A step-by step guide to export grapes from India

A step-by step guide to export grapes from India

Grapes, those tiny bursts of sweetness, have become quite the world traveler. Can you imagine? Roughly 103 countries and regions excitedly import these grapes from India. And guess what? The total value of these exports adds up to a huge 49.89 million USD! So, let's zoom in and see how these grapes travel from India to tables all around the world.

Why to choose grapes for exports

Have you ever wondered how a humble fruit could be a gateway to international success? Let's take a closer look at why grapes are more than just a vineyard staple—they're a passport to profitable exports.

Recognizing Export Opportunities for Grapes

In India, grapes are an important fruit and make up around 2.30% of the total fruit production area. In the fiscal year 2022–23, India exported an impressive 267,950.39 metric tonnes of grapes worldwide, generating approximately Rs. 2,543.42 crores (equivalent to around 313.70 million USD). This demonstrates a bright prospect for grape exports and showcases India's capability to meet the demands of both local and global markets.

India's ability to export such a significant quantity of grapes underscores the country's proficiency in grape cultivation, post-harvest management, and adherence to international quality standards. This opens doors to explore and harness the export potential of grapes, contributing to the country's agricultural economy and establishing its presence in the global fruit trade market.

Exploring Top 10 Export Destinations for Indian Grapes

Here's a breakdown of the top 10 destinations where Indian grapes find their way:

Sr No.CountryQty (in MT)Value (in Rs. Lacs)
1Netherland71,831.3795,789.23
2Bangladesh72,712.9524,316.20
3UAE20,791.6519,764.57
4U K13,784.5719,465.68
5Russia11,811.9014,413.43
6Germany7,542.439,870.08
7Hong Kong4,502.528,355.38
8Saudi Arabia8,288.638,309.02
9Turkey7,201.077,611.76
10Nepal19,758.376,883.42

Government Incentives and Perks

  • Duty Drawback:
    Exporting grapes isn't just about sending out your delectable harvest; it brings along a bouquet of benefits backed by government support. Enjoy a favorable duty drawback of 0.15%, a direct boost to your earnings without any added complexities. Plus, you have the valuable assistance of a Customs House Agent (CHA) to ensure your shipping documentation flows seamlessly.
  • Remission of Duties and Taxes on Exports (RODTEP):
    The Remission of Duties and Taxes on Exported Products (RODTEP) scheme offers a significant advantage, equivalent to 3% of your export value. For instance, if you're exporting goods valued at Rs. 10,00,000, this could translate to a benefit of Rs. 30,000.
  • Interest Equalization Scheme on Pre & Post Shipment Export Credit:
    While the "Interest Equalization Scheme" primarily targets manufacturers and not merchant exporters, its impact is noteworthy. If you secure a loan at a 10% interest rate, the government steps in to cover a substantial 3% of that interest burden. This means you only pay the remaining 7% interest, offering significant relief for your grape export venture.
  • Transport and Marketing Assistance Benefits:
    The "Transport and Marketing Assistance" (TMA) scheme extends its supportive hand to specific agricultural products, including grapes. It aims to provide assistance for the international shipping and marketing aspects of agricultural commodities. By helping counter the challenges posed by higher transportation costs associated with exporting designated agricultural products, like grapes, this scheme addresses factors such as trans-shipment. Moreover, it strives to elevate the identity of Indian agricultural products in international markets where Indian grapes are recognized and appreciated.

How to source grapes for exports

If you're new to exporting, finding grape suppliers for international markets may seem overwhelming. But don't worry; you have several options available. First, let's take a look at the top grape-producing states.

Top states that produce export quality grapes

Here are some of the top states in India that are known for producing export-quality grapes:

  • Maharashtra
  • Tamil Nadu
  • Telangana
  • Andhra Pradesh
  • Karnataka

Where to Get Grapes: Vineyards,Mandis, Traders

Vineyards and Growers: Directly contacting vineyards and grape growers is a primary way to establish a supplier network. Visit local vineyards or grape-producing regions to connect with potential suppliers.

Agricultural Markets (Mandis): Agricultural markets are common places where farmers and traders gather to buy and sell produce. Visiting Mandis can help you connect with grape suppliers.

Trade Associations: Industry associations related to grape cultivation and exports can provide valuable contacts and information about reliable suppliers.

Types of Secure Packing & Cold Storage:

Secure Packing
Typically, grapes are packaged in corrugated or solid fiberboard cartons. To ensure protection, a double pad or protective liner is positioned at the base of the carton to prevent any damage to the grapes, followed by a polyethylene lining. The specifics of this packaging process are outlined in detail in Table 1 and Table 2.

Table 1 presents the specifications for corrugated fiberBoard (CFB) boxes used for packing, specifically for 2 kg boxes with dimensions measuring 270x150x100 mm.

