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R. Balaji

CHENNAI, April 25

THE mango processing units in Dharmapuri and Krishnagiri districts, the major centres for mango pulp processing and export, are yet to finalise their export prices and book orders though the processing season is just around the corner.

According to the Vice-President, Dharmapuri District Fruit & Vegetable Processors' Federation, Mr H. M. Satyamurthy, with mango prices expected to rule high because of low production, pulp export prices quoted by the merchant exporters were unviable.

The processors and exporters are yet to conclude a price or book orders though the Alphonse variety of mango is set to arrive in early May. This is a cause for concern as most of the production from the 29 processing units is targeted at exports.

Totapuri, the other variety used for making pulp, is expected to hit the market in end-May. Business has been slow this year. Normally, prices would have been fixed by now and orders booked. The processors would also have had an idea of the numbers involved. Even the few units that go in for direct exports were yet to arrive at a price, Mr Satyamurthy said.

The prices in 2001 were low because of the abundant crop availability. But this year, due to the adverse weather conditions and because mango trees are alternate bearers — a lean season invariably follows a heavy season — 2002 will see mango prices rule high.

As of now, traders indicate that the Totapuri prices could be around Rs 10 per kg — nearly double that of last year and similar to the situation in 2000, which was a poor season. The enquiries for pulp are around $10 per carton (18.6 kg), for which the raw material cost will be around Rs 5 or Rs 6 per kg.

Therefore, the processors are keeping their fingers crossed and are hoping that a clear picture would emerge in the next one week. Meanwhile, some of the merchant exporters are in no hurry to make their orders because the processors depend on exports for their product, he said.

In 2000, which was a lean season, prices commenced at $14 at the start of the season, and dropped to $11 in September/October, $8 in December and by the start of the 2001 season, the price of the 2000 stock was $6.

This was attributed to the fact that the lean season had pushed up prices too high, while the demand for mangoes for table purposes (direct consumption) had come down. But the processing units had picked up sufficient quantities. The merchant exporters were anticipating a repeat of the situation this year, and were yet to fix a price, Mr Satyamurthy said.

The average production of each of the mango pulp production units in the Dharmapuri and Krishnagiri cluster was about 37 tonnes per day or about two container loads. All the units put together produce about 75 container loads per day. Most of the production is exported to West Asia and to Malaysia and Singapore. These are packed in 1.6-kg cans, six of which make up a carton. Usually, the processors book the orders, and produce pulp on conversion basis. The units take a processing charge, while the trader supplies the raw material and the packaging material. Or the trader supplies just the packaging material, and the processor buys the raw material and processes it. Less than a handful of these units bear the cost of processing and go for direct exports because of the expense involved, he said.

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