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Indian FPOs taste success exporting watermelon to Dubai.
Apr 25, 2023
Indian watermelons are earning a premium over those from Iran in Dubai with a few farmer producer organisations (FPOs) beginning to ship the fruit to the United Arab Emirates (UAE) following initiatives taken by exporters.
'We exported two containers of black watermelon to Dubai on a trial basis. It fetched a premium in the markets there. FPOs fetch double the domestic price in the Gulf,' said Mukesh Singh, Director of Mumbai-based MuBala Agro Commodities Pvt Ltd.
M Angamuthu, outgoing Chairman of Agricultural and Processed Food Products Export Development Authority (APEDA), another company, IG International, took up the initiative to export watermelon produced by an FPO, Swasangharsh Organic Farmer Producer Organisation. It shipped 25 tonnes of seedless watermelon to Dubai.
Holding advantage
'It was the first consignment sent and the FPO got Rs.10/kg, which is almost the double of what they get in the domestic market,' he said.
Tarun Arora, Director, Single Family Office, IG International, said, 'Indian watermelon enjoys a premium in the Dubai market due to its quality and taste. Our watermelons are known for their sweetness, juiciness, and excellent texture.'
'The size of Indian watermelon is small, weighing between 3 and 5 kg. It, thus, holds an advantage over Iranian ones that weigh up to 10 kg, which is better for, probably, mass consumption,' said MuBala’s Singh.
Singh said multinational retailers were ready to pick Indian watermelons and willing to pay a premium over Iranian watermelons.
Landed cost vs return
Indian watermelon commands over 4 UAE dirham (Rs.89.25) in super stores, whereas Iranian ones, which till now enjoyed a monopoly, cost around 3 dirham (Rs.67) at retail outlets. In the wholesale market, the Indian fruit fetches at least 1.7 dirham (Rs.38).
Exporters are sourcing watermelons from FPOs on a commission basis. 'We charge a small commission for this. Once you land the watermelon in Dubai, you can be sure you will not make any loss. If you can get to sell directly to multinational retailers such as Carrefour your margins can increase more,' Singh said.
The landed cost of watermelon in Dubai could come to about Rs.20. According to exporters, the daily demand for watermelon in UAE is about 15 containers and at least a couple of containers are landing from India everyday. 'Iran’s advantage is that it can reach its watermelon in Dubai in four hours,' Singh said.
'Exporting watermelon to Dubai has been a positive experience for us. We have received a good response from the Dubai market, and our watermelons have been well received. We have been able to fetch a good price for our produce,' said IG International’s Arora.
Opportunity missed
Many exporters missed out on the opportunity to cash in on the Ramzan demand this year, when the demand could rise to about 30 containers a day. 'This time, we did not tap the opportunity as we tested the waters. Probably, next year we could fully take advantage of the Ramzan season' said Singh.
'We are likely to export around 500 tonnes of watermelon to Dubai in the upcoming season. However, the amount may vary depending on the demand and supply dynamics of the market,' Arora said.
Angamuthu said IG International has signed an agreement with Swasangharsh for cultivating watermelon on 50 acres of land. 'It is providing all support to the FPO to develop new varieties of watermelons. Such efforts are likely to bring watermelon as a potential fruit in the export basket of horticulture produce,' he said.
Arora said exporters are complying with all the necessary regulations and certifications required for exporting fresh produce such as watermelon.
The APEDA Chairman said cucurbits such as watermelon hold excellent potential for international trade. 'The export process has to be strengthened with proper sea and air protocols. We are working on it,' he said.
thehindubusinessline.com
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