Moldovan apple producers are interested in exporting their products to India, and the USAID project "Effective Agriculture in Moldova" helps them to enter the Indian market.
According to the project representatives, the Indian market is very promising for apple producers in Moldova. Despite the difficulties that accompany the development of new export directions, the Indian market was successfully opened by exporters of apples from many countries, including Poland, Serbia and Ukraine. Competition in the Indian market can greatly facilitate the entry of Moldovan companies into a new market and stand out with high-quality products, tasty and competitive, in comparison with apples from the same Italy. According to statistics, India annually imports about 400 thousand tons of apples from all over the world, in addition to its own apple production of 2.3 million tons. As a rule, massive apple imports start in November-December and continue until June-July. Due to high import duties imposed on US growers, as well as quarantine problems for apples imported from China, apple imports to India have plummeted. Thus, India currently imports apples from Turkey, Poland, Italy and Iran. At the same time, apples from Iran are sold in rather large volumes and are positioned in an economical price segment, since they are imported in plastic boxes of 10 kg at a price of CIF (Mumbai) $7 per box. To facilitate the use of apple export opportunities in India, the USAID’s Effective Agriculture in Moldova project organized an online meeting of Moldovan apple producers and exporters with buyers from India. According to Indian importers, apples of the more expensive Extra and I quality categories are packed in bushel boxes (standard or compact) with a net weight of 18 kg. And in negotiations with potential buyers in India, as in the case of importers from the Middle East, the price is usually negotiated per bushel of a box, versus negotiating a price per kilogram for importers from the EU or Eastern countries. Currently, apples from Italy remain the most quoted in India due to their quality, for which an average CIF (Mumbai) price of $21-22 per bushel is offered (apples from Poland - $18, from Turkey - $19.2). At the same time, the most preferred apple varieties for Indian consumers are Red Delicious, Gala Royal and Granny Smith. Thus, Granny Smith, considered a premium variety, is mainly sold in modern retail chains and is the most expensive in this market, provided that the fruit is of impeccable quality without visible defects. According to fruit importers in India, apples are graded and classified by weight or number of apples in a bushel box, not by diameter as required in the European market. As a general rule, when exporting fruit, the minimum quality requirements must be met, just like when exporting apples to the EU. Depending on the requirements of the importer, tolerances for quality are allowed up to 7% of the total order. At the same time, for Indian importers, the most important thing is the color and appearance of the fruit. And Moldovan exporters have to take into account the hardness of the apples, given the long transit time and the time it takes to distribute and sell apples. According to the previous experience of Moldovan apple exporters, the delivery time for apples to India, which is carried out in sea containers, can vary from 33 to 48 days. In addition, Moldovan apple exporters must provide a compulsory certificate for all fresh fruit suppliers in India, which certifies that no genetically modified seed has been used in the production of apples. The import duty for apples in India is 50% for all countries except the US and is the responsibility of the buyer unless the parties have agreed on other CIF delivery terms. Payment terms are also negotiable, but importers who have discussed with Moldovan fruit producers, members of the Moldova Fruit Association, are willing to pay 25% in advance, 30% upon receipt of import documents and 45% within 7 days from receipt of the goods. The USAID’s "Effective Agriculture in Moldova project (USAID APM) notes that currently Moldova is not a fully approved supplier of apples, but the phytosanitary authorities of India have allowed the import of 10 sea containers in the assessment mode. At the same time, the USAID APM project, in partnership with Moldova Fruct, is helping Moldovan apple producers interested in exploiting export opportunities in the Indian market. // 17.11.2021 – InfoMarket
