The Mintec price of Indian mangoes increased by 65% to INR 25,150/MT in the six weeks to 22nd July, due to an uptick in domestic demand, resulting from less stringent lockdown restrictions.
The Indian mango season coincided with the country going into lockdown, hampering supply to both domestic and international consumers. Furthermore, the mango market struggled with several logistical issues, including a lack of labour to undertake harvest, a shortage of trucks for transportation and, most importantly, weak demand due to the inability of consumers to reach marketplaces. Market conditions have since improved and paint a positive future outlook for Indian farmers. The supply-demand balance is expected to be tighter, with Indian mango production estimated to be 4.36% lower y-o-y at 20.44 million tonnes for the 2019/20 crop year.
The easing of lockdown restrictions, coupled with government legislation allowing farmers to sell their produce directly to consumers, led to higher domestic demand in June compared to the previous two months. The Maharashtra government allowed farmers to eliminate the Agricultural Produce Market Committee (APMC) markets and therefore remove three to four intermediaries.
Overall, the Mintec price of Indian mangoes is expected to rise in the short term, with alleviating logistical issues and increasing consumer demand.