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As the European Union (EU) bans mangoes from this country starting May 1, it could leave a bitter-sweet taste in Indians' mouths. While mango lovers would have the tastiest alphonso and kesar varieties at more affordable rates, traders and exporters stand to lose a few hundred crores.
Local prices have been down 15 per cent for the last few days. Traders expect a further fall of 25 per cent in 15-20 days, as excess supplies start coming. While the EU is not a major market for Indian mangoes (accounting for less than 10 per cent of total exports), nonetheless, any ban hits traders who have to struggle to find new markets to divert excess stocks. Traders say losses could be Rs 100-120 crore.
The Agricultural and Processed Food Products Export Development Authority (Apeda), however, is not panicking. Sudhanshu, western in-charge, says, "Of the 55,000 tonnes of exports in 2012-13, 3,890 tonnes went to the EU. This year, too, exports were allowed till April 30. The season for alphonso, major part of exports, lasts till mid-May. Already, 50 per cent has been exported." Apeda does not compile export data by categories.
While exporters would have a tough time cracking new markets, exports to the existing markets of the US, West Asia, China and Southeast Asia would increase. West Asia is a traditional market for Indian mangoes. It accounts for 50 per cent of exports.
Abhijeet Bhasale, managing director of Pune-based import-export house Rainbow International that is also into e-tailing through mangowale.com, said, "With the EU banning imports, exporters will not immediately be able to switch to other markets." He added India was likely to double exports to the US to 620 tonnes this year due to the capacity increase of the irradiation unit at Lasalgaon in Maharashtra.
Bhasale said overall export figures were higher than Apeda ones as many exporters were not registered with the latter. "Exports to EU were 6,000 to 7,000 tonnes last year."
Data from the National Horticulture Board show wholesale prices of alphonso having fallen from Rs 68-92 a kg on April 1 to Rs 40-50 a kg on April 30 in Mumbai. A Surat-based exporter said mango prices had come down 15 per cent in a week.
Nanjibhai Patel, a Junagadh-based trader said prices were likely to be down 25 per cent in 15 days as the season began. He added as traders attempted to divert excess supplies to other markets, they might end up getting lesser prices in the export market, too. The kesar variety is likely to take a hit in exports, as the season starts May on. Traders said kesar mango, produced mainly in Gujarat, was the second-most exported after alphonso, followed by the Banganapalli, Rajapuri and Dussehri.
