Walnuts and kiwifruit lead Chilean fruit offerings in India
Chilean fruit exports to India totaled $163 million in 2023, according to ProChile data, accounting for 3% of the Latin American country’s total exports. Walnuts and kiwifruit led the offerings with FOB values of $125 million and $18.2 million, respectively.
ProChile is the Ministry of Foreign Affairs’ official promoter of Chilean goods and services worldwide.
Fresh apples took the third place at $13.6 million. Fresh cherries follow with $2.4 million FOB, followed by pears with $1.2 million, grapes with $1.1 million, blueberries with $565,580, plums with $122,498, and, mandarins with $28.55.
ProChile’s International Director, Natalia Arcos, told FreshFruitPortal.com that Chilean exports to the Indian market have totaled $99 million so far in 2024.
Future challenges
Arcos commented that the biggest challenge faced by the Chilean fruit industry is the deepening of the trade agreement with India, and the lowering of the respective tariffs. This agenda, she added, is being driven by the Undersecretary of International Economic Relations and the Foreign Ministry.
“The Partial Scope Agreement (PSA) we have came into force in 2007 and was updated in 2017. Because of the trade flows we have and project, we are already in a position to continue moving forward in a broader trade agreement such as a Comprehensive Economic Partnership Agreement (CEPA),” she indicated.
The agreement is an objective that was highly emphasized by the Minister of Foreign Affairs during his recent visit to India, “but at the same time, these trade agreements also entail phytosanitary openings and that is why the presence of the Minister of Agriculture at the last Chile Summit India was so important”.
Another aspect analyzed by Arcos is related to logistics. “There is no doubt that the almost 17,000 kilometers that separate us are not a minor issue, especially for the fruit export sector. Likewise, important advances have been made; Frutas de Chile is conducting exploratory efforts to improve logistics, as demonstrated by a recent cherry shipment that arrived in India in a record time of 36 days with only one stopover.”
She explained that in the case of cherries, “as export flows increase, we are convinced that logistical issues will be addressed and solved”.
A third challenge, Arcos said, is maintaining a constant presence.
“It is a diverse country of 1.4 billion inhabitants, full of opportunities and Chile must maintain its constant presence, which is why the public-private mission carried out with SOFOFA in 2023 was so relevant, the recent Chile Summit India with two Ministers of State and next year we will continue with India as the focus of the promotion work. This must be a long-term strategy considering the sizes of both economies,” she pointed out.
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Along these lines, she explained that they will continue to make progress in positioning Chilean products in India, getting to know importers and demonstrating that Chilean products are of very good quality and, above all, that consumers are aware that the products they consume are of Chilean origin.
“We carry out this work year-round through our commercial offices in New Delhi and Mumbai, in collaboration with the private sector and with the valuable support of the Chilean Embassy in India,” she said.
The Partial Scope Agreement was signed in 2007, and by 2023 non-copper non-lithium exports have increased by 732%, reaching $566 million.
“Of that $566 million, 30% (about $170 million) corresponds to food products such as nuts, fresh kiwis, apples, cherries, pears, grapes, blueberries (fresh and frozen), dehydrated plums, salmon, trout, and wines,” she detailed.
She added, “If we compare with 2013, Chilean food exports to India have increased by about 1,000%, from US$17 million to US$170 million”.
Projections
Given the growth of Chilean fruit exports to India, the ProChile executive said that “according to our estimates, if we take the products that India currently imports from the rest of the world and that Chile exports to other markets, but not to India, we can identify an estimated opportunity of approximately $1,175 million.”
She emphasized that for fresh fruits, 'there are $46 million in opportunities: fresh kiwis have a 35% market share, with a potential 65% increase, equivalent to $21 million more. Fresh cherries are also outstanding, with a 73% opportunity, representing a total of US$ 4 million to grow”.