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Supply shortage to drive up Indian mango prices

April 16th, 2014

Indian mango production is likely to fall by around 20% and lead to a price hike in the domestic market, according to the Associate Chambers of Commerce and Industry of India (ASSOCHAM).

The chamber said the expensive mangoes would likely pinch consumers’ pockets this season, with the high prices partly blamed on severe hailstorms and rain earlier this year.

“Andhra Pradesh, Bihar, Gujarat, Maharashtra and Uttar Pradesh, which together account for about two thirds of India’s total mango production have recently witnessed nature’s wrath owing to unseasonal rains coupled with hailstorm which have damaged over 50% of the crop which is likely to hold-up mango arrivals resulting in upward spiraling of prices,”
ASSOCHAM said in a release.

“Mango production across India in all likelihood will remain about 15-20% lower than last year’s level of 18 million MT and even the exports are likely to remain muted this year,” added ASSOCHAM secretary general D Rawat.

“Mango production across India in all likelihood will remain about 15-20% lower than last year’s level of 18 million [metric] tonnes (MT) and even the exports are likely to remain muted this year.”

The industry body goes on to explain that of the approximate 1,300 varieties of mangoes globally produced, India cultivates more than 1,000.

The southeastern coastal state of Andhra Pradesh and Uttar Pradesh in the north account for almost half of India’s mango basket. Other states including Bihar in the east and Karnataka in the southwest, produce 10% and 7.6% respectively.

In addition, demand from markets in the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Bangladesh and other counties has intensified pressure on the local availability of India’s ‘king of fruits’ this season.

ASSOCHAM also notes that the increase in mango exports has grown by more than 27% over the last three years.

“Exports of mangoes from India have grown at a compound annual growth rate (CAGR) of over 27% during the course of the past three years, i.e. from over Rs 16,400 lakh (US$27.17 million) in 2010-2011 to over Rs 26,700 lakh (US$44.2 million) as of 2012-2013,”
the association said.

“This has had a significant impact on the domestic demand of mangoes thereby leading to a rise in their price.”

This comes just a few weeks after it was revealed the EU had banned Indian mangoes because of concerns relating to high levels of contamination, mainly from non-European fruit flies. 

Mangoes are one of five fresh products that have been banned from the European market until Dec. 31, 2015.


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