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India: no takers for local oranges

The Indian orange is yet to catch the attention of foreign and domestic companies as all the major players of the orange beverage segment use only imported pulp as a raw material. Dabur, the leader in orange based packaged juices with a 54 percent market share, sources orange concentrate from North and South America for its “Real” brand. Pepsico, the second biggest player with a 25 percent market share sources its concentrate from Brazil, the U.S. and Israel for its “Tropicana” brand.

The packaged juice market in India is about 50 million cases per annum with a sale of around $88 million. According to the industry sources, the market for packaged juices is growing at over 25 percent per annum. Beverage companies don’t prefer Indian oranges because of their low juice content in comparison to those grown abroad. Experts say that Indian oranges are suitable for fresh consumption and not for mechanized processing. It is for this reason that out of the annual production of 6 million tons of oranges in the country only 1 percent are processed. Nevertheless, companies like Pepsico have started to venture into a program for citrus cultivation from imported seed in Punjab.

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