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Monday, August 9, 1999

Aussies test market fruit in the South 

Ajith K Pillai  
Hyderabad, Aug 8: With the government's new Exim Policy allowing the import of horticultural products into India three months ago, the Australians have decided to enter the Indian market with apples, pears and oranges.

The fruits will initially be available only in the South, in three cities: Hyderabad, Bangalore and Chennai. A foray into the the rest of the country will depend on the test market results. A delegation from the Australian Horticultural Corporation (AHC) concluded a 10-day visit to the three cities last week.

The delegation members told The Financial Express that Bangalore, Hyderabad and Chennai were chosen for test marketing, as these areas were not the traditional orange, pears and apple-growing centres in India. The trial involves making the product available in select retail outlets in these three cities, supported by advertising and promotion.

Retailers and consumers exposed to the marketing effort will be surveyed to build a picture of the acceptance of the Australian product. Themembers said they were satisfied with the response they had received so far.When asked about the prohibitively high prices of the Australian fruit, the members expressed confidence that price would not be a deterrent factor as the purchasing power of a certain section of Indians is quite high. According to the Australians their ``fruits and vegetables are clean and green and of top quality.''

Moreover, the delegation believes the imported fruit will serve to plug the gaps in domestic supply during the off-season. ``As a Southern Hemisphere producer, Australia can supply a quality product counter-seasonally without affecting local trade,'' head of the visiting delegation, Richard Bennett said.

The Australian fruits are priced at a premium. Currently, the horticultural goods imports into the country attract a duty of 45 per cent.

In the case of oranges, there is a special import permit of 850 Australian dollars per container, making it expensive for Indian consumers.

An exotic variety of apple forexample can cost up to Rs 75.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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