Bumper crop drags down orange prices to 10-yr low

A bumper crop and slackening demand from southern states is pulling down orange prices in the wholesale market to Rs 7-10 a kg, a 10-year low.

In terms of quintal, the rates work out to Rs 700-900, almost half the prices in the same period last year at Rs 1,500. Market sources said the current fall is expected to continue till March next year.

Orange production, supported by timely rainfall, has doubled in most of the orange-growing areas. The current year is expected to witness 30-40 per cent growth in production to 23 lakh tonne from 16 lakh tonne last year.

In Maharashtra, the largest orange-producing state contributing about 60-70 per cent of the country's total orange production, the season has now reached the peak with the wholesale prices coming down to Rs 120-180 per eight dozen. In September, the prices were in the range of Rs 350 to Rs 400 for the same quantity.

Orange-city Nagpur exports the fruit to various parts of the country. This year, orange-growing areas in Nagpur may witness much higher production, said farmers.

In the past few years, the farmers in the city had been grappling with problems such as pest afflictions, drought and soaring mercury which resulted in crop damages.

Traders said that the bumper 'Ambia' crop this season has "slaughtered the market movement" resulting in the fall of prices. Nagpur oranges were commanding Rs 12,000-13,000 per tonne last year and had even touched Rs 16,000 mid-season.

Traders said that the average rate of the 'Ambia' crop (May to October) ranged between Rs 10,000 and Rs 11,000 per tonne for the entire decade. "We were expecting the prices to move up this year, but now with a bumper crop we would be lucky if our whole produce is sold," said Waman Motghare, a farmer from Katol.

Rajesh Chhabrani, president of Kalamna Market Adatiya Fruit Association, said the prices are generally at a high towards the end of the season in December. "Supplies dwindle and the rate goes up to between Rs 15,000 and Rs 16,000 per tonne. This year, the market is flooded and we don't expect the rates to go anywhere near the peak of Rs 16,000," Chhabrani said.

He said, the inflow was good at the market yard this year with 75-100 tempos carrying 150-200 tonne of oranges arriving every day. "During this period last year, we had about 25 tempos carting the fruit to the yard," Chhabrani informed.

The demand for Nagpur oranges is from southern states such as Karnataka, Kerala, and Tamil Nadu, but farmers say, it is low this year. "There is no demand from northern states due to extreme cold," Chhabrani said.

Of the country's total area under orange cultivation at around 2 lakh hectare, Maharashtra has 1.35 lakh hectare under orange cultivation. The state produced 11.5 lakh tonne oranges last year. This year, the orange fields have received good rainfall, so the production is expected to touch 15 lakh tonne, said Balasaheb Bende, director, Agriculture Produce Market Committee.

He said, the demand from southern states was unlikely to increase much as various places in Tamil Nadu and Kerala were hit by rains a few days ago.

The new 'Mrug' crop will start arriving in the market from January 25 onwards. "Like 'Ambia', the next crop is expected to be good too. We are worried that we won't have adequate space in the market yard to store the produce," Chhabrani said.

The Kalamna market yard has open auctions of oranges daily. There are 40 wholesalers in the market.

A farmer from Mohpa in Kalmeshwar tehsil, Jayant Kautkar said, the crop was above expectation this year. Every year, one tree produces 800-1000 fruits, but this year, the same tree is laden with 1,800-2,000 fruits, he said.

Kautkar said the demand from southern states was on the wane due to rains there. "We were expecting Rs 13,000-14,000 per tonne by the end of Ambia season but the situation has changed," he said.

The kinoor variety of orange from Rajastan, which contributes 20 per cent of the total production in the country, is expected to reach markets in March.

"In the retail market, the prices of orange are Rs 8-15 a kg. The retail prices have started declining in all the states owing to supply abundance. Orange trucks have started going to most of the states," a Mumbai-based trader said.