Justin Chadwick, CEO of the Citrus Growers’ Association of Southern Africa (CGA), sees India as a golden opportunity for South African citrus exports. But as with any great opportunity, there are hurdles to overcome. In this article, he peels back the layers of what’s holding citrus exports back and what’s needed to unlock this promising market.
As the agricultural priorities for 2025 are being set out and parliament resumes, ministers and legislators will be highlighting ways our economy can be boosted in the next couple of weeks. Securing greater market access for South African fresh produce should be high on the list of priorities. The citrus industry remains on a remarkable long-term growth trajectory.
With much more fruit coming on stream in the next couple of years because of new plantings, South Africa can seize a moment of job creation and revenue expansion through citrus exports. But to do this, market access for our fruit must be expanded.
Even though extreme weather, other climate factors, and a highly elevated local juicing price reduced this year’s expected export figures significantly, the total exports were still only 0.3% less than those of 2023. This is a remarkable achievement considering the season’s setbacks. It is also a testament to the industry’s steady growth in production.
On the current trajectory the industry can boost citrus production with an additional 100 million 15kg cartons and create 100 000 new jobs by 2032, should all role players work together.
Massive potential market
One market that holds immense promise as a destination for our citrus is India. With a population of 1.4 billion, vegetarian consumption habits, and a general love of fresh fruit, India should be a major destination for South Africa’s citrus.
While citrus exports to India have increased significantly – just since 2020 it has almost tripled to 30 000 tonnes – there is a significant hurdle that must be cleared before our growers and the citrus-loving Indian consumer can benefit; this hurdle is a 30% import tariff on citrus.
As tariffs go, this is a rather steep one. It was a point of discussion last month during the India-South Africa Business Conclaves in both New Delhi and Mumbai. The two events showcased the remarkable trade relationship between the two countries. This relationship can become even more significant if trade barriers are addressed in a mutually beneficial way.
India’s growing appetite for SA citrus
India produces approximately 16 million tonnes of citrus a year. The country, however, is counter-seasonal to South Africa, which means we can supply them when their local growers cannot. For five significant months, South African growers can sustain Indian customers’ interest, in effect benefitting Indian citrus growers by keeping consumers in the category and “handing them over” as loyal buyers at the end of the season.
There is a noticeable appreciation for South African citrus in India. During the recent Business Conclaves, I visited the breathtaking municipal market in New Delhi. The sheer quantity of fresh produce that is moved through the market daily is astounding.
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It is a noisy and vibrant place. Many importers carry promotion material funded by South Africa’s Hortgro under the “Beautiful fruit, beautiful country” banner. This material features the fantastic tourist destinations in South Africa and is aligned with the tourism promotion of South Africa.
It was fitting that South African fruit aspirations were also discussed with tourism minister Patricia de Lille at the conclaves. She announced two important things that will assist in enhancing tourism and trade with India: the improvement in granting visas to Indian nationals and talks to resume direct flights between India and South Africa.
But it is in the unique experience of South African citrus that a link between the tourism of the two countries becomes clear. Indian buyers truly value the unique taste, look, freshness and quality of our oranges, mandarins, lemons and grapefruit – all of course grown in the scenic provinces of Limpopo and the Western and Eastern Cape.
Levelling the playing field
The Citrus Growers’ Association of Southern Africa (CGA) has prioritised reaching out to stakeholders at home and abroad to address the steep tariff on citrus. These tariffs put South African exporters at a severe disadvantage compared to competitors benefiting from free or preferential trade agreements.
As members of Brics, India and South Africa share ties that currently are not fully utilising trade opportunities. If the Brics partnership could move from a political grouping to one more engaged in improving the trade environment, member countries’ citizens stand to benefit greatly. Tariffs and access are aspects that should be a much more significant part of future discussions between Brics countries. Especially considering that fellow member China is another massive market for our citrus, one whose immense potential is also not fully realised due to import tariffs.
Another factor holding back citrus exports to India is the country’s current requirement for cold treatment of citrus (which mitigates the risk of pests associated with South African citrus) to happen when it reaches India’s shores, rather than the more economical way of cooling the citrus while it is in transit to India via ships.
Pilot shipments demonstrating the viability of in-transit cold treatment to India are a promising development and we hope to celebrate alongside the South African government if it is approved by India in the near future. This development could give momentum to further unlock the immense opportunity that India holds.
Without increased access to key markets such as India, our industry and the many rural economies it sustains will not truly reap the benefits of the projected increase in citrus production. As the 2025 citrus season is almost visible on the horizon, it is the ideal moment to identify and then start to address trade barriers such as tariffs.
- Justin Chadwick is the CEO of the Citrus Growers’ Association of Southern Africa. The views and opinions expressed in this article are those of the author and do not necessarily reflect the views or positions of Food For Mzansi.
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