December 12, 2024

How India’s 10-Minute Grocery Trend Could Boost South African Citrus Exports

High-level discussions at the South Africa-India Business Conclaves in New Delhi, fostering stronger trade ties and opening new opportunities for South African citrus exports

India’s rapid adoption of Quick Commerce platforms like Blinkit, Swiggy, and Zepto is not only transforming how groceries are purchased but also opening up new opportunities for South African citrus exporters. As this mode of instant delivery reshapes consumer behaviour, it provides a unique platform for introducing imported products to a vast and growing market. Justin Chadwick, CEO of South Africa’s Citrus Growers’ Association (CGA), highlights both the opportunities and challenges this dynamic presents for South African citrus producers.

Quick Commerce

Quick commerce platforms promise delivery of groceries and other products in under 10 minutes, a concept made possible by densely populated urban centres like New Delhi, with its population of 40 million. These platforms rely on strategically located “dark stores” stocked with a wide range of goods, enabling them to meet consumer demand almost instantly.

For South African citrus exporters, this trend is a golden opportunity. By leveraging these platforms, exporters can introduce their products directly to Indian consumers, accompanied by targeted advertising and education about the health benefits and culinary versatility of citrus fruits. This direct-to-consumer approach not only boosts demand but also builds brand loyalty.

Growing Trade Between South Africa and India

Trade relations between South Africa and India have strengthened significantly in recent years, with citrus exports growing from 10,000 tons in 2020 to almost 30,000 tons in 2024. While oranges have traditionally dominated the market, mandarins now account for nearly a third of South African citrus exports to India. There is also untapped potential for growth in lemons and grapefruits, making India an increasingly important market for South African citrus growers.

The recent India-South Africa Business Conclaves in New Delhi and Mumbai underscored the importance of this trade relationship. Promotional campaigns like “Beautiful Fruit, Beautiful Country” have successfully linked South African fruit exports to the country’s tourism appeal, enhancing consumer interest.

Challenges Hindering Expansion

Despite this growth, significant challenges remain. Indian import duties on citrus products are set at a prohibitive 30%, making South African fruits less competitive compared to local and other international suppliers. Additionally, India’s stringent shipping requirements currently prohibit in-transit cold treatment of fruit, requiring either fumigation or land-based treatment. These processes add to costs and extend delivery times.

However, recent pilot shipments using in-transit cold treatment were successful, paving the way for potential revisions to shipping requirements by 2025. These developments are crucial for reducing costs and ensuring the freshness of citrus products upon arrival in India.

Opportunities for Collaboration and Growth

To capitalize on this growing market, South African exporters must work closely with Indian authorities to address trade barriers. Reducing import duties and revising shipping protocols will be critical to enhancing the competitiveness of South African citrus in India.

Further, innovations in quick commerce platforms can be used to build consumer awareness and preference for South African products. Targeted marketing campaigns highlighting the health benefits, flavour profiles, and sustainability of South African citrus can resonate with India’s health-conscious and urbanized population.

The rise of quick commerce in India represents a transformative opportunity for South African citrus exporters. While challenges such as high import duties and shipping restrictions persist, the strong trade relationship between the two countries and innovations in logistics offer a promising path forward. By addressing these hurdles and leveraging quick commerce platforms, South Africa can further cement its place as a trusted supplier in one of the world’s fastest-growing citrus markets.