Avocado traders bet big on rising consumption in India
CALL.
Westfalia Fruit, the world’s leading integrated avocado farming and trading company, is pinning greater hopes on the rising consumption of avocado in the Indian market.
Ajay TG, General Manager of Westfalia Fruit, the South African firm said avocado sales in India have doubled over the past two years and the trend is likely to continue in the current year. In 2021, India imported 1,000 tonnes of avocado, which doubled to 2,000 tonnes in 2022 and 4,000 tonnes in 2023. The figures of the first three months in the current year point to consumption doubling again to 8,000 tonnes this year. Over 50 per cent of avocado imports into India are by Westfalia, he said.
Ajay was in Kochi to launch the company’s Kerala trade of avocados through a tie-up with
Kochi-based International.
Aeden
HIGHER OFFTAKE
Fruits
The exotic fruit used to be imported into India from Peru, Chile and New Zealand by air, which had kept retail prices high owing to the steep airfreight. However, the sea transport has brought down the retail prices with imports are now being done from Kenya, Tanzania, South Africa, Brazil and Australia.
According to Kamarudheen CH, Managing Director, Aeden Fruits, avocado has been a familiar fruit in Kerala owing to Keralites’ exposure to the European and Middle East markets where avocado consumption is high. The higher consumption of avocados, which are normally priced upwards of ₹300, is a reflection of the purchasing power in the state.
Sumit Saran, representing the World Avocado Organisation in India, said the health benefits of avocado were a significant factor in triggering a strong interest in the fruit in India. The Indian market is already using the fruit in a range of foods from ice cream and juices to chaats.
Global growth of avocado sales have been in the range of 15-20 per cent annually, while in India it has grown many times faster at 100 per cent.
Reflecting the increasing consumption of avocado in the country, avocado plantations have also come up in dierent states including Kerala.
That said, the chart of May contract shows that there is a resistance ahead at ₹178. But given the current momentum, the probability is high for natural gas futures to go beyond the hurdle at ₹178.
The nearest resistance above ₹178 is at ₹197. The price region between ₹197 and ₹200 is a barrier. A breach of ₹200 can open the door for a rally to ₹215 or even to ₹230.
That said, as of now, the contract has not shed the bearish bias completely. The potential rally from the current level to ₹200 may be a corrective one. So, we suggest only traders with high-risk appetite can consider longs.
TRADE STRATEGY
Buy natural gas futures (May series) now at ₹175. Add longs in case the price dips to ₹168. Place stop-loss at ₹158. When the contract rises above ₹182, alter the stoploss to ₹172. Tighten the stoploss further to ₹180 when the price touches ₹190. Book profits at ₹196.