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Gherkin exports down on excessive ocean freight in FY 22 1

Gherkin exports fell in volumes and worth phrases in the course of the 2021-22 fiscal as larger world ocean freight charges made the Indian produce uncompetitive in key markets similar to the US and the European Union. Exporters worry that shipments might come beneath additional strain within the present monetary 12 months as farmers are prone to swap to different profitable crops similar to cotton, oilseeds and maize.

Gherkin, a sort of small cucumber is grown in elements of Karnataka, Tamil Nadu and Andhra, is shipped in a brine answer to abroad markets the place they’re consumed as pickle.

In worth phrases, gherkin exports declined by 11 per cent to $199.46 million over $223 million in 2020-21 as per the most recent knowledge from the Agricultural and Processed Meals Merchandise Export Growth Authority (APEDA). In rupee phrases, the decline was round 10 per cent at ₹1,487 crore in contrast with ₹1,651 crore a 12 months in the past. In volumes phrases, the decline was decrease at round 2.7 per cent at 2.175 lakh tonnes over 2.235 lakh tonnes in 2020-21.

Shipments to the US, the biggest market, had been down at 57,225 tonnes (57,784 tonnes within the earlier 12 months 2020-21). Equally, exports to European Union dropped. Shipments had been all the way down to nations similar to France at 13,192 tonnes (14,974 tonnes), Spain at 15,568 tonnes (17,455 tonnes), Germany at 9,429 tonnes (13,901 tonnes) and Belgium at 9,839 tonnes (12,619 tonnes).

Nonetheless, the Indian gherkin shipments to Russia witnessed a rise at 26,086 tonnes (23,453 tonnes), Canada at 18,358 tonnes (12,548 tonnes) and Australia at 9,611 tonnes (6,502 tonnes).

Competitors

In Europe, Indian exporters confronted competitors from producers in Turkey and Jap European nations as the upper ocean freight charges made the Indian produce costly in these markets.

Pradeep Pooviah, CEO, Blossom Showers Agro, a Bengaluru-based exporter attributed the decline in shipments to excessive ocean freight charges. “We anticipate the shipments to return down additional by 20-30 per cent this 12 months,” he mentioned.

Farmers this kharif season are switching to different profitable crops similar to cotton, maize and oilseeds, the place the returns are larger, Pooviah added.

Gherkin cultivation is principally concentrated in southern States similar to Karnataka, Tamil Nadu, Andhra Pradesh and Telangana, the place it’s grown on about 60,000 acres. Over half of the 50 gherkin processing and exporting items are positioned in Karnataka, the key producer.

Printed on

June 23, 2022


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