PUNE: Brexit is not likely to have any significant immediate impact on India’s horticultural exports to Europe and the UK. However, there could be some gains in the long term in terms of duties and less stringent phytosanitary norms. Among India’s total horticultural exports to the Eu, grapes hold highest share. The depreciation of Pound against Indian Rupee by about 8% is not going to affect export of grapes as the export season has just got over.
Exporters of vegetables and other fruits, who have done long term contracts, may have to bear some losses or increase prices. However, there could be some gains for this sector in the long term. Exporters of fruits and vegetable expect liberalisation of phyto-sanitary norms by the UK.
Kaushal Khakar, CEO, Kay Bee Exports, a major exporter of mangoes and vegetables to the UK said, “We believe that the quarantine restrictions might liberalise for exports to UK after it leaves the EU. Currently, all of EU quarantine concerns, including those of growing countries like Spain and Portugal, are factored while setting up rules and regulations. Now, UK will have to consider only it’s own quarantine concerns. Being a Northern Europe country, we expect it to have far fewer restrictions.”
“The exchange rate vis-a-vis the pound is likely to have long term implications. Food prices in UK would go up. This will invariably lead to drop in demand for exotic vegetables and fruits. Higher selling prices would also lead to a fall in sales,” said Khakhar. Grapes have the highest share in horticulture exports of India, for which EU is the main destination.
Indian grape exporter think that the UK government can remove the 8% import duty on Indian grapes as it does not grow grapes locally. “The EU had imposed import duty on Indian grapes, which UK can think of removing as it can make the grapes available at lesser price to its citizens,” said an executive of a corporate grape export house.