Table 1

S.No.SpecificationSlide TypeRing *Flap Tuck-In-TypeRSC(REGULAR SLOTTED CONTAINER)Tray with LID
1Material for construction3-ply CFB3-ply CFB3-ply CFB3-ply CFB
2Grammage (g/m sq.)(outer to inner)*230X140X140*230X140X140*230X140X140*230X140X140
3Bursting strength kg/cm sq.Min. 6.00Min. 6.00Min. 6.00Min. 6.00
4Puncture resistance inches/teat inchMin.10.00Min.10.00Min.10.00Min.10.00
5Compression strength Kg.Min.225Min.225Min.225Min.225
6Cobb (30 minutes g/m sq.)Min.130Min.130Min.130Min.130

The specifications for the corrugated fiberboard (CFB) boxes used for packing 5 kg of grapes, with dimensions of 480 x 300 x 100 mm, are as follows:

Table 2

S.No.SpecificationSlide TypeRing *Flap Tuck-In-TypeRSC(REGULAR SLOTTED CONTAINER)Tray with LID
1Material for construction5-ply CFB5-ply CFB5-ply CFB5-ply CFB
2Grammage (g/m sq.)(outer to inner)*230X140X140X140*230X140X140X140*230X140X140X140*230X140X140X140
3Bursting strength kg/cm sq.Min. 10.00Min. 10.00Min. 250Min. 250
4Puncture resistance inches/teat inchMin.250Min.250Min.250Min.250
5Compression strength Kg.Min.350Min.350Min.350Min.350
6Cobb (30 minutes g/m sq.)Min.130Min.130Min.130Min.130

Cold Storage:

  • Temperature Control: Grapes require specific temperature conditions for storage. Typically, the ideal temperature for storing grapes ranges from 0°C to 2°C (32°F to 36°F). This temperature range helps slow down the ripening process and extend their freshness.
  • Humidity Regulation: Maintaining the right humidity level is essential to prevent the grapes from drying out or becoming too moist, which can lead to mold growth. The recommended humidity range for grape storage is around 90–95%.
  • Ventilation: Adequate ventilation helps in distributing cool air uniformly throughout the storage area. Proper airflow prevents temperature fluctuations and ensures consistent conditions for all the grapes.
  • Ethylene Management: Ethylene gas, produced naturally by fruits, can accelerate the ripening of grapes and affect their quality. Cold storage facilities should be equipped to manage ethylene levels to prevent premature ripening.
  • Handling Procedures: Proper handling practices should be followed when loading and unloading grapes from cold storage. Rough handling can lead to bruising and damage.

How to setup logistics for exports

To ensure successful grape exports, establish an effective logistics setup.

Collaborate with Freight Forwarders for Logistics

When it comes to exporting grapes, partnering with experienced freight forwarders is crucial. Select forwarders that specialize in handling perishable goods, just like with grapes. Opt for a forwarder that boasts a proficient team capable of ensuring timely shipments. Prioritize working with forwarders that provide consultation, support, and a hassle-free shipping experience. Make prompt pricing and excellent service quality your priorities to maintain a smooth export process. Look for forwarders known for their positive reputation and strong online presence in the industry.

Collaborate with Citrus Freight's ocean freight services for efficient and reliable logistics solutions.

Develop a Comprehensive Pricing Framework:

  • Craft a comprehensive pricing strategy that guarantees accurate CIF (Cost, Insurance, Freight) quotes for your grape shipments.
  • Consider utilizing tools like the Citrus app, which offers instant access to CIF quotes and up-to-date vessel schedules.
  • For your grape export needs, Citrus Freight emerges as an excellent choice, particularly for managing the complexities of perishable logistics. With our adept team, unwavering customer focus, efficient pricing mechanism, and solid industry reputation, we stand ready to be your partner in achieving successful grape exports.

Keep in mind that making informed product choices, establishing a robust supply chain, and forging partnerships with reliable collaborators will all contribute to a prosperous grape export venture.

Understanding export regulations for Indian grapes export

If you plan to export grapes to the European Union, it's important to adhere to the guidelines set forth by the Agricultural and Processed Foods Export Development Authority (APEDA) in India. This includes monitoring agrochemicals and other contaminants' residues and grading the grapes according to Agmark standards. The complete process can be found on the APEDA website. If you want to export to China, it's necessary for both exporters and farmers to register or renew their official registry with the Indian Ministry of Agriculture (IMOA). This is because the official list needs to be sent to the Chinese authorities in advance. Additionally, it's important to comply with the Protocol of Phytosanitary Requirements agreed upon by the IMOA and the Chinese Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ), which can also be found on the APEDA website.

Company licenses & setup for Grapes export business

Setting up an export company for grapes involves navigating through various legal obligations and paperwork. While the specific requirements may vary by country, certain essential documents are commonly needed to establish your export venture:

Documents related to Company Registration:

  • Company Registration: Begin by legally registering your business as an export company with the appropriate governmental bodies. This establishes your business's formal identity.
  • IEC (Import Export Code): Obtain an IEC from the Directorate General of Foreign Trade (DGFT). This 10-digit code is crucial for import-export operations and is recognized by customs authorities.
  • Tax Identification Number (TIN) or Employer Identification Number (EIN): These unique identifiers are necessary for tax purposes.
  • Trade License: Depending on the circumstances, certain export activities may require a trade license.
  • AD Code: The AD Code assigned by your bank is vital for foreign exchange transactions and export tracking.
  • Port Registration: Register your grape export shipment at the designated port. This ensures proper customs processing and clearance, requiring the submission of relevant shipment documents.

