If you are fond of apples, be prepared to spend more on them than usual this year. The ongoing threat of Houthi attacks on ships in the Red Sea has resulted in shipping lines re-routing their vessels via the South African coast, not just increasing the cost of freight, but also taking a toll on the freshness of the fruit. Given the fact that the country’s domestic produce has been hit due to extreme weather, apples and oranges are costlier than last year.
Parth Karvat, director of Yupaa Fresh Private Limited – one of India’s leading fruit importer and exporter – explained how shipping companies have to re-route due to disruption in the Red Sea. “Shipping lines are now getting their vessels via the Cape Town route. Thus, it is taking longer to reach Mumbai and the produce would be longer in transit,” he said.
This longer route, Karvat said, has pushed up the transport cost by $ 2,000-3,000 per vessel carrying 21 tonnes of apple. With apples attracting an import duty of 50 per cent at present, the landed cost of 21 tonnes of apples comes up to $ 4,500 at present. “If you do the maths, cost of apples is now Rs 200-220/g, higher by Rs 18-20/kg as compared to last year,” he said.
After heavy and unseasonal rains in Himachal Pradesh earlier this year, the only way to procure apples for the country are the imports, with countries like Turkey, USA and Egypt being the major source. In Pune and Mumbai, apples are already costlier than last year.
Meanwhile, this price trend will continue when oranges from Egypt and Turkey arrive in the country.
Rohan Ursal, a commission agent from Pune’s wholesale market in Gultekdi, said rates of apples have increased substantially this year. “Turkish apples are now priced at Rs 2,200-2,300 per 18 kg box. At the retail market, quality apples are not available for anything below Rs 200/kg,” he said.
Ursal, who deals with oranges too, said the citrus fruit would also be costlier than usual this year. Due to quality issues, oranges form Nagpur and Ahmednagar are not much in demand. “Thus oranges from Egypt are meeting the domestic need,” he said. Given the short supply at present, oranges are retailing at around Rs 150-180/kg in Pune. “This looks like the trend that will remain for the year,” he said.
