According to the Market Intelligence Department of ProChile, based on data from the Chilean National Customs Service from January to December 2023, Chilean fresh fruit shipments to India totaled 163 million dollars, representing about 3% of total global exports, equivalent to 5.791 billion dollars. This highlights the growth opportunities that India has in terms of fruit consumption.
According to the data provided, the three main Chilean fruits exported last year were walnuts, totaling 125 million dollars FOB, fresh kiwis at 18.2 million dollars, and fresh apples at 13.6 million dollars. Following these were fresh cherries with 2.4 million dollars FOB, pears with 1.2 million dollars, grapes with 1.1 million dollars, blueberries with 565,580 dollars, plums with 122,498 dollars, and finally, mandarins with 28.55 dollars.
In an interview with Portalfruticola.com, ProChile’s international director, Natalia Arcos, indicated that from January to August 2024, Chilean fresh fruit shipments to India will amount to 99 million dollars, about 2% of the total shipped worldwide (5.209 billion dollars).
She noted that walnuts rank first with a total of 52 million dollars to date, followed by apples with 22.7 million dollars, kiwis with 19 million dollars, cherries (2.1 million dollars), and pears (2 million dollars). Following these are grapes (457,513 dollars), blueberries (290,393 dollars), and finally, fresh plums (171,129 dollars).
Image 1: ProChile’s international director, Natalia Arcos.
ProChile’s international director commented that the biggest challenge faced by the Chilean fruit industry is deepening the trade agreement and the respective tariffs, a matter being pushed and led by the Undersecretary of International Economic Relations and the Ministry of Foreign Affairs.
“The partial scope agreement (PSA) we have – entered into force in 2007 and updated in 2017 – due to the trade flows we have and the project, means we are already able to proceed with a broader trade agreement like a comprehensive economic partnership agreement (CEPA),” she commented.
She added that the agreement is a goal that has been heavily emphasized by the Minister of Foreign Affairs during the recent visit to India, “but at the same time, these trade agreements also involve phytosanitary openings, which is why the presence of the Minister of Agriculture at the last Chile Summit India was important.”
Another aspect analyzed by Arcos relates to logistics. “There’s no doubt that the nearly 17,000 kilometers that separate us are not a minor issue, especially for the fruit export sector. However, significant progress has been made; Frutas de Chile is carrying out exploratory actions to improve this, and in the last cherry season, a ship arrived in India in the record time of 36 days with just one stopover.”
She explained that, as with cherries, “with the increase in export flows, we are confident that logistics issues will be addressed and resolved.”
A third challenge is maintaining presence. “India is a diverse country of 1.4 billion people, full of opportunities, and Chile must maintain a constant presence. That’s why the public-private mission carried out with SOFOFA in 2023 was so relevant, the recent Chile Summit India with two State Ministers, and next year, we will continue to focus on India as a key part of our promotional work. This should be a long-term strategy, considering the size of both economies.”
In this regard, she explained that they will continue to make progress in the positioning of Chilean products in India, getting to know importers and demonstrating that Chilean products are of excellent quality and, most importantly, ensuring that consumers are aware that the products they consume are of Chilean origin.
“We carry out this work throughout the year through our commercial offices in New Delhi and Mumbai, in collaboration with the private sector and with valuable support from the Chilean Embassy in India,” she stated.
She emphasized that since the signing of the Partial Scope Agreement in 2007, by 2023, exports of products other than copper and lithium have increased by 732%, reaching 566 million dollars last year. “Of these 556 million dollars, 30% (about 170 million dollars) corresponds to food products such as walnuts, fresh kiwis, fresh apples, fresh cherries, fresh pears, fresh grapes, blueberries (fresh and frozen), dried plums, salmon, trout, and wines.”
She added that “if we make a comparison with 2013, Chilean food exports to India have increased by about 1,000%, from 17 million dollars to 170 million dollars.”
Image 2.
Given the growth of Chilean fruit exports to India, the ProChile executive stated 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 about 1.175 billion dollars.”
She emphasized that in the case of fresh fruit, “there are 46 million dollars in opportunities: fresh kiwis have a 35% market share and a potential increase of 65%, which equals an additional 21 million dollars. Fresh cherries are also outstanding, with a 73% opportunity, totaling 4 million dollars in growth.”
Considering the growth potential of Chilean fruit in the Indian market, the consumer, particularly the middle class estimated at over 250 million, is willing to try new products, with high added value, healthy, and considered “premium”.
“India enjoys an environment of economic stability, which encourages investment and strengthens trade. These factors, along with the increase in per capita income, have allowed Indian consumers to increase their purchasing power, giving them access to many products that, years ago, seemed out of reach. As a result, their consumption patterns have changed, and today they seek not only quality but also affordable prices.
She added that Chile is already considered a supplier of high-quality products in India, particularly food and fresh fruit (kiwi, apples, cherries) and dried fruit such as walnuts, “where we are the world's leading exporter of these products in that market.” Indian consumers prefer Chilean products for their flavor, sweetness, texture, size, and color, as well as for their healthiness and quality.”
When asked about the strategies to be implemented for market development, Natalia Arcos indicated that the goal is to focus on diversifying the presence of Chilean products across different sales points, with campaigns highlighting the Chilean origin. Walnuts, kiwi, and apples are already recognized for their quality by Indian consumers.
She explained that most Indian consumers still buy food in traditional stores, such as street stalls, but sales have grown in modern retailers like Foodstories or Nature's Basket, “two high-end supermarkets where, in this first version of the Chile Summit India, we launched the 'Flavours from Chile' campaign, promoting the Chilean product offerings sold in those places for a week.”
Another point she highlighted is the importance of e-commerce platforms, increasingly used by Indian consumers.
“As ProChile, we have carried out activations with the company BigBasket, where in 2023 we had a pavilion promoting fresh fruit and nuts on that platform during Diwali, one of the most important holidays in India.” The technological aspect is also linked to the work on social media platforms where influencers can showcase, with impressive reach, the goodness of Chilean food,” she said.
One aspect of the strategy is the diversification within India, targeting Tier 1 and Tier 2 cities, such as Chennai, Bengaluru, Hyderabad, Ahmedabad, and Pune, among others. “We want the citizens of these Indian metropolises to enjoy Chilean products as well,” she stated.
She added that the public-private collaboration will continue, working with Chilean associations like SNA, Frutas de Chile, Consejo del Salmón, AMIChile, Chilenut, Wines of Chile.
Regarding the Chile Summit India 2024, the international director of ProChile described it as a high-impact event and the most important state visit to India in the last 10 years: “This event was a milestone as the first major effort to promote the country in India, the fifth largest economy in the world and the most populous country in the world.”
She mentioned that during the Chile Summit India, a delegation of 30 Indian businessmen committed to visiting Chile in October to explore new business opportunities. She concluded by saying that “our call as ProChile is to continue looking at India. Let's not waste the momentum we've built in this public-private partnership to position Chile in India.”
Source: Portal Frutícola
Images: Portal Frutícola
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