Documents related to goods:

  • Invoice: Detailing the terms of the grape sale, including price, quantity, description, and involved parties.
  • Packing List: Providing comprehensive information about each package's contents, encompassing quantity, weight, and packaging type.
  • Certificate of Origin: A Certificate of Origin is Certifying the grapes' country of origin is essential for customs clearance and tariff determination.

Documents related to shipment:

  • Mate Receipt: Issued by the shipping company upon receiving your grapes for shipment, confirming acceptance and condition.
  • Shipping Bill: A shipping bill is a customs declaration submitted for export clearance.
  • Bill of Lading (B/L): A bill of lading is a receipt from the shipping company that serves as evidence of a goods receipt and a contract of carriage.

Documents related to Payment:

  • Letter of Credit (L/C): A bank-issued financial document ensuring payment to you as the exporter once specified conditions are met.
  • Bill of Exchange: A legal document outlining payment terms between you and the importer.

Documents related to quality of goods:

  • GLOBALGAP Certification: Demonstrating adherence to safe and sustainable agricultural practices standards.
  • Health Certificate: Required in some destinations to verify grapes meet health and safety standards.

Organic Certificate:

  • Organic Farming Certificate: If your grapes are organically produced, this certificate affirms their organic status.

Documents related to Foreign Exchange Regulations:

  • GR Form (Goods Receipt Form): A Reserve Bank of India (RBI) requirement, ensuring export proceeds repatriation within specified timelines.

Documents requirement for product

To export Indian grapes, you'll need the following documents:

  • Phytosanitary Certificate: A phytosanitary certificate is a document certifying that your grapes are free from pests and diseases, issued by the relevant authorities.
  • Fumigation Certificate: Proof that your grapes have been treated for pests and diseases before export.
  • Packhouse Recognition Certificate: A certificate confirming that your packhouse meets the necessary quality and hygiene standards for grape packing.
  • Certificate of Authorization from DMI: A document issued by the Directorate of Marketing and Inspection (DMI) authorizing your export activities.
  • Fumigation Certificate for Wooden Packing Material: If you're using wooden packing material, you'll need a separate fumigation certificate for it.
  • Agmark Grading Certificate: A certificate indicating the grade and quality of your grapes as per Agmark standards.

These documents are essential for a smooth and compliant export process for Indian grapes.

Other Documents:

  • Bank Realization Certification (BRC): Issued by the bank after receiving payment, confirming the realization of foreign exchange from the export transaction.

Setting up website & marketing materials

With your necessary documents secured, it's time to establish a robust online presence:

  • Website Development:
    Craft a user-friendly website that showcases your grape export offerings. Create a visually appealing platform that highlights your strengths, expertise, and commitment to quality. Provide detailed information about your grape products and certifications.
  • Distinctive Logo and Branding:
    Design a captivating logo and consistent branding that resonates with your grape export enterprise.
  • Digital Outreach:
    Leverage digital marketing tools like social media, email campaigns, and SEO strategies to expand your reach. Well-executed digital marketing will help you engage a global audience and foster growth.

Finding Buyers for Your Grapes:

B2B Platforms:
Utilize online B2B platforms to connect with potential international grape buyers. Showcase your grape offerings and emphasize their unique qualities to attract potential buyers and expand your market reach.

Networking at Trade Shows:
Participate in trade shows to directly interact with potential grape buyers. Showcase your products, engage in meaningful conversations, and build relationships that can lead to export opportunities.

Referrals and Networking:
Cultivate relationships with industry peers, suppliers, and satisfied customers. Seek referrals and actively engage in networking events to grow your grape export business.

Social Media Promotion:
Utilize social media platforms to showcase your grapes, interact with your audience, and connect with potential buyers. Targeted advertising can help you reach a broader audience.

Outreach and Cold Emails:
Initiate personalized outreach through cold emails to potential grape buyers. Highlight how your grapes fulfill their requirements and establish meaningful connections.

Effective Negotiation and Deal Closure:
When negotiating with potential buyers, focus on providing competitive pricing and favorable terms. Build trust throughout the negotiation process and finalize deals by settling payment and shipping arrangements.

Conclusion

In conclusion, venturing into grape export holds exciting opportunities for growth. To ensure your success, consider partnering with Citrus Freight, a pioneering digital freight forwarder. With our user-friendly online platform, you can seamlessly manage your grape shipments from start to finish, including customs clearance and surface transport support. Experience convenience and efficiency as you scan, book, monitor, and pay for your perishable exports with a few simple clicks. Choose Citrus Freight for a smooth and successful grape export journey.