Demand and pricing for Red Delicious apples are expected to remain strong in India

The current apple market is showing some interesting developments, with a noticeable trend emerging. Imported apple prices are quite high, mainly due to increased prices in their countries of origin. Turkish Red Delicious apples, especially the Controlled Atmosphere (CA) stock, have seen a sharp price rise after Eid and are now nearly matching the prices of US Red Delicious apples. This price surge has also pushed prices up in the Indian market.

The increase in the Red Delicious price has made things challenging for importers in India. As a result, importers are now able to bring in Red Delicious apples from traditionally more expensive sources like Italy and sell them at prices comparable to Turkish apples. This has brought Red Delicious apples to one of their highest price points. With such high prices, consumers in northern Indian states like Delhi, Uttar Pradesh, and Gujarat are shifting their preference toward Indian apples stored in CA rooms. This change in consumer behavior has made it challenging for importers, particularly in Mumbai, to sell large-sized apples, which are typically consumed in Tier 1 northern cities. Consequently, there's now a higher demand for smaller-sized apples due to their more accessible pricing.

Next to the Red Delicious apples, Gala apples also have their place in the Indian market. It'll be interesting to see how the Red Delicious season wraps up. As for Gala apples, their prices are also elevated, influenced by the high cost of Red Delicious apples. Some Gala apples from Poland are still being sold at prices below those of Red Delicious. From the southern hemisphere, there have been limited imports from South Africa, Chile, Brazil, and New Zealand. Due to the low supply, Gala apples are currently selling at favorable prices, with no excess stock being imported. Looking ahead, Brazilian Gala apples stand out as the most cost-effective option, while New Zealand apples lead in quality. However, South African and Chilean apples might struggle to compete unless they effectively market their products to attract both wholesalers and consumers.

The quality of European Gala apples this season was disappointing for most importers. However, high summer temperatures in Italy and Poland significantly impacted overall apple quality. European growers are still struggling to cope with the effects of climate change. Due to the limited availability of export-grade apples, prices remained high. Growers who had quality stock took advantage of the situation and kept their prices above previous years. If these conditions continue, importers may begin turning to the U.S. to meet northern hemisphere Gala apple demand.

Pink Lady apples are gaining traction, Thanks to ongoing, large-scale marketing efforts. Few licensed importers of the Pink Lady variety are doing from the USA, New Zealand, South Africa, and Chile. These apples, known for their unique and delightful taste, are especially well-received in southern India.

In the upcoming weeks, demand for Turkish Red Delicious apples is expected to remain stagnant, with limited supply in the market. This scenario creates a favorable opportunity for Red Delicious apples from the U.S., Italy, and Poland. Meanwhile, we might see a slight oversupply of Gala apples as Chilean varieties begin to arrive. Compared to last year, Chilean apple prices have dropped, largely because many South American countries have opted for the more cost-effective Brazilian apples. As a result, Chilean growers will likely turn to export markets like India to sustain their sales.

"Despite this potential oversupply, Gala apple prices are expected to remain relatively stable, driven by steady demand until the Indian apple season begins. However, it's still too early to accurately predict the start of that season. The demand and pricing for Red Delicious apples are expected to remain strong, with a significant price spike likely in late May and June," trade speaks.

Source: Freshplaza