Rains dampen ITC grapes export target

ITC International Business Division (ITC-IBD), which exports a wide range of agricultural commodities, had targeted to export 20 containers of grapes to the European market this year.

To meet the target, the division, which contributes over 60 per cent of ITC group's total foreign exchange earnings, helped 40 odd farmers near Hyderabad in getting the European certification.

Its plans, however, have gone haywire following unseasonal rains and hailstorm in the beginning of March, affecting the quality and production of grapes. Consequently, ITC-IBD has now scaled down its export target to five-six containers of about 15 tonnes each.

"Our effort to boost the exports of grapes this year has gone in vain," ITC-IBD vice-president - exports, Ninad Bhosle, told Business Standard.

Bhosle said that because of the unseasonal rains, there was too much water in the fruit and the grape bunches have also loosened. This had affected the export prospects as the European consumers do not like loose bunches.

"They also want the fruit to be crisp," he said.

This apart, the prices of export quality grapes shot up to about Rs 42 a kg as against an expected price of around Rs 38 a kg. "The overseas markets are still not responding to the higher prices leading to a decline in exports," Bhosle said.

According to official estimates, up to 20 per cent of the output and export could be affected due to rains and hailstorm.

Andhra Pradesh accounted for grapes output of 85,500 tonnes and exports of 1,400 tonnes last year.