Fresh fruits import recovers to pre-2017 level, rises to over 4.5 lakh tonnes

India’s fresh fruits imports have returned to pre-2017 level of 4.5 lakh tonnes, recovering from a slew of setbacks such as the Covid pandemic, supply shocks, a ban on Chinese fruits and the Centre’s retaliatory tariffs against US fruits.

“India’s imports of fruits are growing in double-digit. We were doing nearly 400,000 tonnes till 2016-17 before the Centre banned Chinese imports. Imports recovered, but after the US withdrew trade privileges for us, the Union government hit back with 25 per cent retaliatory tariffs in 2019 setting the clock back again,” said Tarun Arora, Director of Finance and Operations, IG International - one of India’s largest fresh fruits importing firms. 

“I see the imports between 450,000 tonnes and 500,000 tonnes now (in 2021) with apples contributing a major share. We now get apples from Italy, Poland, Serbia, a host of European countries, the US, Australia, New Zealand, South Africa, Brazil…” said the official of IG International, which has been importing fresh fruits since 2002. 

Disputes with China, US

The value of fresh fruits imports into the country, without any tariff, is around $400-500 million, said Arora. 

The Indian government banned imports of Chinese apples and pears from June 1, 2017, after examination of the fruits indicated the presence of harmful microorganisms Pseudococcus Comstocki (mealybug) and Fusarium oxysporum (a fungus).

With regard to US imports, India imposed retaliatory tariffs on 28 American items including walnuts, almonds, apples from June 5, 2019, after former president Donald Trump ended the general system of preference (GSP) in trading for India. He ended it on the grounds that India is a developed nation and does not require trade privileges such as GSP.

The current Joe Biden administration is considering restoring the GSP status for India and both nations are negotiating the terms. 

Other fruits in demand

While apples make up a large part of India’s fresh fruits imports, citrus (oranges), kiwi fruit, avocados, cherries and blueberries are the fruits in demand, Arora said. 

Apples come to India, which has emerged the third-largest fresh fruits consumer in the global market, from northern and southern hemispheres throughout the year. 

“Egypt is doing very well on the citrus fruits front, exporting about 125,000 tonnes of oranges to India. Citrus and kiwi fruits are all witnessing a double-digit growth in demand here,” the official of the Mumbai-based firm set up a group that traded in fruits on commission basis, said. 

The ₹1,200 crore IG International is creating its own ecosystem to grow in the country fruits that are imported. “We are looking for partners to bring the best varieties for our growers to produce in India. For Indian customers, we will give them a taste of good produce that is normally imported but made in India,” Arora said. 

Breakthrough in blueberries

IG International has set up its own nurseries to grow these exotic fruits in India. It has got its own nurseries to grow apples in Uttarakhand, berries in Madhya Pradesh, kiwi fruit in Arunachal Pradesh, bananas in Tamil Nadu, avocados in Telangana, dragonfruit in Madhya Pradesh.

“This year, India will export blueberries. It is the first time that the global market will receive blueberries from India. Till now, only the US and Europe have been supplying blueberries,” the IG International finance and operations director said.

The Mumbai-based firm has entered into a joint venture with Australian blueberry firm Mountain Blue to grow the blueberries in India. 

To a question, he said the firm would look at contract farming only to grow bananas.

Discounting import fears

Arora said fresh fruits imports did not face any problems with regard to sanitary and phyto-sanitary measures undertaken by government officials. “Definitely, there are regulatory challenges but officials are cooperating with importers. They are actually helping solve the problem, understanding the logistics hurdles,” he said. 

IG International recently launched cold storage in Delhi taking the total number of its storage facilities to 17 with a railway siding and container freight station. “We would term this as a cold chain terminal as it gives us the flexibility in our operations and make them agile,” he said. 

IG International has tied up with JM Baxi Group, one of the country’s largest professional and integrated infrastructure and shipping companies, to build world-class storage facilities to reduce lead time. 

Arora said India requires more cold storages since the way consumption of fresh fruits was growing, the number of storages were not enough. “We need to scale up as fast as possible as the gestation period is between nine and 19 months,” he said. 

Discounting fears that imports of fruits would affect Indian growers, Arora said imports showed a “pathway” to farmers on unlocking the value of their produce and exposed them to competition in the global market place. 

“It is important to identify the growth path given the global perspective and benchmark our products to imported products. Changes in the horticultural sector are not happening fast,” he said. 

IG International, which has the largest distribution network across the country, is also one of the largest cold chain logistics firm with a fleet of 130 reefer trucks.

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