An appreciating rupee could eat into the earnings from mango exports this year. Though the government expects a 7% rise in volumes over 2006, earnings is expected to fall by about Rs 10 crore.
India exported 74,911 tonnes of mangoes at $375.5/tonne in April-September last year. With each dollar giving Rs 45.92, the country earned Rs 129.19 crore ($28.13 million).
A businessman said exports in the current season would have been worth at least Rs 135.86 crore had the rupee not appreciated from last year’s levels.
A 7% rise would up the volume to 78,656 tonnes, but the dollar is worth only Rs 41.14 this time. So, though the rise in volume would bring in an additional $1.4 million, in rupee terms it translates to just Rs 119.6 crore. The government expects the impact of the rising rupee to be offset by higher prices, but exporters are grappling with increased freight costs and growing competition. The reduction in earnings would be over Rs 15 crore if the volume remain unchanged from last season’s level.
Agricultural and Processed Food Products Export Development Authority (APEDA) general manager A S Rawat said, “Although the trend indicates that volume will increase, it is too early to predict.”
Langra, Chausa and other late growing varieties are expected to drive the rise in volume because export of Alphonso and Kesar are at par with last year’s level. The latter are sold at higher prices in Europe. They are currently being exported at about $7 (Rs 250-300) for a dozen while wholesale price in the domestic market hovers around Rs 170.
THE MANGO KING
India is the largest producer of mangoes (14-16 million tonnes a year). It exports to almost all countries barring Australia and New Zealand. Indian varieties are very popular in the Gulf and Europe. The US opened its market for Indian mangoes this year. Japan did it last year and is likely to increase import volume this year.
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