Why does India prefer Iranian apples over other countries?

Strong growth in Iranian apple exports to India is expected to continue in the second half of the current fiscal year due to shorter delivery times to other regions and high demand in southern markets during the off-season.

While apple imports to India are projected to decline during the fiscal year 2023-2022, which began in early summer this year, the US Department of Agriculture said Iran's apple exports will continue to grow in the second half of the year. The shorter transit time between Iran and India and the attractive import price are the main reasons for the increase in Iranian apple exports to India.

India's apple imports are forecast to reach 430,000 tonnes this fiscal year, a relative decrease from the 448,000 tonnes recorded in the previous fiscal year.

According to the U.S. Department of Agriculture's Foreign Agricultural Service, Turkey had the largest market share in India last fiscal year at 26 percent, followed by Iran at 23 percent, Chile at 18 percent, and Italy at 14 percent.

Strong growth in Iranian apple exports to India is expected to continue in the second half of the current fiscal year due to shorter delivery times to other regions and high demand in southern markets during the off-season. Turkish apples will also retain their high market share and will be distributed mainly in large Indian cities.

In the last fiscal year, the average price of apples imported into India was about $1,158 per tonne for apples imported from the United States, $1,117 per tonne for Chilean apples, $830 per tonne for Turkish apples, $913 per tonne for Italian apples and $503 per tonne for Iranian apples.

The price of US apples has risen due to retaliatory sanctions by the Indian government, but the share of US apples has declined from 20% in FY2019-20 to less than 3% in FY2019.

India's apple production for the current fiscal year is forecast to be 2.35 million tonnes, almost the same as last year's production.

According to the ministry, the consumption of apples in India in the current fiscal year will be about 2.6 million tons, which is not much different from last year. About 60 percent of this is consumed fresh, and the remaining 40 percent of processed potatoes are lower quality products.

The main drivers of the increase in demand for apples in India are rising population, net income growth, health warnings and access to the fruit in the market.