[AJA Global Report] Asian Alternative for Polish Apples

A young woman holds an apple as she walks in a small march by fruit farmers in Warsaw, Poland, Wednesday, Aug. 6, 2014 (Photo: AP, Czarek Sokolowski)

The Russian embargo on Polish fruits and vegetables created great panic among Polish fruit farmers. Especially apple exporters are afraid of the new laws, that cause them to look for a new market for over 700 000 fruits. Even Polish government launched special campaign “Eat Polish Apples” trying to raise domestic fruit consumption. Though the government action seem to bring short-term success, it is clear that Polish apples will need new markets overseas, also in Asia. Various countries are taken into consideration, with India seen to be the best alternative for Polish apple exporters.

According to The Polish Institute of International Affairs (PISM) Indian apple market is very specific. Although India itself is the third apple producer in the world, their market is far away from being saturated. With domestic consumption growing rapidly year by year, in 2011 India has become the 9th biggest apple importers in the world. Moreover, the latest market analysis reveal that the demand for apples in India might be growing due to the enrichment of Indian society over the last years. Having such a great opportunity, why do Polish fruit exporters still hesitate of enlarging selling in country with 1.3 billion potential consumers?

Indian legislation system is the biggest obstacle on the Polish apples’ way. Only the fruit trade duty reach 50% what together with additional E-cola bacteria examination makes fruit export expensive and complicated. In addition cultural differences and logistics problems can bring traders of both sides additional headache. Consequently, although the Indian apple market is huge, the access to that market is troublesome enough to make Polish trade companies consider exporting apples somewhere else.

By Michal Mocarski, Poland, AJA Global Report