Delayed flowering, high temperature hit production.
ITC Limited is not expecting any growth in its mango pulp exports this year on account of a steep fall in production of mangoes, particularly that of the Totapuri variety.
The Kolkata-based multi-business conglomerate, which has diversified presence in cigarettes, hotels, consumer goods and agricultural business, achieved an annual growth rate of 50 per cent ever since it started export of processed mangoes five years ago.
Last year, the company processed 45,000 tonnes of mangoes and exported about 22,000 tonnes of pulp, mostly to Europe and the US, worth about Rs 100 crore. ITC operates eight mango processing units spread across five states.
“This year, we are not expecting any growth in exports. Instead, we will be trying hard to maintain last year’s volumes,” ITC Agri Business Division vice president - exports, Ninad Bhosle, told Business Standard.
According to market estimates, the production of Totapuri mangoes would fall by 50 per cent this year from a normal level of 2 million tonnes. Consequently, the price of the fruit (pulp variety, not table variety) is expected to go up from Rs 8 a kg last year to over Rs 10 per kg.
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“If the price goes up further in the light of the steep decline in production, exports will be unviable,” Bhosle said, adding Totapuri pulp exporters would have to face uncertainties this year.
Totapuri mangoes are the cheapest and also have good pulping quality. Hence, 75 per cent of the pulp in India is made of the Totapuri variety, while Alphonso and other varieties account for 20 and 5 per cent respectively of the total mango pulp produced in the country.
Totapuri is produced only in south India where mango crop this year was impacted by delayed flowering, late fruit setting and high temperature. Added to this were heavy winds and rains that affected the growing areas resulting in an abnormal fruit fall. Consequently, the combined crop yield of all the varieties of mangoes in the southern parts of the country this year is expected to be just 2 million tonnes as against a normal yield of 6 million tonnes.
On the other hand, the production of Alphonso is expected to go up this year. Gujarat, the major producer of Alphonso, is expected to have a bumper crop while the yields are estimated to be medium and poor in Maharashtra and Karnataka respectively.
An ITC official said Alphonso fruit prices were expected to fall from last year’s level of Rs 19 a kg but could not guess the fall in percentage.
India produces 350,000 tonnes of mango pulp annually, 50 per cent of the estimated 700,000 tonnes of global mango pulp production. It exports 200,000 tonnes of pulp, while 150,000 tonnes is consumed domestically.
On the domestic front, Bhosle said there would not be any shortage of pulp for fruit juice manufacturers as there was an estimated 35,000 tonnes of carryover stocks from last year. There was a large quantum of carryover stocks due to the slowdown in exports on account global recession.