Opinion

Pomegranate from India: Volatile Prices and Anticipating Supply Swings

Fresh Pomegranate
Oman
United Arab Emirates
Published Oct 24, 2019
India is the world’s largest producer of pomegranates. Market prices for Indian pomegranates do not remain constant for long because of the different pomegranate sub-seasons and supply varies depending on the sub-season. Recent torrential rains have caused floods in the Gujarat region, causing an increase in average pomegranate prices.

Indian Pomegranate Production

India is the world’s largest producer of pomegranates. Maharashtra is the main producing region for pomegranate, accounting for over 70% of India’s total production. Other producing regions are Gujarat, Rajasthan, Andhra Pradesh, Punjab, Tamil Nadu, Karnataka, and Haryana. Recent torrential rains have caused floods in the Gujarat region, causing an increase in pomegranate prices.

Due to advanced production technology and a favorable climate, India is able to produce and export pomegranate year-round. Depending on the sub-seasons, there are slight differences in yields. During May and June, the Indian climate is very dry, leading to a lower yield and lower quality. During the monsoon period between July and September, however, the yield is higher and the quality is better.

An Indian exporter of pomegranates, A-1 Overseas, mainly exports three varieties of pomegranate: Bhagwa, Arakta, and Ganesh varieties. The Arakta variety is smaller than Ganesh variety and has dark red colored arils with soft seeds. Compared to the other two varieties, the Bhagwa variety is more suitable for long-distance transport due to its thick peel, which lowers the possibility of damage due to bruises. For the Ganesh variety, the seeds are soft with pinkish arils and the fruit is very large.

Indian Pomegranate Export

The main export destinations for Indian pomegranate are the UAE, the Netherlands, Saudi Arabia, and Oman. Even though Indian pomegranates are smaller compared to pomegranates from other origins, they have thicker arils with softer seeds and the global demand for Indian pomegranates are growing. Indian pomegranates are of high quality, but typically slightly smaller than pomegranates grown in Spain or Turkey. It is therefore hard for Indian pomegranates to compete in the European market. Indian pomegranates mainly export to Europe during the off-season of its main competitors to avoid directly competing with the larger European pomegranates.

According to the company, only 2.5% to 3.5% of the total pomegranate harvest gets exported as a whole pomegranate. The rest of the harvest is either processed before export or meant for domestic consumption. Pomegranate arils, seed oil, and powder are popular processed export items.

Price and Supply Swings

Market prices for Indian pomegranates do not remain constant for two consecutive months because there are different pomegranate sub-seasons throughout the year and the supply varies depending on the sub-season. As a result, Indian exporters have to anticipate supply swings and make corresponding arrangements for foreign buyers. A-1 Overseas’ pomegranates are priced between 1.5 and 2.3 USD per kg, depending on quality, supply, and exchange rates. In the summer months of 2019, the Indian pomegranates are priced higher than average due to heavy rain in Maharashtra and Gujarat, which led to a decreased production result. 

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