Strong exports of fresh fruits and vegetables are to help United States horticultural exports reach record levels. New estimates from the United States Department of Agriculture suggest that exports of US fresh fruit and vegetable are set to reach $7.9 billion in fiscal year 2015, from October 2014 to September 2015, 6.4 per cent ahead of fiscal year 2014’s total of $7.42 billion.

India has been a major market for Washington apples, and a record crop of apple varieties in the USA is set to make its way to the Indian market, along with other fruits.

The United States exported $600 million in fresh berries to Canada in FY2014, representing the biggest commodity export value to any country. The top export to Mexico was apples at $257 million, down about 25 per cent compared to 2013.

However, an impasse over labour issues at seven ports in the US could be costing US apple exporters as much as 300 containers per week in shipments to Asia and India, according to sources.

According to Keith Sunderlal, CEO, SCS Group, which is the in-country representatives of the Washington Apple Commission, there are many hurdles to trade that are witnessed by exporters.

Washington Apple Commission (WAC) is an industry association of growers, packers and shippers of fresh apples grown in the state of Washington, USA. In addition to Washington Apples, SCS also represents other imported fresh fruit organisations in India. These include USA Pears, grown in Washington and Oregon, California Fresh Grapes and Sunkist citrus.

Speaking to Business Line, Sunderlal said some of the constraints faced by exporting companies, and importing customers in India, included high tariffs and ambiguity in phytosanitary requirements and labelling regulations.

``The congestion and bureaucratic procedures at ports leading to delays in clearance of fresh fruits also have a detrimental impact on quality and enhanced costs for consumers,'' he added.

SCS has marketing services based in Gurgaon, and offices in Mumbai, Chennai, Bangalore and Hyderabad.

Large market

Since the opening of the market in 2000, India has become one of the largest and fastest growing markets for Washington apples, with the Red Delicious variety accounting for almost all exports. India was the third largest importer of Washington apples in CY2012, with exports topping $96 million, only trailing Canada at $159 million, and Mexico at $116 million. The previous high for Washington apple exports to India was $40 million in 2009.

Incidentally, the Indian government collects a 50 per cent tariff on the CIF value of imported apples from the United States. Although it is under the country’s WTO bound rate, a report last year by the Washington State on foreign trade barriers to agricultural exports had noted that the rate is one of the highest apple tariffs in the world.

However, given India's love of apples, the report has noted that lowering the tariff would increase consumer purchasing power and could create a much larger apple market. India's current annual per capita apple consumption is less than two kgs, which is very low by global standards. The potential to increase per capita consumption to 5 kgs or roughly a five million tonne apple market would provide opportunities for both domestic growers and importers.

The WAC has a comprehensive marketing programme in India. SCS' Sunderlal said the firm works at wholesale market level with importers and distributors, and conducts retail promotions with all major retailers in the country. WAC's promotional activities also targets small road-side and pushcart vendors.

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