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As demand improves, Indian gherkin exporters grapple to supply overseas.
Jan 20, 2023

Indian gherkin producers are unable to meet demand from the West, where offtake of the pickled cucumber has increased even as supplies have shrunk from regions such as Ukraine and other parts of Europe.

'We are in a sellers market. There’s a rebound in demand and we are unable to meet it as the supply is low and inventories have dried up,' said Pradeep Pooviah, Vice-President, Indian Gherkin Exporters Association. He estimates the shortfall in demand-supply to be around 20 per cent.

Improved pricing

Pooviah said the shortfall in supply has led to improved pricing even as exporters-producers grapple to fulfil the order backlog. 'We are trying to meet the built up demand of last four months,' he added.

Gherkins are a type of small cucumbers grown by farmers in parts of south India are processed and shipped in brine solution by exporters to overseas markets in the West, where they are consumed as pickle.

The production of gherkins takes place under the contract farming model, where exporters decide on the quantity based on the projected demand. It is estimated that around 60,000 acres is under gherkin cultivation in States such as Karnataka, Tamil Nadu and Andhra. Close to one lakh farmers are engaged in the production of the gherkins, which are mainly exported overseas to markets in the US, Russia and Europe among other countries.

The current shortfall in gherkin supply is attributed to the trimming of production by the exporters, who operated at a capacity of around 60 per cent. In the previous year, the exporters had faced challenges such as lower prices and higher logistics costs impacting realisations and profitability.

'We produced about 40 per cent less during the April-December, which helped reduce the inventory in the market,' Pooviah said. Also, the prices paid to farmers saw a marginal increase, resulting in lower output. Now the production is getting back to normal and there is backlog to be fulfilled, he said.

Sources said the reduction in supplies from the war-torn Ukraine and the drought affected Europe has also contributed to the increased demand for Indian gherkins. India exports gherkins round the year, unlike other producers such as Ukraine and Mexico, while the production takes place in about nine months a year. In the year-ended March 2022, India’s gherkin exports fell by around 11 per cent in value terms to $199.46 million over previous year’s $223.04 million. In quantity, the exports were down at 2.175 lakh tonnes over previous year’s 2.235 lakh tonnes.

In the current financial year, the exports of processed vegetables, under which gherkins are clubbed, are up at $325 million for the April-November period over same period last year’s $275 million.

thehindubusinessline.com

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