increase of 6 per cent to 2.48 MMT is expected in MY 2017-18. To fill the domestic supply and demand gap fresh table grapes are imported from several countries. Major factors driving increased consumption include urbanization, greater disposable income resulting from women entering the workforce, and more health awareness.

Government of India’s Ministry of Food Processing and Industries (MoFPI) reports an approximate wastage or market withdrawal of 8 percent in grapes. About 98 per cent of grapes are consumed fresh. Domestic processing remains minimal because the cold chain for processing grapes is focused on export markets.