As the uncertainty about UK's exit from the European union on March 29 continues, Brexit related volatility of the GBP is likely to have only short term impact on fruits and vegetable exports from India to the UK. The trade is confident that in the long term, Indian fruit and vegetable exports will stand to gain as UK accounts for the largest share of India's export to the EU.
Indian exporters expect that after Britain leaves EU, they may not have to face competition from southern Europe. The Indian mango season is about to start and the trade expects to export good volumes. UK has the second largest share in India's mango export at 12.5%, accounting for about Rs 480 mln in total annual mango exports of Rs 3.8 billion in 2017-18.
"The export volumes may not be affected by Brexit as we hope that there will be good Ramadan demand. However, the exchange rate of pound vis-a-vis Indian rupee and air freight rates can affect returns," said Kaushal Khakhar, chief executive officer, Kay Bee Exports.
Grapes are the other Indian fruit exported in large volumes. However, as grape export season is at its fag end, it may not be affected by Brexit. The UK is the third largest importer of Indian grapes following the Netherlands and Germany. India has exported 79,867 tonnes of grapes to the EU till March 14 this season against 62,750 tonnes in the corresponding period last year, up by 27%.
