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Our Bureau

Chennai , July 21

EXPORT of grapes to the European Union is likely to rise to 1,800 containers (14 tonnes each) this year, while in the long term there is a potential to export 3,000 containers, a study on export opportunities for Indian table grapes has said.

The rise in grapes export to EU this year comes after the shipments fell last year to 1,200 containers from 1,600 containers in 2003, the study by Rabobank International has said. EU accounts for 60 per cent of total grapes export from the country. The union provides a natural window for Indian grapes after April-May, when Chilean grapes flood the market.

Total exports during 2004-05 fiscal is also feared to have declined sharply, though figures are available for April 2004-February 2005 only. For the available period, 12,863 tonnes of grapes, valued at Rs 47.65 crore, were shipped from the country. During 2003-04, grapes exports totalled 26,783 tonnes worth Rs 105.89 crore.

Rabobank, dwelling on grapes export problems, said one was high initial cost in setting up vineyards and recurring production costs.

Weather too played a key role in production, while the rate of lending was high at 12-14 per cent to the growers. Banks and lending institutions were looking for enhanced security from the growers. One solution could be to route the loans through exporters to the growers and both exporters and growers could enter into contractual obligations.

Stating that farmers had limited access to guidance on varieties to choose for growing, better agronomic practices and post-harvest management, the report said efforts should be made to ensure consistent quality on a large scale.

For example, it said, Chilean grapes had an average berry size of 18-20 mm, Indian grapes berry were of 16-18 mm size. Again, consumers in Germany preferred white seedless grapes with higher sugar content that looked a bit yellowish, while those from the United Kingdom favoured more greenish types.

The National Research Centre for Grapes should address the problem of various pests and insects, especially pink berries, and the trade need to be more involved in the fruit's cultivation.

The bank said European Retail Price Good Agricultural Practices (Eurgap) certification process could be made use of to change grapes farming. Also, since the certification process cost of Rs 75,000 was costly, the Government could continue to provide a subsidy of Rs 20,000 to the growers for obtaining the certificate.

Rabobank said the trade should target new markets and not depend only on EU and West Asia markets. Indian grapes could be entering China next year but entry into Far-Eastern markets such as Japan, Taiwan and Korea was unlikely.

The report also pointed out that Indian grapes were costlier in the export market. Grapes from Chile were 30-40 per cent lower. One of the reasons was that the size of the farms was large in Chile (over 100 acres), while in India, it was small (less than 5 acres).

Grapes yield in the country on an average is 20 tonnes a hectare and of this 5 tonnes are of export quality. Cultivation costs are Rs 7-8 a kg, while realisation is Rs 10-12. However, for export quality grapes, the cultivation costs are Rs 15-17 but growers realise Rs 25-45 a kg based on quality and market conditions.

India accounts for 12 lakh tonnes or about two per cent of the total global grapes production of 65 lakh tonnes. Of this, 85 per cent is consumed fresh, 12 per cent is dried for raisins, 1-2 per cent is used for juice and the balance for making wine.

Maharashtra is the top producer with production around six lakh tonnes. Thomson seedless and its mutants account for 55 per cent of the total grapes production in the country.

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