Weather woes hit apple produce in Northern bowl

Adani Agrifresh to crowd out other buyers, Mahindras to import more apples

The companies engaged in apple trading and marketing branded apples are preparing for hard times due to tepid arrivals this season after record crop in 2015-16. The agri division of Mahindra & Mahindra, which sells branded apples, is planning to import more, while one of the largest players of apple trading Adani Agrifresh is most likely to crowd out other players even by offering high price in North India's Apple bowl. 

Apple output this year is estimated to fall significantly due to public disorder in Jammu and Kashmir, the largest apple producing state, besides reports of crop damage in Himachal Pradesh.

“In case of lower supply from domestic sources, including J&K and Himachal Pradesh, we will increase import to meet supply of apple consistently. We have many sourcing locations overseas from where we can increase imports,” said Ashok Sharma, chief executive officer, Mahindra & Mahindra, agri division.

Apple is the major horticulture crop of Himachal Pradesh and Jammu and Kashmir and damages to apple orchards largely due to irrational weather and issues in J&K are likely to result in major dent on corporate buying. 

Adani Agrifresh, the key player with 80% market share in organised apple market in Himachal, has been pulling all resources to procure the targeted 25,000 tonne apple. Sources in the company have informed that the damage to the crop has been colossal in the lower and middle elevation so they are concentrating their energies to higher elevation. Prices have shot up due to supply constraints but they are geared up to compete with both organised and unorganised players to procure the required size of crop. 

Appy Fizz, a Parle promoted drink, made from apple extracts may not find it as hard because they need culled apple and that was available in the aftermath of hailstorm. The food processing sector may not be as much affected as they thrive on residue crop, informed a government official.

Prakash Thakur, vice-chairman of HPMC (Himachal Pradesh Horticulture Produce, Marketing and Procurement Corporation) said: "A higher average mean temperature during this season has affected yield and hailstorms in April and May aggravated crop loss. The annual apple production that can touch up to 5 crore boxes (one box weighs 20 kilograms) or 1,00,000 tonne in a good year would remain in the range of 1.5 crore boxes this year." 

Crop in Jammu and Kashmir is also half the expected size, officials in the Horticulture department of Jammu and Kashmir confirmed. The local private players are more active in the state in apple procurement.

The harvesting of apple has just commenced and closes in October end/ November.

In the wake of poor supplies, prices have shot up substantially. An apple box (of 20 kilogram) that was trading at Rs 1,200-Rs 1,400 at farm gate last year during this time is now available at Rs 1,800-Rs 2,000. "Prices may ascend in the coming weeks,” said Thakur.

Apple imports to the country may jump this year to meet the demand-supply gap. The average annual import of apple in the country remains close to 20 million boxes, given a good domestic crop and we import mainly from the US and China.

Our exports to neighboring Bangladesh and Nepal are minuscule (about 5 lakh boxes), say the trade experts.

Production of in major apple-producing states
States /UTs	2012-13	2013-14	2014-15	2015-16 (Provisional)
Jammu and Kashmir	1348.15	1647.69	1368.63	2003.07
Himachal Pradesh	412.4	738.72	625.2	753.35
Uttarakhand	123.23	77.45	106.1	106.14
Others	31.6	33.82	33.91	34.03
Total (All India)	1915.38	2497.68	2133.84	2896.59

All figures are on '000 MT

Source: Horticulture Statistics Division, Department of Agriculture,Coopn & FW

This information was given by the Minister of State for Agriculture & Farmers Welfare, Shri Parshottam Rupala in Rajya Sabha.