Mangoes at the APMC market in Navi Mumbai. Subhash Sharma for The National
Mangoes at the APMC market in Navi Mumbai. Subhash Sharma for The National

Indian mango trade bears rich fruit



On a farm nestled between mountains in a peaceful area of India's Raigad district, hundreds of trees are laden with luscious mangoes.
Workers scan the trees for fruits that are ripe for picking and delicately pluck them, then carefully place them in the shade out of the glare of the strong afternoon sun.
The Alphonso mango season is in full swing.
The UAE has a huge appetite for the Alphonso and is India's biggest importer and re-exporter of mangoes in terms of value. The Emirates imported 22 million kilograms of the fruit in the financial year between 2011 and last year, generating more than 1 billion rupees (Dh67.3 million), according to figures from the Indian Agricultural and Processed Food Products Export Development Authority.
Known as "the king of fruits", the pricey Alphonso mango has a rich aroma, sweet taste, melt-in-mouth texture and a golden colour once fully ripened. The prized fruit can sell for more than three times the price of other varieties of mango, of which there are more than 1,000 in India.
"The taste is not only sweet - it's different," says Sandesh Maruti Patil, the owner and manager of the Bhaktij mango farm in Raigad. "It's a status thing. When someone eats the first Alphonso of the season, they tell people."
Mr Patil gave up a career in homeopathic medicine for the more lucrative mango industry. His farm, which has about 1,000 trees, can produce up to 14,000 mangoes a day. He supplies exporters and local buyers and most of the mangoes on his farm are ultimately destined for the UAE and the wider Arabian Gulf region.
India is the world's biggest grower of mangoes, with a 40 per cent share of total world production data from the UN Food and Agriculture Orgnanization. It produces more than three times the amount of mangoes than the next-largest market, which is China. Total exports of mangoes from India reached 59,000 tonnes in the financial year of 2011, valued at 1.63bn rupees.
India even used mangoes as a bargaining chip in 2007 in a trade deal with the United States to pave the way for the sale of Harley-Davidson motorcycles in India. In 2007, India eased emission guidelines for imported motorbikes to allow Harley-Davidson to enter the Indian market.
This was a trade deal in exchange for mango exports to the US. The US had banned mango exports from India for years before this because of concerns over the levels of pesticides used.
Prices of the fruit swing dramatically depending on supply and demand during the Alphonso harvesting season, which typically runs from mid-March to May.
On Mr Patil's farm, the mangoes are currently selling for about 500 rupees per two dozen. That compares with about 1,400 rupees last year.
"Last year the rates were very high," says Mr Patil.
"This year from mid-March the rates have gone down."
He says this is because of an increase in the supply of mangoes that have been produced in recent weeks compared with the same time last year. But he adds that over the entire season, he expects mango production to reach similar levels to last year, predicting that mango supply will slow next month compared with last year.
"The last three years have not been good for mangoes," says Mr Patil. "Because of the climatic changes we're getting a long winter season."
Fahad Exports is based in the APMC fruit market, in Vashi, Navi Mumbai, where many of the mangoes from the farms in Raigad and other areas including Ratnagiri are sent.
Shuja Merajuddin, who runs Fahad Exports, says he sends most of his mangoes to Dubai. Rising costs are eating into exporters' profits this year, he adds.
"Demand is the same from Dubai this year but the sale price is less," he says. "At the same time, our costs have increased. The packing costs are more, freight rates are higher, port fees have risen and cooling storage costs have increased because of higher electricity prices."
He estimates his costs have risen by more than 30 per cent over the past year, while prices have declined by more than 20 per cent.
"Prices have come down because of demand and supply," he says. "The markets are tight."
Competition has increased from Pakistan, which is sending cheaper varieties of mangoes to the UAE, he adds.
Asad Qureshi, the manager of Vimo Foods, is also based in the Vashi market. He complains that because demand for Alphonso mangoes from the UAE is so strong, the industry has attracted some unscrupulous exporters.
"They don't give us the money on time, or they cut the payment or they say the goods are rotten," Mr Quereshi says. "This year they're not giving a good rate. We're finding it difficult. We're now looking for European countries. There's a lot of demand from the United Kingdom."
Alphonso prices have also slumped in markets in Mumbai.
"There's too much supply for the local market," says Mohammed Mosin, who is a wholesale buyer of mangoes in Mumbai. "The prices are low compared to last year."
There is a huge premium for the first Alphonso batches of the season, which has led farmers to put great efforts into developing methods to coax their trees into ever-earlier harvests.
Mr Patil cuts his trees' trunks to divert the flow of sucrose and induce early flowering.
His farm was able to harvest mangoes at the end of January this year and managed to command rates at that time of 2,514 rupees per two dozen mangoes. Prices have declined as the season takes off and the fruit becomes more readily available.
Some argue that Alphonso mangoes need to be better marketed and properly branded to boost exports.
Farmers in four of the main Alphonso-producing districts - Ratnagiri, Raigad, Thane, and Sindhudurg - are currently trying to secure a patent for their fruit.
Alphonsos are also being exported from Karnataka and Andhra Pradesh, which some farmers argue are not of the same quality, because of the soil and atmospheric conditions.
"Mango growers of four districts have filed a patent," says Mr Patil. "If we get the patent, of course we will advertise everywhere that the people should buy mangoes from these four districts."

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Israel Palestine on Swedish TV 1958-1989

Director: Goran Hugo Olsson

Rating: 5/5

MATCH INFO

Al Jazira 3 (O Abdulrahman 43', Kenno 82', Mabkhout 90 4')

Al Ain 1 (Laba 39')

Red cards: Bandar Al Ahbabi (Al Ain)

Pari

Produced by: Clean Slate Films (Anushka Sharma, Karnesh Sharma) & KriArj Entertainment

Director: Prosit Roy

Starring: Anushka Sharma, Parambrata Chattopadhyay, Ritabhari Chakraborty, Rajat Kapoor, Mansi Multani

Three stars

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Need to know

The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours. 

The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.

When to go: You can climb Kili at any time of year, but the best months to ascend  are  January-February and September-October.  Also good are July and August, if you’re tolerant of the colder weather that winter brings.

Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.

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