Exporters fear payment loss following 9 per cent fall in pound

Post Brexit, grape and pomegranate exporters from Nashik have expressed fear that a weaker pound or euro, and restrictions on sale, could affect their businesses in Europe.

“The pound has fallen by nine per cent to Rs 91. Traders who exported during the last season and are awaiting payments will incur a straight nine per cent loss,” the Maharashtra Drakshya Bagiatdar Sangh (MDBS) Nashik division president Manikrao Patil said. The MDBS is Maharashtra’s premier grape body.

Mr Patil said that while a consignment value of grapes would be 1,00,000 pounds which would amount to Rs 10 crore, the fall in currency value in Europe would mean the exporter would now receive only Rs 91 lakh in payment, which is a loss of Rs 9 lakh.

“Those, who have exported more, will naturally stand to lose more money,” Mr Patil said.

“Earlier, in case of surplus stock in a particular country, the grapes could easily be transported to the neighbouring countries. There was minimum paperwork and markets were open. Now, it won’t be as easy and the paperwork will increase,” he said.

A total of 84,000 metric tonnes of grapes were exported from India to UK and European countries in financial year 2015-16. During 2013-14, about 1,92,616 tonnes grapes were exported. Nashik is the largest producer of grapes, pomegranates and onions in the country. Other grape producing areas are Sangli, Solapur and Pune districts.