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Suez Canal cleared but Maharashtra grape growers still worried
Despite the stranded ship in the Suez Canal afloat again, the grape exporters in western Maharashtra are trying to assess its impact on export to the European grape market in the peak of the season
Despite the stranded ship in the Suez Canal afloat again, the grape exporters in western Maharashtra are trying to assess its impact on export to the European grape market in the peak of the season.
Every year, the two months between February 15 to April first week are considered as the peak export season to Europe and exporters mainly from Nashik area of North Maharashtra supply the grapes. Because of the blockage in the Suez Canal for almost a week, exporters fear supply of the grapes in European market may partially be hit adversely affecting rates in the countries looking for Maharashtra grapes.
One reason, according to exporters is ships couldn’t reach last week will now arrive in various European countries when additional vessels carrying grapes planning to depart will also land there, resulting in oversupply compared to the steady demand.
“Every week 800-900 containers are going from Nashik and Sangli to Europe but mainly from Nashik. The total economy of the grapes depend on this market rate. Because of the Suez situation approximately 800 containers haven’t been able to reach in a week. Another 800 containers will be shipped this week. Approximately 1,600 containers may reach the European market at the same time. We fear that the rates will come down from existing 10 euros per 5 kg box to 7-8 Euros. This is the last active week,” said Vilas Shinde, director Sahyadri Farms Nashik and grapes exporter.
As the ship which was blocking the Suez was afloat again, exporters have taken a sigh of relief. However, there could still be a delay in reaching the shipments at the destination port, experts say that the situation could have been worse if there was a further delay.
“The traffic movement has started in the Suez. A schedule is given to the buyers in the European market. If a vessel is delayed then the scheduled vessel and the next vessel reach at the same time, leading to a drop in rate as a result of excess supply,” Sachin Korde, manager (technical) Mahagrape, a co-operative partnership firm.
Javindar Mhaske, a grape producer from Tasgaon in Sangli district claimed he had to divert produce to other markets due to the Suez blockage.
“My family has been doing this business since 1972. Because of the Suez situation two vessels got cancelled. So, our produce was diverted to other areas such as Dubai and Bangladesh,” said Mhaske.
Jagannath Khapre, president, All India Grape Export Association said that despite the ship has been moved, it will take few more days to clear the traffic in Suez Canal.
“So, we have to take this delay into account. All the shipments could reach at the same time in the European market, and it could impact the rates. Mostly, the shipments are sent to Rotterdam port since it is the main distribution centre for Europe. Whenever the vessels will start moving from Suez it will take 10 more days to reach there.”
