India: Peru's New Citrus and Blueberry Export Market

Fresh Grapefruit

Fresh Lemon

Published Nov 26, 2021

The official government newspaper, The Indian Gazette, has recently published the awaited phytosanitary requirements for the import of citrus fruits and blueberries of Peruvian origin. Peruvian mandarins, oranges, lemons, grapefruits, and blueberries now have access to one of Asia’s most dynamic fresh fruit markets. The opening of the Indian market is an essential step for the Peruvian market diversification strategy that the country has put in place, focusing on the Asian region. Peru will close the current year with an 11% increase in its blueberry exports after registering a record export volume and a 3% increase in its citrus exports. Access to the Indian market will substantially support Peru’s continuous growth for next year.

Peru already exports fresh grapes and avocados to the Indian market, and for the latter, it has encountered continuous growth in which it is still a moderate but promising market. For citrus fruits, it is expected to have a similar outcome to the case of grapes, where a tougher and more competitive Indian market will be found.

Worth the Wait for a Promising Market

Since April this year, it was announced in Peru that the Peru National Agricultural Health Service (SENSA), had completed the sanitary arrangements that the Department of Agriculture, Agrarian Welfare of India requested. Daniel Lopez, Tridge’s representative, reported that Peru completed technical arrangements to enter the Indian citrus market and only the administrative part was missing. It was until November when Indian authorities announced the phytosanitary requirements not just for citrus but also for Peruvian blueberries.

The global trade of fresh fruits in India is in a very dynamic and growing state. According to data from the Agricultural and Processed Food Export Development Authority in India (APEDA), imports of blueberry fruits increased from USD 384K in 2020 to USD 1.18M in 2021, a 200% year-on-year increase. An important and increasingly part of the Indian market is shifting its preferences from traditional local products to imported fruits from different markets as they offer functional properties and nutritional value. In addition, the environment marked by the COVID-19 infection has made the demand for citrus fruits rich in vitamins and health benefits grow rapidly in India.

Source: Tridge

According to APEDA, citrus fruits and grapes are the third and fourth most imported fruit after apples and kiwis, according to the preferences of Indian consumers. Contrary to them, blueberries and avocados are relatively new products in which imports remain modest. However, they are also the fruits with the most significant import growth as their popularity is overgrowing in the country’s middle and high socio-economic sectors.

Peruvian Citrus for the Indian Market; Opportunities for Mandarins

Although India imported around 45K MT of citrus fruit in 2020, it is not a net importer of citrus, as it exports more than it imports. Imports of citrus fruits, constituted by 90% of oranges, have been decreasing for the last few years. However, mandarin imports had a 36% growth rate year on year, reaching USD 2M in value in 2020. While the country is decreasing its imports of oranges, grapefruits, and limes, Peruvian mandarins are newer to the citruses market and have experienced growth with substantial potential.

Source: Tridge, ITC Trade Map.

Overall, citrus imports are led by Egyptian fruits, which hold 55% of the import market in India, followed by South Africa (30.9%) and Australia (9%). Egyptian oranges also dominate the market with 58% of the market share, while in the case of mandarins, India does not have a clear leading supplier. In 2020, China was the leading supplier of mandarins with 23.4% of the import market, while in 2019, it was Australia with 25%.

According to Nidhi Kumari, Tridge’s representative in India, Indian importers expect the Peruvian mandarin to be introduced into the market as there are concerns about a shortage of Egyptian mandarins for the next season. Ms. Kumari also mentioned that after a fall in fresh import products in 2020 due to COVID-19 restrictions, imports of fresh fruits to India would increase significantly in the coming months.

Great Potential for Peruvian Blueberries

Blueberry imports in India remained low in volume. It is practically a brand new product in which demand is starting to grow similarly to what happens with avocados which today represent USD 1.5 M in value. However, according to APEDA, imports of blueberry fruits will increase by the end of 2021 by 200% from the previous year and will reach USD 1.18 M. Attesting for accelerated growth in the demand for these fruits rich in vitamins. This year, the current Indian market is dominated by Chile with 84% of the import share, with the Netherlands (14.5%) and Canada (1.5%).

For Peru, the leading global supplier of blueberries, it is the precise time to arrive at the Indian market and establish as the leading supplier, while the berry’s popularity is growing rapidly. Chile increased its export of blueberry to India in 2020 by 56% from the previous year, and it is expected to double that increase by the end of 2021. However, with serious concerns about a 30% fall in its blueberry production for next season, India is looking forward to receiving new Peruvian fruit in the coming months.

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