FNB News - Mango prices go up by 50-65%; a pace higher than other fruits: Assocham

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FRUITS & VEGETABLE

Mango prices go up by 50-65%; a pace higher than other fruits: Assocham

Thursday, 23 April, 2015, 08 : 00 AM [IST]

Our Bureau, Mumbai

Unseasonal rains that caused a loss of upto 50 per cent in some states, have resulted in prices of mangoes shooting up by 50-65 per cent, at a much higher pace than other fruits and vegetables,according to a recent study by ASSOCHAM.

Hence, lower end varieties of mango are selling at Rs 100 a kg in the retail market while premium variety Alphonso is costing Rs 500-600 per dozen in Mumbai.

According to “Mango – Anxiety on Production and Export Front,” a comprehensive study done by ASSOCHAM (Associated Chambers of Commerce & Industry of India) Agri Research Wing, both farmers and the consumers are at the receiving end of the havoc caused by rains with maximum of the damage reported in Uttar Pradesh which produces largest variety of mangoes in over a dozen belts like Malihabad, Shahabad, Amroha, Bulandshahr, Hardoi, Unnao, Barabanki and Saharanpur.

The trend of rising mango prices is already visible, the study projects retail price tag shooting up by 50 – 65 per cent this season, depending on the variety of the fruit, as per the study.

While the loss is being assessed still as the harvest continues, preliminary estimates point towards a minimum loss of 20% on production. In pockets of Uttar Pradesh, the loss is estimated at over 50%. With production of four million tonne, Uttar Pradesh contributes about one-fourth of the country’s production, which is likely to fall to 15 million tonne this season. With regard to Maharashtra and other central Indian states, the situation is equally bad.

“Various state governments have announced relief measures and financial compensation, they are not sufficient to mitigate farmers’ losses and also curb rising prices. More needs to be done to help farmers,” said D S Rawat, secretary-general, ASSOCHAM.

As per the study, Andhra Pradesh and Uttar Pradesh together account for about half of the total mangoes being produced in India with both the states accounting for almost similar share of over 24 per cent. Karnataka (10 per cent), Bihar (7.6 per cent) and Gujarat are amid top five states with high share in mangoes' production across India.

Rawat said that ASSOCHAM has always been raising issues of concern and interest to the farmers as they form backbone of our economy.

The current year’s mango crop suffered the onslaught of repeated rains accompanied by hailstorm and strong winds from end January till early April 2015 in North and Central India, resulting in huge loss.

Exports too have been affected, though India's share of mango exports even in good times has been negligible. Considering the production volume and variety of Indian mangoes, country’s exports at 41,280 tonne is insignificant, whereas Pakistan which produces just around 1 million tonne of mango exports 40,000 tonne (i.e. 4% of its production). Thus India’s share in global market is minuscule.

The UAE is the top most export destination for India's mangoes accounting for over 61 per cent share followed by the UK (12 per cent) and Saudi Arabia (five per cent). Qatar, Kuwait and Bangladesh are other leading export destinations for Indian mangoes.

Qatar is leading with about 110 per cent CAGR in mango imports from India followed by USA (88 per cent), Oman (84 per cent), Nepal (70 per cent) and Kuwait (46 per cent) amid top five destinations recording high growth in mangoes exported from India.

India has huge potential in mango exports but unable to exploit the opportunities. In the current year, lower production prospects are likely to impact mango exports from India badly, according to Rawat.