Quality Indian mangoes have been satiating the appetite of discerning US consumers for the last couple of years. This is thanks to the sea-route trade and a new irradiation facility that checks weevils and fruits flies in mangoes, assuaging the food safety concerns of the US health authorities. But the big change in the last couple of years, apart from increasing quantity, is the high premium that Indian mangoes are commanding, purely because of their quality and efficient branding.
According to the Agricultural and Processed Foods Export Development Authority, in 2009, Indian mangoes fetched $20 per 3.5 kg pack, which has already gone up to $28, while mangoes from other countries cost only $5-6 for the same quantity. Indian mangoes, earlier exported to Middle East and neighbouring countries for a fraction of this price, have started commanding huge premiums in high-value markets like the US and the UK. A crucial game-changer, this should act as an example for all of India?s farm exports. The focus should be more on value than volume. It is always advisable to sell low quantities at high prices rather than high quantities at low prices.
Ironically, until recently, India, the world?s biggest producer of mangoes with output estimated at around 12.5 million tonnes, exported only around 80,000-90,000 tonnes. In the US, officials said the import potential is almost 500 tonnes of mangoes annually, of which only half has been realised in the past two years. Opening up of the sea route is also a lesson on how exploring new avenues for exports could reap rich dividends, not only for growers but also for exporters. Because this mode is cheaper, large consignments of 15-20 tonnes can be moved, against 1-1.5 tonne consignments by air. India had been pushing to resume mango exports to the US ever since they were banned in 1989 because of the pest problem.
The issue was resolved during George Bush?s visit in 2006, following which the country set up an irradiation facility at the Bhabha Atomic Research Centre at Lasalgaon, Nasik, that can handle 500 tonnes of mangoes annually. The takeaway from this case is how different agencies can work together to boost farm exports.
sandip.das@expressindia.com