While India has shipped its first consignment of grapes to China to mark the beginning of the bumper season 2019, the potential of exporting to the newly opened market, Australia, looks grim due to geographical disadvantages.
India exports around 190,000 tonnes of grapes worth $300 million a year, of which the Netherlands contributes nearly 33 per cent both in volume and value. Russia and United Kingdom shared 15 percent and 12 percent, respectively, in 2017-18.
China has been a regular buyer of Indian grapes. During 2017-18, China had imported 827 tonnes of grapes worth $1.3 million from India, a YoY decline of over 52 percent due to its increased reliance on North and South American countries. But it has turned a big buyer of Indian grapes this year due to a 25 percent import duty levied by the Chinese government on the fruit coming from the United States.
Australia, on the other hand, is both a producer and consumer of grapes. Its citizens consume grapes in fresh and processed forms like juice and wine. Despite the immense potential, however, India does not view it as a major market. Australia imports grapes from various countries to produce high quality wine for exports, which generated $2.56 billion of foreign currency in 2017. In volume terms Australia exports around 811 million litres (for 2017) of wines a year.
